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How Fast Is the Dessert Grocery Market Expected to Grow by 2025, and What Is the Projected CAGR?
The size of the dessert grocery market has seen substantial growth recently. The progression is expected to surge from $23.19 billion in 2024 to $24.71 billion in 2025, with a compound annual growth rate (CAGR) of 6.6%. The expansion during the historical period is credited to an increased craving for frozen dessert items, evolving consumer tastes and heightened health awareness, a rise in disposable income, a swell in the demand for ice cream, and a surge in cases of spinal degeneration.
Expected to experience robust growth in the coming years, the dessert grocery market is projected to expand to $32.16 billion in 2029, boasting a compound annual growth rate (CAGR) of 6.8%. The growth anticipated throughout the forecast period is largely a result of the increasing consumer demand for convenient and indulgent desserts, the rising popularity of plant-based ingredients, the growth of the food service and hospitality industry, the escalating demand for smaller, snack-sized portions, and the expanding e-commerce sphere. Major trends that can be predicted within the forecast timeframe include the arrival of an assortment of dessert products, the invention of new products with superior taste and texture, the emergence of innovations in ready-to-eat desserts, the development of dairy-free dessert options, and a budding interest in cultural and ethnic dessert offerings.
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Which Factors Are Driving the Global Dessert Grocery Market Forward?
The expansion of the food and beverages sector is anticipated to fuel the development of the dessert grocery market. This industry consists of many enterprises engaged in the manufacturing, processing, delivery, and selling of food and beverages to the public. The industry’s growth is fuelled by factors such as inexpensive air travel, business trips, wellness and health trends, and sustainable practices. The dessert grocery sector is pivotal within the food and beverage industry as it caters to customers’ sweet cravings, provides vital ingredients to food producers, and contributes to the overall variety and innovation within the dessert segment.
It’s ability to meet specific tastes and keep pace with industry tendencies makes it a significant part of the wider food retail ecosystem. For example, the Australian Bureau of Statistics reported in April 2024 that 14.8 million tonnes of food and non-alcoholic beverages were sold during 2022-23. Hence, the expansion of the food and beverages sector is spurring the development of the dessert grocery market.
Which Segment Holds the Largest Share in the Dessert Grocery Market?
The dessert grocerymarket covered in this report is segmented –
1) By Product: Bakery Ingredients, Dairy Ingredients, Fresh And Dried Fruits And Ingredients, Pulps And Purees, Sweeteners Colors And Flavors
2) By Source: Conventional, Organic Certified
3) By Distribution Channel: Offline, Online
4) By Application: Cakes, Pastries, And Puddings, Candies, Jellies, And Custards, Cookies And Biscuits, Cupcakes And Muffins, Dessert Drinks, Ice Cream, Moose, And Fuze
5) By End-User: Commercial, Personal
Subsegments:
1) By Bakery Ingredients: Flour, Sugar, Fats And Oils, Leavening Agents, Emulsifiers, Stabilizers And Thickeners, Bakery Improvers
2) By Dairy Ingredients: Milk Powder, Butter, Cream, Cheese, Whey Protein, Yogurt And Buttermilk, Milk Proteins
3) By Fresh And Dried Fruits And Ingredients: Fresh Fruits, Dried Fruits, Fruit Preserves And Jams, Fruit Concentrates
4) By Pulps And Purees: Fruit Purees, Fruit Purees, Vegetable Purees, Nut Purees, Smoothie Blends
5) By Sweeteners, Colors, And Flavors: Natural Sweeteners, Artificial Sweeteners, Sugar, Natural Food Colors, Artificial Food Colors, Natural Flavors, Artificial Flavors
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What Are the Major Trends in the Global Dessert Grocery Market?
In an effort to meet changing consumer preferences, major corporations operating in the dessert grocery sector are focusing on the creation of novel offerings such as the Triple Chip Mix Morsel Mix, thereby improving baking ease and providing unique flavor mixes to set their brands apart in a competitive environment. The Triple Chip Mix conjures up a delightful blend of vanilla-flavored premier white morsels, semi-sweet chocolate morsels, and dark chocolate morsels, making each bite loaded with textures and flavors. To illustrate, Nestlé Toll House, a US-based entity, rolled out the Triple Chip Mix Morsel Mix in May 2024. By amalgamating three favorite morsel flavors – creamy vanilla-infused premier white morsels, luxurious semi-sweet chocolate morsels, and rich dark chocolate morsels – this mix presents a hassle-free means of tweaking recipes or experimenting with new culinary creations for home baking aficionados.
Which Companies Are Leading the Dessert Grocery Market in 2025 and Beyond?
Major companies operating in the dessert grocery market are Nestlé S.A, Archer-Daniels-Midland Company, Unilever PLC, General Mills Inc., Associated British Foods PLC, Koninklijke DSM N.V., Hershey Company, Kerry Group PLC, J.M. Smucker Company, McCormick & Company Inc., AGRANA Beteiligungs-AG, Dawn Food Products Inc., Ghirardelli Chocolate Company, King Arthur Baking Company Inc., Puratos Group, Guittard Chocolate Company, Nielsen-Massey Vanillas Inc., Dr August Oetker Nahrungsmittel KG, Ajanta Food Products Company, Berrifine A/S, Pinnacle Foods Co., Sorich Organics Pvt Ltd.
What Are the Key Regional Trends Influencing the Dessert Grocery Market in 2025?
North America was the largest region in the dessert grocery market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the dessert grocery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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