Frozen Novelty Market Size, Share, Analysis, Growth, Forecasts, 2032

Frozen Novelty Industry Prospective:

The global frozen novelty market size was worth around USD 30.8 billion in 2023 and is predicted to grow to around USD 42.7 billion by 2032, with a compound annual growth rate (CAGR) of roughly 3.7% between 2024 and 2032.

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Frozen Novelty Market: Overview

Frozen novelties are frozen exquisite that are convenient to consume and come in a variety of forms, sizes, colors, flavors, and textures. Ice cream, sorbet, snow cones, and shaved ice are examples of products created with milk solids, vegetable oils, or flavored water. Frozen novelties can include varying amounts of dairy, and some may resemble sherbet rather than ice cream. They can also be prepared with no additional sugar or fat.

The frozen novelty market is driven by several variables, such as rising consumer demand for convenience, innovation in flavors and formats, increasing health consciousness, expanding retail channels, and increasing urbanization. However, the increasing raw material costs are impeding the frozen novelty market over the analysis period.

Key Insights

• As per the analysis shared by our research analyst, the global frozen novelty market is estimated to grow annually at a CAGR of around 3.7% over the forecast period (2024-2032).
• In terms of revenue, the global frozen novelty market size was valued at around USD 30.8 billion in 2023 and is projected to reach USD 42.7 billion by 2032.
• The increasing e-commerce sector is expected to drive the frozen novelty market over the forecast period.
• Based on product type, the ice cream bars segment is expected to dominate the frozen novelty market over the forecast period.
• Based on formulation, the dairy-based segment is expected to hold the largest market share over the forecast period.
• Based on packaging type, the bars segment is expected to hold the largest revenue share over the forecast period.
• Based on distribution channel, the supermarket segment is expected to dominate the market during the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Frozen Novelty Market: Growth Drivers

Rising consumer demand for convenience foods drives market growth

Over the projection period, the frozen novelty market is estimated to be driven by growing consumer demand for convenience foods. As their lives become more hectic, consumers seek quick and easy meal substitutes without sacrificing taste or quality. For families and working individuals looking for an enjoyable treat without having to deal with the hassle of cooking, ice cream bars and other frozen novelty meals are excellent options. This trend is further enhanced by the growing number of single-person houses and the growing preference for snacking on-the-go choices. Frozen novelties are so handy that they might meet a variety of consumer needs while still savoring rich tastes with minimal effort involved.

Moreover, advances in freezing technology have raised the quality and variety of frozen items accessible, so satisfying consumers' appetite for upscale products. The increased availability of frozen novelty products now found in stores and online has also helped the market grow. Online grocery shopping's rising appeal has raised demand in the frozen novelty market industry by streamlining consumer access to a large range of frozen snacks and desserts.

Frozen Novelty Market: Restraints

Increasing raw material costs hinders market growth

Rising raw material costs are a major constraint in the frozen novelty industry. Ice cream and other frozen treats rely significantly on dairy ingredients such as milk, cream, and butter. Global milk supply fluctuations, rising feed costs for dairy cattle, and greater demand in other sectors all contribute to higher dairy prices.

Furthermore, exotic and natural flavoring materials like berries, mangoes, and vanilla are becoming more expensive due to scarcity, climate change, and rising logistics costs. Organic and non-GMO varieties are very expensive to get. Therefore, the rising raw material cost might be hindering the growth of the frozen novelty sector.

Frozen Novelty Market: Opportunities

Rising health consciousness among consumers offers a lucrative opportunity for market growth

Growing health consciousness is impacting consumer tastes and choices in the frozen novelty market segment. Producers responding to consumers' increasing need for healthier options are launching low-calorie, low-sugar, organic frozen novelty goods. This is necessary as people search to delight in rich delicacies without compromising their goals for fitness.

By attracting a larger spectrum of consumers, being able to meet a range of dietary requirements, including vegan and gluten-free substitutes, helps boost market growth. The adoption of health-beneficial additives has become a main force influencing innovation in product creation.

