Frozen Yogurt Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2019-2029F

The Frozen Yogurt Market was valued at USD 1.98 Billion in 2023, and is expected to reach USD 2.54 Billion by 2029, rising at a CAGR of 4.30%. The global frozen yogurt market has experienced substantial growth and transformation in recent years, with consumers worldwide embracing this sweet and tangy frozen treat as a healthier alternative to traditional ice cream. This market's success can be attributed to a range of factors, including shifting dietary preferences, increasing health consciousness, and the industry's ability to innovate and diversify its product offerings.

One of the key drivers of the global frozen yogurt market is the perception of frozen yogurt as a healthier dessert option compared to ice cream. Frozen yogurt is often made with live bacterial cultures, which can provide probiotic benefits, supporting gut health. Moreover, it is typically lower in fat and calories than traditional ice cream. These health-conscious attributes have resonated with consumers, leading many to choose frozen yogurt as a guilt-free indulgence.

The market has also benefited from a growing emphasis on dietary preferences and restrictions. Frozen yogurt is suitable for a wide range of diets, including vegetarian and gluten-free, making it an inclusive option for consumers with various dietary needs. As awareness of dietary restrictions and preferences has increased, frozen yogurt has adapted to cater to these diverse demands.

Innovation and customization have played a pivotal role in the market's growth. Frozen yogurt shops have provided consumers with the freedom to create their own unique dessert experiences. Self-serve frozen yogurt establishments allow customers to choose from a variety of flavors and a wide selection of toppings, from fresh fruits to indulgent candies. This level of personalization has made frozen yogurt an interactive and enjoyable treat, fostering consumer loyalty and repeat business.

The global frozen yogurt market is also responsive to changing consumer taste preferences. As consumers seek variety, manufacturers have introduced a multitude of flavors and toppings, ensuring there is something for everyone. From classic flavors like vanilla and chocolate to more exotic options such as matcha or dragon fruit, the market has evolved to satisfy diverse palates. Additionally, dairy-free and plant-based frozen yogurt alternatives have become increasingly prevalent to cater to the growing demand for vegan products.

Convenience and accessibility are essential factors in the market's success. Frozen yogurt is readily available in various formats, including traditional scoop shops, self-serve frozen yogurt parlors, pre-packaged containers in grocery stores, and even yogurt bars in cafés and restaurants. This accessibility ensures that consumers can enjoy frozen yogurt at their convenience, whether they are dining out or staying at home.

Key Market Drivers

Health and Wellness Trends

One of the primary drivers of the global frozen yogurt market is the increasing emphasis on health and wellness among consumers. In recent years, there has been a growing awareness of the importance of maintaining a balanced and nutritious diet. As a result, many consumers are seeking healthier dessert alternatives to traditional ice cream, which is often perceived as high in sugar and fat.

Frozen yogurt has emerged as a favorable choice in response to these evolving dietary preferences. It is typically lower in fat and calories compared to ice cream and often contains probiotics, which are beneficial for gut health. This health-conscious approach has significantly boosted the demand for frozen yogurt products, attracting consumers looking to satisfy their sweet cravings without compromising their dietary goals.

For instance, according to new data released by the USDA Economic Research Service (ERS), per capita consumption of dairy products has increased significantly. The figures indicate a growth of 12.4 pounds per person. This rise underscores a notable trend towards higher dairy consumption among the population, reflecting evolving dietary preferences and possibly shifting nutritional awareness. Moreover, frozen yogurt is often available in various flavors, including low-sugar and sugar-free options, catering to the dietary needs of an even wider consumer base.

Additionally, the customization aspect of frozen yogurt plays a crucial role in its appeal to health-conscious consumers. Many frozen yogurt shops and self-serve kiosks allow customers to create their own desserts by choosing from a variety of toppings, fruits, and syrups. This level of personalization enables consumers to control the ingredients and portion size, aligning with their specific dietary requirements and preferences.

Flavor Innovation and Variety

The global frozen yogurt market has witnessed a surge in flavor innovation and variety, which has attracted a diverse customer base. Manufacturers and retailers continually introduce new and exciting flavor options to capture consumer interest and cater to a wide range of taste preferences. This focus on flavor innovation has set frozen yogurt apart from conventional ice cream, which typically offers fewer flavor choices.

In addition to traditional favorites like vanilla and chocolate, frozen yogurt now features unique and exotic flavors such as passion fruit, matcha green tea, mango, and many others. The availability of these diverse flavors has drawn consumers looking for an indulgent yet distinctive dessert experience. Furthermore, the fusion of frozen yogurt with global culinary influences and trends, such as the incorporation of superfoods like acai and pomegranate, appeals to health-conscious and adventurous consumers.

