The Ice Cream Stores industry in the United States has shown robust growth over the past five years, with an annualized revenue growth rate of 5.8%, bringing the market size to an estimated $7.4 billion in 2025. This expansion has been fueled by increased disposable income and a shift in consumer diets, as measured by a falling healthy eating index.
However, this growth masks significant challenges for industry players. The rising cost of milk, a key ingredient, has been a major headwind, putting a squeeze on profit margins over the past five years. Furthermore, the industry faces heightened competition, not only from within but also from alternatives like frozen yogurt, which are perceived as healthier options.
To adapt, ice cream shops are innovating their product offerings. Many are attracting customers by serving premium products like sorbet and other healthier alternatives. The industry’s geographic distribution remains closely tied to population centers, as it relies heavily on nearby customers. Looking ahead, the industry’s growth is expected to continue, albeit with a continued focus on navigating input cost pressures and evolving consumer preferences.