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July 2025
The U.S. dessert market is positioned for rapid expansion, with projected revenue increases over the next decade, spurred by the widespread efforts by key players across the globe. The widely available food services, food assistance programs, and several other supportive measures contribute to expanding baking and frozen products in the U.S.
The U.S. dessert market refers to the industry focused on the production, distribution, and retail of sweet food products that are typically consumed after meals or as indulgent snacks. This includes a wide variety of traditional and modern offerings, such as baked goods, frozen desserts, confectionery, puddings, and plant-based alternatives. The market is driven by factors like changing consumer preferences, increasing demand for premium and clean-label products, and rising interest in low-sugar and dairy-free dessert options.
According to the International Dairy Foods Association (IDFA), there are several ice-cream and frozen dessert manufacturers in the U.S. doing their business efficiently. Some of the top ice cream flavors popular among Americans are vanilla, chocolate, and many others, which showcase Americans’ love for frozen desserts and ice cream flavors.
Some rural or urban communities in the U.S. have higher rates of poverty. Some low-income families also face challenges associated with the food distribution system. Some communities experienced problems related to intentional disinvestment in supermarkets. Low-income families go through transportation challenges due to a lack of public transportation infrastructure.
How South U.S. Dominated the U.S. Dessert Market in 2024?
The South U.S. dominated the market in 2024 owing to the grant programs, funding opportunities, and technical assistance provided by various organizations working on food systems. West U.S. is expected to grow at the fastest CAGR in the market during the forecast period due to major initiatives and research projects for food systems. The Community Food Projects Competitive Grant Program (CFPCGP) made efforts to unite various stakeholders working in food systems to improve food security trends and local food systems.
According to the USDA, the Food Empowerment Project addresses the challenges associated with food desserts. There is a growing public awareness about the problems related to food desserts. The Rural Health Information Hub in the USA focuses on rural hunger and access to healthy food. It provides special financing for food retailers, cooperative grocery stores, and markets for farmers. It also delivers community-supported agriculture programs, farm to school initiatives, and focuses on community education and outreach.
How Baked Desserts Segment Dominated the U.S. Dessert Market in 2024?
The baked desserts segment dominated the market in 2024 owing to the various advantages of baked food, which offer flavor, aroma, healthier cooking methods, and versatility. The baked desserts and other baking foods offer the use of versatile equipment, hands-off cooking, batch-cooking, and even cooking methods to deliver promising products. Baking is considered a healthier cooking method than other frying or boiling methods. It is possible to achieve a delightful crust while baking, which is advantageous. The availability of energy-efficient alternatives like convection ovens is superior to traditional ovens for baking.
The frozen desserts segment is expected to grow at the fastest CAGR in the market during the forecast period, due to the availability of different types of frozen products such as frozen custard, frozen yogurt, soft serve, skim-milk-based desserts, etc. The popularity of frozen coffee drinks, milkshakes, and other desserts raised the production of frozen dessert products.
What Made Dairy-based the Dominant Segment in the U.S. Dessert Market in 2024?
The dairy-based segment dominated the market in 2024 owing to the popularity of ready-to-eat-flavoured dairy dessert products, dessert mixes, frozen dairy confections, novelties, and dairy-based fillings. A wide range of dairy-based products, such as ice-cream, ice milk, junket, jellied milk, butterscotch pudding, etc. have raised the adoption of dairy-based products. The inclusion of traditional milk-based sweets, flavors, colors, and many other ingredients increases the adoption of these products by potential consumers. The natural solutions for dairy-based desserts are beneficial in terms of securing the shelf life of products and reduced temperature conditions.
The non-dairy/vegan segment is expected to grow at the fastest CAGR in the market during the predicted timeframe, due to the presence of a lower amount of saturated fat and inclusion of dairy-free goodness. The vegan or non-dairy-based products, including desserts, support heart health, offer ease to digest, and are free from artificial growth hormones.
How did the Chocolate Segment Dominate the U.S. Dessert Market in 2024?
The chocolate segment dominated the market in 2024 owing to the goodness of plant-based dairy alternatives, including products with chocolate flavors. The cholesterol-free products support healthy blood flow, offer zero cholesterol, and are ideal for people with dietary restrictions. The nutrient and fiber-rich ingredients like dark chocolate, nuts, and berries are rich in antioxidants which help with inflammation and reduce oxidative stress. Several vegan desserts of chocolate flavors are free from processed ingredients, artificial additives, dyes, and preservatives, which make them a cleaner choice for consumers. The allergen-friendly products are safe for allergy sufferers and are made in a shared facility.
The Fruits Segment is Expected to Grow at the Fastest CAGR in the U.S. Dessert Market During the Forecast Period
Due to the health benefits of using fresh fruits in desserts. The delicious desserts enriched with fruits offer nutrient-rich sweetness, natural sugars, fiber content, and other essential ingredients. They help in maintaining hydration, managing weight, and enhancing flavor and texture. The simple fruit-based desserts such as fruit salad, apple crisp, fruit tart, grilled peaches, banana ice cream, and many other products are versatile in nature.
How Multi-pack Segment Dominated the U.S. Dessert Market in 2024?
The multi-pack segment dominated the market in 2024 owing to the potential of multi-pack dessert packaging to empower consumers in the correct recycling of products. The introduction of sustainable and creative packaging solutions raises the importance of the product packaging segment. Packaging comes with different materials, advanced technologies, and helps in design and logistics. Packaging in the form of multi-packs makes products visible at the point of sale and offers chances of price promotions. It offers recycling opportunities due to the properties of materials and surface.
The Single-Serve Segment is Expected to Grow at the Fastest CAGR in the U.S. Dessert Market During the Predicted Timeframe
Due to the benefits of single-serve packaging, including consumer convenience, portion control, reduced food waste, and eco-friendly options. Single-serve packaging increases profitability in terms of improved inventory management, customization, branding, reduced packaging costs, reduced food waste, and several other advantages.
What Made Supermarkets/Hypermarkets the Dominant Segment in the U.S. Dessert Market in 2024?
The supermarkets/hypermarkets segment dominated the market in 2024 owing to the presence of smart supermarkets that offer IoT-enabled inventory management, the use of mobile applications and digital platforms, and smart or electronic shelf labels. Supermarkets or hypermarkets provide self-checkout systems, contactless payment options, and data analytics for personalization. Consumers are enabled to access smart shopping carts, baskets, click-and-collect services, digital signage, and interactive displays. There are grocery robots providing robotic assistance and other solutions that are energy-efficient and sustainable in nature.
The online retail segment is expected to grow at the fastest CAGR in the market during the forecast period, due to better prices, no crowds, time savings, and access to products offered by online retail channels. They provide flexible payment options, the ease of shopping from home, and a reduced need for personal visits to the shops.
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