Further Growth Forecast for US Frozen Desserts as Trend Towards Discounts and New Launches Continues

Since the onset of the current downturn, both packaged frozen dessert marketers and foodservice operators have used a wide variety of discounts and deals to keep volume sales up and appeal to cost-conscious consumers.

8 Jan 2010 --- The U.S. market for ice cream and related frozen desserts (including frozen yogurt and frozen novelties) increased 2% to reach $25 billion in 2009, despite a recessionary climate that significantly affected frozen dessert sales, according to "Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities in Retail and Foodservice, 6th Edition" by market research publisher Packaged Facts. The U.S. accounts for almost one-third of the total global market.

The frozen desserts business in America had been considered recession-proof based on its performance during previous downturns. But since the onset of the current downturn, both packaged frozen dessert marketers and foodservice operators have used a wide variety of discounts and deals to keep volume sales up and appeal to cost-conscious consumers. Sustaining such strategies is expected to be essential to the future of this mature market, which Packaged Facts forecasts will achieve sales of $27 billion by 2014.

"The recession has raised consumer commitment to finding the best price/value balance in their frozen desserts. Manufacturers, retailers, and foodservice operators are all working to keep consumers happy by offering a wide assortment of deals," says Don Montuori, publisher of Packaged Facts. "At the same time, frozen desserts represent an opportunity for relatively inexpensive indulgence. Here again, marketers are offering bargains in order to keep volume flowing, and retailers are improving and upscaling their private label offerings."

Marketers continue to launch new products that, Packaged Facts predicts, could influence a change in direction for the industry. Many of these products are targeted to socially conscious consumers and foodies, who share a desire for products that are simple and from identifiable sources, such as ingredients by local producers. Other new products are targeted to the Hispanic-American population, which is the fastest growing demographic segment, as well as to consumers who enjoy products with a "Latin" flavor.

At the same time that consumers are value hunting, they are also seeking products that can contribute to their health. And though healthy products are nothing new in the frozen dessert category, the trend now focuses on products that have added ingredients, such as probiotics and Omega 3, that promote good health rather than products that have eliminated ingredients like fat and sugar. Other ingredients being added to promote health include antioxidants, calcium, and Vitamin D. Packaged Facts predicts the healthy aspects of yogurt culture that appeal to older and younger health-conscious consumers will cause the sales growth of frozen yogurt to outpace other frozen dessert categories through 2014.

"Ice Cream and Frozen Desserts in the U.S., 6th Edition" examines a spectrum of frozen desserts including ice cream, frozen yogurt, gelato, frozen custard, sherbet, sorbet, water ices, non-dairy frozen desserts and frozen novelties. The report offers predictions about the growth of the frozen dessert market, discusses key developments in the changing world of marketers including consolidation and co-branding trends, identifies important emerging players and explores the environment in which industry trends will develop over the next few years. Although focused on the U.S., the report also scans the global market with special attention to markets like China, Eastern Europe, and the Middle East where economic development has spurred a taste for American ice cream even as global marketers acquire and reinvigorate local favorites.