Dessert Grocery Market Report 2025

This Dessert Grocery market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The dessert grocery market size has grown strongly in recent years. It will grow from $23.19 billion in 2024 to $24.9 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to rising demand for frozen dessert products, increasing consumer preferences and health consciousness, increasing disposable income, growing demand for ice cream, and increasing incidence of spinal degeneration.

The dessert grocery market size is expected to see strong growth in the next few years. It will grow to $32.67 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to the growing demand for convenient and indulgent dessert options among consumers, increasing popularity of plant-based ingredients, growing food service and hospitality industry, growing demand for smaller snack-sized portions, and expansion of the e-commerce sector. Major trends in the forecast period include introduction of diverse dessert products, development of new products with improved taste and texture, innovation in ready-to-eat desserts, development of dairy-free desserts, and rising interest in cultural and ethnic desserts.

The expanding food and beverages industry is expected to drive the growth of the dessert grocery market moving forward. The food and beverages industry includes a wide range of businesses involved in the production, processing, distribution, and sale of food and drinks to consumers. The industry's growth is attributed to factors such as affordable airfares, corporate travel, wellness and health trends, and sustainability efforts. Dessert groceries play a significant role in the food and beverages industry by fulfilling consumer demand for sweet treats, providing essential ingredients to food manufacturers, and contributing to the overall innovation and diversity within the dessert market. Their ability to meet specialized preferences and adapt to industry trends makes them a key part of the broader food retail landscape. For example, in April 2024, the Australian Bureau of Statistics, a government statistical agency, reported that 14.8 million tonnes of food and non-alcoholic beverages were sold in the 2022-23 period. Therefore, the growing food and beverages industry is driving the expansion of the dessert grocery market.

Leading companies in the dessert grocery market are focusing on developing innovative products such as Triple Chip Mix Morsel Mix to meet evolving consumer tastes, enhance baking convenience, and offer unique flavor combinations that differentiate their brands in a competitive market. The Triple Chip Mix is a new cookie mix featuring three types of chips, vanilla-flavored premier white morsels, semi-sweet chocolate morsels, and dark chocolate morsels, providing a delightful blend of flavors and textures. For instance, in May 2024, US-based Nestlé Toll House launched Triple Chip Mix Morsel Mix, combining creamy vanilla-infused premier white morsels, indulgent semi-sweet chocolate morsels, and decadent dark chocolate morsels in one convenient package. This product is ideal for home baking enthusiasts, allowing for easy recipe adaptations or new culinary creations.

In February 2024, Archer Daniels Midland, a US-based food corporation, acquired Fuerst Day Lawson Limited for $250 million. This acquisition was a strategic move for ADM to expand its portfolio by incorporating Fuerst Day Lawson's expertise in producing dessert groceries such as flavors and fillings, bakery pastes and glazes, fruit compotes and granolas, juices and blends, and functional energy and vitamin ingredients. Fuerst Day Lawson Limited, a UK-based company, specializes in manufacturing dessert groceries.

Major companies operating in the dessert grocery market are Nestlé S.A, Archer-Daniels-Midland Company, Unilever PLC, General Mills Inc., Associated British Foods PLC, Koninklijke DSM N.V., Hershey Company, Kerry Group PLC, J.M. Smucker Company, McCormick & Company Inc., AGRANA Beteiligungs-AG, Dawn Food Products Inc., Ghirardelli Chocolate Company, King Arthur Baking Company Inc., Puratos Group, Guittard Chocolate Company, Nielsen-Massey Vanillas Inc., Dr August Oetker Nahrungsmittel KG, Ajanta Food Products Company, Berrifine A/S, Pinnacle Foods Co., Sorich Organics Pvt Ltd.

North America was the largest region in the dessert grocery market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the dessert grocery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the dessert grocery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A dessert grocery is a specialized retail establishment or a dedicated section within a grocery store that exclusively focuses on products related to desserts. Its goal is to cater comprehensively to every aspect of dessert preparation, decoration, and enjoyment by offering a wide array of ingredients, pre-made desserts, and tools necessary for creating and serving desserts.

The primary categories of products found in a dessert grocery include bakery ingredients, dairy products, fresh and dried fruits, pulps and purees, sweeteners, colors, and flavors. Bakery ingredients encompass a variety of raw materials and additives utilized in the production of baked goods such as desserts, pastries, and breads. These ingredients come from both conventional and organic sources and are distributed through various channels such as offline and online. They find application in a diverse range of culinary creations including cakes, pastries, puddings, candies, jellies, custards, cookies, biscuits, cupcakes, muffins, dessert beverages, ice cream, mousse, and more. These products serve a wide spectrum of consumers, from commercial establishments to individuals preparing desserts at home.

The dessert grocery market research report is one of a series of new reports that provides dessert grocery market statistics, including dessert grocery industry global market size, regional shares, competitors with a dessert grocery market share, detailed dessert grocery market segments, market trends, and opportunities, and any further data you may need to thrive in the dessert grocery industry. This dessert grocery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The dessert grocery market consists of sales of baking supplies, sweeteners, dairy products, pre-made desserts toppings, and add-ons. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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