The U.S. frozen desserts market is expected to reach USD 35.2 billion by 2025, according to a new report by Grand View Research, Inc. Rising demand for healthy and nutritious frozen desserts has been a major factor driving low-fat content desserts. In addition, technological advancements in refrigeration and conveyor techniques have also driven the industry growth in recent years.
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Technology and innovation in the fields of flavors and textures are the key driving factors of the industry in the U.S. Various companies are working on technologically enhanced functional ingredient system to enhance their flavors and expand the industry horizon. These customizations in functional ingredients regarding creative flavors and improved texture and mouthfeel are achieved through consumer trend and extensive research & development.
Several companies are not only expanding their product portfolio but also strengthening their market with accurate marketing and undisrupted supply chain management. With the innovative range of products and huge competition, several companies are now working on branding and proper marketing implementation to gain an edge.
Presence of numerous major doughnut brands, including Tim Hortons, Dunkin’ Donuts and Krispy Kreme across the region has driven the industry growth in past few years. Innovation is at the forefront with the development of numerous novel flavors. Companies are also focusing on packaging and labeling along with other factors to offer these products in an eye-catching and refreshed appearance.
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Further key findings from the report suggest:
- The U.S. frozen desserts demand exceeded USD 25.80 billion in 2016 and is expected to grow at a CAGR of 3.7% from 2017 to 2025
- Ice creams emerged as the dominant product segment in 2016, with over 60% market revenue
- Frozen yogurts are anticipated to witness fastest growth rate, generating revenue worth USD 2.10 billion by 2025
- Major frozen novelties manufacturers across the U.S. are involved in the development of innovative multi-textured and multi-flavored products with lower percentage of dairy ingredients, enticing consumers of all ages
- The cakes & pastries segment is driven by the increasing demand for unpackaged or artisanal cakes, which accounts for over three-quarters of all cakes sales across the region
- Non-retail was the dominant distribution channel and accounted for 54.96% of the revenue in 2016. Recent trends have led these outlets to adapt nutritious food into their growing menus, which has further enhanced their appeal as an outlet for on the go breakfast
- Retail bakeries have witnessed considerable rise in outlets across the region driven by their product innovation
- Key participants include Nestle USA, Inc., Lantmannen Unibake USA. Inc., Campbell Soup Company, Alpha Baking Co, Inc., Kellogg Company, ConAgra Brands, General Mills, Inc., Schwan’s Company, Sara Lee Desserts, Van’s Foods and Deiorio Foods, Inc., among others
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