Frozen Desserts Market

The global frozen desserts market is expected to grow at a rapid pace during the review period. The growth of the global frozen desserts market can be attributed to various factors. High consumption of frozen yogurt among the health-conscious population is contributing tremendously to the growth of the global frozen desserts market. Rising demand for artisanal ice cream, followed by a growing number of specialty stores is also boosting the market growth. Additionally, the introduction of specialty frozen desserts is expected to positively influence the expansion of the market during the forecast period. However, the rising prevalence of health conditions such as diabetes and lactose intolerance is likely to hamper market growth during the review period.

The popularity of artisanal ice cream is increasing as it is available in unique flavors with natural ingredients and is hand-crafted. Artisanal ice cream manufacturers avoid the use of artificial flavors and ingredients, thereby offering food safety to health-conscious consumers. Furthermore, artisanal ice cream manufacturers create unique natural flavor combinations that are driving the market growth. For instance, Humphry Slocombe, a San Francisco ice cream company, offers turmeric-infused honey milk ice cream with chocolate chip gingerbread and candied ginger.

Consumer preferences have been changing from single-flavor and traditional ice cream flavors such as vanilla, strawberry, and chocolate to unique flavor blends offered by market players across the globe. The manufacturers also provide cross-category innovation, such as bringing confection or bakery into ice cream or bringing multiple brands together, such as the Breyers 2in1 ice cream by Unilever PLC. Moreover, the inclusion of added functional ingredients such as probiotics, proteins, fiber, and CBD, among others, also grabs the attention of the consumers towards the consumption of artisanal ice cream. One such example is Van Leeuwen Artisan Ice Cream's Vegan Couch Potato, which contains approximately 5 milligrams of CBD in each scoop. Thus, increasing sales of artisanal ice cream will drive the growth of the overall global frozen desserts market.

The rising health concerns due to conventionally made food products are giving rise to a demand for natural and organic ingredients in the food products. Consumers are self-motivated to switch to green-label products owing to the severe health issues caused by artificial flavors in food products. Due to the use of artificial additives to simulate flavors such as mint, citrus, and cinnamon, the US Food, and Drug Administration (FDA) have removed seven synthetic flavoring substances, benzophenone, ethyl acrylate, eugenyl methyl ether, myrcene, pulegone, and pyridine, from the list of allowed additives in ice cream. The growing demand for organic frozen desserts is, thereby, expected to offer lucrative opportunities to market players during the forecast period.

Similarly, the increasing adoption of veganism and the growing prevalence of lactose intolerance are fueling the demand for vegan and lactose-free desserts, especially ice cream and frozen yogurt. Market players can modify their production methods to include plant-based ingredients, such as soy and nut milk, to cater to this growing customer base. Also, the high prevalence of obesity has shifted consumer preference to low-calorie and sugar-free products, which influences the market players in the introduction of specialty frozen desserts. For instance, McConnell’s Fine Ice Creams launched a dairy-free frozen dessert in 2018 that uses pea protein. McConnell’s dairy-free dessert also claims to be low in fat and sugar, cholesterol-free, and non-GMO. Moreover, in 2018, Danone SA launched a line of probiotic vegan yogurts from its popular Light & Fit brand.

The primary ingredient for most of the frozen desserts is milk. The fluctuating prices of milk act as a major restraint for the market growth as it affects the prices of the end product. For instance, the below table shows the comparison of milk prices in the US monthly for two years 2018, and 2019 is given below.

The above figure depicts the fluctuating prices of milk in the European Union. The average prices were in the range of 22-28 ppl during 2016 and it increased suddenly at the start of 2017. The figure also shows the comparison of milk prices between the years 2016 and 2019.

Moreover, the increasing health awareness among the consumers and the inclination of the manufacturers towards the production of specialty frozen desserts have highly impacted the production cost. Specialty frozen desserts are generally priced high due to the use of quality ingredients, and time-consuming production process. The use of all-natural ingredients in frozen desserts such as milk, butter, eggs, fruits, and real cream makes it a highly popular and trending alternative to conventional desserts. Moreover, specialty frozen desserts are healthier than mass-produced conventional frozen desserts since market players are required to follow the guidelines set by the US Department of Agriculture (USDA) and the European Commission (EU). For instance, according to USDA, ice cream must weigh at least 4.5 pounds/gallon and contain at least 10% fat from milk for artisanal ice cream.

Furthermore, artisanal ice cream is made in batches, unlike regular ice cream, where hundreds of gallons are produced at a time. This requires labor, energy, and time, thereby increasing production costs. Commercial producers make ice cream using continuous freezers, while artisanal makers use batch freezers where production is limited to a set amount. The batch production process is necessary for the continuous monitoring and maintenance of high-quality standards of frozen desserts. These factors contribute to the high cost of the final product, which is expected to hinder the growth of the global frozen desserts market during the forecast period.

Most of the frozen desserts have a high content of ingredients that affect cardiovascular health, leading to issues such as high cholesterol and diabetes. They are high in saturated fats, which can increase cholesterol levels and the risk of type 2 diabetes. Furthermore, the high sugar content in most of the frozen desserts may contribute to weight gain and impact glucose levels, thereby resulting in diabetes. High sugar levels in the human diet can lead to health issues such as diabetes, obesity, non-alcoholic fatty liver, and heart disease. Also, the inclusion of dairy milk in the preparation of desserts imposes a threat to the lactose-intolerant population. These factors associated with the frozen desserts hamper market growth. However, growing awareness among consumers regarding the health issues caused by these ingredients has given rise to safer alternatives such as organic, dairy-free, and low-sugar ice cream. Due to several government initiatives to limit the use of harmful ingredients, market players have modified production methods to produce frozen desserts with a focus on health. For instance, in 2019, Jeni's Splendid Ice Creams launched dairy-free ice cream across the US.