Market Size of north america frozen desserts Industry
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 316.2 Million |
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Market Size (2029) | USD 350.4 Million |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 2.08 % |
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Largest Share by Country | United States |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Frozen Desserts Market Analysis
The North America Frozen Desserts Market size is estimated at 316.2 million USD in 2024, and is expected to reach 350.4 million USD by 2029, growing at a CAGR of 2.08% during the forecast period (2024-2029).
316.2 Million
Market Size in 2024 (USD)
350.4 Million
Market Size in 2029 (USD)
1.50 %
CAGR (2017-2023)
2.08 %
CAGR (2024-2029)
Largest Market by Distribution Channel
96.98 %
value share, Off-Trade, 2023
The wider availability of various brands, ease of reading product labels and convenience in comparing different products make it the preffered type among the dairy consumers.
Largest Market by Country
84.35 %
value share, United States, 2023
Higher purchasing power, the inclusion of dairy products in most of their consumption patterns, and high productivity are some of the major factors driving the U.S market.
Fastest-growing Market by Distribution Channel
2.09 %
Projected CAGR, Off-Trade, 2024-2029
The increased adoption of e-commerce platform among the consumers and growing presence of online retailers in North America is anticipated to drive the off-trade segment.
Fastest-growing Market by Country
2.12 %
Projected CAGR, United States, 2024-2029
The hike in the trajectory is associated with the elevating volume of sweet-preferring consumers in United States along with rocketing innovations is anticipated to drive the segment.
Leading Market Player
14.41 %
market share, Dairy Farmers of America Inc., 2022
The increased manufacturing capacities with efforts towards safety and quality of the products is making the company Dairy Farmers of America Inc. to be the market leader in the year studied.
Rise in modern grocery retailing including hypermarkets and online stores fuels the sales through off-trade channels
- The off-trade segment recorded a high market share, primarily driven by hypermarkets and supermarkets. Supermarkets/Hypermarkets have always maintained a strong lead in terms of the sales of frozen desserts. The proximity factor of these channels, especially in large and developed cities, gives them the added advantage of influencing the consumer's decision to choose from a large variety of products available in the market. For instance, in the United States, supermarkets and hypermarkets accounted for over 66% of frozen dessert sales in terms of value in 2022.
- The online channel is projected to be the fastest-growing distribution channel for frozen desserts in North America. It is expected to register a CAGR of 2.4% during the forecast period. In Canada, online sales of frozen desserts registered a growth of 17% in terms of volume from 2017 to 2022, attributed to the increasing investment by modern grocery stores in the online delivery infrastructure in response to the changing purchasing behaviors of Canadian consumers. For instance, the survey conducted in 2021 reported that nearly 22% of Canadians plan to buy groceries online regularly.
- In the United States, major brands have partnered with online retailers to aid consumer convenience. For instance, prominent online retailers include Instacart, Amazon Fresh, Walmart, Kroger, Shipt, Thrive Market, Whole Foods, and FreshDirect. Key brands of frozen desserts available in Walmart's online stores include Van Leeuwen, Great Value, Edwards, and Marie Callender's.
Understand The Key Trends Shaping This Market
Increasing demand for low-calorie desserts among the North American population
- Compared to 2021, the frozen desserts market in North America recorded an increase of 1.18% in 2022. In the last three years, consumers in North America preferred low-calorie desserts. Sorbet and frozen custard are the two main segments of the frozen dessert market. The demand for low-calorie desserts is increasing, thus boosting the market for frozen desserts. Sorbet and frozen custard have lower milk fat percentages than other dairy sweets like ice cream. The frozen dessert category in the region is expected to rise by 3.93% by 2025.
- Compared to other countries, the United States holds a 15.38% share of the North American market. The availability of frozen desserts in several retail locations, such as Walmart and Amazon, boosts the market's growth. Frozen desserts are available at varied prices (low, medium, and high). The base selling price of frozen desserts is USD 2.45, which can go as high as USD 130, thus increasing consumer affordability. With shares of 66.69%, supermarket/hypermarket chains were substantially more active in product provision than other retailing types during the review period.
