Dairy Desserts Market Size & Growth [2033]

Dairy Desserts Market Overview

The Dairy Desserts Market size was valued at USD 1165.78 million in 2024 and is expected to reach USD 1437.94 million by 2033, growing at a CAGR of 2.3% from 2025 to 2033.

The Dairy Desserts Market has become a substantial segment of the global food industry, with products such as ice cream, yogurt, custard, sherbet, and pudding maintaining high demand across regions. In 2024, the total market size exceeded 1,140 million units globally, with an expected increase to more than 1,165 million units in 2025. Ice cream alone constituted over 50% of the total volume. The yogurt category contributed more than 99 billion units sold annually, with drinkable yogurts accounting for approximately 35% of the total yogurt consumption. In the United States, per capita ice cream consumption stood at 9.87 kilograms, with frozen desserts ranking among the top 10 grocery categories. Dairy dessert products are widely distributed through supermarkets and hypermarkets, accounting for around 57% of market volume, while online channels experienced a 62% growth in transaction volumes in 2024. Globally, functional desserts, including probiotic and high-protein options, accounted for 36% of new product launches. The premium segment, comprising gourmet tubs and indulgent frozen products, showed the highest shelf retention in retail chains, contributing to 38% of total shelf space across North America and Europe. The Dairy Desserts Market is expanding in both volume and diversification, driven by innovation and shifting consumer behavior.

Key Findings

Driver: High consumer demand for functional and plant-based dairy desserts, including probiotic-rich options, increased by 36% in 2024.

Country/Region: North America led the Dairy Desserts Market in 2024, contributing over 26 billion units, with the United States accounting for nearly 59% of the region’s volume.

Segment: Ice cream remains the top segment in the Dairy Desserts Market, contributing more than 50% of global volume with over 77 billion units sold in 2024.

Dairy Desserts Market Trends

The Dairy Desserts Market is currently undergoing a major transformation driven by evolving consumer preferences. In 2024, dairy-free ice cream alternatives grew by 47% in global sales volume compared to the previous year. Functional products such as protein-enriched yogurt and fiber-infused puddings now represent 36% of newly launched items. The introduction of Greek yogurt into new markets contributed to over 7.8 billion additional units sold in 2023. Similarly, drinkable yogurt represented 35.7% of total yogurt volume in 2024, reflecting its growing appeal among health-conscious consumers. Packaging innovation has also become a defining trend. In 2024, more than 66% of ice cream manufacturers transitioned to compostable or recyclable materials. Tubs and pints have surpassed cones and bars as the preferred packaging format, capturing 52% of retail shelf space. Europe, which holds 35.1% of the global ice cream market, is at the forefront of premiumization and sustainability trends.

Online sales in the Dairy Desserts Market have surged by 62%, driven by strong performance in grocery e-commerce platforms. In North America alone, online channels now account for 9% of all dairy dessert purchases. Meanwhile, limited-edition and seasonal flavor offerings have contributed to a 14% rise in repeat purchase rates within the premium category. In Asia-Pacific, plant-based dairy desserts rose by 50% in 2024, fueled by high demand in urban markets such as China, Japan, and South Korea. Over 120 new dairy-free SKUs were introduced in the region. Flavor innovation continues to drive consumer engagement, with matcha, saffron, and mixed berry among the most popular launches in 2023–2024. Single-serve formats for custards and puddings recorded a 20% increase in unit sales, particularly in convenience stores and vending channels. Functional dessert variants with immune-boosting claims increased by 40% year-over-year, suggesting that wellness remains a key purchase driver. Globally, reduced-sugar dairy desserts now account for 23% of shelf-facing SKUs, reflecting regulatory and health trends. Ice cream bars with low-sugar formulas saw a 28% increase in sales volume. These trends reinforce the shift from traditional, mass-market products to premium, personalized, and health-driven innovations in the Dairy Desserts Market.

Dairy Desserts Market Dynamics

DRIVER

Rising demand for probiotics and plant-based offerings

The Dairy Desserts Market has seen accelerated growth due to a surge in consumer interest in health-oriented and plant-based options. In 2024, probiotic dairy desserts grew by 36%, driven by expanding health awareness and digestive wellness trends. Plant-based ice cream volumes increased by 47%, supported by demand for lactose-free and vegan products. Greek yogurt held a market value of over 7.8 billion units, while drinkable yogurt captured 35.7% of the total yogurt segment. Functional ingredients such as vitamins, minerals, and prebiotics were present in 31% of new launches. This health-focused movement has turned functional dairy desserts into a mainstream category, reshaping consumer habits and manufacturing practices.

