PUBLISHER: KBV Research | PRODUCT CODE: 1374062
PUBLISHER: KBV Research | PRODUCT CODE: 1374062
The Global Frozen Dessert Market size is expected to reach $160 billion by 2030, rising at a market growth of 5.8% CAGR during the forecast period. In the year 2022, the market attained a volume of 19,538.8 Kilo Tonnes experiencing a growth of 5.8% (2019-2022).
The rise of online sales and delivery has significantly impacted the market, transformed how consumers access, and enjoyed their favorite sweet treats. Online ordering and delivery offer unparalleled convenience to consumers. Therefore, online segment would generate $15,589.7 million revenue in the market in 2022. The proliferation of food delivery apps and e-commerce platforms has made it easier for consumers to access frozen desserts from a wide range of restaurants, dessert shops, and brands. As a result, these platforms provide a seamless ordering experience.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In January, 2023, General Mills, Inc. signed an agreement to partner with Specialty minerals company ICL Group Ltd. Under this partnership, started in June 2023, ICL's primary focus will be on providing supplies to General Mills' North American operations. Moreover, In July, 2023, Baskin Robbins, a subsidiary of Inspire Brands, Inc., collaborated with BarbieTM. The Mermaid Sundae beautifully encapsulates this ethos, and the company eagerly anticipate the customers delighting in this extraordinary experience.
Based on the Analysis presented in the KBV Cardinal matrix; Unilever PLC and Nestle S.A. are the forerunners in the Market. In August, 2021, Hindustan Unilever Limited, a fully owned subsidiary of Unilever PLC, collaborated with Pizza Hut, to provide ice creams and desserts. Companies such as Tyson Foods, Inc., Kellogg Company, General Mills are some of the key innovators in the Market.
Market Growth Factors
Rise in health and wellness trends
The rise of health and fitness awareness has led consumers to seek out products that align with their dietary and nutritional goals. Protein is essential for muscle development and satiety, making protein-enriched desserts appealing to individuals focused on their health and physique. Many consumers consider protein-enriched frozen desserts a convenient and delicious way to replenish their protein stores after a workout, leading to their popularity among athletes and fitness enthusiasts. Protein helps promote a feeling of fullness, aiding in weight management. Consumers looking to control their calorie intake while enjoying a satisfying dessert turn to protein-enriched options. Protein-enriched frozen desserts often contain less sugar than their traditional counterparts. This reduction in sugar content appeals to health-conscious individuals aiming to limit their sugar consumption. As a result, these factors will boost the demand in the upcoming years.
Rise in innovative strategies to market the products
Innovative marketing trends have played a pivotal role in shaping the market, helping brands capture consumer attention, stand out in a crowded landscape, and create memorable experiences. The market has harnessed the power of social media to engage with consumers effectively. Brands create visually appealing content showcasing their products and encourage user-generated content through hashtags and challenges. Influencer marketing has also been a game-changer, with food influencers and bloggers promoting frozen desserts to their dedicated followers. These influencers provide authentic and relatable reviews, building trust and driving sales. Owing to these factors, the market will see an increased demand in the future.
Market Restraining Factors
Concerns related to diet and poor health
Obesity and dietary concerns related to frozen desserts can hamper demand for these indulgent treats. Many traditional frozen desserts, such as ice cream and frozen yogurt, are known for their high sugar content. Excessive sugar consumption is linked to health issues like type 2 diabetes, obesity, and tooth decay. Health-conscious consumers may opt for lower-sugar or sugar-free alternatives instead. For example, some individuals may purchase low-sugar frozen yogurt over regular frozen yogurt to reduce their sugar intake.
Distribution Channel Outlook
On the basis of distribution channel, the market is segmented into supermarket/hypermarket, convenience stores, cafe & bakery shops, online, and others. In 2022, the cafe & bakery shops segment garnered a significant revenue share in the market. This segment is known for its innovative approach to flavors and dessert creations. Cafe and bakery shops frequently introduce new and creative frozen dessert options, often influenced by seasonal ingredients and culinary trends. Some cafe and bakery shops allow customers to customize their frozen desserts by choosing their favorite toppings, mix-ins, or flavors. This level of personalization enhances the customer experience. Cafe and bakery shops typically provide a favorable atmosphere for customers to enjoy their frozen desserts.
Product Outlook
Based on product, the market is divided into confectionary & candies, ice cream, frozen yogurt, and others. The ice cream segment held the highest revenue share in the market in 2022. Ice cream comes in many flavors, from classic options like chocolate, vanilla, and strawberry to more adventurous choices like salted caramel, matcha, and lavender. This appeals to different tastes and preferences among consumers. Many consumers seek premium and artisanal ice cream options, often featuring high-quality ingredients and unique flavor combinations. Artisanal ice cream makers may use locally sourced or organic ingredients, adding to their appeal. With the rise in plant-based diets and lactose intolerance awareness, non-dairy and vegan ice cream options have gained popularity.
Regional Outlook
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded the largest revenue share in the market in 2022. Many consumers in North America are adopting plant-based diets for health reasons. Non-dairy and vegan frozen desserts are considered healthier alternatives, as they often contain less saturated fat and cholesterol than traditional dairy-based options. A significant portion of the population in North America is lactose intolerant or has dairy allergies. Non-dairy frozen desserts provide an option for individuals who cannot consume dairy products. Consumers in North America appreciate the connection to their local communities fromby supporting neighborhood businesses. Owing to these factors, the demand in North America will increase in the upcoming years.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Apple, Inc., Fossil Group, Inc., Garmin Ltd., Google LLC (Alphabet Inc.), Nike, Inc., Samsung Electronics Co., Ltd. (Samsung Group), Sony Corporation, Sensoria Health Inc, Huawei Technologies Co., Ltd., and Xiaomi Corporation.
