The Year in Froyo Review, 2022 Edition

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For our last post of the year, we’d like to recap the froyo events of 2022. While things were looking better for restaurants in general, rising costs and supply chain shortages continued to be the main concerns. However, there was a sense of normalcy as many trade shows resumed in-person events and mask requirements were dropped.

There were some significant milestones for the frozen yogurt industry. Menchie’s celebrated turning 15 this year. TCBY introduced their first oat milk based soft serve flavors. 16 Handles was acquired by one of its franchisees. Amazon Go opened several locations with self-serve Pinkberry stations and Pinkberry partnered with iCream to launch several Pinkberry vending machines in shopping centers. Sadly, Pinkberry exited Thailand and Japan.

Large Froyo Chains Continue to Shrink

The top 10 largest frozen yogurt chains in the world accounted for approximately 1,902 locations, down from 2,351 locations in December 2021, 2,522 locations in December 2020, 2,816 locations in December 2019 and 3,020 locations in December 2018. None of the chains was able to grow their location count this year (though we’re not sure about Greenfrost’s growth). The largest froyo chains in 2022 were #1 Menchie’s, #2 Yogen Fruz, and #3 SweetFrog.

Looking at California, the state with the most froyo shops, there were 44 new places that serve froyo: 16 new froyo shops (including two froyo trucks), 20 non-froyo shops, and 8 froyo vending machines. In 2021, there were 26 new places in California serving froyo, including 15 new froyo shops, 10 non-froyo shops that serve froyo, plus one existing café that added froyo. There were eleven froyo shop closings in 2022 (and some weren’t technically froyo shops) in California. Two Yogurtland locations closed in Southern California and 1 Menchie’s location. In 2021, there were 45 froyo shop closings in California, including 8 Menchie’s locations, 2 Pinkberry locations, 4 Tutti Frutti locations, and 6 Yogurtland locations.

We found nineteen new froyo trucks this year compared to thirteen in 2020. Half of these new trucks were launched in the US. As for the country with the most new froyo trucks, trailers and pontoons, there was a tie for first between Spain and the US, with six a piece. Llaollao launched seven new froyo trucks.

We’ve been keeping track of froyo shop openings (and businesses that aren’t primarily froyo shops but serve froyo) all year. We found 459 new businesses serving froyo (most of these were froyo shops) in 58 countries. The most openings were in the US with 95, followed by Malaysia with 54, Mexico with 49, Indonesia with 44, and India with 20. We also found 89 froyo shop closings in 21 countries, with the most in the US (48 closings). It’s interesting to note that many of the openings in mature froyo markets like the US, Malaysia, and Indonesia are not primarily froyo shops. However, in Mexico, most of the new businesses serving froyo are primarily froyo shops and most have a health angle (e.g., no sugar froyo, keto).

The US frozen yogurt stores market size, as measured by revenues, has been declining for the past few years. IBISWorld reports that the market size of US frozen yogurt stores in 2022 was $654 million (vs. $802.5 million in 2021 and $826.1 million in 2020). They also report that the US market size growth of frozen yogurt stores was -3.3% in 2022 and -5.1% in business growth. Keep in mind that these numbers do not include other establishments that serve frozen yogurt but are not considered frozen yogurt stores, automated kiosks, or frozen yogurt sold in grocery stores. The figures are strictly for frozen yogurt stores in the US.

Oat Milk Remains the Most Popular Alternative Milk for Soft Serve

We found 77 new flavors introduced by froyo shops around the world this year compared to last year’s 76. Menchie’s led the way with 16 new flavors, followed by Yogurtland with 10 new flavors, and 16 Handles with nine.

This year, new froyo flavors accounted for 67% of new flavors (compared to 58% in 2021 and 50% in 2020). Of the non-froyo alternatives, oat milk remained the most popular milk alternative, with 12 new flavors vs. 4 for the other milk alternatives. TCBY introduced their first oat milk vegan flavors this year. Sorbets accounted for 10% of new flavors. There was only one new gelato flavor.

In terms of specific flavors, fruit flavors led the way again this year; fruit flavors were found in 38% of the new flavors (vs. 34% in 2021 & 38% in 2020). Chocolate was a distant second, accounting for 13% of new flavors. Cookies were third with 10% of new flavors.

New Trend: Frozen Yogurt Cubes and Slices

While froyo cubes were a popular street food in China a few years ago, the trend is spreading to other countries. The first froyo cube shop in Singapore opened this January and the US first froyo cube shop opened in Seattle.

IFYA News

We conducted the National Frozen Yogurt Survey for the sixth consecutive year. The survey is conducted every year to measure trends over time and to better understand the frozen yogurt industry.

The 2022 froyo consumer survey measured loyalty, liking for major frozen yogurt chains, frozen yogurt preferences, what they’re looking for from frozen yogurt shops, current and future consumption, what would increase their froyo shop visit frequency, etc.

The survey found that froyo shop visit frequency was greater than 2021. The most important froyo shop attribute was quality froyo; cleanliness slipped from #2 most important in 2021 to #3 in 2022. When asked about their favorite shop, Pinkberry ranked #1.

As for the froyo shop owners, we asked about operational practices, shop and owner characteristics, supplier satisfaction, concerns, and shop performance. The survey found that 63% of respondents said their sales had returned to pre-pandemic levels. As in 2021, their main concerns were rising costs and finding and retaining good employees. Most are satisfied with their soft serve machines and soft serve mix suppliers.

During the summer, we held our annual contest. This year’s theme for the photo contest was Summer Froyo Creation. We were looking for the best picture of summer froyo. The winners, @ZeldaZonk13 and @_dashthedachshund, won a delivery of Bloomingdale’s Forty Carrots froyo.

We continued our tradition of sponsoring a summer froyo contest. The Summer Froyo Flavors Contest invited froyo fans to share their summer froyo flavor ideas. Flavors were judged based on creativity and how well they captured the spirit of summer. The winning flavor, Watermelon Coconut, was submitted by alyssa._.711 on Instagram. The winner received a home delivery of four pints of Jeni’s froyo and ice cream.

Froyo Industry News