The trend toward healthier diets, highlighted by declining per capita consumption of sugar and sweeteners, has helped propel the industry over the past five years.
New York, NY (PRWEB) April 30, 2015
The Frozen Yogurt Stores industry has grown at a rapid pace over the five years to 2015. Driven by consumers' increasing health consciousness and the emergence of tart-flavored frozen yogurt, IBISWorld estimates that industry revenue has increased at an average annual rate of 20.6% during the five-year period. Growth was particularly strong immediately following the recession, as per capita disposable income inched upward and a number of new franchisers ramped up their growth aspirations. Growth is expected to temper in 2015 as the industry approaches its saturation point; however, industry revenue is still expected to advance 12.4% during the year, to reach $2.1 billion.
According to IBISWorld Industry Analyst Antal Neville, “The trend toward healthier diets, highlighted by declining per capita consumption of sugar and sweeteners, has helped propel the industry over the past five years.” Frozen yogurt, which is a low-calorie, nonfat alternative to ice cream, has been favored by an expanding demographic. For example, major player Red Mango states that part of its location strategy includes setting up shops in college towns because students are typically more health conscious than the average American. “The health-driven expansion has also driven demand for self-serve frozen yogurt stores, as they enable consumers to limit their consumption based on their dietary needs and concerns,” says Neville.
IBISWorld projects that health concerns and consumption patterns will continue to drive industry growth through the five years to 2020. However, industry revenue will grow at a slower rate than in the previous five years, as the market becomes saturated. Furthermore, as more frozen yogurt stores enter the industry, price competition will intensify, leading to slower enterprise growth. Likewise, profit margins will come under increasing pressure over the next five years, as industry competition intensifies and the larger chains increase their store counts. Already, a number of independent frozen yogurt stores have exited the industry due to intense competition.
For more information, visit IBISWorld’s Frozen Yogurt Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes establishments that primarily prepare or serve frozen yogurt and other yogurt-based items, such as smoothies.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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