One of the main growth drivers for the frozen yogurt category worldwide will be private label products and the growing demand from a number of retailers such as Walmart, Safeway, Target, Tesco, Waitrose, for such products, according to the latest study by Technavio, called “Global Frozen Yogurt Market 2016-2020”.
The study reveals that in the US alone, private labels generated sales of close to USD66 million last year, leading the market in terms of retail sales. These products accounted for 12,9% of the USD613,5 million generated via retail sales in the market.
“The US and Europe have been the leading frozen yogurt markets globally with the US generating more than 50% of sales in 2015. The frozen yogurt market in the US is very dynamic, and has recorded a strong growth of over 25% between 2009 and 2014,” says Technavio. “This high growth can be attributed to the rising number of frozen yogurt franchises across the country and increasing demand from consumers for a healthier alternative to ice cream. The scenario will remain more or less same during the forecast period. However, the growth rate will be slow due to the mature nature of the market. Increasing private equity investments will emerge as a driving force for the growth of the market. Retail growth is another major factor which will influence the market positively over the forecast period,” according to the study.
Although initially reluctant in estimating the success of frozen yogurt in the UK and Northern Europe, because of poor weather conditions which could have deterred consumers from buying the products, analysts now conclude that these markets have grown rapidly, at a double digit year on year growth rate and have been the leading regions in the past five years for the growth of this industry.
“Growing soft serve frozen yogurt market in London, Berlin, Barcelona, Manchester, Madrid, Alicante, and Amsterdam are evident of this fact. Today we see frozen yogurt stores all across Europe ranging from shopping centers, seaside, and high streets, with Plas Farm, Coolicious, and Tutti Frutti being some of the leading frozen yogurt brands in Europe,” Technavio says.
Regarding age groups, the primary consumers of frozen yogurt fall between the ages of 18 and 34, with approximately 40% of consumption in volume terms. However, it is expected that younger generations will increase in consumption as well, in the coming years.
“When it comes to the competitive scenario, the market globally is very fragmented in nature with no major vendor enjoying more than 7% market share in revenue terms. Menchie’s, Pinkberry, Red Mango, TCBY, Yogurtland, Sweet Frog, Plas Farm, and Coolicious are some of the leading vendors present in the market,” ends Technavio.