The variety extends to dietary preferences as well. Many frozen yogurt shops now offer dairy-free and vegan options, using ingredients like coconut milk or almond milk to cater to lactose-intolerant and vegan consumers. This inclusivity in flavor and dietary options has broadened the consumer base for frozen yogurt, making it a dessert choice suitable for a wide range of tastes and dietary needs.

Evolving Retail Formats and Experience

Another driver of the global frozen yogurt market's growth is the evolution of retail formats and the overall consumer experience. Frozen yogurt shops and outlets have redefined the way consumers enjoy their desserts by introducing self-serve kiosks and interactive experiences.

The concept of self-serve frozen yogurt shops, where customers can dispense their desired amount of yogurt and choose from a wide array of toppings, has become immensely popular. This interactive approach allows consumers to customize their desserts, making the experience engaging and enjoyable. Moreover, the pay-by-weight model, where customers are charged based on the weight of their chosen yogurt and toppings, provides transparency and flexibility, making frozen yogurt more accessible and appealing.

In addition to self-serve kiosks, many frozen yogurt shops have created aesthetically pleasing and Instagram-worthy environments, which enhance the overall experience. Bright and welcoming decor, along with the opportunity to share visually appealing dessert creations on social media, has contributed to the market's success by attracting younger and more visually-oriented consumers.

Furthermore, many frozen yogurt outlets have adapted to consumer preferences for convenience by offering takeaway and delivery options. These convenient services cater to busy lifestyles, allowing consumers to enjoy their favorite frozen yogurt products without the need to visit a physical store. This adaptability to changing consumer behaviors and preferences has boosted the accessibility and popularity of frozen yogurt.

Key Market Challenges

Health and Wellness Trends

One of the primary challenges facing the global frozen yogurt market is the ongoing shift in consumer preferences towards healthier and more natural food choices. The health and wellness trend has led many consumers to be more conscious of their dietary choices, including frozen desserts. Frozen yogurt, which was once seen as a healthier alternative to traditional ice cream, is now under scrutiny for its sugar content and potential additives.

Consumers are increasingly looking for low-sugar, low-fat, and probiotic-rich alternatives, and some are turning to non-dairy and plant-based options. This challenge is compounded by government regulations and labeling requirements that demand transparency about nutritional content and ingredient lists. Frozen yogurt brands are under pressure to reformulate their products to meet these evolving demands.

To address this challenge, frozen yogurt producers can innovate by offering healthier options, such as sugar-free or low-calorie frozen yogurt, or by incorporating natural sweeteners and probiotics to appeal to health-conscious consumers. Clear and informative labeling and marketing that emphasizes these health benefits can also help brands distinguish themselves in this evolving landscape.

Intense Market Competition

The global frozen yogurt market has become increasingly competitive, with a proliferation of new entrants and frozen dessert alternatives. As a result, established brands are struggling to maintain their market share and customer loyalty. This competition is fueled by the emergence of specialty frozen yogurt shops, self-serve concepts, and the expansion of convenience stores offering a wide range of dessert options.

One of the challenges within this competitive landscape is finding unique selling propositions (USPs) to differentiate brands. Frozen yogurt businesses must stand out by offering distinctive flavors, toppings, and experiences to attract and retain customers. Strategic partnerships, such as co-branding with popular snack or beverage brands, can also help increase foot traffic and sales.

Moreover, the COVID-19 pandemic had a significant impact on the industry, with many stores and businesses in the sector struggling due to reduced foot traffic and consumer hesitation about consuming self-serve products. Some players in the market may continue to face pandemic-related challenges even as the situation improves.

Consolidation within the industry through mergers and acquisitions may be another strategy to navigate the competitive landscape. This can help larger brands gain economies of scale and expand their reach while potentially diversifying their product offerings.

Economic Factors and Seasonality

The frozen yogurt market is also influenced by economic factors and the seasonality of demand. Economic downturns and fluctuations in disposable income can affect consumer spending on non-essential items, including frozen desserts. During challenging economic times, consumers may choose to cut back on dining out and opt for more cost-effective options, impacting the profitability of frozen yogurt businesses.

Seasonality is another challenge, as frozen yogurt consumption tends to be higher during the warmer months and decreases in colder seasons. This can lead to revenue fluctuations and the need for seasonal adjustments in staffing, inventory, and marketing efforts.

To address these economic challenges, businesses in the frozen yogurt market can focus on product diversification. Expanding offerings to include warm, dessert-like options in the colder months or introducing novelty products and limited-time offerings can help maintain customer engagement throughout the year. Additionally, flexible pricing and loyalty programs can encourage repeat business and customer retention during economic downturns.

