U.S. Frozen Cocktail Popsicles Market Size, Share & Trends Analysis Report By Type (Margarita Pops, Daiquiri Pops), By Distribution Channel (Online, Specialty Stores), By State, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The U.S. frozen cocktail popsicles market size was estimated at USD 28.22 million in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 20.3% from 2023 to 2030. The frozen cocktail popsicle sector in the U.S. is witnessing an upsurge, driven by the rising inclination among consumers for portable alcoholic drink options and a strong focus on varied flavors and inventive developments. In addition, the surging appeal of frozen cocktails among millennials, coupled with a notable rise in the acquisition of frozen beverages, is further fueling market expansion.

The market for U.S. frozen cocktail popsicles is experiencing a significant surge, driven by a convergence of consumer preferences and changing lifestyles. One of the key drivers is the rising demand for convenient and portable alcoholic beverages, a need effectively met by these popsicles. They seamlessly align with the fast-paced, on-the-go lifestyle of modern consumers, making them a popular choice for social events and outdoor gatherings. In addition, there is a growing interest in unique and diverse flavors, appealing particularly to adventurous taste preferences among millennials and Gen Z.

These products' visual appeal and accessibility on social media platforms also contribute significantly to their popularity. In an age when Instagram-worthy food and drinks are in high demand, frozen cocktail popsicles stand out with their vibrant colors and creative presentation. Another factor is health consciousness, as these popsicles are often perceived as lighter and potentially lower in calories than traditional alcoholic beverages.

This corresponds to a growing segment of health-conscious consumers who prefer portion-controlled servings. Furthermore, changes in alcohol regulations in certain regions have made it easier to sell alcoholic products in novel formats, expanding the market reach of these popsicles. Recent global events, such as the COVID-19 pandemic, have altered consumption patterns, resulting in an increase in alcoholic beverage consumption at home. Frozen cocktail popsicles are becoming increasingly popular as a convenient and enjoyable way to recreate a bar-like experience at home.

Market Concentration & Characteristics

The market is characterized by a high degree of innovation, with new technologies and methods being developed and introduced at regular intervals. Manufacturers in the frozen cocktail popsicle market continually introduce innovative flavors and combinations to cater to evolving consumer tastes. The desire for unique and diverse flavor profiles prompts constant experimentation, leading to the introduction of novel and creative frozen cocktail options.

Several market players such as Cooloo, SHOOTER POPS, LLC - CLAFFEY’S COCKTAILS, and SnöBar are involved in merger and acquisition activities. Through M&A activity, these companies can expand their geographic reach and enter new territories.

Regulations related to labeling and packaging requirements for food and beverage products can impact the marketing and sale of U.S. frozen cocktail popsicles. Compliance with ingredient disclosures, nutritional information, allergen warnings, and other labeling standards is essential. Any changes or updates to these regulations may necessitate adjustments in product packaging, potentially affecting brand visibility and consumer trust.

Various substitutes exist for frozen cocktail popsicles, presenting consumers with choices that share similar characteristics or meet comparable desires. Those desiring alcoholic options may choose traditional cocktails, mixed drinks, or ready-to-drink beverages that aren't in the frozen popsicle form. This encompasses timeless cocktails like margaritas, mojitos, and daiquiris served in their customary liquid state. Ice cream and sorbets offer a cool and refreshing treat without containing alcohol. Despite their non-alcoholic nature, they boast a diverse range of flavors. They can be enjoyed in a frozen format, providing an option for individuals seeking a chilled, non-alcoholic treat.

Type Insights

Based on type, the margarita pops segment accounted for the largest revenue share of 18.3% in 2022 and continues to maintain its dominance over the forecast period. Margarita frozen cocktail popsicles are crafted by blending tequila, lime juice, sweetener, salt, and water into a continuous mix, forming the base of a classic margarita. The natural adaptability of margaritas allows for creative and diverse variations. Manufacturers have the flexibility to explore diverse fruit infusions, spice levels, and rimming options, delivering consumers a broad spectrum of inventive and captivating Margarita popsicle choices. This perfectly resonates with the prevailing trend among consumers, notably millennials and Gen Z, who actively seek out distinctive and adventurous taste experiences.

The others type is anticipated to witness the fastest market growth over the forecast period. Other flavors, such as strawberry basil lemonade pops, raspberry rose prosecco pops, blueberry lavender gin pops, coconut lime rum pops, ginger peach bourbon pops, blackberry mint julep pops, and more, are gaining substantial traction in the owing to innovative and unique taste profiles that stand out in the frozen cocktail popsicle category. Consumers are drawn to the novelty of these combinations, seeking experiences beyond traditional flavors.

Distribution Channel Insights

Based on distribution channel, the hypermarkets & supermarkets segment dominated the market in 2022. Hypermarkets and supermarkets offer a convenient, one-stop shopping experience. Consumers can easily access a diverse range of frozen cocktail popsicles in these retail settings, giving them choices and accessibility that contribute to increased demand.

The extensive shelf space and strategic placement within these large retail spaces enhance the visibility of frozen cocktail popsicles. This exposure increases consumer awareness and encourages impulse purchases, driving overall demand. These supermarkets often showcase frozen cocktail popsicle brands and flavors. This variety and the continuous introduction of innovative products attract consumers seeking novel and exciting frozen treats, further fueling demand.

