Global Frozen Desserts Market - Growth, Trends, and Forecast (2020 - 2025)
The frozen desserts market was valued at USD 168.43 billion in 2018 and is expected to reach USD 228.56 billion by 2024, at an estimated CAGR of 5.32%, during the forecast period, 2019-2024. The market is being driven by rising disposable incomes, the introduction of new flavors, increasing impulse purchasing, and huge demand for frozen desserts products 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. Apart from lactose intolerant consumers, the market is driven by indulgent buying. Supermarkets/hypermarkets have gained remarkable popularity, owing to the convenience and availability of multiple brands at one destination. Grocery outlets and artisan bakers also serve as important sales channels.
Frozen desserts, such as ice-creams and frozen yogurts are generally consumed as snacks. Most of these products are prepared from dairy products, such as milk and cream. The potential of a distribution channel for frozen desserts depends upon various factors, such as the concentration of providers in that region, penetration of the processed food sector, and reach of retail chains and preference of consumers.
Increasing Preference Toward Ice-cream Parlors in the Developing Regions
The success of ice cream parlors depends arguably in the location situated. Not only is ice cream considered a snack, but it is also viewed as an impulse buy. This makes the ice cream parlor has a high-visibility location a necessity for it to become a success. Therefore, the more foot traffic that passes by, the more customers that order ice cream on an instant basis increases. Ice-cream parlors in countries like India and China are slowly and strategically placing their parlors on the busy roads, small market places, and moreover, are placed in those areas where college students or the millennial population is highly concentrated. The planned setups of these parlors are expected to increase the consumption of ice cream and other frozen desserts via this distribution channel. The rising trend in the ice cream industry is the mix-in or "create your own" ice cream and frozen desserts. Consumers are looking at indulging themselves when they go out for the consumption of ice cream. Moreover, consumers are looking for an environment that caters specifically to their needs and wants, and their preferred taste and combinations. Instead of going to the grocery store, customers can customize their ice cream experience by selecting specific types of ice cream in an ice cream parlor, order a specific flavor, and then add things to it.
Asia- Pacific dominates the Market
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. The frozen dessert is bound to achieve great success in the Chinese market, as the increasing demand for low-fat healthy food will likely encourage people to spend more on these products. The growth of specialized brands, like Yili Chocliz, Mengniu Ice, Cornetto, Magnum, and others has been a key factor for 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 comes in many flavors and new attractive packaging that features images of popular singers. 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 market and comprises of 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 to leverage opportunities posed by emerging markets to expand their product portfolio, so that they can cater to the requirements for various product segments, especially ice cream. Companies compete on different factors, including product offerings, quality, taste, flavours, price, functionality, size, packaging, and marketing activities, in order to gain the competitive advantage in the market.