Key Market Trends

Premiumization and Artisanal Offerings

The global frozen yogurt market has seen a shift towards premiumization and artisanal offerings. Consumers are increasingly willing to pay more for high-quality, artisan-crafted frozen yogurt that boasts superior ingredients and unique flavors. This trend is driven by a desire for gourmet experiences and a perceived higher value associated with premium products. Artisanal frozen yogurt shops are gaining popularity, offering small-batch yogurts made from locally sourced ingredients or exotic flavors inspired by global culinary trends. These artisanal offerings cater to discerning consumers who prioritize authenticity, craftsmanship, and the story behind the product. As a result, the market is witnessing a diversification of offerings, with both large chains and independent stores tapping into the demand for premium frozen yogurt experiences.

Flavor Innovations and Customization

Flavor innovation and customization have become a hallmark of the global frozen yogurt market. Many frozen yogurt shops offer a wide array of flavors, allowing customers to create their unique combinations. These shops typically feature self-serve dispensers with various yogurt flavors and a vast selection of toppings, ranging from fresh fruits and nuts to candies and syrups. This trend has transformed the frozen yogurt experience into a highly personalized and interactive one.

The frozen yogurt industry continually introduces new and exotic flavors to entice customers. Beyond the traditional vanilla and chocolate, consumers can now choose from flavors like matcha green tea, pomegranate, taro, and even savory options like olive oil or balsamic vinegar. Flavor innovation and seasonally inspired offerings also cater to consumer demands for variety and excitement, keeping them engaged and coming back for new taste experiences.

In addition to creative flavors, frozen yogurt shops have adopted digital technology to enhance the customer experience. Some establishments offer loyalty programs, mobile apps, and social media engagement to keep customers informed about new flavors, promotions, and special events. This digital integration adds a layer of convenience and personalization to the overall frozen yogurt experience.

Sustainability and Ethical Sourcing

Sustainability and ethical sourcing have gained momentum in the global frozen yogurt market. Consumers are becoming more conscious of the environmental and ethical implications of their food choices, leading to increased scrutiny of the practices of frozen yogurt brands. Many consumers are concerned about issues such as waste reduction, responsible sourcing, and ethical treatment of dairy animals.

To address these concerns, some frozen yogurt brands are taking steps to reduce their environmental footprint. They are switching to eco-friendly packaging materials, such as biodegradable cups and utensils, to minimize plastic waste. These efforts align with the broader sustainability goals of reducing single-use plastics and minimizing the impact on the environment.

Moreover, ethical sourcing of ingredients, particularly dairy products, has become a priority. Consumers are seeking assurances that the milk used in frozen yogurt production comes from farms that prioritize animal welfare, sustainable farming practices, and hormone-free milk. Brands that can demonstrate their commitment to ethical sourcing and sustainability often earn the trust and loyalty of consumers who value these principles.

In January 2024, the FDA issued a final order amending the standard of identity for yogurt. The revised standard permits the use of all approved sweeteners, allows fat-containing flavors in lower-fat yogurt, and mandates a minimum optional fortification of Vitamin D at 10% of the Daily Value. Additionally, yogurt must now contain a minimum of 10 million colony-forming units per gram of live and active cultures. For products where microorganisms have been inactivated, labeling must indicate ''does not contain live and active cultures.'' These changes mark significant updates aimed at modernizing yogurt regulations to better reflect current consumer preferences and industry practices.

Segmental Insights

Type Insights

Organic frozen yogurt has emergence as a fastest growing segment in the global frozen yogurt market, reflecting a growing consumer preference for healthier and more environmentally conscious food choices. This trend can be attributed to several factors, including increased awareness of the benefits of organic ingredients, a desire for better nutrition, and a commitment to sustainability and ethical consumption.

One of the key drivers behind the prominence of organic frozen yogurt is the heightened awareness among consumers regarding the quality of their food. People are becoming more conscious of the ingredients they consume and the potential health benefits of choosing organic products. Organic frozen yogurt, in particular, is seen as a healthier alternative to conventional options, as it typically contains natural, non-genetically modified organisms (GMO) ingredients, and avoids synthetic additives, growth hormones, and antibiotics. This has driven consumers to seek out organic choices for their frozen dessert indulgences.

Health-conscious consumers are also drawn to organic frozen yogurt because it often offers nutritional advantages. Organic varieties are generally lower in artificial sweeteners, high-fructose corn syrup, and artificial coloring, which have been linked to various health issues. Many organic frozen yogurt products contain live probiotic cultures, which can aid in digestion and gut health. This focus on nutrition and well-being has propelled organic options to the forefront of the frozen yogurt market.

In addition to health considerations, sustainability and ethical consumerism play a significant role in the prominence of organic frozen yogurt. Consumers are increasingly concerned about the environmental impact of their food choices and the treatment of animals in the production of dairy products. Organic frozen yogurt is perceived as a more eco-friendly option because it typically involves sustainable farming practices, which reduce chemical runoff and support biodiversity. Furthermore, organic dairy farms tend to prioritize animal welfare, with cows raised in more humane conditions, free from growth hormones and routine antibiotics.

