Global Ice Cream Market Grows at a Staggering CAGR of 6.7%

Introduction

Ice cream is a frozen dessert made from dairy ingredients such as milk, cream, and sugar, often combined with flavorings and mix-ins like fruit, nuts, or chocolate. The mixture is churned while freezing to incorporate air and prevent ice crystals from forming, resulting in a smooth and creamy texture. Available in a wide range of flavors and styles, ice cream is a beloved treat enjoyed worldwide. Additionally, it can be made using plant-based alternatives to cater to vegan or lactose-free diets.

The global ice cream market is a dynamic sector, fueled by changing consumer preferences and innovations in product development. It includes traditional dairy-based creams, lactose-free alternatives, plant-based options, and functional varieties enriched with healthy ingredients such as fruits, nuts, and probiotics. The market serves a broad spectrum of consumer needs, offering indulgent treats and more nutritious alternatives. With a growing emphasis on clean-label ingredients and sustainability, the industry is experiencing substantial growth worldwide.

Market Dynamics

Continuously changing consumer preferences and seasonal demand drive market growth

The perception of ice cream as a healthier, locally sourced indulgence is a major driver for the market. There is a growing shift toward premium, artisanal ice creams made with organic ingredients and unique flavors in countries like the U.S., Germany, and France. For example, Halo Top remains a leader in the low-calorie ice cream segment, offering guilt-free indulgence options. During the summer, ice cream demand spikes, creating unique growth opportunities for brands. However, this surge requires effective supply chain management to prevent shortages and ensure product freshness.

Consumers also seek distinct flavor experiences that align with their cultural preferences. The release of limited-edition flavors by companies like Häagen-Dazs in 2024, featuring exotic ingredients such as yuzu and black sesame, illustrates this trend.

Development of plant-based and functional ice creams creates tremendous opportunities

The growing demand for plant-based and functional ice creams presents exciting opportunities for the market. Functional gelato enriched with vitamins, probiotics, and antioxidants is gaining popularity, providing consumers with added health benefits.

For example, Ben & Jerry’s launched a CBD-infused ice cream in 2025, tapping into the wellness-driven product trend. Oatly, a leader in plant-based dairy, expanded its product line in 2024 with oat-based ice cream pints to meet the rising demand for vegan-friendly options.

Consumers are also increasingly supporting brands that prioritize sustainability. Companies that adopt eco-friendly practices, such as using biodegradable packaging and sourcing organic ingredients, are gaining a competitive edge. Unilever’s commitment to achieving 100% recyclable packaging by 2025 sets a key industry benchmark.

Regional Analysis

Europe has become a dominant player in the global ice cream market. The region’s market is expected to continue growing at a rate of around 5% annually. One of the key factors driving this growth is the increasing demand for more natural and health-conscious options. A recent survey revealed that 9.6% of consumers preferred ice cream without additives or preservatives, reflecting a shift toward cleaner, more wholesome products. This has spurred manufacturers to innovate with low-sugar, low-fat, and high-protein ice creams.

European governments are also supporting the market through initiatives promoting sustainability and health. For instance, the European Union's "Farm to Fork" strategy aims to make food systems fairer, healthier, and more environmentally friendly. This initiative has encouraged manufacturers to develop plant-based and organic options, catering to the growing number of health-conscious consumers. Leading market players in Europe, such as Nestlé, Unilever, and Häagen-Dazs, are responding to these trends by diversifying their product offerings to include dairy-free and reduced-sugar options, further expanding their portfolios to meet the increasing demand for healthier choices.

Key Highlights

• The global ice cream market size was valued at USD 77.8 billion in 2024 and is projected to grow from USD 79.4 billion in 2025 to USD 139.7 billion by 2033, exhibiting a CAGR of 6.7% during the forecast period (2025-2033).
• Based on flavor, the global ice cream market is segmented into chocolate, vanilla, fruit, and others. The chocolate type owns the highest market share and is estimated to exhibit a CAGR of 6.3% during the forecast period
• Based on the packaging, the global ice cream market is segmented into cartons, tubs, cups, cones, bars, sticks, and others. The tubs products segment is the most significant revenue contributor to the market and is projected to exhibit a CAGR of 5.9% over the forecast period
• Based on region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Europe is the most significant shareholder in the global ice cream market and is forecasted to exhibit a CAGR of 6.5% during the forecast period.

Competitive Players

1. Nestle SA
2. Unilever Group
3. General Mills
4. Amul
5. Dunkin Brands
6. Blue Bell Creameries
7. Dairy Queen
8. Dairy Farmers of America
9. Cold Stone Creamery
10. Danone S.A.
11. Ben & Jerry’s
12. Havmore
13. Vadilal
14. DMK Ice Cream
15. Froneri Ice Cream

Recent Developments

• In January 2025, Unilever announced plans to spin off its ice cream division, which includes renowned brands such as Ben & Jerry's and Breyers. The company is considering a New York listing for this division, aiming to complete the separation by the end of 2025.
• In October 2024, The Magnum Bon Bon range joined Unilever’s growing ice cream snacking portfolio. This includes Ben & Jerry’s ‘Peaces’ pouches and ‘Poppables’ from our US Greek yogurt brand, Yasso.

Segmentation

1. By Flavour
   1. Chocolate
   2. Vanilla
   3. Fruit
   4. Others
2. By Packaging
   1. Cartons
   2. Tubs
   3. Cups
   4. Cones
   5. Bars
   6. Sticks
   7. Others
3. By Category
   1. Dairy
   2. Vegan
4. By Distribution Channel
   1. Supermarkets/Hypermarkets
   2. Specialty Stores
   3. Online
   4. Others
5. By Region
   1. North America
   2. Europe
   3. Asia Pacific
   4. Central & South America
   5. Middle East & Africa