Frozen yogurt sales rebound as Gen Z lines up for premium cups
U.S. frozen yogurt servings rose 26% in the year ending in March, with Circana crediting health-focused Gen Z consumers.
By Sofia Marchetti · World Affairs Correspondent
2 min read
Frozen yogurt is drawing customers back after years of decline, with U.S. servings sold up 26% in the year ending in March, according to Circana. The rebound signals fresh demand for a category that cooled after its late-2000s and early-2010s boom, with Circana tying the growth to health-conscious Gen Z consumers.
Bloomberg reported that customers are waiting in long lines at some of the trendiest frozen yogurt shops. At the high end, Bloomberg said, a cup can cost as much as $30.
The renewed interest has centered on shops that sell frozen yogurt as a premium snack rather than a mall-era self-serve treat, Fortune and Morning Brew reported. That shift includes higher-quality ingredients and toppings that differ from the candy and cereal mix-ins associated with earlier frozen yogurt chains.
New York shops draw crowds
New York City is one of the main markets for the current comeback, Fortune and Morning Brew reported. A group of newer premium shops there has been drawing customers with more specialized menus and ingredient sourcing.
Mimi’s, an Australian-style frozen yogurt shop, has opened two New York locations in the past year, according to Fortune and Morning Brew. The shops use locally sourced milk and mangos from India, the report said.
Myka Greek Frozen Yogurt in Manhattan has also become a line-drawing shop, according to The New York Times. A Times writer recently counted 74 people ahead in line at one Manhattan location, Fortune and Morning Brew reported, citing the newspaper.
Myka’s menu includes Mediterranean-style toppings such as olive oil and crumbled baklava, according to Fortune and Morning Brew. Those offerings show how some operators are positioning frozen yogurt around ingredients and flavor combinations that differ from the category’s earlier wave.
Old chains benefit too
The upswing is not limited to newer shops. Fortune and Morning Brew reported that 16 Handles, a chain closely tied to frozen yogurt’s earlier popularity, is also seeing sales rise.
The category’s recent growth follows a long cooling-off period after frozen yogurt expanded rapidly in the late 2000s and early 2010s, Fortune and Morning Brew reported. Circana’s data suggests the product has found another audience, with the research firm identifying Gen Z consumers as a key force behind the increase.
For operators, the current demand appears linked to both nostalgia and a newer pitch around protein, probiotics and quality ingredients, according to the Fortune and Morning Brew report. Bloomberg’s reporting on long lines and higher-priced cups shows how some shops are turning that demand into a premium retail experience.
This story draws on original reporting from Fortune.