The Year in Froyo Review, 2023 Edition

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For our last post of the year, we’d like to recap the significant froyo events of 2023. And there was good news, the post-pandemic recovery continued and the number of new businesses serving froyo worldwide increased by 46% this year.

Growth of Frozen Yogurt Market

We’ve been tracking froyo openings (froyo shops and businesses that aren’t primarily froyo shops but serve soft serve froyo) and closings all year. We found 670 new businesses that serve froyo in 60 countries, compared to 459 new froyo businesses in 58 countries last year, a growth rate of 46%. By continent, Asia led the way, accounting for 47% of the new froyo businesses in 2023.

By country, the Philippines had the most openings, with 110, followed by the US with 91, Indonesia with 73, and Malaysia with 67. Last year, the most openings occurred in the US with 95, followed by Malaysia with 54, Mexico with 49, and Indonesia with 44. It’s worth noting that the number of openings in the US in 2023 declined slightly from 2022 and the Philippines wasn’t in the top five list of the most openings by country last year. The Philippines, US, Indonesia, and Malaysia are all mature markets for froyo. In the Philippines, established international chains like llaollao and Yogorino are opening new branches but new chains are also emerging, like Tah-Mee, Chimmy, and YoWell. In the US, most of the openings are not part of large franchises.

We also found 65 froyo businesses that closed in 18 countries. The majority of these closings, 39 closings (60%), were in the United States. Canada and Australia tied for second with 5% of the closings.

According to Mordor Intelligence, the frozen yogurt market is currently US $0.99 billion and is forecasted to reach US $1.32 billion by 2028, a CAGR of 5.97% during 2023 – 2028. The largest market is North America, while Asia-Pacific is the fastest growing market.

This is the first time since we started tracking the largest froyo chains in the world that the number of locations for the ten largest froyo chains increased. The increase was modest. The top 10 largest frozen yogurt chains in the world accounted for approximately 1,956 locations in December 2023, up 53 locations from December 2022. The top 10 accounted for 1,902 locations in December 2022 and 2,351 locations in December 2021. In 2013, the top 10 froyo chains had 4,482 locations.

Menchie’s is still the largest froyo chain in the world, with the majority of shops in the United States. Llaollao went from #6 in 2022 to #2 in 2023. Llaollao, Pinkberry, Yogorino, Greenfrost, and Sour Sally all grew in 2023. Sour Sally joined the top 10 list for the first time. Orange Leaf, #10 on the 2022 list, had 67 locations in December 2023, down 10 from December 2022.

Looking at California, the state with the most froyo shops, there were 37 new froyo businesses in 2023, compared to 46 new froyo businesses in 2022. Of the 37 new froyo businesses, the breakdown was as follows: 11 new froyo shops, 1 froyo truck, 19 non-froyo shops that serve froyo, and 4 froyo vending machine installations. In 2022, there were 46 new froyo businesses: 18 new froyo shops (including two froyo trucks), 20 non-froyo shops, and 8 froyo vending machines.

We found seventeen new froyo trucks this year. In 2022, we found twenty new froyo trucks, trailers, and the world’s first froyo pontoon. As for the country with the most new froyo trucks, trailers, and pontoons, the United States had the most with seven. Last year, we also found six new froyo trucks in the US. Yogurberry’s froyo truck is the first froyo truck in Paraguay.

New Froyo Flavors and Flavor Trends

This year, we found 69 new froyo flavors (and froyo-alternatives introduced by froyo chains). We know that we missed some but we did the best we could and know that we have at a minimum captured the major new flavor introductions from the larger froyo chains. Last year, we found 79 new froyo flavors.

Menchie’s has been the leader in new flavor introductions for years. This year they tied 16 Handles for the most flavor introductions, with 11 new flavors each. Last year, Menchie’s introduced 16 new froyo flavors. With 16 Handles and Menchie’s tying for 1st, Yogurtland was in third place with nine new flavors, and TCBY had eight new flavors.

