Icing and Frosting Industry are flavouring and decorative elements that are a requisite of most desserts cakes, cookies, pastries and have undergone a transformation from basic sugar‐based spreads to advanced, health‐conscious, visually appealing products. The icing frosting market consists of buttercream, fondant, royal icing, glazes, cream cheese frostings, and mixes/dry forms, which are distributed through retail, food service, and increasingly online.
The icing and frosting industry was worth US$ 4,883.15 million in 2022 and is anticipated to grow to US$ 6,730.00 million by 2030; it is forecasted to achieve a CAGR of 4.1% from 2022–2030.
Growth Strategies
Product Innovation Differentiation
Healthier options: low sugar, sugar free, organic, natural coloring, allergen‐free (e.g. dairy free) products.
Innovative flavors textures: unusual fruits, savorysweet combinations; fusion frostings (e.g. cream cheese ganache mixtures) to differentiate.
Aesthetics, Customization Visual Appeal focus
Cake decorating, piping, sculpted cake, edible art. Social-media fueled demand for "Instagrammable" desserts is driving this.
Home baker ready-to-use kits with tools, embellishments etc.
Channel Expansion Digital Presence
E commerce is expanding rapidly; increasing brands retailing online. Subscription / speciality stores / direct to consumer.
Using content marketing, baking tutorials/influencers to build demand. Hobbyism in baking has gained pace worldwide.
Sustainability Transparent Sourcing
Eco friendly packaging, sustainable source of ingredients (natural colours, non GMO, local).
Clean label (minimal additives or preservatives). Consumers particularly in mature markets are requiring it.
Regional Localisation Strategies
Add flavours and styles consistent with local tastes. E.g. flavours which are common in Asia, Middle East, Latin America.
Make formulation adjustments for local supply limitations or dietary requirements (e.g. lactose intolerance).
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Future Trends
Plant Based, Vegan Allergy Friendly Frostings
The growth of veganism, lactose intolerance, and overall health concern provides immense space for frostings devoid of dairy/animal ingredients.
Reduced Sugar / Alternative Sweeteners
Demand for lower sugar items, or items that use more 'natural' sweeteners (honey, stevia, etc.) will increase. Reformulation is an important area of innovation.
Ready to Use Convenience Products
Pre prepared frostings, kits, "just add water/milk" mixes, or ready spreads enabling users to decorate with minimal skill. Highly pertinent because home baking is still in fashion.
Premiumization Artisan Frostings
More upscale varieties: distinctive tastes, limited batch/artisan, retro or antique style decorations, upscale ornamentation frostings. Customers who will pay more for novelty and quality.
Sustainability Clean Labeling
Growing regulatory and consumer pressure on clean label, sustainable packaging, non synthetic ingredients. Look for more disclosure on ingredient sourcing and manufacturing processes.
Digital Social Media Impact
Social media is increasingly driving aesthetics, trendy designs; the "shareability" of custom-decorated desserts is a consideration. And more online ordering, tutorials, virtual baking forums.
Key Segments
By Type
Icing and Frosting
By Category
Gluten-Free and Traditional
By Distribution Channel
Supermarkets and Hypermarkets
Specialty Stores
Online Retail
Opportunities:
Targeting health aware segments (low sugar, vegan, allergen free)
Growing through digital channels and home baking kits
Utilizing local flavour indigenous ingredients to target in under penetrated markets (Asia, Latin America)
Premium and artisan products for holidays and gifting
Sustainable packaging and sourcing as marketing differentiators
Challenges:
Ingredient volatility (sugar, dairy, natural colorant) on cost and consistency.
