U.S. Frozen Dairy Market Sees Shift as Ice Milk Gains Popularity

According to Circana data, the U.S. ice cream market has experienced a slight decline in sales over the last year, with dollar sales decreasing by 1% to $7.5 billion and unit sales falling by 3% to 1.55 billion units. Despite this decline, private label brands maintain a strong presence, leading in dollar sales at $1.6 billion, although their unit volumes have slightly decreased.

Among branded players, Ben & Jerry’s saw a 5.5% year-over-year increase in dollar sales, reaching $1.1 billion, while Tillamook experienced a 9% rise to $434 million, indicating strong performance in the premium ice cream segment. However, the most notable growth came from the ice milk and frozen dairy desserts category, which saw a 29% year-over-year increase in dollar sales, reaching $652 million, with unit sales up 33% to 154 million units.

Good Humor led the growth within the ice milk and frozen dairy desserts segment with a 32% year-over-year increase in dollar sales. Other brands also showed significant gains, including Magnolia Bakery, which achieved a quadruple-digit increase from a small base. Dreyer’s and Binggrae also reported sharp year-on-year expansions, demonstrating renewed energy in this product segment.

Additionally, sales of sherbet, sorbet, and ices grew by 7% year-over-year to $295 million. In contrast, the frozen yogurt and tofu category recorded a 5% decline in dollar sales. Despite this, Ben & Jerry’s managed modest gains in this struggling category, highlighting the importance of brand strength and product differentiation in the competitive frozen dairy market.