Dairy Desserts Market Size

Global Dairy Desserts Market size was valued at USD 98.5 billion in 2023 and is poised to grow from USD 102.74 billion in 2024 to USD 143.88 billion by 2032, growing at a CAGR of 4.3% during the forecast period (2025-2032). 

The dairy desserts market growth is driven by changing consumer preferences, increased awareness about health, and the rising demand for convenience in food consumption. In 2024, consumers are becoming more health-conscious, seeking indulgent options that offer added nutritional benefits. As a result, there is a surge in demand for low-sugar, high-protein, and plant-based dairy desserts, which offer consumers a healthier alternative to traditional sugary treats. The market is also witnessing a shift towards premiumization, with consumers increasingly willing to pay more for high-quality, organic, and sustainably sourced dairy products. These global dairy desserts industry trends are evident in the growing popularity of gourmet and functional desserts, such as probiotic-rich yogurts and dairy-based treats infused with superfoods, vitamins, and minerals.

Health consciousness is reshaping product development strategies in the dairy desserts market, with manufacturers focusing on clean-label ingredients and better-for-you options. Key brands are experimenting with new formulations, including sugar-free or low-sugar ice creams and reduced or medium-fat variants. Premium and artisanal offerings have gained significant traction, with producers emphasizing natural ingredients and unique flavor profiles. The industry has witnessed a surge in innovative flavors and textures, particularly in traditional markets where consumers are increasingly seeking novel taste experiences.

How is AI Enhancing Product Innovation in the Dairy Desserts Market?

Artificial Intelligence is enabling dairy dessert manufacturers to innovate by analyzing consumer preferences through social listening tools and sales data. In 2024, companies like Nestlé and Danone have implemented AI-driven R&D systems to create personalized dessert formulations such as low-sugar or plant-based alternatives based on trending health concerns and dietary patterns.

AI-powered predictive analytics is playing a significant role in forecasting demand, reducing wastage, and managing cold-chain logistics more efficiently. For instance, in early 2024, FrieslandCampina deployed an AI-based logistics system to reduce delivery delays and maintain product freshness across European markets.

AI-driven computer vision systems and sensors are improving quality assurance processes on production lines. As of 2024, several manufacturers in the U.S. and Europe have integrated AI into their production floors to detect contamination or consistency issues in real time improving both safety and efficiency. For instance, in 2024, Danone partnered with IBM’s Watson platform to co-develop a new AI framework for predicting emerging flavors and regional preferences. Similarly, Nestlé is testing generative AI models to craft and test virtual prototypes of dessert products before physical production begins.