New Delhi, Aug. 07, 2024 (GLOBE NEWSWIRE) -- According to Astute Analytica, the North America frozen desserts market is projected to surpass a valuation of US$ 70.0 billion by 2032 from US$ 50.1 billion in 2023 at a CAGR of 3.8% during the forecast period 2024–2032.
The frozen desserts market in North America, encompassing both the US and Canada, exhibits robust demand and significant revenue potential. In Canada, consumption patterns reveal a strong affinity for ice cream, with a 2023 survey indicating that about a quarter of Canadians indulge in ice cream two to three times a month, and nearly 2% consuming it daily. Despite this love for ice cream, the volume available for consumption has seen a decline, reaching 3.9 liters per person in 2023. However, production remains strong, with around 155 million liters of hard ice cream produced in 2023, underscoring the country's substantial production capacity.
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In the United States, Ice cream dominates the frozen desserts market, accounting for over 80% of the revenue share in 2023, while frozen yogurt is expected to grow at the fastest rate. Regional consumption patterns highlight California as the largest market, holding over 14% of the revenue share in 2023, with New York anticipated to register the fastest growth at a CAGR of 6.1% through 2032.b Astute Analytica’s consumer behavior analysis in Canada shows a preference for popular brands like Dairy Queen, which offers a variety of frozen dessert products. The manufacturing landscape is concentrated in Ontario and Quebec, which house the most ice cream and frozen dessert establishments. On the other hand, US consumers are increasingly health-conscious, driving demand for low-carb, low-sugar, and nutritional frozen desserts. The COVID-19 pandemic has accelerated digitalization in the ordering and shipping processes, with brands launching innovative, limited edition, and seasonal flavors to cater to evolving consumer preferences.
The supply chain dynamics in North America frozen desserts market further highlight the market's potential. Off-trade channels dominate the distribution landscape, holding a 96.98% value share in 2023, while the online channel is set to be the fastest-growing distribution channel with a CAGR of 3.4% during the forecast period. Raw milk production, a critical component of the supply chain, saw a growth of 2.15% in 2020, with a 3.4% higher growth rate in 2023 compared to 2019. Key vendors in the Canadian market include Dairy Queen, Nestlé, and Unilever, while the US market features major players such as Unilever, Nestlé, Froneri International Limited, Blue Bell Ice Cream, Wells Enterprises, Inc., and Dairy Farmers of America, Inc. These companies play a pivotal role in shaping market trends and driving growth through innovative product offerings and strategic expansions.
Key Findings in North America Frozen desserts market
| Market Forecast (2032) | US$ 70.0 billion |
| CAGR | 3.8% |
| By Type | Ice Cream & Gelato (44.9%) |
| By Nature | Conventional (65.1%) |
| By Availability Type | Dairy (74.0%) |
| By Distribution Channel | Retail & Convenience Stores (32.0%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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The Sweet Dominance of Ice Cream and Gelato in North America Generates Over US$ 22.2 Billion in Revenue
Ice cream and gelato consumption in North America continues to thrive frozen desserts market, driven by consumers' enduring love for these indulgent treats. In the U.S. alone, people consume about 20.80 liters of ice cream per person annually, underscoring a significant and steady demand. Artisanal and gourmet ice cream brands are gaining traction, with premium offerings becoming increasingly popular. The market's diversity is further highlighted by a wide range of flavors and innovative product types, catering to various consumer preferences.
The frozen desserts market in North America is dynamic and competitive, shaped by factors such as changing consumer preferences, product innovation, and the availability of various flavors and formats. It is segmented into different product types, including ice cream, gelato, sorbet, frozen yogurt, and frozen custard. Gelato, known for its rich flavor and creamy texture, contains lower fat content compared to traditional ice cream, which is appealing to health-conscious consumers. The U.S. is expected to maintain a strong presence in the gelato market, holding a market share of around 80%. This shift towards premium frozen desserts is evident as more consumers seek high-quality, artisanal products.
Consumer behavior and preferences play a crucial role in shaping the ice cream and gelato market. The resurgence of self-care and comforting eating has notably boosted the consumption of ice cream and frozen novelties. Consumers continue to find solace in traditional frozen treat flavors while also exploring unique and innovative options. The demand for healthier ice cream options, such as low-fat, organic, and natural varieties, is rising to meet the needs of health-conscious individuals. Additionally, the market sees growing interest in plant-based and dairy-free gelato, reflecting the trend towards sustainable and health-oriented choices. With such diverse offerings, the North American market is poised for continued growth, driven by consumer indulgence, flavor innovation, and increased convenience.
Sweet Tooth Stronghold: The Unwavering Dominance of Conventional Frozen Desserts in North America, Rakes in Over US$ 30.4 Billion in Revenue
In North America, particularly the United States and Canada, conventional frozen desserts market hold a significant and steadfast grip on consumer preferences despite the growing availability of sugar-free alternatives. This phenomenon can be attributed to a combination of cultural habits, taste preferences, and market dynamics. For example, 82% of American families have a tradition of consuming ice cream during summer months, and 78% of consumers report preferring the taste of traditional ice cream over sugar-free varieties. The conventional ice cream market in the US is valued at $12.5 billion, compared to the $1.8 billion market for sugar-free frozen desserts. When its comes to frozen desserts, the ice cream segment generated more than $7,355 million in 2023. Moreover, traditional ice cream brands spend $450 million annually on advertising, overshadowing the $50 million spent by sugar-free brands.