Taste / texture balance with health considerations (low sugar can change sweetness or mouthfeel)
Shelf life and stability particularly for frosting with natural ingredients, or requiring refrigeration
Regulatory scrutiny on labeling, sugar content, additives
Competition from private label / lower-cost alternative
Key Players Their Recent Moves
Wilton Brands LLC
Wilton continues to advance ease, convenience, and decorating functionality in its products. Some of its recent developments:
In June of 2023, Wilton released Dessert Drizzles and new flavor varieties of their decorating icing pouches. These Dessert Drizzles are use-ready syrup-like toppings in squeeze bottles that remain soft (do not harden) for drizzling desserts or beverages. Flavors featured included brownie batter chocolate, toffee caramel, strawberry.
Also new were flavor Decorating Icing Pouches (strawberry, chocolate) with alternate tips (round star) to make decorating easier.
Later (July 2025), Wilton introduced a new tiered bakeware system that is suitable for various skill levels, budgets, and needs. Along with this, they released decorator icing pouches having four built-in piping tips (star, ribbon, writing, shell) to facilitate easy and less messy home decorating. These are RTU (ready to use) and available in several bright colors.
Conagra Brands Inc
Conagra participates in this space to a great extent through its Duncan Hines and related brands, and they've made several strategic actions in the recent past:
One of their highest-profile commitments is to eliminate artificial colors (FDC synthetic dyes) throughout all of their product lines. As of mid 2025, Conagra reported that all its U.S. frozen product portfolio will have eliminated FDC colours by end of 2025.
Also, they intend not to sell products containing artificial colors to U.S. K 12 schools by the 2026 27 school year and to eliminate synthetic colours from their entire retail product offering by the end of 2027. This will have a direct effect on frostings since icings/frostings are largely made with colorants.
In product joint venture/licensing, Conagra has used brand partnerships: e.g. the Dolly Parton line with Duncan Hines consisting of cake mixes and frostings based on her favorite family recipes.
General Mills Inc
General Mills's role in the frosting/icing/home baking segment is primarily through Betty Crocker, Pillsbury, etc. Recent developments:
General Mills / Betty Crocker has been doing theme and season launches. For instance, the "Wicked: For Good" film tie in (Universal Pictures) led to a line of baking mixes, frosting / cookie/cupcake products with colour changing / reveal functions.
Another tie-up: Betty Crocker Oreo Baking Mixes + Oreo flavored frosting. General Mills and Oreo-owner Mondelez introduced in early 2024 baking mixes and a frosting flavor with Oreo creme taste.
Additionally in 2025, new seasonal kits: e.g., a Dunkaroos Frosting (rainbow sprinkles Vanilla Frosting) appeared, tapping into nostalgia and playful dessert decor.
Conclusion
The market for icing and frosting is growing steadily, driven by changing consumer demand for taste, visual appeal, health, and convenience. Firms that innovate particularly in plant based, low sugar, natural ingredients, as well as grow digital reach and provide visually appealing products, can have a good competitive advantage. The growth can be quick in markets such as Asia Pacific as westernisation of diets continues to grow along with rising middle classes. Concurrently, manufacturers have to monitor supply chain expenses, product stability, and regulatory forces closely.
Frequently Asked Questions (FAQs)
How is icing different from frosting?
Typically, frosting is creamier, thicker, fluffier (buttercream, cream cheese) and applied to cover or fill; icing is thinner or for decoration (royal icing, glaze) and typically for details or finishing touches.
Are sugar-free or low-sugar frostings in demand?
Yes. With growing health consciousness among consumers, demand for low sugar, sugar-free, lowered sweetness products is on the rise. Reformulation is the rule.
Which type of products are most dominant?
Buttercream is still one of the largest and most ubiquitous, due to its versatility and broad use. Fondant, royal icing and cream cheese frostings also significant. Glazes less prominent but still utilized.
Which areas are growing most quickly?
Asia Pacific indicates rapid development with growing incomes, shifting eating habits, urbanisation. North America Europe are developed, but the growth in these regions is being led by premiumisation, aesthetics, health/clean label.
What would new players in this market need to emphasise?
Key areas: differentiation through flavour texture innovation; clean label / free from allergens / plant-based; strong branding pack; good online visibility; stability resilient supply chain; food regulations compliance.