- The market has observed a rising volume of individuals preferring ice creams due to the growing demand for low-fat dairy desserts. In Mexico, the ice cream segment held a share of 34.25% in terms of consumption volume during the review period.
North America Frozen Desserts Industry Segmentation
Off-Trade, On-Trade are covered as segments by Distribution Channel. Canada, Mexico, United States are covered as segments by Country.
- The off-trade segment recorded a high market share, primarily driven by hypermarkets and supermarkets. Supermarkets/Hypermarkets have always maintained a strong lead in terms of the sales of frozen desserts. The proximity factor of these channels, especially in large and developed cities, gives them the added advantage of influencing the consumer's decision to choose from a large variety of products available in the market. For instance, in the United States, supermarkets and hypermarkets accounted for over 66% of frozen dessert sales in terms of value in 2022.
- The online channel is projected to be the fastest-growing distribution channel for frozen desserts in North America. It is expected to register a CAGR of 2.4% during the forecast period. In Canada, online sales of frozen desserts registered a growth of 17% in terms of volume from 2017 to 2022, attributed to the increasing investment by modern grocery stores in the online delivery infrastructure in response to the changing purchasing behaviors of Canadian consumers. For instance, the survey conducted in 2021 reported that nearly 22% of Canadians plan to buy groceries online regularly.
- In the United States, major brands have partnered with online retailers to aid consumer convenience. For instance, prominent online retailers include Instacart, Amazon Fresh, Walmart, Kroger, Shipt, Thrive Market, Whole Foods, and FreshDirect. Key brands of frozen desserts available in Walmart's online stores include Van Leeuwen, Great Value, Edwards, and Marie Callender's.
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| Rest of North America |
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North America Frozen Desserts Market Size Summary
The North America Frozen Desserts Market is experiencing a steady expansion, driven by a combination of traditional and emerging distribution channels. Supermarkets and hypermarkets dominate the market, leveraging their extensive reach and product variety to attract consumers. These retail giants benefit from their strategic locations in urban areas, which enhances consumer accessibility and influences purchasing decisions. Meanwhile, the online channel is rapidly gaining traction, with significant growth observed in Canada due to investments in online delivery infrastructure. In the United States, partnerships between major brands and online retailers like Amazon and Walmart are enhancing consumer convenience and expanding market reach. The market's growth is further supported by a rising consumer preference for low-calorie options, such as sorbet and frozen custard, which are gaining popularity due to their lower milk fat content compared to traditional ice creams.
The market landscape is characterized by a fragmented structure, with key players such as Dairy Farmers of America Inc., Froneri International Limited, HP Hood LLC, Unilever PLC, and Walmart Inc. holding significant shares. These companies are actively expanding their operations and product offerings to meet the increasing demand for frozen desserts. The market's growth is also influenced by the availability of frozen desserts at various price points, making them accessible to a broad consumer base. In Mexico, the ice cream segment remains a significant contributor to consumption volume, reflecting the region's growing demand for low-fat dairy desserts. The market's dynamics are shaped by factors such as raw milk production trends and strategic acquisitions, which are aimed at enhancing product offerings and extending shelf life.
North America Frozen Desserts Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Distribution Channel
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1.1.1 Off-Trade
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1.1.1.1 By Sub Distribution Channels
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1.1.1.1.1 Convenience Stores
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1.1.1.1.2 Online Retail
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1.1.1.1.3 Specialist Retailers
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1.1.1.1.4 Supermarkets and Hypermarkets
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1.1.1.1.5 Others (Warehouse clubs, gas stations, etc.)
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1.1.2 On-Trade
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1.2 Country
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1.2.1 Canada
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1.2.2 Mexico
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1.2.3 United States
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1.2.4 Rest of North America
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North America Frozen Desserts Market Size FAQs
How big is the North America Frozen Desserts Market?
The North America Frozen Desserts Market size is expected to reach USD 316.21 million in 2024 and grow at a CAGR of 2.08% to reach USD 350.43 million by 2029.
What is the current North America Frozen Desserts Market size?
In 2024, the North America Frozen Desserts Market size is expected to reach USD 316.21 million.
