The U.S. ice cream market is set to grow at a CAGR of 5.21% between 2025 and 2032, reaching USD 33.87 billion by 2032 from USD 22.56 billion in 2024. A key driver of this expansion is the increasing demand for premium and luxury ice creams, particularly among health-conscious consumers who seek reduced-calorie or sugar-free options. For example, in 2021, NadaMoo! introduced a new line of dairy-free, sugar-free ice cream in vanilla, strawberry, and chocolate flavors.
To stay competitive and attract a broader customer base, ice cream manufacturers are focusing on innovative and high-quality ingredients. Additionally, advancements in packaging are enhancing the convenience of take-home ice cream, making storage and transportation easier.
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Rising Demand for Dairy-Free and Vegan Ice Cream
The growing preference for dairy-free and vegan ice cream is a major contributor to market growth in the U.S. Consumers are increasingly opting for plant-based alternatives due to health concerns, dietary restrictions, and environmental awareness. This trend is especially prominent among individuals with lactose intolerance, dairy allergies, or those following a vegan lifestyle. Brands are responding by expanding their offerings, utilizing ingredients like coconut milk, almond milk, soy milk, and oat milk to create creamy, plant-based alternatives.
For instance, in February 2024, Unilever announced the integration of precision fermentation into its products, incorporating Perfect Day’s animal-free whey protein into a lactose-free chocolate ice cream for Breyers.
Increased Demand for Take-Home Ice Cream Due to Frequent Gatherings
Ice cream remains a favorite treat in the U.S., with the country ranking among the top global consumers. According to the International Dairy Foods Association (IDFA), the average American consumes approximately 20 pounds (4 gallons) of ice cream annually, with vanilla, chocolate, strawberry, and banana being the most preferred flavors.
With frequent home gatherings and a culture of hospitality, demand for take-home ice cream has surged. Around 82% of Americans purchase ice cream from grocery stores for home consumption, with half-gallon containers being the most popular package size.
Potential Growth in CBD-Infused Ice Cream
To differentiate themselves in the market, ice cream manufacturers are exploring new and unique ingredients. Regulatory changes could also open doors for innovation. In May 2019, the FDA held public hearings on the legalization of cannabidiol (CBD) in food and beverages. As a result, several companies are preparing to introduce CBD-infused ice cream once regulatory approval is granted.
For example, Ben & Jerry’s has announced plans to launch a CBD-infused ice cream, although no official release date has been confirmed, as the FDA’s regulatory process is still underway. The company intends to source its CBD locally from Vermont, aligning with its commitment to ethical sourcing.
Shift Towards Sustainable Packaging
According to the U.S. Environmental Protection Agency, the country generates around 80 million metric tons of packaging waste annually, with a significant portion coming from food and beverage products. Growing awareness of environmental issues has led to increased demand for sustainable and eco-friendly packaging. Many ice cream manufacturers are now partnering with suppliers to implement sustainable packaging solutions to align with consumer expectations. Approximately two-thirds of U.S. ice cream producers are actively working toward more sustainable packaging options.
Impact of COVID-19 on the U.S. Ice Cream Market
The initial phase of the COVID-19 pandemic led to a decline in the U.S. ice cream industry due to nationwide lockdowns. However, as restrictions eased, demand rebounded, and the industry recovered approximately 50% of its losses. Consumer purchasing habits also shifted, with a greater preference for multipacks and larger containers such as bricks and tubs, as people sought to minimize physical contact while enjoying more family time at home.
Effect of the Russia-Ukraine War on the U.S. Ice Cream Market
The ice cream industry relies on raw materials that are subject to price fluctuations due to external factors such as weather conditions, climate change, and supply chain disruptions. The Russia-Ukraine conflict has significantly impacted raw material availability, as international sanctions on Russia have disrupted global supply chains. This situation is expected to contribute to rising dairy prices, further influencing the ice cream market.
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