Market Trends of Frozen Desserts Industry
Increasing Demand for Ice Cream
Ice cream is the most widely consumed dairy dessert globally, with strong penetration across different countries. The market’s growth is attributed to the rising consumer preference for premium ice creams, the growing popularity of intercontinental flavors, and manufacturers' latest product innovations. Key brands are experimenting with new products, such as sugar-free or low-sugar ice creams and reduced or medium-fat ice creams, which are estimated to drive the market’s growth during the forecast period. Ben & Jerry's offers a range of ice creams with 60-70% less fat and 35% fewer calories.
Moreover, with the consistency in product innovation, consumers significantly prefer these desserts. According to the Processed Food Industry, Indians consume 400 ml of ice cream per person, and the United States and China consume 22,000 ml and 3,000 ml, respectively. The industry has significant growth potential due to the country's expanding cold chain infrastructure and production of broad ice cream flavors. Indian consumers prefer trying new or different varieties when purchasing ice cream products, such as classic and fruity flavors, to hold consumer appeal, with consumers curious to experiment with new flavors.
Asia-Pacific is the Fastest Growing Market
The increasing demand for frozen desserts has led to significant growth in the number of ice creams and frozen dessert retail shops in Asian countries like China. Frozen desserts are bound to succeed in the Chinese market, as the increasing demand for low-fat, healthy food encourages people to spend more on these products. A vast population, a prominent young generation, increasing disposable incomes, and changes in dining habits are the major factors supporting this region's frozen desserts market. Frozen desserts on sticks have gone viral in China due to convenience. Considering the market demand, in July 2022, Zibo City, in East China's Shandong province, started innovative new ice cream bars in different shapes, like cave dwellings, copper coins, and tigers.
Furthermore, India is also one of the fastest-growing frozen industries due to product innovations. Indian manufacturers are innovating ice creams in different local flavors like gulab jamun and rose. Because of these product innovations, the eagerness to try different flavors in dessert ice cream has increased in Indian households. Also, the demand for natural ingredients in ice creams is increasing, and market players are fulfilling the demands of consumers. For instance, in April 2024, Havmor, an ice cream brand owned by LOTTE Wellfood Co. Ltd, introduced a new range of ice cream flavors ahead of the summer heatwave. Flavors include shahi kesar, rajwadi kulfi, rose, Ratnagiri hapus (mango), jaljeera and kalakhatta ice candy, cookies n cream cone, ice cream sandwich, and blueberry cheesecake. The brand emphasizes innovation to cater to evolving consumer preferences, offering a selection of flavors that blend classics with innovative twists for a delightful experience.