The online segment has been anticipated to grow at the fastest rate during the forecast period. The ease of browsing various options, placing orders, and having them delivered to their doorstep enhances the overall customer experience. Online channels facilitate diverse marketing strategies, including targeted advertisements, social media campaigns, and influencer collaborations. These strategies help brands create a strong online presence, attract new customers, and build brand loyalty.

The specialty store segment has also been anticipated to grow at a rapid pace during the forecast period. Specialty stores are known for curating a selection of unique and premium products. Frozen cocktail popsicles available in these stores often feature high-quality ingredients and innovative flavor combinations that may be less readily available in mainstream supermarkets. Moreover, specialty stores tend to have a more carefully curated selection that caters to niche preferences. Consumers who are particular about certain flavor profiles, ingredients, or brands may find a more personalized and tailored assortment in specialty stores.

State Insights

Northeast dominated the overall market in 2022. The Northeast U.S. experiences varying seasons, and the surge may be influenced by the desire for cool and refreshing treats, especially during warmer months. Introducing low-calorie and healthier options in the popsicle and frozen treat market could attract health-conscious consumers across the Northeastern states. Locally made popsicles are popular among Northeastern U.S. states like New Jersey and New York, as these popsicles are sold through a variety of frozen treat shops and supermarkets in these locations, featuring key brands such as Cooloo. Cooloo offers frozen cocktail pops in flavors like piña colada, mai tai, and cosmopolitan, providing consumers with diverse options. The products are locally made, contributing to their unique and authentic appeal. Cooloo frozen cocktail pops are widely available at over 300 locations in New Jersey, making them easily accessible for residents.

The Southeast region is expected to grow at the fastest rate during the forecast period. Frozen cocktail popsicles are becoming increasingly popular in the Southeastern U.S., especially in Georgia, Florida, and Tennessee. This popularity can be attributed to the creative offerings of local pubs and bars, coupled with their refreshing appeal.

As consumer demand for frozen cocktails keeps increasing, bars around the Southeast have begun to include them on their menus. This trend is consistent with the market's overall growth for frozen drinks, which offers a wide range of fixed beverage options, including frozen cocktail popsicles.

Key Companies & Market Share Insights

SHOOTER POPS, LLC - CLAFFEY’S COCKTAILS, Cooloo, SnöBar, and Slim Chillers are some of the dominant players operating in the market.

• Claffey’s Frozen Cocktails stand out for their portability, ease of use, and unique packaging, which has resonated well with consumers, particularly in social settings and events. These attributes have contributed to the brand’s growing popularity, especially among younger demographics who are drawn to novel and Instagram-worthy food and beverage products.

• Cooloo is known for its frozen cocktail pops, which are made with real alcoholic spirits like vodka and rum, aiming to capture authentic cocktail flavors.

• SnöBar offers a range of flavors that replicate the experience of traditional cocktails, like Margarita, Mojito, and Cosmopolitan ice-pops, as well as unique ice cream flavors such as Grasshopper and Pink Squirrel​.

Fishers Island Lemonade, FrutaPop, LIC Frozen Cocktails, Cutwater Spirits, and American Beverage Corporation - Daily’s Cocktails are some of the emerging market players functioning in the market.

• Frutapop is known for reinventing ice pop by incorporating healthy, natural ingredients without added sugars, syrups, or dyes.

• Cutwater Spirits' product line includes canned classic cocktails designed for enjoyment in various settings, from outdoor adventures to casual backyard gatherings.

Recent Developments

• In May 2023, Fishers Island Lemonade announced the release of two new flavors, Blueberry Wave and Nude Peach, in addition to a variety pack. The brand has also refreshed its packaging, featuring lifestyle aesthetics and transitioning to paperboard wrap. The brand's cocktails are crafted with a dual-spirits base, combining barrel-aged whiskey, premium vodka, lemon, and honey.

• In July 2021, Cooloo introduced a fresh assortment featuring four limited-time flavors. Alongside its original beverages, the latest Cooloo pops served as a convenient and refreshing entry into the realm of adult frozen drinks, incorporating genuine spirits, natural flavors, and pure cane sugar.

• In March 2021, Cutwater Spirits launched two new margarita products: frozen margarita pops and canned mango margs. Both products are made with real spirits and feature the brand's 100 percent blue agave tequila blanco. The frozen margarita pops come in a variety of 12-pack with flavors like mango, strawberry, pineapple, and lime, and each popsicle is only 80 calories.

U.S. Frozen Cocktail Popsicles Market Report Scope

U.S. Frozen Cocktail Popsicles Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. frozen cocktail popsicles market report based on type, distribution channel, and state:

• Type Outlook (Revenue, USD Million, 2017- 2030)

  • Margarita Pops

  • Daiquiri Pops

  • Mojito Pops

  • Sangria Pops

  • Cosmo Pops

  • Pina Colada Pops

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017- 2030)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Specialty Stores

  • Online

  • Others

• State Outlook (Revenue, USD Million, 2017- 2030)

  • U.S.

    • Southeast

    • Southwest

    • Midwest

    • West

    • Northeast