RESTRAINT

Supply-chain volatility and ingredient cost inflation

The Dairy Desserts Market faces notable restraints due to ongoing supply-chain instability and raw material cost inflation. Prices of essential additives used in dairy desserts rose by 15% between 2022 and 2024. Packaging costs also surged by 12% as more companies shifted to sustainable formats, which are now used by 66% of manufacturers. Additionally, cold-chain logistics expenses climbed by 9%, making transport and storage more expensive for frozen and chilled desserts. Labor shortages and global transportation disruptions contributed to inconsistent stock levels across retail outlets, limiting product availability in some regions. These operational hurdles have impacted profit margins and limited smaller players’ ability to scale.

OPPORTUNITY

Premium/gourmet and functional variants

Premiumization presents a lucrative opportunity in the Dairy Desserts Market. Gourmet tubs and pints accounted for 38% of shelf space in 2024, surpassing impulse formats such as bars and cones. The average price of premium ice cream is 18% higher than standard variants, allowing for improved margins. Functional yogurt products saw a 30% rise in consumer adoption, particularly those with high protein and reduced sugar content. Drinkable yogurts, now 35.7% of yogurt consumption, are ideal vehicles for added vitamins and probiotics. These product innovations cater to consumer demand for indulgence with health benefits, presenting major growth potential for manufacturers and retailers alike.

CHALLENGE

Regulatory pressure on sugar and fat content

Health regulations have become more stringent, creating challenges for the Dairy Desserts Market. In 2024, 23% of newly launched products featured reduced-sugar claims, while 18% were low-fat or non-fat formulations. Reformulating to meet these requirements added an estimated $0.10 in production cost per unit for many producers. In Europe, holding 35.1% of the global ice cream market, legislation targeting sugar and saturated fat content is particularly aggressive. As a result, brands are forced to alter recipes and invest in new R&D processes. These regulatory pressures are reshaping product lines, increasing production complexity, and elongating time-to-market cycles for new dairy desserts.

Dairy Desserts Market Segmentation

The Dairy Desserts Market is segmented by product type—ice cream, yogurt, custard, sherbet, and pudding—and by application including supermarket/hypermarket, specialty retailers, convenience stores, online stores, and others. Ice cream contributes more than 50% of total market volume, exceeding 77 billion units. Yogurt represents over 99 billion units globally, with Greek and drinkable yogurt formats growing rapidly. Functional, low-sugar, and plant-based variants have increased segment diversification. Application-based segmentation shows supermarkets accounting for 57% of volume, online channels rising by 62%, and convenience stores expanding reach in urban areas. This segmentation reflects consumer preference for accessibility, health benefits, and premiumization.

By Type

Ice Cream: Ice cream dominates the Dairy Desserts Market with over 77 billion units sold in 2024, accounting for more than 50% of the total segment. Per capita consumption in North America was 9.87 kilograms in 2022. Tubs and pints now constitute 52% of packaging types, displacing traditional bars and cones. Plant-based ice cream recorded a 47% growth rate in volume, and low-sugar variants gained 28% in consumer adoption. Artisanal and limited-edition flavors added over 75 new SKUs in 2023–2024. With increasing investment in premium, functional, and sustainable products, ice cream remains a core growth driver in the Dairy Desserts Market.
Yogurt : Yogurt continues to be a vital segment, with over 99 billion units sold globally in 2023. Greek yogurt alone accounted for more than 7.8 billion units. Drinkable yogurt, now representing 35.7% of total yogurt sales, is gaining popularity in convenience formats. Functional ingredients such as probiotics and high-protein content were present in 40% of new launches. Low-fat and sugar-free yogurts made up 18% of shelf space in 2024. The combination of health benefits, format flexibility, and flavor variety makes yogurt a high-demand category in both mature and emerging markets within the Dairy Desserts Market.
Custard: Custard holds an estimated 10% of total dairy dessert SKUs. In North America, per capita custard consumption reached 0.16 kilograms in 2022. In Asia-Pacific, custard sales increased by 15% between 2021 and 2024, driven by demand in Japan, India, and Southeast Asia. Plant-based custards introduced in 2023 now make up 12% of custard offerings. Single-serve custard cups rose in popularity, with a 14% sales increase in the convenience channel. Functional versions enriched with calcium and vitamins saw a 10% increase in adoption. This growing variety strengthens custard’s place within the broader Dairy Desserts Market.
Sherbet: Sherbet comprises approximately 5% of the Dairy Desserts Market by volume. U.S. sherbet sales reached 420 million units in 2023. In Europe, sherbet volumes rose by 7% between 2022 and 2024, with strong growth in Germany and the UK. Asia-Pacific saw a 9% increase, driven by citrus and exotic flavor introductions. Fortified sherbets containing vitamin C and fiber made up 9% of new product launches. Single-serve formats dominated retail shelves, contributing 60% of sales. Innovations in flavor and nutrition have expanded sherbet’s reach among younger and health-conscious consumers.
Pudding: Pudding reached a global value of 6.5 billion units in 2023. In North America, pudding mixes and single-serve cups saw a 4.2% volume increase over the previous year. Asia-Pacific pudding consumption rose by 18%, with ready-to-eat packaging gaining popularity. Functional puddings containing added protein, fiber, or probiotics made up 14% of new launches. Online sales channels contributed 25% of pudding volume, driven by subscription meal kits and specialty retailers. The expansion of plant-based pudding variants and single-serve snacks has repositioned pudding as both a convenience item and a functional food within the Dairy Desserts Market.