Consumer loyalty to traditional ice cream remains strong in the North America frozen desserts market, with 70% of consumers who grew up eating it continuing to purchase these products as adults. Convenience also plays a critical role; conventional ice cream is available in 98% of grocery stores, while sugar-free options are found in only 75%. Traditional ice cream occupies 70% of the frozen dessert shelf space in supermarkets and is priced more attractively, at an average of $4.50 per pint compared to $6.00 per pint for sugar-free options. Social influence further bolsters this dominance, with 68% of social media posts about ice cream featuring conventional products. Additionally, 85% of consumers recognize major traditional ice cream brands, versus just 40% for sugar-free brands.
Traditional ice cream's broad appeal is evident in various other metrics. For instance, 95% of food festivals in North America feature conventional ice cream vendors, and 90% of restaurants offer traditional ice cream desserts, compared to just 30% for sugar-free alternatives. Seasonal promotions, which 70% of conventional ice cream brands run, increase visibility and sales. Emotional factors also contribute, as 60% of consumers turn to traditional ice cream for comfort, and 75% associate it with positive childhood memories. With robust product innovation, premium options, and effective consumer education initiatives, conventional frozen desserts continue to reign supreme in the North American market.
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Dairy-Based Frozen Desserts Dominate North America, Generates Revenue of Over US$ 34.5 Billion
Dairy-based frozen desserts have cemented their popularity in North America due to a combination of evolving consumer preferences, innovative product offerings, and strategic market dynamics. The U.S. frozen desserts market is fueled by the increasing demand for healthier options, with consumers seeking low-carb, low-sugar, and high-protein frozen treats that offer nutritional benefits. Additionally, the introduction of creative limited edition and seasonal varieties by major brands in collaboration with local small brands has captivated consumer interest. The ice cream segment, in particular, held the largest revenue share of over 60% in 2021, underscoring its dominance in the market.
The demand for dairy-based frozen desserts is also driven by the rising millennial preference for convenience foods and the continuous launch of new products with appealing flavors. The frozen yogurt segment is expected to register the fastest CAGR of 5.6% from 2023 to 2032, reflecting a shift towards healthier dessert options. The market is further bolstered by the presence of prominent players like Unilever, Nestlé, and Blue Bell Ice Cream, who are adopting various strategies to enhance their market share. The U.S. market is highly fragmented, with a significant number of regional players contributing to the competitive landscape. Moreover, the increasing number of health-conscious consumers and the trend of consuming frozen desserts as a digestive aid after meals are additional factors driving market growth.
Regional preferences also play a crucial role in the popularity of dairy-based frozen desserts market in North America. The West, including states like California, Washington, and Oregon, holds the largest market share, while the Midwest, known for its dairy production, significantly contributes to the ice cream segment. The Southeast region, encompassing states like Florida and Georgia, is also showing significant growth. The retail sector is anticipated to grow at the fastest CAGR, driven by the expansion of off-trade channels and the increasing adoption of online shopping platforms. The U.S. market's growth is further supported by the rising disposable income, which leads to impulse purchases and the introduction of a wide range of new flavors. This comprehensive analysis highlights the multifaceted factors contributing to the dominance and popularity of dairy-based frozen desserts in North America.
Frozen Frontier, Unveiling the US's Sweetest Obsession with Frozen Desserts in North America
The United States stands as the largest consumer of frozen desserts market in North America, driven by a combination of cultural, economic, and market-specific factors. The dominance is majorly fueled by increasing product launches and innovations. Annual spending on ice cream and related products reached a new peak of US$ 74.79 in 2023, indicating a consumer preference for premium and indulgent options. Additionally, 94% of shoppers purchase products in the frozen dessert category, emphasizing the strong cultural association with enjoyment and indulgence. Health-conscious consumers are also drawn to the market, with protein-rich and low-sugar options gaining popularity.
Manufacturers continue to innovate, introducing new flavors, limited editions, and seasonal varieties. Digitalization and e-commerce have further boosted the frozen desserts market, with major brands partnering with online retailers like Instacart, Amazon Fresh, Walmart, and Kroger. The foodservice segment led the market in 2023 with a revenue share of over 50%, while the retail segment is expected to grow at a rate of 5% during the forecast period. California and New York are significant contributors, with California holding the largest revenue share of over 14% in 2023, and New York anticipated to register the fastest CAGR of 6.1% from 2022 to 2032.
Consumer behavior also plays a crucial role, with eight in 10 Americans choosing frozen food at least once weekly and consuming them about four times each week. Customization and personalization options, such as various toppings for frozen yogurt, enhance the consumer experience. The U.S. holds a 80% share of the North American market, driven by higher purchasing power and a preference for low-fat dairy desserts. This multifaceted approach ensures the U.S. remains a leader in the global frozen desserts market.
North America Frozen Desserts Market Key Players
- Dessert Holdings
- Aryzta Ag
- The Cheesecake Factory
- Dairy Farmers of America, Inc.
- Cold Stone Creamery
- Tofutti Brands, Inc.
- Wells Enterprises, Inc.
- Blue Bell Creameries
- Froneri International Limited
- Nestlé
- Unilever
- Wow! Factor Desserts
- Pinkberry Canada
- Mccain
- Agropur Dairy Cooperative
- Turkey hill
- Other Prominent Players
Key Segmentation:
By Product Type
- Sweet
- Fruit Puree & Water-Based Frozen Desserts
- Cake & Pastry
- Ice Cream & Gelato
- Frozen Yogurt
- Others
By Nature
- Conventional
- Sugar-Free
By Content Type
- Regular Frozen Desserts
- Low Fat Frozen Desserts
By Availability Type
- Dairy
- Vegan
By Distribution Channel
- Supermarkets/Hypermarkets
- Retail & Convenience Stores
- Specialty Stores
- Online Retailer
- Others
By Country
- United States
- Canada
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