The target market for frozen yogurt is females aged 18-35. This segment buys the most frozen yogurt, accounting for 41.8% of sales. The rising do-it-yourself trend has contributed as DIYers enjoy the self-serve model. Frozen yogurt is often lower in fat and calories than ice cream. It is seen as a healthier dessert option due to live cultures that provide probiotic benefits. Restraints include lack of consumer awareness and seasonality of demand. Manufacturers must manage production and inventory with fluctuating demand.
The U.S. holds a large share of the North American frozen yogurt market. There is a shift from dairy-based to non-dairy products, especially among high-income consumers. Innovative manufacturers are attracting more consumers through new product portfolios. The global market is expected to grow from $1.69 billion in 2021 to $2.14 billion in 2028 at a 3.5% CAGR. Growth drivers are increasing awareness of nutrition and frozen yogurt as a prominent, healthier alternative to ice cream.
The frozen yogurt market is segmented into nature, flavor, and distribution channel. It is a cold serving widely consumed in the form of desserts and is also available as non-dairy delicacies such as coconut yogurt and soy yogurt.
Regional segmentation includes North America, Latin America, APAC, Europe, and MEA. North America is expected to have the major market share globally, with Europe also emerging as a significant market due to growing popularity in countries like France, the U.K., and Germany.
Growth Factors
- The market has benefited from a growing emphasis on dietary preferences and restrictions, suitable for a wide range of diets, including vegetarian and gluten-free.
- Innovation and customization have played a pivotal role in the market’s growth.
Market Opportunities
- Increasing logistics services, easy payment options, and the facility to enter new international markets.
- The market is projected to grow from USD 1.69 billion in 2021 to USD 2.14 billion in 2028 at a 3.5% CAGR in the 2021-2028 period.
Market Restraints
- Price reasonability and standardization of products alongside investments in technology and consumer preference for healthy food help market leaders extend their global footprint.
Product Segmentation
By product type, the market is segmented into:
- Regular frozen yogurt
- Flavored frozen yogurt
By function, it is segmented into:
- Lactose-free
- Low fat
- Low-calorie
- Others (Based on flavor type: chocolate, peach, mango, strawberry, lemonade, banana, pineapple, etc.)
Market Trends
- The combination of unique or unusual flavors is a current trend.
- Tart flavored desserts have gained popularity due to their superior taste and lower sugar content.