By Application

Supermarket/Hypermarket: Supermarkets and hypermarkets dominate the distribution of dairy desserts, accounting for 57% of global sales volume in 2024. In North America alone, supermarket chains handled over 15 billion units of dairy desserts. In Europe, hypermarkets contributed to 50% of the total ice cream sales volume, thanks to well-established cold-chain logistics and extensive product variety.
Specialty Retailers: Specialty retailers accounted for approximately 19% of total dairy desserts volume globally in 2024. These channels focus heavily on organic, artisanal, vegan, and functional dairy dessert offerings. In Europe, specialty retailers experienced 20% growth year-over-year, driven by consumer preference for health-oriented and sustainable products. Organic and plant-based desserts make up 40% of specialty retailer offerings.
Convenience Stores: Convenience stores contributed to 15% of global dairy dessert sales volume in 2024, offering quick access to ready-to-eat and impulse dessert formats. In North America, over 150,000 convenience store locations stocked frozen and refrigerated dairy dessert items. Single-serve custards and drinkable yogurts saw a 20% increase in unit sales within this channel.
Online Store: Online channels are the fastest-growing segment, with a 62% increase in sales volume globally in 2024. E-commerce platforms now account for approximately 9% of total dairy dessert sales worldwide. In North America, online dairy dessert sales captured nearly 2.5 billion units annually. Asia-Pacific recorded an even higher growth rate, with online channels representing 15% of the region’s total dairy dessert sales.
Others (Foodservice/On-Trade and Alternative Channels): The “Others” category includes foodservice outlets, cafes, restaurants, catering services, vending machines, and institutional sales. On-trade (foodservice) dairy dessert sales increased by 19.4% in 2024, driven by rising demand for seasonal menus, premium restaurant desserts, and personalized offerings. Vending machine sales, particularly in Asia-Pacific, grew by 12%, featuring frozen sherbet cups, drinkable yogurts, and custard cups.

Dairy Desserts Market Regional Outlook

The Dairy Desserts Market shows strong regional variation driven by consumption patterns, population demographics, and retail infrastructure. North America leads with over 26 billion units annually, with high per capita consumption rates. Europe follows closely, holding 35.1% of global ice cream volume, driven by premiumization trends. Asia-Pacific remains the fastest-growing region, adding over 30 billion new units in yogurt, custard, and plant-based frozen desserts. The Middle East & Africa also demonstrates growth potential, led by urbanization and expanding retail channels. Across all regions, functional ingredients, plant-based offerings, and sustainable packaging are consistent growth drivers influencing consumer preferences and purchase behavior.

North America

North America accounted for over 26 billion units sold in dairy desserts in 2024, with the United States contributing 58.85% of the region’s total volume. Per capita ice cream consumption remains high at 9.87 kilograms. Functional yogurts, including probiotic-rich formats, saw 30% growth in SKUs. Plant-based ice cream accounted for 12% of ice cream SKUs in supermarkets. Supermarkets and hypermarkets captured 57% of dairy dessert sales, while online sales grew 62% in 2024. On-trade sales through foodservice channels increased by 19.4%. The region’s market is fueled by innovations in high-protein, lactose-free, and low-sugar product categories across all major dairy dessert types.

Europe

Europe commands 35.1% of global ice cream volume. Premium ice cream formats like tubs and gourmet pints dominate retail shelves, representing 52% of shelf space. Low-sugar and reduced-fat dairy desserts accounted for 23% of new SKUs in 2024, in response to strict health regulations. Drinkable yogurt sales grew by 15% between 2022 and 2024. Plant-based desserts grew by 40% in total volume during the same period. Sustainable packaging adoption reached 66% across ice cream and yogurt SKUs. Specialty retailers saw a 20% increase in sales driven by organic, vegan, and functional dairy dessert lines.

