Frozen Yogurt Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Frozen Yogurt Market is Segmented By Type(Dairy-based, Non-dairy based), By Flavor(Strawberry, Chocolate, Mango, Banana, Strawberry, Others), By Fat Content(Regular, Low/No Fat), By Distribution Channel(Supermarkets & Hypermarkets, Specialty Stores, Convenience Stores, Online Sales, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024 - 2031.

Report Overview

Global Frozen Yogurt market to grow at a CAGR Of 8.5% during the forecast period 2024 2031. The competitive rivalry intensifies with Pinkberry, Red Mango Inc. ., Nestle S.A. , and others operating in the market.

Frozen yoghurt is a frozen dessert prepared with yoghurt and additional dairy and non-dairy products. Frozen yoghurt is a frozen product that contains living bacterial cultures and has the same basic ingredients as ice cream. Frozen yoghurt is primarily marketed as a popular and healthier alternative to ice cream and other desserts sold in the same sector. Because of the growing number of health-conscious consumers, it has grown in popularity in recent years. Its popularity has also risen as a result of the launch of a new range of flavors and improved services. Yogurt is more popular in developed countries than it is in developing countries. This is attributable to urban consumers' rapidly changing lifestyles and the growing relevance of healthy foods. To enhance their footprint and revenue, some major players are focusing on extending their chain stores in low- and middle-income countries.

Market Summary

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Market Dynamics

Introduction of tart flavors is likely to drive the market growth

The current trend is to combine unique or unusual flavors, and it's gaining a lot of traction in the market. Since its introduction, tart-flavored desserts have grown in popularity due to their superior taste and minimal sugar content when compared to traditional yoghurt. According to the research and survey, more than a quarter of consumers choose tart types. Frozen yoghurt market expansion is bolstered by rising demand and consumption of tart-flavored desserts around the world. Furthermore, there is a growing desire for healthy food among young consumers, which will help the industry grow. In recent years, a healthy diet has become popular, particularly among the younger population. Probiotics found in frozen yoghurt help to enhance the immune system and aid digestion. Vitamins B1, B2, A, D, and B12 are also present. Because of these advantages, people prefer frozen yoghurt to other options like ice cream. Top players like Red Mango are planning new locations near college campuses, where the younger population is more health-conscious.

However, the industry is facing fierce rivalry in terms of alternative products, as well as the emergence and entry of new competitors. Ice cream is still a popular treat all around the world. The majority of customers place a higher value on taste than on their health. However, the younger generation is growing more health-conscious, which is a positive thing for the industry. Furthermore, the growing number of new companies, particularly in developed countries like the United States and Canada, would pose a threat to the current and established large players.

Market Segmentation Analysis

Chocolate flavor held largest market share by flavor in the year 2020

Due to its growing popularity, particularly among women and children, the chocolate flavor segment accounted for the majority of the market. Chocolate is the most popular and long-lasting flavor on the market. The market share of this sector is steadily increasing due to the launch of new flavor variants. In recent years, the strawberry and mango segments have grown in popularity as consumers have become more discriminating and willing to try new flavors. Top players are continuously attempting to introduce new flavors to the market, resulting in a diverse range of options for consumers.

In developed regions, no-fat yogurt is expected to be the fastest-growing variant. Consumers in developed countries like the United States, Canada, Germany, France, and others are becoming increasingly health-conscious and focusing on low-fat foods. In these developed countries, no-fat yoghurt is the fastest-growing sector. At the same time, the low-fat yoghurt category continues to be the most popular around the world. Because of the price difference and ease of availability, consumers in developing regions such as Asia Pacific and South America prefer low-fat frozen yoghurt to zero-fat frozen yoghurt.

Market Geographical Share

North America is expected to dominate the global frozen yogurt market in the year 2020

North America dominated the frozen yoghurt market, with the majority of the market share. This is due to the presence of leading manufacturers and distributors in the region. It is the yoghurt industry's most important region. Consumers are more interested in leading a healthy lifestyle, including nutrition and exercise, which is helping to drive demand for yoghurt. Furthermore, in countries such as the United States and Canada, the self–serve model is gaining a lot of traction. 

Europe is expected to continue to have the second-largest market share throughout the forecast period. In terms of market share, several major European countries, such as Germany, France, Italy, and Spain, are the most prominent. Because of the large urban population, which is concerned with consuming healthy and nutritious foods. This condition is met by frozen yoghurt, which is experiencing a boom in demand in this region. Because of the changing standard of living, rising disposable incomes, a growing number of health-conscious consumers, and the growing presence of prominent international players, Asia Pacific is a developing region in the market.

Companies and Competitive Landscape

Due to the presence of a large number of established and regional companies, the market is highly fragmented, particularly in developed regions such as North America and Europe. Companies like Menchie's Frozen Yogurt, Pinkberry, Honey Hill Farms, and Red Mango Inc. are focusing on expanding their specialty stores in Asia Pacific, where the demand for frozen yoghurt is steadily increasing. Menchie's Frozen Yogurt introduced two new colorful flavors in August 2020: HI-CHEW Mango and HI-CHEWTM Passion Fruit, which can be enjoyed separately or mixed together to produce the delicious HI-CHEW Tropical Smoothie flavor. Pinkberry is launching a new flavor, Strawberry Lemonade, in March 2021 to celebrate the arrival of Spring. 

COVID-19 Impact on Market

Consumers are becoming increasingly health-conscious in the COVID-19 period, and as a result, the consumption of foods with added nutritional content has risen dramatically. Frozen yoghurt has long been advocated as a healthier alternative to ice cream. In comparison to other options available, it contains fewer calories and more nutrients per serving. Furthermore, by lowering the sugar content of flavored yoghurt, it increased the health appeal of yoghurt even more. Yogurt has become increasingly popular around the world as a result of its health benefits, and demand has risen significantly during the pandemic. Top market players are implementing a number of initiatives, such as showing the calories-per-serving signs for each flavor, which is helping to promote yoghurt demand. The COVID pandemic had a short-term favorable influence on the retail yoghurt industry, which was supported by grocery stockpiling, despite the fact that consumption had been trending lower due to the closure of specialty stores.