Frozen Novelty Market: Challenges

Competition from other snack categories poses a major challenge to market expansion

Since customers today have a plethora of snacking options competing for their attention and money, competition from other snack categories is a significant limitation on the frozen novelty industry. Other food categories compete with frozen novelties by meeting comparable consumer demands for convenience, pleasure, and health. Healthy snacks, savory snacks, candy, and other options are some of these substitutes.

Frozen Novelty Market: Report Scope

Frozen Novelty Market: Segmentation

The global frozen novelty industry is segmented based on product type, formulation, packaging type, distribution channel, and region.

Based on product type, the global frozen novelty market is segmented into ice cream bars, frozen fruit bars, frozen yogurt, sorbet and frozen custard. The ice cream bars segment is expected to dominate the market over the forecast period. Ice cream bars meet the growing demand for rich and premium frozen sweets, with high-end options driving sales growth. Furthermore, the advent of low-calorie, high-protein, and sugar-free ice cream bars meets the needs of health-conscious consumers.

Based on formulation, the global frozen novelty industry is bifurcated into dairy-based, non-dairy, sugar-free, and low-calorie. The dairy-based segment is expected to hold the largest market share over the forecast period. Ice cream bars, cones, sandwiches, and shakes are very popular due to their creamy texture and rich taste profiles. The familiarity of basic dairy components such as milk, cream, and butter drives steady demand among customers of all ages. Furthermore, new product introductions offering distinct flavors (e.g., salted caramel, tiramisu, and matcha) and forms (e.g., bite-sized delights and layered bars) entice consumers seeking diversity. Seasonal tastes and limited-edition products increase revenue potential.

Based on packaging type, the global frozen novelty industry is bifurcated into pints, bars, cups and multi-packs. The bars segment is expected to hold the largest revenue share over the forecast period. Bars provide the ideal blend of indulgence and portion control, making them appealing to consumers looking to treat themselves without overindulging. Thereby, driving the segment revenue growth.

Based on distribution channel, the global frozen novelty market is bifurcated into supermarkets, online retail, convenience stores, and specialty stores. The supermarket segment is expected to dominate the market during the forecast period. Supermarkets provide a wide variety of frozen novelty items, such as ice cream bars, cones, sandwiches, fruit-based snacks, and plant-based products. Furthermore, supermarkets offer one-stop shopping for customers, making it simple to incorporate frozen novelties into normal grocery purchases.

Frozen Novelty Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global frozen novelty market. The developing health-conscious trends help to clarify the regional spread of the industry. Minimal in fat, calories, and sugar, frozen innovations are increasingly in demand. Dairy-free and plant-based products are being chosen by vegan and lactose-intolerant consumers more and more. Furthermore, one of the main drivers of the frozen novelty business in the area is the developing e-commerce sector.

For instance, secondary sources show that U.S. e-commerce revenues increased from $1.040 trillion in 2022 to roughly $1.119 trillion in 2023. Apart from that, the Asia Pacific is predicted to expand at the greatest CAGR throughout the projected period due to growing urbanization and the presence of developing economies. Moreover, the increasing disposable income of the people supports the expansion of the market.

Frozen Novelty Market: Competitive Analysis

The global frozen novelty market is dominated by players like:

• Kirkland Signature
• Breyers
• Haagen Dazs
• Kraft Heinz
• Goodpop
• Yasso
• General Mills
• Nestle
• Pinnacle Foods
• Mars
• Birds Eye
• Blue Bell Creameries
• Unilever
• Dairy Farmers of America
• Tamagotchi

The global frozen novelty market is segmented as follows:

By Product Type

• Ice Cream Bars
• Frozen Fruit Bars
• Frozen Yogurt
• Sorbet
• Frozen Custard

By Formulation

• Dairy-Based
• Non-Dairy
• Sugar-Free
• Low-Calorie

By Packaging Type

• Pints
• Bars
• Cups
• Multi-Packs

By Distribution Channel

• Supermarkets
• Online Retail
• Convenience Stores
• Specialty Stores

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa