PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1880685
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1880685
The global dairy desserts market is witnessing robust growth, driven by rising consumer demand for convenience foods, increasing disposable incomes, and innovations in product offerings. In 2024, the market size was valued at USD 58.01 billion, expected to grow to USD 61.75 billion in 2025, and projected to reach USD 93.55 billion by 2032. Among regions, Asia Pacific dominated the market in 2024, accounting for a 40.68% share, fueled by a large and expanding middle-class population, growing urbanization, and rising adoption of Westernized food culture in countries like China and India.
Dairy desserts are ready-to-eat products primarily made from milk or milk-derived ingredients. These include frozen dairy confections such as ice creams, custards, puddings, and other innovative desserts. The increasing demand for convenience foods, coupled with premiumization trends and growing popularity of artisanal and specialty flavors, is driving the global dairy desserts market. Major players operating in this market include Danone SA, Nestle S.A., Unilever plc, Baskin-Robbins Inc., and Meiji Holdings.
Market Drivers
The rising demand for convenience foods has significantly fueled dairy dessert consumption globally. Consumers increasingly prefer quick, ready-to-eat indulgent options, including ice cream, custard, and puddings. The COVID-19 pandemic further intensified this trend, with retail ice cream sales in the U.S. rising by 30% in 2020 compared to 2019, according to the International Dairy Foods Association. Additionally, the growing middle-class population in emerging economies is increasing spending on premium dairy products, supporting market expansion.
Market Restraints
Health concerns regarding high sugar and fat content in dairy desserts may impede market growth. Products like ice cream and custard often contain elevated levels of sugar and saturated fat, contributing to health risks such as obesity, heart disease, and diabetes. According to the Institute for Health Metrics and Evaluation, the global incidence of diabetes is projected to rise from 529 million in 2023 to 1.3 billion by 2050, driving consumers to seek healthier alternatives such as low-sugar or plant-based desserts, which may restrict demand for traditional dairy desserts.
Market Opportunities
Product innovation is providing significant growth opportunities. Manufacturers are introducing healthier, better-for-you options to meet consumer demand. For example, in April 2025, Two Spoons Creamery launched a high-protein, zero-added-sugar ice cream line targeting health-conscious consumers. Additionally, innovations such as slow-churned ice creams, dairy-based puddings with functional toppings, and regional specialty desserts are driving market growth in developing economies.
Market Trends
A key trend in the dairy desserts market is the rising popularity of low-calorie, sugar-free, and dietary-specific products. Consumers are increasingly seeking indulgent yet nutritious dessert options, prompting manufacturers to innovate with protein-rich, gluten-free, and organic formulations. This trend is particularly notable in North America and Europe, where consumer health awareness is high.
Segment Analysis
By product type, ice cream dominates the market due to strong consumer preference for premium, artisanal, and innovative flavors. The custard segment is also experiencing growth, driven by nostalgic appeal and rich texture.
By distribution channel, the B2C segment held the largest share in 2024, supported by supermarkets, hypermarkets, convenience stores, specialty stores, and online retail. Online retail is expected to grow fastest due to the global reach and convenience it offers. B2B distribution, including restaurants and fine dining establishments, is also expanding moderately.
Asia Pacific led the market in 2024 with USD 23.6 billion, driven by the growing middle class and urban population. Europe and North America are mature markets with high per capita consumption and strong demand for premium, dietary-specific desserts. South America is expanding due to rising disposable incomes and demand for high-quality, locally sourced ingredients. Middle East & Africa are experiencing growth driven by innovative regional dessert products such as Kunafa ice cream bites.
Key Players and Developments
Major market participants include Nestle, Unilever, Danone, Baskin-Robbins, Meiji Holdings, Breyers Ice Cream, and Dairy Queen. Recent industry developments include Britannia Industries launching NIC Bourbon Ice Cream in July 2025, and Kwality Wall's introducing the Dairy Factory slow-churned ice cream range in April 2025. Lotte Wellfood opened a new ice cream manufacturing facility in Pune, India, in February 2025, reflecting the market's expansion in Asia Pacific.
Conclusion
With the global market value increasing from USD 58.01 billion in 2024 to USD 61.75 billion in 2025, and projected to reach USD 93.55 billion by 2032, the dairy desserts market is poised for continued growth. Rising demand for convenience foods, innovations in healthier and artisanal products, and expanding consumption in emerging markets are expected to drive the industry forward globally.
Segmentation By Product Type
By Distribution Channel
By Region