Is Pet Ice Cream Going Out of Business? The Real Answer

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Damian Mckinney is the founder and lead writer of BusinessBase, an independent business publication launched in 2025. Based in Atlanta, Georgia, he created the site to...
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The question sounds simple enough. But the answer depends on what you actually mean. Are you asking about a specific brand? A small business category? Or the broader pet treats market? Each tells a different story — and most of them are more optimistic than the question implies.

This article breaks down whether pet ice cream as a product niche is declining or growing, what the current market looks like, why individual brands can struggle even when a category is healthy, and what all of this means if you’re a pet owner, an entrepreneur, or someone considering investing in the space.

The Pet Industry Is Not Contracting — It’s the Opposite

Before focusing on frozen treats specifically, it helps to understand the environment they operate in. The U.S. pet industry reached $158 billion in total expenditures in 2025, according to the American Pet Products Association, with further growth projected into 2026.

That figure covers food, treats, veterinary care, grooming, accessories, and more. Pet food and treats sit near the center of that spending. A growing market like this doesn’t guarantee every niche product succeeds — but it does create real room for new product categories to find their footing.

In other words, the overall environment for pet ice cream is not hostile. It’s actually quite favorable compared to most other consumer product sectors.

Where Pet Ice Cream Actually Fits in the Market

Pet ice cream is a specialty segment within the broader treats category. It is not a staple like dry kibble or canned food. To put that in perspective, canned pet food alone accounted for roughly $18.99 billion in U.S. market share as of 2022. Pet ice cream doesn’t come close to that kind of scale — and it doesn’t need to in order to be a viable business.

What pet ice cream does tap into is the “premiumization” trend. Pet owners increasingly treat their animals like family members. They want products that feel special, indulgent, and human-like. A frozen treat on a hot afternoon fits that idea perfectly.

That niche positioning actually works in the category’s favor. It doesn’t have to dominate shelf space or compete with mainstream pet food to survive. It just needs to serve a specific type of buyer — and that buyer exists in growing numbers.

Major Brands Are Entering the Space, Not Leaving It

One of the clearest signals that pet ice cream is not a dying trend is who is currently investing in it. Ben & Jerry’s launched a product line called Doggie Desserts — frozen treats formulated specifically for dogs.

The product uses sunflower butter and limits dairy content to address common concerns about lactose intolerance in dogs. Two flavors are currently available: Pontch’s Mix, which combines peanut butter and pretzel swirl, and Rosie’s Batch, made with pumpkin and mini cookies.

Distribution covers grocery stores, Ben & Jerry’s scoop shops, and online retail. This is not a limited test run. A company the size of Ben & Jerry’s does not expand into a new product category without significant commercial confidence behind the decision.

When established brands move toward a niche rather than away from it, that’s a meaningful indicator of where the category is headed.

Why Individual Pet Ice Cream Brands Still Struggle or Close

Here’s where things get more nuanced. The fact that the category is viable doesn’t mean every business within it will survive. Several structural challenges make pet ice cream harder to run than it might appear from the outside.

Production and Storage Costs

Frozen products require cold chain logistics from the moment they’re made to the moment they reach a customer. That means refrigerated transport, freezer storage at retail locations, and specialized manufacturing equipment. These costs stack up quickly, especially for small operators without existing food production infrastructure.

Regulatory Requirements

Making frozen dairy or non-dairy desserts is not as simple as renting a commercial kitchen. In California, for example, producing products in this category requires a milk product plant license through the California Department of Food and Agriculture, with annual renewal fees tied to output volume. Other states have their own requirements, and the specifics vary considerably by jurisdiction.

These regulatory steps are manageable — but they add cost and complexity that entrepreneurs sometimes underestimate when starting out.

Building From Scratch vs. Adapting Existing Infrastructure

A company like Ben & Jerry’s already has manufacturing facilities, distribution networks, and brand recognition. A small startup has none of that. It has to build everything from the ground up while also trying to generate revenue.

That gap is significant. It’s also why individual closures in this niche don’t necessarily mean the category is collapsing. Think of it like craft brewing. Small craft breweries close regularly, yet the overall beer market continues to grow. One doesn’t cancel out the other. The same logic applies here.

Seasonal Demand

Demand for frozen pet treats naturally peaks in warmer months. For a small business without diversified revenue, that seasonal pattern can create real cash flow pressure during slower periods.

How Pet Franchises and Boutiques Are Keeping the Niche Alive

One of the more sustainable business models for pet ice cream involves fitting it inside a broader retail concept rather than building an entire company around it. Pet franchise concepts that combine grooming, baked goods, and boutique retail have expanded notably in recent years.

These businesses already have foot traffic. They already have relationships with pet owners. Adding a freezer stocked with dog-friendly frozen treats is a natural extension of what they do — and it doesn’t require building a separate brand from scratch.

According to franchise analysis from Vetted Biz, the pet sector remains one of the more active areas for franchise investment in 2026. Established names like Dogtopia and Camp Bow Wow show the kind of investment levels and growth that attract serious entrepreneurs. Smaller boutique models built around pet treats and baked goods follow a similar logic, with frozen items becoming part of a diversified product mix rather than the sole focus.

This approach spreads the risk. If frozen treat sales dip in January, grooming appointments and other products pick up the slack.

What This Means for Pet Owners, Entrepreneurs, and Investors

If you’re a pet owner, the practical takeaway is straightforward. Pet ice cream isn’t going away. You’ll likely see more products in this space, not fewer — and formulations are improving. Look for products that specify limited dairy or lactose-free formulations if your pet is sensitive.

If you’re an entrepreneur thinking about entering this niche, the opportunity is real but the execution is demanding. Understand your state’s licensing requirements before you invest in equipment. Think carefully about whether you’re building a standalone brand or incorporating frozen treats into a broader pet retail concept. The latter tends to be more resilient.

If you’re an investor evaluating the pet treats space, the macro trend is favorable. The $158 billion pet industry figure isn’t a ceiling — it’s a current snapshot of a sector still in expansion. Niche products like pet ice cream sit within that growth, even if they represent a small share of total spending. Entry by mainstream brands validates the category; what remains uncertain is which specific companies will build the distribution and brand loyalty to sustain long-term growth.

For more coverage on niche markets, consumer trends, and small business strategy, Business Base Mag regularly covers the business stories that fall between the headlines.

The Bottom Line

Pet ice cream is not going out of business. There’s no broad collapse of the category — no data suggesting the niche is fading, and no major retreat by the companies operating in it. What is true is that individual brands face real operational, regulatory, and financial challenges that can lead to closures, just as they do in any competitive food segment.

The stronger story here is one of a maturing niche. Established brands are entering with purpose. The underlying pet industry continues to expand. And consumer demand for premium, human-like pet products shows no signs of slowing down.

Individual businesses may come and go. The category itself is on solid footing.

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Damian Mckinney is the founder and lead writer of BusinessBase, an independent business publication launched in 2025. Based in Atlanta, Georgia, he created the site to offer straightforward, practical business content for entrepreneurs, professionals, and small business owners who want useful insight without unnecessary jargon. Damian writes about entrepreneurship, business strategy, finance basics, management, productivity, and the everyday decisions involved in building something sustainable. His work is guided by clarity, independence, and respect for readers’ real-world constraints.