Global Ice Cream Market Overview, 2024-29

Market Dynamic

Market Drivers • Rising Disposable Income and Urbanization: As global economies continue to grow, there is an increase in disposable income, particularly in urban areas. This rise in purchasing power contributes to the growing demand for indulgent and premium food products, including high-quality ice cream. Urbanization also leads to lifestyle changes, with consumers seeking convenient and enjoyable treats, driving the sales of ice cream in urban markets. The combination of rising disposable income and urbanization fuels the demand for premium ice cream products, creating opportunities for market expansion and the introduction of luxurious offerings. • Globalization and Cultural Fusion: Globalization has facilitated the exchange of culinary influences and cultural preferences. Ice cream manufacturers are leveraging this trend by introducing flavors inspired by diverse cuisines from around the world. This fusion of flavors, such as matcha green tea from Japan, tiramisu from Italy, or mango chili from Mexico, appeals to consumers looking for unique and globally inspired taste experiences. The globalization of flavors broadens the market appeal and caters to a diverse consumer base. Ice cream companies can capitalize on this driver by embracing cultural diversity and offering a wide range of international flavors. Market Challenges • Intense Market Competition: The global ice cream market is highly competitive, with numerous local and international players vying for consumer attention. This intense competition puts pressure on companies to differentiate their products through innovation, marketing, and branding. Additionally, price wars and promotional activities to gain market share can impact profit margins and sustainability. Companies must navigate this challenging landscape by developing unique selling propositions, establishing strong brand identities, and constantly innovating to stay ahead in the competitive market. • Environmental Sustainability Concerns: With increasing environmental awareness, consumers are demanding eco-friendly practices from businesses, including the ice cream industry. Challenges such as packaging waste, carbon footprints, and sustainable sourcing of ingredients pose significant hurdles. Adapting operations to align with environmentally friendly practices can be challenging for companies, especially smaller ones with limited resources. Addressing sustainability concerns is crucial for long-term success, as environmentally conscious consumers may shift their preferences towards brands that demonstrate commitment to sustainable and ethical practices. Market Trends • Functional and Nutrient-Enriched Ice Cream: The trend towards health-conscious consumption has given rise to the development of functional and nutrient-enriched ice cream. Companies are incorporating ingredients like probiotics, vitamins, and protein into their formulations to create ice cream products that offer health benefits beyond traditional indulgence. This trend caters to consumers seeking functional foods without compromising on taste. The functional ice cream trend aligns with the health and wellness movement, providing an avenue for market growth and diversification, especially among consumers looking for healthier frozen dessert options. • Experiential and Novelty Products: Ice cream manufacturers are increasingly focusing on creating experiential and novelty products to engage consumers. This includes interactive in-store experiences, customizable ice cream creations, and limited-edition releases. The element of surprise and uniqueness adds excitement to the consumer's ice cream experience, fostering brand loyalty and social media buzz. Experiential and novelty products contribute to brand differentiation and customer engagement. By offering memorable and shareable experiences, companies can strengthen their market presence and attract a dedicated consumer base. Covid-19 Impacts The global ice cream market, like many other industries, faced significant impacts from the COVID-19 pandemic. The initial phases of lockdowns and restrictions led to disruptions in the supply chain, affecting the production and distribution of ice cream products. Closure of restaurants, cafes, and ice cream parlors, coupled with reduced foot traffic in retail outlets, resulted in a sharp decline in sales. Consumer priorities shifted towards essential goods, impacting the demand for indulgent treats. However, as lockdowns eased, there was a noticeable surge in demand for comfort foods, including ice cream, as people sought moments of joy and familiarity during uncertain times. The pandemic also accelerated certain trends within the industry, such as the rise of e-commerce for ice cream sales and increased focus on health-conscious offerings. Manufacturers responded with innovative packaging solutions, online promotions, and new product developments to adapt to the changing consumer landscape. While the industry experienced challenges, the enduring appeal of ice cream as a source of comfort and delight ultimately contributed to its resilience and gradual recovery in a post-pandemic era.

Key Development

• June 12, 2023: Häagen-Dazs, a brand under the General Mills umbrella, is embarking on an exciting venture with the introduction of Häagen-Dazs Cultured Crème. This innovative creation draws inspiration from the sumptuous taste and luxurious texture that Häagen-Dazs ice cream is renowned for. Cultured Crème represents a unique fusion of flavors and textures, providing a fresh perspective for discerning consumers who appreciate the delights of both yogurt and ice cream in a single snack. • October 2022: Unilever partnered with ASAP for the delivery of its ice cream products. As per the partnership, ASAP will also deliver ice cream and treats from Unilever's virtual storefront, The Ice Cream Shop. • October 2022: Kemps replaced Dean Goods throughout Iowa as Dairy Farmers of America completed the USD 433 million acquisitions of Dean Food’s properties. The business took over the Le Mars milk factory, which can process numerous Kemps products, from cottage cheese to ice cream. • October 2022: Blue Ribbon's Street range launched three new two-liter tubs, each featuring two flavors. The range includes chocolate affair, caramel hokey pokey, and velvety caramel. • March 2022: Yuengling’s Corporation, an American ice-cream manufacturing company, acquired Revolution Desserts, LLC, an Atlanta-based ice cream manufacturing company that owns Gelato Fiasco, Sweet Scoops, Art Cream, and SoCo Creamery brands. Revolution Desserts operates in more than 600 retail stores nationwide.