LONDON--(BUSINESS WIRE)--Technavio’s latest global frozen yogurt market report highlights three key emerging trends predicted to impact market growth through 2020. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.
“Frozen yogurt franchises are on the rise in the US and are one of the most popular categories in the dessert industry. Health conscious consumers are the key driving factor for the frozen yogurt market in North America. Frozen yogurt is considered as a healthy substitute for ice cream, owing to fewer calories, lower fat content, and enhanced nutrient content per serving. To attract customers, frozen yogurt chains such as Orange Leaf, Menchie's, sweetFrog, and Yogurtland display calories-per-serving signage for every flavor offered,” said Vijay Sarathi, one of Technavio’s lead industry analysts for food products.
“This trend of people seeking healthy food products adds to the overall revenue of this market. It provides an opportunity for frozen yogurt players to focus more on healthy products and different areas such as on-the-go items and juices,” added Vijay.
Technavio’s market research study identifies the following three emerging trends expected to propel the growth of the global frozen yogurt market:
- Extensive scope through organized retailing
- Growing number of franchises
- Popularity of dairy-free frozen yogurt
Extensive scope through organized retailing
Consumers across the globe are showing a growing preference to shop at hyper marts and super marts. Major frozen yogurt vendors are therefore competing for shelf space in these large stores.
The boom in organized retail in emerging economies is also proving to be advantageous to the global frozen yogurt industry. To leverage the immense market opportunity, vendors have started using the organized retail platform for stocking as well as promoting their offerings through direct interactions with consumers. To that end, vendors have started employing dedicated sales personnel at these stores to speak to consumers and convey product information such as nutritional content and the other beneficial features of frozen yogurt. These personnel also collect feedback and suggestions from consumers. Organized retail has thus given impetus to the frozen yogurt market globally.
Growing number of franchises
The number of franchises has grown rapidly in the past six years, reaching approximately 2,600 in 2014 from 1,018 in 2008, thereby showcasing an increase of over 17%. Menchie's, which started its franchise in 2007, expanded to more than 250 locations by 2014. Similarly, in 2014, sweetFrog, a premium frozen yogurt chain, reached a milestone of 345 stores after having founded the company in 2009. Orange Leaf, which had 15 stores in 2010, grew 65% in five years to reach a store count of 300 in 2014.
Frozen yogurt franchises are also gaining popularity as places to socialize in the US, and it has positively influenced yogurt sales. Additionally, popular franchises like Orange Leaf Frozen Yogurt, TCBY, Pinkberry, 16 Handles, The Fuzzy Peach, Yogurtini, and Yogurtland offer in-house varieties of frozen yogurt. This generates additional consumer interest in these franchises.
Popularity of dairy-free frozen yogurt
The production of dairy-free frozen yogurts increased by almost 38% in 2014 from the previous year. Almond milk led the category, accounting for more than 50% of the US plant-milk industry. Coconut milk grew over 35% in terms of product introductions from 2012 to 2014. In addition, big chains such as TCBY and Pinkberry have launched variants of frozen yogurt that do not contain dairy products. It is a trend that is anticipated to help vendors their consumer base over the forecast period. To leverage the market potential, many vendors are anticipated to launch similar nondairy products until 2020.
Browse related reports:
- Global Yogurt Drinks Market 2016-2020
- Greek Yogurt Market in the US: Trends, Size, and Forecast 2015-2019
- Dairy Products Market in China 2015-2019
- Ice Cream Market in the US 2016-2020
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