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What is the current market size and future outlook for the dessert grocery market?
The dessert grocery market size has grown strongly in recent years. It will grow from $23.19 billion in 2024 to $24.9 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to rising demand for frozen dessert products, increasing consumer preferences and health consciousness, increasing disposable income, growing demand for ice cream, and increasing incidence of spinal degeneration.
The dessert grocery market size is expected to see strong growth in the next few years. It will grow to $32.67 billion in 2029 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period can be attributed to the growing demand for convenient and indulgent dessert options among consumers, increasing popularity of plant-based ingredients, growing food service and hospitality industry, growing demand for smaller snack-sized portions, and expansion of the e-commerce sector. Major trends in the forecast period include introduction of diverse dessert products, development of new products with improved taste and texture, innovation in ready-to-eat desserts, development of dairy-free desserts, and rising interest in cultural and ethnic desserts.
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Dessert Grocery Market Report 2025
What are the top drivers to the rising demand in the dessert grocery market?
The growing food and beverages industry is expected to propel the growth of the dessert grocery market going forward. The food and beverages industry encompasses a vast array of businesses involved in producing, processing, distributing, and selling food and drinks to consumers. The growing food and beverages industry is due to affordable airfares, corporate travel, wellness and health trends, and sustainability efforts. A dessert grocery plays a crucial role within the food and beverages industry by satisfying consumer cravings for sweet treats, supplying essential ingredients to food manufacturers, and contributing to the overall diversity and innovation within the dessert market segment. Its ability to cater to specialized preferences and adapt to industry trends makes it a valuable component of the broader food retail landscape. For instance, in April 2024, according to the Australian Bureau of Statistics, an Australia-based government statistical agency, in the 2022-23 period, 14.8 million tonnes of food and non-alcoholic beverages were sold. Therefore, the growing food and beverages industry is driving the growth of the dessert grocery market.
How is the dessert grocery market segmented?
The dessert grocery market 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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Dessert Grocery Market Report 2025
Who are the top competitors in the dessert grocery market?
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 significant trends should we anticipate in the dessert grocery market over the forecast period?
Major companies operating in the dessert grocery market are focused on developing innovative products such as Triple Chip Mix Morsel Mix to cater to evolving consumer tastes, enhance convenience in baking, and offer unique flavor combinations that can differentiate their brands in a competitive market. Triple chip mix is a new cookie mix featuring three types of chips vanilla-flavored premier white morsels, semi-sweet chocolate morsels, and dark chocolate morsels, offering a delightful blend of flavors and textures in each bite. For instance, in May 2024, Nestlé Toll House, a US-based company launched Triple Chip Mix Morsel Mix. Triple chip mix brings together three beloved morsel flavors, creamy vanilla-infused premier white morsels, indulgent semi-sweet chocolate morsels, and decadent dark chocolate morsels in one convenient package. These are ideal for home baking enthusiasts, as they allow for effortless adaptation of recipes or creative new culinary ventures.
Which regional trends are influencing the dessert grocery market, and which area dominates the industry?
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.
What Does The Dessert Grocery Market Report 2025 Offer?
The dessert grocery market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
A dessert grocery is a specialized retail store or a designated section within a grocery store that focuses exclusively on dessert-related products. It aims to cater to all aspects of dessert preparation, decoration, and consumption, providing a comprehensive range of ingredients, ready-made desserts, and tools required for making and serving desserts.
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Dessert Grocery Market Report 2025
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