Recent Strategies Developed in frozen dessert market:
Partnerships, Collaborations, and Agreements:
Jul-2023: Baskin Robbins, a subsidiary of Inspire Brands, Inc., collaborated with BarbieTM, the iconic doll brand. The Mermaid Sundae beautifully encapsulates this ethos, and the company eagerly anticipate the customers delighting in this extraordinary experience. Through this collaboration, Baskin Robbins has added barbie fans to its portfolio.
Jan-2023: General Mills, Inc. signed an agreement to partner with Specialty minerals company ICL Group Ltd. Under this partnership, started in June 2023, ICL's primary focus will be on providing supplies to General Mills' North American operations. Additionally, the partnership has expanded the footprints of both companies globally.
Mar-2022: International Dairy Queen Corporation, a subsidiary of Berkshire Hathaway, Inc., partnered with FountainVest, a leading independent private equity firm, to set up 600 DQ restaurants in China by 2030. The franchise development deal, led by CFB Group, a franchise ownership company acquired by FountainVest, strengthens its presence in China. FountainVest and CFB Group will initiate the expansion by launching 100 DQ restaurants in 2022.
Aug-2021: Hindustan Unilever Limited, a fully owned subsidiary of Unilever PLC, collaborated with Pizza Hut, an American multinational restaurant chain and international franchise. Through this collaboration, Pizza Hut achieved the distinction of being the inaugural Pizza QSR (Quick Service Restaurant) chain to provide ice creams and desserts on both its proprietary and third-party delivery platforms.
Jun-2021: Baskin Robbins India collaborated with Hershey India Pvt. Ltd., an industry-leading snacks company, to produce a combined range of ice creams and desserts. The partnership between Baskin-Robbins and Hershey's India enabled them to expertly merge their skills in creating innovative ice cream flavors, beverages, and ice cream cakes with Hershey's India's top-notch, beloved ingredients.
Apr-2019: Hindustan Unilever Limited, a fully owned subsidiary of Unilever PLC, partnered with Mondelez India, a powerhouse of iconic brands & local jewels, to unveil two new frozen dessert variants, namely Kwality Walls Gems Burst and Oreo and Cream. This partnership accelerates Mondelez India's growth, drive agile innovations, and brought new premium offerings to market, benefiting both businesses and expanded their customer base through cross-leveraging strengths.
Product Launches and Product Expansions:
Sep-2023: 16 Handles expanded its yogurt with the relaunch of its pumpkin frozen yogurt flavor, named "Oh My Pumpkin Pie". Made by using real pumpkin, this artisanal flavor combines cinnamon, clove, ginger, and nutmeg. Additionally, the relaunched flavor will be available for the limited time.
Jul-2023: Nestle S.A has introduced a versatile, cost-effective sugar reduction technology applicable to various product categories, including low lactose and skimmed milk-based products. Additionally, the technology has the capacity to preserve taste without adding sweeteners, with minimal cost impact.
May-2023: Haagen-Dazs launched a collection of oat-based plant-based frozen desserts. Made in London, Ontario, these vegan-certified products offer a luxurious experience. The collection includes, Haagen-Dazs Plant-Based Chocolate Peanut Butter, Vanilla Raspberry Truffle and Caramel Fudge Chip, each flavour available in 400 ml tub.
Jan-2023: 16 Handles announced its collaboration with Broadway's Aladdin the Musical. Under the collaboration, the companies introduced a limited-edition flavor known as "Aladdin's Three Berry Magical Wishes," which featured an artisan frozen yogurt combination of strawberries, blueberries, and blackberries, all complemented by a captivating purple swirl. Additionally, this unique flavor has available at 16 Handles outlets near New York's New Amsterdam Theater.
Jan-2022: Unilever PLC unveiled its 2022 ice cream lineup, featuring brands like Breyers, Klondike, Magnum, and Talenti. These offerings have inventive twists on classic American flavors, unexpected pairings, and extensions of popular lines, along with healthier and non-dairy options. Additionally, the company broadened their well-received product offerings to ensure year-round enjoyment.
Acquisition and Mergers:
Jul-2023: Nestle S.A decided to acquire Brazilian chocolate label Kopenhagen, a deal that encompasses Brasil Cacau, another chocolate brand under Brazilian ownership. The combined entity boasts an extensive network of over 800 stores across Brazil, which includes numerous franchise locations.
Jun-2023: Unilever PLC signed an agreement to acquire Yasso Holdings, Inc., a premium frozen Greek yogurt brand in the United States. The acquisition aligns with Unilever's strategy to enhance the premium nature of its Ice Cream Business Group. Additionally, it represents a significant progression in expanding Unilever's ice cream portfolio in North America.
Geographical Expansions:
Jul-2023: Nestle India Ltd. will expand its geographical portfolio of noodles, coffee, and chocolates. Through this expansion, nestle will get new prospects for marketing both mass-market and premium products within the nation. The factory will set up by 2025 and will manufacture, noodles, chocolates, and confectionery.
Aug-2022: Tyson Foods, Inc. expanded its food facility in Caseyville, by 170,000-square-foot. This expansion has created 250 jobs and increased automation at the site. The facility increased demand for Tyson Foods' Hillshire Farm and Jimmy Dean brands, particularly in producing grab-and-go snacks and breakfast items.
Market Segments covered in the Report:
By Distribution Channel (Volume, Kilo Tonnes, USD Million, 2019-2030)
By Product (Volume, Kilo Tonnes, USD Million, 2019-2030)
By Geography (Volume, Kilo Tonnes, USD Million, 2019-2030)
Companies Profiled
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