Check out the frozen section of a mass merchandiser and you’ll see plenty of novelties alongside pints and quarts of ice cream and frozen yogurt. 

Colorful boxes and bags of bars, sandwiches, cones, ice pops and bite-size frozen treats vie for attention by offering dairy and plant-based options, added crunch, layers and swirls, and some unusual flavor combinations.

Manufacturers of frozen novelties include better-for-you products for those who are counting calories but still want to enjoy an indulgent treat. And for children, there are items based on popular movie characters and offering familiar formats such as sandwiches and ice pops to transport older folks back to their youth.

“People may not know what they want, but they know how they want to feel,” said Lisa Jackson, marketing director for FlavorSum, a Michigan-based maker of liquid flavor solutions for mid-size and emerging brands.

With recent economic challenges, she said ice cream has become more of a discretionary purchase, so novelties are taking the lead in helping people find little treats at an affordable price.

“If I look at the more successful brands, it’s the ones that listen the best and have a pulse on what’s important to people,” she said. “The novelty brands are responding, and they’re responding in creative ways.”

The frozen novelty category is dominated by several large brands when it comes to US dollar sales. Dreyer’s Grand Ice Cream Co., a Froneri International business unit, is the largest, by far, according to Circana data for the 52 weeks ended July 14, 2024. Dreyer’s, owner of the Häagen-Dazs, Drumstick, Edy’s, Outshine, Skinny Cow and Eskimo Pie brands, among others, posted more than $2.2 billion for that period, up 4.3% from the previous year.

In the No. 2 spot was Unilever, which owns Ben & Jerry’s, Klondike, Popsicle, Magnum, Good Humor and Breyers brands and several more, at nearly $873 million in dollar sales for that same period, for a 1.3% drop from the previous year.

Private label brands together exceeded Unilever’s dollar sales at about $953 million, for a 1.6% rise from the year-ago period.

Large companies like Unilever and Froneri are driving the market, said Michele Scott, associate director, US Food and Drink, for London-based Mintel, but there are many additional offerings taking market share.

“Unilever acquired Yasso, which has helped them,” she said, adding, “The fact is that private label and store brands are showing significant growth over the big brands.”

Innovations in the frozen novelty category include smaller portions, such as Yasso’s Poppables featuring frozen yogurt, Bubbies’ mochi-wrapped ice cream bites and Drumstick’s mini drums, along with an increasing array of bites and mini-bars from Magnum, Häagen-Dazs, Talenti and others.

Tantalizing flavor combinations

Flavors comprise a large share of category innovation, with unique flavor profiles. Bubbies Homemade Ice Cream & Desserts, for example, is launching a dragon fruit lemonade and raspberry cheesecake mochi ice cream, said Katie Cline, vice president of marketing for the Phoenix-based manufacturer. They will join some of Bubbies' other less-common flavors: ube (purple yam), churro, milk tea and blood orange.

Other innovations in the frozen novelty category include chocolate or fruit coatings and unexpected features like confetti sprinkles, edible glitter or bakery crossovers incorporating cookies or donuts.

Collaborations also are popular, with one recent example being Kellanova and Golden West Food Group partnering to introduce ice cream sandwich flavors inspired by the Eggo and Rice Krispies Treats brands.

Category sales on the rise

Consumers are responding to the innovation by increasingly scooping up frozen novelties. Circana data for the 52 weeks ended Dec. 29, 2024, show US dollar sales of about $8.2 billion, up 1.3% from the year-ago period. According to Circana data for the 52 weeks ended Nov. 3, 2024, as cited in Conagra Brands’ “The Future of Frozen Food 2025” report, “Ice cream and frozen novelties are both the most purchased frozen categories and most repeatedly purchased.”

While private label brands continue to hold a top spot when it comes to sales, other popular purchases in the category are products from Outshine, Drumstick, Häagen-Dazs, Yasso and Oreo, said John Crawford, senior vice president, client insights, dairy, for Chicago-based Circana.

“The category has gotten maybe a little more upscale, a little higher-priced and maybe perceived higher quality,” he said.

Cline said Bubbies sees most of its sales growth from millennials and Gen Z consumers whose buying preferences are increasingly influenced by a sense of nostalgia. That element is incorporated in the company’s products, she added, along with “a fresh twist” from new flavors.

“This approach allows us to reach those drawn to the novelty of exploring new and unique flavors while also reminding our consumers of their favorite desserts,” she said.

Jackson called millennials “flavor adventurers” who are more likely to try less-common taste treats but may become a bit less adventurous once they have children.

 “People with families, though, they’re going to stick with things that are a little more comfortable for their children,” she said, citing cookie dough, caramel waffle and fudge brownie products as examples.

Frozen novelties are popular across all demographic groups, Crawford said. However, the data skew to larger-size households with children and those with higher incomes, which he said was not surprising.

“The surprising piece is it does skew a little older,” he said. “Younger and older boomers are the highest index for this category.”

The convenience factor

Convenience plays a significant role in frozen novelties sales since it’s less trouble to serve a bar, sandwich or bite-size format than scoop a product into a bowl, eat it with a spoon and clean up afterward. Scott knows this first-hand.

“For my daughter, who is four, giving her a bar is a lot easier than giving out ice cream,” she said. “It tends to be less messy, and having smaller portions is nice. Some of the major brands have smaller versions now if you’re an adult and trying to size down on portions. Gen Z and millennials are also the biggest snackers.”

Longer-term prospects for the frozen novelty category look promising. Zion Market Research has estimated the global market will expand at a compound annual growth rate of about 3.7% between 2024 and 2032. In terms of revenue, Zion said the global market was valued at approximately $30.8 billion in 2023 and is projected to reach $42.7 billion by 2032. North America will likely dominate the market, Zion said, driven by increasing demand for frozen innovations and those offering fewer calories, less sugar and more dairy-free and plant-based options.

Still, there are challenges ahead for frozen novelties. The growth rate is expected to be hampered by “the growing preference for fresh and natural food products, as well as the increasing need for constant temperature monitoring … ,” according to Data Bridge Market Research.

Data Bridge also predicted “a lack of cold chain infrastructure in developing economies will pose a market challenge for frozen novelty during the forecast period.”

Rising ingredient prices present another challenge for the category. Cline said price fluctuations over the past few years have impacted both producers and consumers of frozen novelties, and food prices are predicted to increase 2.2% overall in 2025.

“The frozen novelties category as a whole has seen significant price increases that have impacted consumers’ buying behavior,” she said.

As companies involved in the category seek to capture more market share, success is likely to require a balance of innovation, marketing and promotion.

“If I were to say what is going to drive success, I would say innovation and also differentiation and also promotion,” Crawford said. “If something else is on deal or on the end cap, that can change things, but promotion for sure.”