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The frozen desserts market size is estimated to increase by USD 25.8 billion, growing at a CAGR of 6.79% between 2023 and 2028. The Frozen Desserts Market is experiencing significant growth, driven by several key factors. Urbanization and evolving consumer lifestyles are primary catalysts, as an increasing number of people reside in cities and seek convenient, indulgent treats. The retail landscape for frozen desserts is expanding, with more grocery stores and specialty shops offering a wider variety of options. Additionally, the introduction of vegan frozen desserts is broadening the market's reach, catering to the growing demand for plant-based alternatives. These trends are fueling the market's growth and are expected to continue shaping its trajectory.
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In the realm of dairy and frozen desserts, milk components and vegetable fats form the foundation of traditional ice creams and frozen yogurts. However, amidst concerns about climate change and rising interest in vegan alternatives and dairy-free products, the industry is witnessing a shift towards low-calorie desserts and organic ingredient-based options. Dried fruits add natural sweetness and texture diversity to these treats, appealing to health-conscious consumers seeking health-related content in their diets. The International Dairy Foods sector plays a crucial role in innovating packaging solutions that enhance freshness and convenience, incorporating time-saving factors for busy lifestyles. Companies like Colorado-based producers are at the forefront, leveraging these trends as crucial growth factors in developing new products that align with evolving consumer preferences and sustainability goals.
The rising urbanization and changing consumer lifestyles are notably driving the market growth. Some of the key drivers for the market are the growing global urban population and increasing demand for convenient breakfast foods. Over the past two decades, consumer lifestyles and eating habits have changed significantly. Urbanization and consumerism have driven this change, resulting in a rapid increase in the consumption of frozen and packaged foods. Europe and emerging countries in Latin America and APAC will prove to be attractive markets for frozen desserts during the forecast period. Increased global urbanization is leading to higher living standards and higher disposable incomes. However, a busy life leads to poor health and lifestyle-related diseases due to unhealthy eating habits. There is also an increasing tendency to eat dessert for lunch and dinner.
Moreover, with increasing urbanization, the food and beverage industry is experiencing significant growth around the world. The world's urban population will grow from 746 million in 1950 to 4.46 billion in 2021. By 2050, an estimated 2.5 billion people will live in urban and semi-urban areas, a 90% increase in Asia and Africa. This increase in urbanization will increase the consumption of frozen desserts, driving the growth of the market during the forecast period.
The consumption of frozen yogurt as a functional food is a key trend influencing market growth. Functional foods are foods that contain active microbial compounds. This food category has gained popularity among consumers around the world. Functional foods are very popular in Japan and Western countries. These foods are in high demand in APAC and North American countries due to the growing awareness of healthy living and adherence to healthy eating habits. Aging consumers require foods that are functional and can provide positive nutritional benefits to meet their age-related needs. Therefore, the demand for functional foods in this consumer group is higher than in other categories. Functional foods contain one or more additional ingredients that allow the food to perform additional functions. These additional ingredients are generally intended to provide health benefits to the consumer.
Moreover, the frozen yogurt contains probiotics that inhibit the growth of other harmful bacteria. Prebiotics and probiotics are high in frozen yogurt because they may improve liver health, prevent colon cancer, improve oral health, and cure irritable bowel syndrome. Rising awareness of the health benefits, such as frozen yogurt, is expected to boost the market growth and trends during the forecast period.
The increasing prevalence of obesity and related diseases among consumers is challenging the market growth. Growing obesity and other lifestyle issues among consumers are one of the challenges to the growth of the market. Obesity causes a variety of health problems and diseases, including high blood pressure, diabetes, joint problems, etc. Adults with a BMI between 25 and 29.9 are considered overweight, and adults with a BMI greater than 30 are considered obese.
However, the obesity and related problems affect more than one-third of the world's population. According to the Centers for Disease Control and Prevention (CDC), about 39.80% of the adult population in the United States over the age of 20 is obese. The global rise in obese people is forcing consumers to reduce their consumption of processed foods, including ice cream, and this factor is expected to negatively impact the growth of the featured market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Andros SNC: The company offers different types of products, such as jams, preservatives, apple sauce, and many more. It also offers frozen desserts under its brand Andros Chef.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the gelato segment will be significant during the forecast period. Consumption of gelato is on the rise, especially among young adults looking for a refreshing snack. The artisanal ice cream sector, on the other hand, is growing the fastest due to changing customer preferences toward products made with natural ingredients.
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The gelato segment was valued at USD 26.70 billion in 2018. This segment is expected to be driven by increasing consumer spending on fast food, intensive research and development activities for the production of unique product variations, and product availability. Urbanization and rising disposable income are expected to significantly contribute to the growth of the gelato segment while boosting the growth of the global market during the forecast period.
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North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Moreover, demand for frozen desserts is increasing in North America, with the United States being the largest North American frozen desserts market by revenue in 2022. Some of the factors expected to contribute to the expansion of the North American frozen dessert market during the forecast period are an increase in the number of new product launches and an increase in investment by market players. Market suppliers are also investing in expanding production capacity in North America to meet the growing consumer demand for frozen desserts. In North America, growing consumer health concerns have increased the demand for low-fat, plant-based frozen desserts such as ice cream. Growing consumer demand for low-calorie ice cream is evident in the growth in sales of these products. These factors are expected to boost the growth of the regional frozen desserts market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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1. Dairy Desserts Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast.
2. Gourmet Ice Cream Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, Belgium, UK, China - Size and Forecast
3. Commercial Ice Cream Freezers Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, Canada, China, Japan, Germany - Size and Forecast
The frozen desserts industry is experiencing a dynamic shift driven by diverse consumer preferences and health-conscious trends. Low-fat ice cream and gluten-free products cater to dietary needs, while premium brands like Magnum, Kwality Walls, and Cornetto offer indulgent treats favored by Millennials and promoted on social media platforms. Innovations in sugar-free frozen desserts and alcohol-infused ice cream reflect evolving tastes and health considerations, addressing concerns such as heart disease and exploring novel ingredients like cannabidiol. Frozen bakery and desserts categories expand with gluten-free offerings and innovative flavors like Sea Salt Caramel and Honey Vanilla Bean, appealing to health and wellness trends. Emerging markets see growth in frozen snacks with local flavors such as gulab jamun and basundi, diversifying product portfolios and enhancing impulse purchasing behaviors. As nondairy ice cream and vegan lifestyles gain traction, brands like Sovos Brands and Yili Industrial Group Limited innovate with coconut, almond, and soy milk blends, catering to a vast population seeking healthy food alternatives without compromising on quality, taste, or functionality.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2028-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.79% |
Market growth 2024-2028 |
USD 25.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.18 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 47% |
Key countries |
US, Germany, UK, China, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Andros SNC, AO Molochny kombinat Stavropolskiy, Coolhull Farm, Dairy Farmers of America Inc., FAT Brands Inc., Fonterra Cooperative Group Ltd., General Mills Inc., Heritage Foods Ltd., IDMC Ltd., Inspire Brands Inc., Karnataka Milk Federation, Meiji Holdings Co. Ltd., Mondelez International Inc., Nestle SA, Regal Cream Products Pty Ltd., Tofutti Brands Inc, Unilever PLC, Yasso Inc., and Yogurtland Franchising Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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