Frozen Desserts Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Frozen Desserts Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The frozen desserts market is projected to register a CAGR of 5.5% during the forecast period (2022-2027).

The COVID-19 pandemic has had a significant impact on businesses across industries in a very short time, including the frozen dessert food and food supply chains and momentous shifts in demand. As a result of the pandemic, consumers have become health conscious and shifted their preferences toward healthy products. Increasing demand for low-sugar and low-calorie desserts is expected to drive market growth. Innovation in products, flavors, and packaging has proven to be a crucial growth factor.

Numerous innovative products have been launched in the frozen bakery and desserts category in recent years. Nestle offers “Outshine Frozen Yogurt Bars,” which holds huge popularity among children in a short span of time. Consumers are paying more attention to their health and wellness. This has resulted in the emergence of innovative flavors, and low-fat, gluten-free products are expected to impact the market dynamics over the forecast period.

The market is being driven by rising disposable incomes, the introduction of new flavors, increasing impulse purchasing, and huge demand for frozen desserts among consumers globally. Ice creams emerged as the leading product category. The factors affecting growth are flavors and fat content, along with sweetness and texture. Lactose-free frozen ice cream is one of the emerging trends expected to gain traction in the ice cream market in the coming years. The market is driven by increasing rates of food allergies and intolerances, which will drive the growth of non-dairy products.

Non-dairy products such as ice creams consist of high content of lipids, vitamins, albumin, carbohydrates, and casein that provide significant health benefits. Shifting trends toward vegan lifestyles owing to increasing health consciousness and socialization trends are propelling the industry and shifting consumers' preferences toward low-fat products. High per capita ice cream consumption, particularly in United States and European countries, has enhanced the product demand. Rising incidences of lactose intolerance and other milk-related allergies are fostering product demand. Comprehensive product variations through materials including coconut, almond, and soy milk will positively influence the industry's growth. Innovative flavor offerings, mainly including blended flavors, have enhanced product development. Increasing consumer spending on take-home and impulse products will further boost the non-dairy ice cream demand.

The growing demand for frozen desserts has led to significant growth in the total number of ice creams and frozen dessert retail shops in China. Frozen desserts are bound to achieve great success in the Chinese market, as the increasing demand for low-fat, healthy food will encourage people to spend more on these products. The growth of specialized brands like Yili Chocliz, Mengniu Ice, Cornetto, and Magnum has been a key factor in the growth of the frozen desserts market in China. These brands are responding to augmenting health consciousness among consumers with the launch of mini sticks and other products. These products come in many flavors and new attractive packaging that features images of popular singers. A huge population, a large young generation, increasing disposable incomes, and changes in dining habits are the major factors that support the frozen desserts market in this region. The rising income level of consumers, drastic development of manufacturing capabilities, premiumization trend in the country, and increasing adoption of premium products among consumers are projected to cater to the increasing demand for frozen desserts in China.

The frozen desserts market is a highly fragmented one and comprises regional and international competitors. The market is dominated by players like Unilever, Nestle, General Mills, and Yili Industrial Group Limited. The leading players in the frozen snacks market enjoy a dominant presence worldwide. These players focus on leveraging opportunities posed by emerging markets to expand their product portfolios so that they can cater to the requirements of various product segments, especially ice cream. Companies compete on different factors, including product offerings, quality, taste, flavors, price, functionality, size, packaging, and marketing activities, in order to gain a competitive advantage in the market.

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