U.S. Frozen Desserts Market Analysis By Product (Confectionary & Candies, Doughnuts, Pudding, Ice cream, Yogurt, Tofu, Sweet Treats, Sherbet, Novelties), By Channel, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. frozen desserts market size was estimated at USD 25.80 billion in 2016. Increasing demand for low-content sugar and low-calorie desserts backed by consumer spending across the region is expected to be a key factor driving market growth. 

Frozen desserts are made by freezing liquids, semi-liquids or even solids. They are based on various distinct flavors such as fruit purees, flavored water, and milk among others. Several companies in the U.S. are investing extensively in improving the shelf life and storage facilities of these products, which in turn, is predicted to positively influence growth over the forecast period.

The U.S. government strictly scrutinizes every detail in the food sector which includes raw materials required for preparation and manufacturing as well as packaging & labeling standards. These preservatives, along with color and flavor additives, used in the preparation of frozen desserts must be FDA approved. U.S. Department of Health and Human Services Department also takes an active involvement in the market, which ensures quality of food-grade materials used in the process.The basic ingredients required for manufacturing frozen desserts include milk fat sources, milk solid sources, sweeteners, stabilizers, emulsifiers, candy pieces, fruits & nuts along with FDA approved flavor and color additives. The quality of these raw materials is checked under strict circumstances and is maintained throughout the process. 

The U.S. frozen desserts industry is characterized by the presence of a large number of industry participants. Recent technological developments in plastic packaging have also extended the shelf life of various frozen desserts. These trends have significantly boosted the industry growth over the past few years. 

Development of innovative flavors and packaging for various frozen products have proven to be crucial for growth across the region. Numerous novel products have been launched in frozen desserts category in recent years. Nestle has introduced the “Outshine Frozen Yogurt Bars,” which has gained huge popularity among children in a very short span of time. Consumers are increasingly purchasing these bars since they do not contain high fructose corn syrup and have high protein & calcium content.

Product Insights

Ice creams emerged as the leading product category and accounted for over 60% of the total revenue in 2016. Various factors affecting growth are flavors and fat content along with texture and sweetness. Other factors such as location and demographics also play an important role in estimating the demand. The ice cream industry is highly fragmented in nature, with the presence of several small and large companies, vendors, restaurants and retails chains. The handcrafted ice creams segment has gained huge popularity among consumers in recent years. 

Frozen yogurt is anticipated to witness fastest growth rate over the forecast period owing to the several health benefit claims associated with the product. The U.S. is a hub for over 400 brands, in this category, offering numerous flavors to consumers. Unites States Department of Agriculture (USDA) has initiated several projects to promote the consumption of yogurt and related products across the region. Low-fat yogurt is a great source of calcium and is increasingly being promoted by the organization for health and nutrition.

Frozen tofu is anticipated to witness modest growth rate over the forecast period, with a CAGR of 4.4%. It is a derivative of coagulated protein in soymilk and is utilized in numerous distinct applications in home cooking. It is a popular ingredient in food manufacturing and is considered highly versatile. The sector is characterized by the presence of several flavors and textures in retail as well as foodservice chains such as natural food stores, health food stores, buying clubs as well as food cooperatives.

Confectionary & candiessegmentis another emerging category. The U.S. is driven by increasing demand for chocolate candies and gums among children. The industry has witnessed a shift in trend towards exotic fusion flavors, fortified products as well as sugar-free gum. Theater box candies have also gained tremendous popularity in recent years. Furthermore, the industry is anticipated to witness continued consolidations as well as increasing focus on labeling over the forecast period.

Distribution Channel Insights

Non-retail was the dominant distribution channel and accounted for 54.96% of the market revenue in 2016. The popularity of fine dining experience and the increasing preference for innovative foods has resulted in the growth of the channel. The constant innovation and customization offered by the quick serve restaurants and food street vendors are key factors behind their popularity. Recent trends have led them to adapt nutritious food into their growing menus, which has further enhanced their appeal as an outlet for on the go breakfast. 

However, retail channels are expected to witness fastest growth rate in upcoming years. The industry growth is driven by the higher concentration of providers, increasing penetration of processed food sector and considerable expansion of retail chain & individual outlets across the region.

Supermarkets and hypermarkets have gained tremendous popularity in recent years owing to the convenience and availability of multiple brands at one destination. Grocery outlets and artisan bakers also serve as important distribution channels with the latter witnessing resurgence over the years. 

Quick service restaurants are expected to emerge as the dominant distribution channel over the forecast period owing to shift in consumers’ eating patterns and rising preference towards easily available and convenient food. Additionally, the prices in casual and quick service restaurants have also witnessed an upsurge in recent years owing to ever-increasing demand.

Competitive Insights

The market is characterized by high rivalry owing to the presence of numerous small and large manufacturers across the region. Key market participants include General Mills, Inc., ConAgra Brands, Kellogg Company, Sara Lee Desserts, Van’s Foods, Mrs. Smith’s, Nestle USA, Inc., Lantmannen Unibake USA, Inc., Campbell Soup Company and Flowers Food, Inc. among others. 

The emergence of innovative flavors & low-fat, gluten-free products along with several mergers & acquisition trends is expected to impact the market dynamics over the forecast period. The key participants are spending extensively on the development of novel, innovative flavors to retain their consumer base.

Report Scope

Segments covered in the report

This report forecasts revenue growth at the country level and provides an analysis on the industry trends in each of the sub-segments from 2006 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. frozen desserts market on the basis of product and distribution channel.

• Product Outlook (Revenue, USD Million, 2006 - 2025)

  • Cakes & Pastries

  • Confectionary & Candies

  • Doughnuts & Pies

  • Custards & Pudding

  • Ice creams

  • Frozen Yogurt

  • Tofu

  • Sweet treats

  • Sherbet

  • Frozen Novelties

• Distribution Channel Outlook (Revenue, USD Million, 2006 - 2025)

  • Retail

    • Retail Bakeries

    • Grocery Outlets

    • Supermarkets/Hypermarkets

    • Artisan bakers

  • Non-retail

    • Fine Dine Restaurants

    • Quick Service Restaurants

    • Street Vendors