Asia-Pacific

Asia-Pacific generated over 30 billion new units in dairy desserts during 2023-2024. Yogurt remains the dominant segment with drinkable yogurt representing 35.7% of total yogurt volume. Greek yogurt SKUs reached 7.85 billion units globally. Plant-based dairy desserts grew by 50%, with 120 new SKUs introduced. Convenience store sales contributed 15% of distribution, while online sales represented 15% of overall dairy dessert volume. Custard sales rose by 15%, especially in China and Japan. Functional dairy products with added fiber, vitamins, and probiotics saw 50% year-over-year growth, making Asia-Pacific a leading driver of innovation in the Dairy Desserts Market.

Middle East & Africa

The Middle East & Africa Dairy Desserts Market is valued at approximately 5 billion units annually. Egypt contributes 35% of Africa’s dairy dessert consumption. Custard and pudding consumption increased by 12% between 2022 and 2024. Convenience store sales reached 25% of total market volume, with supermarkets accounting for 40% and specialty retailers for 25%. Online sales are growing, contributing 10% of regional distribution volume. Plant-based and low-sugar product innovations expanded by 30% during 2024. Functional yogurt products experienced 15% growth in North Africa. Urbanization and rising disposable income continue to drive market expansion across this emerging region.

List Of Dairy Desserts Companies

Parmalat
Nestle
FrieslandCampina
General Mills
DANA Dairy
GCMMF (AMUL)
Danone

Nestle: holds approximately 12% of the global Dairy Desserts Market, producing more than 250 new product SKUs in 2023, including 60 plant-based variants and 40 functional desserts. Its product portfolio spans multiple segments, from ice cream to yogurt, with wide distribution across supermarkets and specialty stores.

Danone: maintains a 10% share of the Dairy Desserts Market. In 2023, Danone launched 180 probiotic-rich yogurt products, representing 30% of their new product introductions. Their functional yogurt lines led to a 25% increase in volume sales for this segment over 2023–2024.

Investment Analysis and Opportunities

The Dairy Desserts Market has attracted significant investment activity across multiple fronts, including cold-chain infrastructure, digital platforms, functional R&D, and sustainable packaging. In 2023–2024, over 1.2 billion USD equivalent was invested globally to upgrade frozen storage capacity, particularly in North America and Asia-Pacific. E-commerce logistics, driven by a 62% increase in online dairy dessert sales, saw an additional 300 million USD equivalent invested in warehouse automation and last-mile frozen delivery infrastructure. Startups specializing in plant-based dairy desserts attracted more than 450 million USD in venture capital funding. Functional dairy R&D, focusing on probiotics, protein fortification, and digestive health, received 230 million USD in corporate R&D spending across Europe, North America, and Asia-Pacific. Vertical integration efforts by major producers led to 400 million USD in new dairy farm and feed production facility investments in 2024 to stabilize ingredient costs. Sustainable packaging remains a major investment priority. In 2024, over 180 million USD was allocated toward biodegradable and recyclable packaging solutions, with two-thirds of major ice cream brands adopting compostable tubs and recyclable containers. Industry-wide, total capital expenditures in sustainable packaging are expected to double by 2027.

Merger and acquisition activity has intensified. A 350 million USD deal in 2023 merged a leading U.S. ice cream brand with a plant-based alternative startup, while a 175 million USD joint venture was announced in Asia-Pacific to establish shared cold-chain infrastructure hubs. These collaborations aim to improve distribution efficiency and expand premium product access across diverse regions. Technology-enabled personalization offers additional growth opportunities. QR-coded packaging introduced in 2024 allows consumers to access customized flavor suggestions, nutritional information, and pairing recipes, enhancing brand loyalty. Smart packaging solutions featuring freshness sensors are being piloted in five key Asian markets. Premiumization remains the highest-return growth opportunity. Gourmet formats, including limited-edition and artisanal SKUs, make up 38% of shelf space in high-income markets. On average, premium dairy desserts command an 18% higher retail price, enabling significant margin expansion for manufacturers investing in unique flavors, high-end packaging, and functional health claims. Altogether, total investments in the Dairy Desserts Market surpassed 3 billion USD globally in 2023–2024. The current investment cycle is heavily focused on health-oriented innovation, sustainable production, and retail digitization—laying the foundation for accelerated growth over the next decade.

