How Premium and Artisanal Ice Creams Are Reshaping the Frozen Desserts Market
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24 Feb 2025 10:56:57 am.
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The global frozen desserts market Size is experiencing significant growth, propelled by consumer demand for innovative flavors and health-oriented products. Recent analyses indicate that the market, valued at USD 125.9 billion in 2023, is expected to reach approximately USD 196.30 billion by 2035, registering a Compound Annual Growth Rate (CAGR) of 4.1% from 2024 to 2030.
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Market Definition and Estimation
Frozen desserts encompass a wide range of sweetened products made by freezing liquids, semi-solids, or solids. This category includes ice creams, frozen yogurts, sherbets, gelatos, sorbets, and frozen cakes, among others. These desserts are crafted using various ingredients such as milk compounds, vegetable fats, fruits, and natural or artificial sweeteners. Traditionally consumed as indulgent treats, frozen desserts have evolved to include options that cater to health-conscious consumers, featuring low-fat, low-sugar, and non-dairy alternatives.
Growth Drivers and Opportunities
Several key factors are driving the expansion of the global frozen desserts market:
- Rising Disposable Incomes and Urbanization: Increased disposable incomes, particularly in developing regions, have led to higher consumer spending on premium and indulgent food products. Urbanization has also introduced consumers to a variety of frozen dessert options, expanding their culinary experiences.
- Health and Wellness Trends: There is a growing consumer shift towards healthier lifestyles, prompting demand for frozen desserts that align with dietary preferences. This includes products that are low in fat and sugar, as well as non-dairy alternatives suitable for lactose-intolerant individuals or those following plant-based diets.
- Flavor Innovation and Premium Ingredients: Manufacturers are investing in research and development to introduce unique flavors and high-quality ingredients. This innovation caters to adventurous palates and positions products as premium offerings in the market.
- Expansion of Distribution Channels: The proliferation of supermarkets, hypermarkets, convenience stores, and online retail platforms has made frozen desserts more accessible to a broader audience. E-commerce, in particular, has enabled consumers to explore a wider range of products from the comfort of their homes.
- Technological Advancements in Production and Storage: Innovations in production techniques and storage solutions have improved the quality and shelf-life of frozen desserts, ensuring that products reach consumers in optimal condition.
Segmentation Analysis
The global frozen desserts market is segmented based on product type, source, and distribution channel.
- By Product Type:
- Ice Cream: This segment includes traditional dairy-based ice creams available in various flavors and forms, such as cones, bars, and tubs. The demand for artisanal and craft ice creams with unique flavor profiles is on the rise.
- Frozen Yogurt: Positioned as a healthier alternative to traditional ice cream, frozen yogurt is made using yogurt cultures and is often lower in fat. It appeals to health-conscious consumers seeking probiotic benefits.
- Gelato: Originating from Italy, gelato is known for its dense and creamy texture, achieved through a slower churning process. It typically contains less fat than traditional ice cream and is available in a variety of flavors.
- Sherbet and Sorbet: Sherbet contains a small amount of dairy, while sorbet is entirely dairy-free. Both are fruit-based and offer a lighter alternative to cream-based desserts.
- Frozen Cakes and Pastries: This category includes desserts like ice cream cakes, frozen cheesecakes, and other pastry-based frozen treats, often consumed during celebrations and special occasions.
- By Source:
- Dairy-Based: Products made from cow's milk or other animal-derived milk, offering a rich and creamy texture.
- Non-Dairy-Based: Alternatives made from plant-based milks such as almond, soy, coconut, or oat milk, catering to vegans and lactose-intolerant consumers.
- By Distribution Channel:
- Supermarkets and Hypermarkets: Large retail stores offering a wide variety of brands and products, providing consumers with numerous choices.
- Convenience Stores: Smaller retail outlets that offer quick and easy access to popular frozen dessert options.
- Specialty Stores: Shops focusing on gourmet and artisanal frozen desserts, often featuring unique and premium products.
- Online Retailers: E-commerce platforms that allow consumers to browse and purchase frozen desserts with the convenience of home delivery.
Country-Level Analysis: USA and Germany
- USA: The United States represents a significant portion of the global frozen desserts market. The country's diverse population and high disposable income levels contribute to a robust demand for a variety of frozen desserts. Health-conscious trends have led to increased consumption of low-fat, low-sugar, and non-dairy options. Additionally, the popularity of artisanal and craft frozen desserts has surged, with consumers seeking unique and premium products.
- Germany: In Germany, the frozen desserts market is experiencing steady growth, driven by a strong economy and high consumer spending on indulgent food products. Traditional flavors remain popular, but there is a growing interest in innovative and health-oriented options. The demand for organic and natural ingredient-based frozen desserts is on the rise, reflecting the country's emphasis on health and environmental sustainability.
The global frozen desserts market is characterized by the presence of several key players who are continually striving to enhance their market share through various strategies. Notable companies include:
- Unilever PLC: A global leader in the frozen desserts industry, Unilever offers a wide range of products under brands like Magnum, Ben & Jerry's, and Cornetto. The company focuses on innovation and sustainability, introducing new flavors and environmentally friendly packaging solutions.
- Nestlé S.A.: Nestlé's extensive portfolio includes brands such as Häagen-Dazs and Dreyer's. The company emphasizes quality and premium ingredients, catering to consumers seeking indulgent experiences.
- General Mills, Inc.: Through its brand Yoplait, General Mills offers a variety of frozen yogurt products. The company is committed to providing healthier options, aligning with the growing health-conscious consumer base.
- Fonterra Co-operative Group: As a leading dairy exporter, Fonterra supplies high-quality dairy ingredients used in various frozen desserts. The company's focus on sustainability and innovation supports the development of premium dairy-based products.
Conclusion
The global frozen desserts market is poised for substantial growth in the coming years, driven by consumer demand for innovative, indulgent, and health-conscious products. As disposable incomes rise and urbanization continues, particularly in developing regions, the market offers significant opportunities for expansion. Companies that prioritize innovation, quality, and sustainability are well-positioned to capitalize on these trends, catering to a diverse and discerning consumer base. With projections indicating a market value of approximately USD 196.30 billion by 2035, the frozen desserts industry is set to play a pivotal role in the global food sector, delighting consumers with a wide array of delectable options.
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