In 2023, new frozen yogurt flavors accounted for 61% of all new 2023 flavors (compared to 67% in 2022, 58% in 2021, and 50% in 2020). We’ve seen an increase in new froyo flavors and an increase in dairy-based flavors at froyo shops.

Of the non-froyo alternatives, we found 13 new non-dairy flavors (19% of new flavors), eight new sorbet flavors (12% of new flavors), one new ice cream flavor, two new Italian ice flavors, and 1 new gelato. Not all shops specified what type of non-dairy base they used, but 7 of the 13 new non-dairy flavors explicitly mentioned using oat milk, making oat milk the most popular dairy alternative milk used again. Looking at this another way, 66% of new flavors were dairy-based and 34% were non-dairy.

In 2023, fruit flavors were again the most popular and this popularity has increased; fruit flavors were present in 50% of all new flavors. In 2022, fruit flavors were found in 38% of new flavors.

Cake flavors (e.g., cupcakes, tarts, cake batter) were the second most popular and were found in 19% of new flavors in 2023. Last year’s second-place chocolate came in third in 2023, at 12% of new flavors.

IFYA News

The National Frozen Yogurt Survey returned, though only consumers were surveyed this year. We invited frozen yogurt consumers in the United States to participate in an online survey about frozen yogurt in September 2023. Specifically, the survey was designed to measure loyalty, liking for major frozen yogurt chains, frozen yogurt preferences, current and future consumption (including what might make them visit froyo shops more often), and purchasing habits.

We received 771 survey responses. About 56% of the respondents were female, 43% male; 77% of respondents were between 18-34 years old; 77% of respondents reported having children under 18 in the household, with one child being the most common (45.62% of respondents).

Froyo shop visit frequency and loyalty have shown little change since 2022. And while some respondents said they had reduced froyo consumption due to higher prices, the majority had not. However, value is a growing concern among respondents. Respondents liked most of the major frozen chains in the US. When asked about their favorite shop, Pinkberry ranked #1. The most important froyo shop attribute was quality froyo; cleanliness was no longer in the top 3.

We welcomed Spoon & Sprinkles of Davenport, Florida, to the Swirl of Honor program. Spoon & Sprinkles earned three swirls, the maximum possible number of swirls, based on four factors: frozen yogurt quality, store cleanliness, superior customer service, and environmentally friendly business practices. Spoon & Sprinkles opened in December 2020 in Posner Park Shopping Center. The shop offers self-serve frozen yogurt and ice cream with over 60 toppings to choose from, boba tea, acai bowls, pitaya bowls, smoothies, milkshakes, and macarons. The family-owned shop offers sweet and healthy options for everyone. They take pride in offering the best quality yogurt and exceptional customer service. The shop is located at 2250 Posner Blvd., Davenport, FL 33837.

This past July, we sponsored our annual summer froyo contest. This year’s contest was an Instagram photo contest with the theme of summer froyo and summer shoes. The winner, @louisvillelusciouseats, received a $75 DoorDash gift card.

We also offered a new benefit to IFYA members, to encourage shop owners to switch to new, more energy-efficient froyo machines. PASMO America will give IFYA members a credit of up to $2,500 per soft serve machine and an assorted case of The Frozen Bean/Gelato Labs/Sunkist flavors when they trade in their old soft serve machines. The credit is good towards the purchase of a new Pasmo soft serve machine, as well as spoons, straws, or cups from Frozen Solutions. PASMO machines have the same dimensions as either Taylor or Stoelting, so they will fit right in the same spot without any changes to your store. Known for their quiet operation and energy efficiency, PASMO soft serve machines are engineered with high-end motors rather than belts; their power consumption, ease of use, and noise are much lower than the competition. PASMO soft serve machines feature power sequencers & converters that ramp up and lower energy usage when needed, and self-retracting handles eliminate waste mess by 90%.

Froyo Industry News