Dessert Grocery Market Report 2026

The dessert grocery market size has grown strongly in recent years. It will grow from $24.71 billion in 2025 to $26.4 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to growth of home baking trends, expansion of urban retail infrastructure, rising disposable incomes, increasing availability of specialized dessert ingredients, growth of commercial bakeries.

The dessert grocery market size is expected to see strong growth in the next few years. It will grow to $34.34 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to increasing demand for organic dessert products, rising penetration of e-commerce grocery platforms, expansion of premium dessert consumption, growing influence of social media on baking trends, increasing personalization in dessert retail offerings. Major trends in the forecast period include increasing demand for one-stop dessert ingredient stores, growing adoption of online dessert retail platforms, expansion of premium and artisanal dessert products, rising focus on organic and clean-label dessert ingredients, enhanced in-store experience and customization.

The growing food and beverages industry is expected to propel the growth of the dessert grocery market going forward. The food and beverages industry encompasses a wide range of businesses involved in producing, processing, distributing, and selling food and drink products to consumers. Growth in this industry is driven by factors such as affordable air travel, increased corporate travel, rising wellness and health awareness, and sustainability initiatives. Dessert grocery products play an important role within the food and beverages industry by satisfying consumer demand for sweet treats, supplying essential ingredients to food manufacturers and bakeries, and contributing to product diversity and innovation within the dessert segment. Their ability to cater to evolving consumer preferences and adapt to industry trends makes them a valuable component of the broader food retail landscape. For instance, in April 2024, according to the Australian Bureau of Statistics, an Australia-based government statistical agency, 14.8 million tonnes of food and non-alcoholic beverages were sold during the 2022-23 period. Therefore, the expanding food and beverages industry is driving the growth 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 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the dessert grocery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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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