Global Frozen Dessert Market - Growth, Trends, and Forecast (2018-2023)
The Global frozen dessert market is expected to register a CAGR of 7%, during the forecast period, 2018 to 2023. Increasing demand for low-sugar and low-calorie desserts is expected to drive the market growth.
Innovation in Products Driving the Market Growth
Innovative flavors and packaging have proven to be a crucial growth factor. Numerous innovative products have been launched in the frozen bakery and desserts category in recent years. Nestle has introduced “Outshine Frozen Yogurt Bars,” which has gained 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 & low-fat, gluten-free products are expected to impact the market dynamics over the forecast period.
Ice-Cream is the Leading Product Category
Ice creams emerged as the leading product category. The factors affecting growth are flavors and fat content along with sweetness and texture. The ice cream industry is fragmented in nature, with the presence of several small and large companies, vendors, restaurants, and retails chains. The handcrafted or artisan ice creams have gained huge popularity among consumers. Frozen yogurt is expected to witness the fastest growth rate during the forecast period, owing to their health benefits.
HoReCa Dominating the Distribution Landscape
Non-retail or On-Trade was the dominant distribution channel and accounted for 54 % of the market. The increasing popularity of fine dining experience and the growing preference for innovative foods has resulted in the growth of this channel. Supermarkets/hypermarkets have gained remarkable popularity in owing to the convenience and availability of multiple brands at one destination. Grocery outlets and artisan bakers also serve as important sales channels.
North America Dominating the Global Market
The global frozen desserts market is dominated by North America. The North American market is almost saturated and is currently growing at a steady pace. On the other hand, Asia-Pacific is the fastest growing market, with China, India, and Japan leading in the region. Huge population, large young generation, increasing disposable incomes, and change in dining habits are the major factors that support the frozen desserts market in this region. Other regions, such as Africa and South America, are smaller markets for these desserts. However, the consumption of such desserts is growing at a good pace in developing countries of South America.
The frozen dessert market is characterized by high rivalry owing to the presence of numerous small and large manufacturers across the region. The local and regional frozen desserts are the most preferred taste type, hence local brands are competing hard with multinational firms. Nestle, Unilever, and Well Enterprise are the top global players in the frozen desserts market. The key market players are spending extensively on the development of novel, innovative flavors to retain their consumer base.