Australia Dairy Based Snacking Trends, Retail Innovation and Shopper Behavior

Introduction

Dairy based snacking is becoming a significant adjacent growth area of the ice cream and frozen dessert ecosystem in Australia. While traditional tubs and cones are still available, new products such as single serve yoghurts, protein packed dairy drinks and frozen dairy bars that can be both treats and daily snacks are gaining popularity. Manufacturers are using the existing manufacturing footprint to produce smaller pack formats and to launch ready to eat dairy products that are suitable for busy urban lifestyles.

Recent product and retail activity

Gelato Messina broadened its frozen product range to include supermarket freezers and limited-edition tubs in 2025 while continuing to expand its own retail network. With this move, premium gelato style products come to the mainstream chilled and frozen displays and brand first experiences get introduced to shoppers who do not visit stores.

Peters Ice Cream along with its parent company Froneri has been active in rolling out branded single serve formats and novelty bars that cater to both family and impulse buyers. These product introductions by the manufacturers reflect the strategies aimed at driving incremental trips and converting ice cream demand into year-round dairy snacking occasions.

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Retailer response and shelf strategy

Supermarket chains Woolworths and Coles have updated frozen and chilled planograms to allocate more space for premium and better-for-you frozen dessert variants. Recent filings and category reports reveal that both retailers are actively managing freezer bay assortments to include higher margin small serve products and plant-based alternatives. Convenience chains such as 7-Eleven have also introduced chilled and frozen grab-and-go dessert cups to capture late-day impulse consumption. These retail changes offer more merchandising support for dairy brands to trial new formats and to drive repeat purchases.

Manufacturing and product innovation trends

Food companies are adjusting their process lines to manufacture a broader range of chilled and frozen snacking products. This also involves quicker freeze cycles for soft scoop formats and aseptic filling for longer shelf-life dairy drinks. Producers are also taking the lead by providing certain products with functional features such as adding protein, prebiotic fiber, and probiotic cultures in single-serve formats. The idea is to open up snack times beyond dessert to snack and to establish daily consumption habits that are based on trusted dairy brands.

Distribution and food service cross over

Food service distributors play a major role in the growth of the business. For example, Bidfood and PFD Food Services deliver dessert products to cafes, restaurants, and QSR chains and at the same time, they facilitate manufacturer retail rollouts through the wholesale channels. Collaborations between manufacturers and retailers can reach regional Australia with less risk of stock outs, as a result of investments in distribution cold rooms and route density.

Challenges and outlook

The main challenges are energy costs and logistics for maintaining the chilled product's consistency while the complexity of SKU portfolios is increasing. Small brands have to face margin pressure when negotiating for retail space, whereas big processors take advantage of their scale and established distribution. The forecast is for the gradual growth of dairy-based snacking, which will be sustained by targeted product innovation and retailer planogram support. The biggest share of the incremental market will be captured by brands that are able to combine premium taste with convenient formats and efficient distribution.

Table of Contents

1. Introduction
2. Definition and scope
3. Product innovation and single serve formats
4. Retailer planogram shifts
5. Manufacturing adaptations
6. Wholesale and food service collaboration
7. Challenges and outlook

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