Food and Beverages

Frozen Desserts Market is Expected to Reach USD 196.49 Billion by 2031

Mar 2024

Food and Beverages

As per the report published by Kings Research, the global Frozen Desserts Market was valued at USD 132.98 billion in 2023 and is projected to reach USD 196.49 billion by 2031, growing at a CAGR of 8.6% from 2024 to 2031.

Frozen desserts constitute a diverse category of sweet treats, encompassing traditional ice cream, frozen yogurt, gelato, and sorbet. These delectable offerings achieve their frozen state through various freezing and production techniques, resulting in distinct textures and flavors. Beyond standalone consumption, the applications of frozen desserts extend to their incorporation into other desserts and beverages, showcasing their versatility in the culinary world. The drivers shaping the frozen dessert market are multifaceted. Evolving consumer preferences play a pivotal role in supporting market expansion, with an increasing demand for innovative and exotic flavors driving product development. Health and wellness trends contribute to the market's growth, prompting the creation of low-fat, low-sugar, and non-dairy alternatives to cater to health-conscious consumers. High emphasis on premiumization, globalization, and technological advancements further propels the market, as manufacturers continually innovate to meet changing consumer expectations and preferences. As a result, the frozen dessert market is thriving backed by a combination of consumer-driven demand, health consciousness, and the pursuit of culinary excellence.

Key Insights

  • Based on product type, the ice cream segment held the largest market share of 45.91% in 2023
  • Based on distribution channel, the supermarkets/hypermarkets segment garnered the highest revenue of USD 46.28 billion in 2023
  • On the basis of region, Asia Pacific is expected to be fastest growing region exhibiting a CAGR of 6.76% over the forecast period

Rising Demand of Plant-based Frozen Desserts Will Create New Opportunities for Market Growth

In the dynamic landscape of the frozen desserts market, one prominent growth opportunity lies in the expansion of plant-based frozen desserts. The rise of plant-based lifestyles and an increasing number of consumers seeking alternatives to traditional dairy products present a significant avenue for growth. As consumers become more health-conscious and environmentally aware, the demand for plant-based frozen desserts is on the rise. Manufacturers can capitalize on this opportunity by developing innovative and delicious plant-based offerings that not only cater to dietary preferences but also address concerns about sustainability. Exploring a diverse range of plant-based ingredients and flavors, while ensuring a rich and creamy texture comparable to traditional frozen desserts, can position brands at the forefront in the market. Additionally, effective marketing strategies that highlight the health and environmental benefits of plant-based frozen desserts can further enhance their appeal to a broad consumer base, contributing to the overall growth and diversification of the frozen dessert market.

Fluctuating Raw Material Prices and High Production Costs Pose a Challenge for Market Expansion

The frozen desserts industry faces a significant challenge posed by fluctuating raw material prices and high production costs. The volatility in the prices of key ingredients, such as dairy products, sweeteners, and flavorings, can directly impact the overall production expenses for frozen desserts. Fluctuations in raw material prices can disrupt supply chains and add uncertainty to production planning, making it challenging for manufacturers to maintain stable pricing for their products. Moreover, the high production costs associated with quality ingredients, advanced freezing technologies, and stringent quality control measures contribute to the financial pressures on producers. As a result, businesses within the frozen desserts market must carefully navigate the delicate balance between maintaining product quality and managing production costs to ensure competitiveness in the market. Strategies such as forward contracting, diversifying sourcing options, and optimizing production processes become crucial for mitigating the impact of fluctuating raw material prices and high production costs, allowing companies to adapt to market dynamics while sustaining profitability and meeting consumer expectations for quality frozen desserts.

Asia-Pacific to be the Fastest-Growing Region in the Market with the Highest CAGR of 6.76%

The region's rapid economic development, changing lifestyles, and increasing disposable income contribute to the burgeoning demand for frozen desserts. As consumers in Asia-Pacific embrace Western food trends and adopt a more globalized palate, the market for diverse frozen treats experiences significant expansion. Additionally, the region's large and youthful population, coupled with a rising awareness of frozen dessert options, is further fueling market growth. The dynamic food culture in Asia-Pacific, characterized by a strong affinity for sweet treats, presents ample opportunities for manufacturers to innovate in the frozen dessert sector. Furthermore, the growing trend of indulgence and the desire for premium and unique flavors contribute to the thriving market in the region. With a combination of cultural shifts, economic factors, and evolving consumer preferences, Asia-Pacific emerges as a key player in the market, offering substantial growth prospects for businesses operating in this vibrant and diverse market landscape.

Market Players Concentrating on Product Innovation to Drive Market Development

The global frozen desserts market is fragmented with key players such as Nestle, Unilever, General Mills, Van's International Foods, Inc., Kellogg's Company, China Mengniu Dairy Company Limited, Frosty Boy, American Dairy Queen Corporation, Unipex Dairy Products Co., Ltd. (London Dairy), Conagra Brands, Inc., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

Get the latest!

Get actionable strategies to empower your business and market domination

  • Deliver Revenue Impact
  • Demand Supply Patterns
  • Market Estimation
  • Real-Time Insights
  • Market Intelligence
  • Lucrative Growth Opportunities
  • Micro & Macro Economic Factors
  • Futuristic Market Solutions
  • Revenue-Driven Results
  • Innovative Thought Leadership