The rise of organic frozen yogurt has also been facilitated by an increased demand for clean-label products. Consumers are seeking transparency in food labeling and want to know what they are consuming. Organic frozen yogurt brands often provide clear and straightforward ingredient lists, which can resonate with consumers looking for authenticity and naturalness in their food.

Sales Channel Insights

The online segment emerged as the fastest-growing segment in the global frozen yogurt market, fueled by changing consumer behaviors and technological advancements. As more consumers opt for the convenience of shopping online, frozen yogurt brands are leveraging digital platforms to expand their reach and cater to a broader audience.

One of the key drivers of online growth is the increasing preference for ordering food and groceries online, driven by factors such as convenience, time efficiency, and a wider selection of products. This trend has been accelerated further by the COVID-19 pandemic, which prompted a significant shift towards e-commerce across various industries, including food and beverage.

Frozen yogurt brands are capitalizing on this trend by offering online ordering and delivery options through their websites and mobile apps. This allows consumers to browse menu options, customize their orders, and have their favorite frozen yogurt flavors and toppings delivered directly to their doorstep. Additionally, digital marketing strategies, including social media promotions and online advertising, play a crucial role in driving online sales and enhancing brand visibility in a competitive market landscape.

Looking ahead, the online segment of the global frozen yogurt market is poised for continued growth, driven by ongoing technological innovations and evolving consumer preferences for convenient and accessible shopping experiences.

Regional Insights

North America has established itself as a prominent player in the global frozen yogurt market, boasting a largest share in this thriving industry. The region's dominance in the frozen yogurt sector can be attributed to a combination of factors, including evolving consumer preferences, a penchant for healthier alternatives, innovative product offerings, and a culture of indulgence.

One of the primary drivers behind North America's substantial presence in the global frozen yogurt market is the shift in consumer preferences toward healthier dessert options. As health-consciousness becomes more ingrained in society, consumers are increasingly seeking treats that offer a better nutritional profile compared to traditional ice cream or sugary desserts. Frozen yogurt has emerged as an ideal choice, as it is perceived as a healthier alternative due to its lower fat content and live probiotic cultures, which are believed to be beneficial for digestive health.

North America has also witnessed a growing trend in customization and variety within the frozen yogurt market. Self-serve frozen yogurt shops have become popular across the region, allowing consumers to create their own unique combinations of flavors and toppings. This level of personalization has resonated with consumers, as it offers a fun and interactive experience, making frozen yogurt a favored treat for people of all ages. The ability to mix and match flavors, from classic vanilla and chocolate to exotic fruit and innovative seasonal offerings, caters to diverse taste preferences.

The frozen yogurt market in North America has adapted to changing consumer demands, with a focus on producing products that align with dietary preferences. This includes options for those with lactose intolerance and dairy allergies, leading to a surge in dairy-free and vegan frozen yogurt alternatives made from almond, soy, or coconut milk. As dietary restrictions and preferences continue to diversify, North America has been quick to respond by offering inclusive and innovative frozen yogurt choices.

Innovation and marketing strategies have played a pivotal role in North America's significant share of the global frozen yogurt market. Brands have introduced limited-time and seasonal flavors, collaborations with other food and beverage companies, and creative toppings to keep consumers engaged and coming back for more. This approach has not only attracted regular frozen yogurt enthusiasts but also new consumers eager to try out the latest and most unique flavors.

The culture of indulgence in North America has also driven the popularity of frozen yogurt. While health-conscious choices are essential, the region has maintained a deep-rooted love for sweet, creamy treats. Frozen yogurt satisfies this desire for indulgence while offering a sense of guilt-free enjoyment. It is often seen as a canvas for dessert lovers to experiment with various toppings, from fresh fruits and nuts to decadent sauces and candies.

Key Market Players

• Danone S.A.
• Nestlé S.A.
• Unilever plc
• Dairy Farmers of America, Inc.
• HP Hood LLC
• Campbell Soup Company
• Regal Cream Products Pty Ltd
• Kahala Franchising, L.L.C (Pinkberry)
• Menchie's Group, Inc.
• Orange Leaf, LLC

Report Scope:

In this report, the global frozen yogurt market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Frozen Yogurt Market, By Type:

• Organic
• Conventional

Frozen Yogurt Market, By Flavor:

• Chocolate
• Mango
• Pineapple
• Strawberry
• Others

Frozen Yogurt Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others

Frozen Yogurt Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia-Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey
• Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the global frozen yogurt market.

Available Customizations:

Global Frozen Yogurt market report with the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

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

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