Frozen Dessert Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Frozen Dessert Market is projected to expand from USD 95.72 Billion in 2025 to USD 124.04 Billion by 2031, achieving a CAGR of 4.41%. This sector encompasses sweet edibles created by freezing liquids or semi-solids, such as ice cream, frozen yogurt, and sorbet. The expansion of this industry is primarily supported by rising disposable incomes in developing economies, which enable consumers to spend more on discretionary refreshments, along with the strengthening of global cold chain infrastructure and rising ambient temperatures that necessitate cooling solutions.

Despite this positive growth trajectory, the market encounters significant obstacles regarding the volatility of raw material costs for essential ingredients like sugar and dairy, stemming from supply chain instabilities. These fluctuations compel manufacturers to adjust pricing strategies, which risks alienating price-sensitive consumers. However, the sector remains economically vital; according to the International Dairy Foods Association, the ice cream industry contributed $11.4 billion to the United States economy in 2024, underscoring its substantial financial footprint amidst operational challenges.

Market Drivers

A primary catalyst for value growth within the Global Frozen Dessert Market is the increasing consumer preference for premium and artisanal products. Shoppers are progressively prioritizing high-quality ingredients, superior textures, and indulgent experiences over mere affordability, even during periods of broader economic inflation. This trend forces manufacturers to focus on "power brands" that offer perceived luxury and consistency to secure customer loyalty and maintain margins, a strategy highlighted by Unilever’s February 2024 "2023 Full Year Results" report, which noted that core labels like Magnum and Cornetto contributed nearly 85% of the ice cream unit's total turnover.

Simultaneously, advancements in supply chain efficiency and cold chain logistics are empowering manufacturers to scale production and extend their geographic reach. Significant capital investments in manufacturing facilities are enhancing throughput and enabling the creation of complex, high-value novelties; for instance, Wells Enterprises announced in a July 2024 press release a commitment of $425 million to expand its Dunkirk, New York facility to boost capacity. This infrastructure is critical for supporting massive output levels, as the International Institute of Refrigeration reported in September 2024 that the European Union produced 3.2 billion litres of ice cream in 2023, necessitating robust logistical networks to ensure product integrity.

Market Challenges

The volatility of raw material costs constitutes a formidable obstacle to the expansion of the Global Frozen Dessert Market. Manufacturers rely heavily on agricultural inputs such as sugar and dairy, which are increasingly subject to pricing fluctuations driven by supply chain instabilities. When the availability of these essential ingredients becomes inconsistent, procurement expenses rise unpredictably, forcing companies to either absorb the additional costs and erode profit margins or pass them on to the consumer through higher retail prices.

Consequently, such price adjustments can stifle market volume growth by alienating price-sensitive buyers. According to the International Sugar Organization in May 2025, the global sugar deficit for the 2024-2025 season was revised upward to 5.466 million tonnes, a shortfall not witnessed in nine years, which directly exacerbates production costs. This economic pressure restricts the ability of brands to maintain competitive pricing, thereby hampering wider market penetration and reducing the frequency of discretionary consumption among budget-constrained households.

Market Trends

The market is being fundamentally reshaped by the growth of multi-textural and sensory-enhanced products, as consumers increasingly seek "eatertainment" through complex mouthfeels and customizable formats. Beyond standard flavors, shoppers are demanding frozen treats that incorporate contrasting layers, crunchy inclusions, and viscous swirls, driving foodservice operators and retailers to offer extensive personalization options. This demand is underscored by a May 2024 Nestlé Professional report, "The Inside Scoop," in which 89% of surveyed consumers stated they prefer to embellish their ice cream with additional textures like sauces, sprinkles, and nuts.

Simultaneously, the increase in cross-category brand collaborations and licensing is acting as a powerful mechanism for consumer acquisition and market penetration. Snacking and confectionery giants are aggressively extending their portfolios into the frozen aisle, transforming shelf-stable favorites into frozen novelties to capitalize on existing brand loyalty and nostalgia to mitigate launch risks. For instance, the Ferrero Group reported a consolidated turnover of €18.4 billion in its February 2025 "Consolidated Financial Statements for the 2023/2024 Financial Year," explicitly citing the strategic launch of Nutella Ice Cream as a key innovation driving this commercial performance.

Key Players Profiled in the Frozen Dessert Market

• Unilever PLC
• General Mills Inc.
• Meiji Holdings Co. Ltd.
• Nestle S.A.
• Inner Mongolia Yili Industrial Group Co. Ltd.
• Dunkin' Brands Group Inc.
• Bulla Dairy Foods
• Dairy Farmers of America
• Yasso Inc.
• Fonterra Co-operative Group Limited

Report Scope

In this report, the Global Frozen Dessert Market has been segmented into the following categories:

Frozen Dessert Market, by Product:

• Confectionary & Candies
• Ice Cream
• Frozen Yogurt
• Cakes & pastries
• Others

Frozen Dessert Market, by Sales Channel:

• Hypermarkets/Supermarkets
• Departmental Stores
• Online
• Specialty Stores
• Others (Direct Sales
• etc.)

Frozen Dessert Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Frozen Dessert Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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