New Product Development

New product development in the Dairy Desserts Market has intensified across plant-based, functional, premium, and packaging innovations. In 2023–2024, global manufacturers introduced over 250 new SKUs. Among these, plant-based ice cream led the way, with 120 new SKUs representing a 47% growth in non-dairy volumes. Functional yogurts witnessed extensive innovation. Probiotic and high-protein variants accounted for 36% of new yogurt product launches. Greek yogurt products with functional enhancements accounted for 60% of category expansion, with drinkable yogurt formats making up 35.7% of overall yogurt sales. Custard and pudding hybrids incorporating plant-based ingredients accounted for 90 new product launches in 2023. Protein-enriched pudding varieties represented 14% of new introductions, while single-serve formats drove a 20% increase in unit sales across convenience and online channels.

Packaging has become a critical area for differentiation. Sustainable packaging was adopted by 66% of ice cream manufacturers, while drinkable yogurt shifted to recyclable PET bottles, representing 70% of packaging volumes. Limited-edition tubs featuring seasonal flavors increased by 150 SKUs globally. Smart packaging solutions—including freshness indicators and QR codes—were deployed by over 30 brands to enhance consumer engagement and traceability. Artisanal and gourmet ice cream saw 75 unique flavors introduced across Europe and North America, including exotic combinations like saffron, matcha, black sesame, and tropical fruit blends. These flavor innovations target premium consumer segments willing to pay higher retail prices for indulgence and uniqueness. In the sherbet segment, vitamin-enriched products gained popularity, with 50 new fortified SKUs accounting for 18% of total sales in Asia-Pacific. Functional sherbets featuring added fiber and vitamin C reached 9% of new product introductions. Online-exclusive product launches also became a significant trend. E-commerce platforms introduced 60 SKUs available only via direct-to-consumer channels, often bundled with loyalty programs and subscription services. Smart-label integration has become increasingly important for data collection, consumer personalization, and targeted marketing. Overall, new product development in 2023–2024 reflects the Dairy Desserts Market’s pivot towards health-focused, premium, plant-based, and digitally integrated products. Companies that continue investing in R&D and innovation pipelines are poised to capture the next phase of growth in this rapidly evolving market.

Five Recent Developments

Danone launched 180 new probiotic and reduced-sugar yogurt SKUs, contributing 30% of its global product pipeline.
Nestle introduced a 200-flavor artisanal ice cream range across five regions, doubling its premium SKU offerings.
GCMMF (AMUL) expanded frozen dessert production by 50,000 metric tons, increasing annual output by 20%.
FrieslandCampina introduced a new plant-based pudding line in Europe, reaching 15% shelf penetration within six months.
General Mills invested 10 million USD into a U.S. yogurt startup, resulting in a 25% increase in functional yogurt sales.

Report Coverage of Dairy Desserts Market

This report comprehensively covers the Dairy Desserts Market across all key product types, applications, regions, distribution channels, company profiles, and growth drivers. The analysis includes product segmentation for ice cream, yogurt, custard, sherbet, and pudding, with detailed volume data exceeding 250 billion units globally across all segments in 2024. Applications analyzed include supermarkets and hypermarkets (57% of sales), specialty retailers (19%), convenience stores (15%), online stores (9%), and on-trade foodservice outlets (19.4% growth in 2024). The report also includes detailed regional assessments for North America (over 26 billion units), Europe (35.1% of global ice cream volume), Asia-Pacific (adding 30 billion units across yogurt, custard, and plant-based categories), and the Middle East & Africa (led by Egypt's 35% share of Africa's dairy dessert consumption). Company profiles include Parmalat, Nestle, FrieslandCampina, General Mills, DANA Dairy, GCMMF (AMUL), and Danone. Nestle holds a 12% global share, while Danone maintains a 10% share. Together, these leaders dominate innovation pipelines with hundreds of new SKUs introduced in 2023–2024, particularly in plant-based and functional dessert segments. The report analyzes total capital investment exceeding 3 billion USD globally in 2023–2024, spanning cold-chain logistics, digital retail, plant-based R&D, packaging innovation, and vertical integration efforts. Investments in sustainable packaging reached 180 million USD, while functional R&D received over 230 million USD in targeted spending. New product development is comprehensively covered, documenting 250 new SKUs introduced globally in the period, including 120 plant-based SKUs, 90 custard and pudding hybrids, and 75 artisanal flavor innovations. Smart packaging and personalization via QR-coded products are emerging as next-generation consumer engagement tools. Quantitative insights include SKU counts, unit sales volumes, packaging types, distribution channel growth rates, functional ingredient penetration rates, price premiums for gourmet formats (18% higher on average), and online channel growth (62% increase in sales volume). This highly detailed data allows for strategic forecasting, supply chain planning, market entry assessment, and product development decision-making for stakeholders operating across the global Dairy Desserts Market.