Abstract
This report explores the ice cream and frozen novelty category-going beyond discussion of market trends, segment performance and brand sales to include insight on how this mature market can continue to reach its wide audience as well as opportunities to expand into non-traditional applications and provide a new ' hook' to increase consumer appeal.
You will find thoughtful discussion on topics that include:
- How the category' s maturity supports shifts in sales between segments and leaves little room to maneuver-suggesting potential through non-traditional applications and occasions for use
- How the competitive landscape for away-from-home ice cream consumption impacts at-home sales
- How the impact of American' s desires for health and wellness anddecadence influence segment sales and opportunities they create
- How the shift in retailer sales of ice cream and frozen novelty impacts innovation and future sales
- Defining the two consumer need states-health and indulgence and how they drive sales
- How the changes in adult and child obesity rates affect market sales, innovation and marketing
- How major players in ice cream and novelties are successfully addressing two distinct consumer needs as well as establishing brands that can blur the lines between them
- Recognition of how leading suppliers are not defined by a single brand; rather, they recognize varying consumer needs through differentiated brand qualities
- Insight on innovation and innovators in the category with discussion based on core themes-premium/indulgence and health/wellness
- Why and how marketers are spending money to highlight key propositions regarding a product' s health and wellness, product size or portion-control, and premium positioning
- Discussion of household penetration of ice cream and related products
- Results of which ice cream brands consumers prefer
- Where consumers go to buy ice cream for at-home consumption
- Discovery and discussion of attitudes of ice cream users regarding how they use the product, attributes they desire, usage of light vs. regular
- Discovery and discussion of attitudes of frozen yogurt users as well as gelato users
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Well-established market with high usage still manages to grow slightly
- Competition is growing for at-home ice cream
- The struggle for health and decadence affects segments
- Supermarket sales challenged by "other outlets"......and convenience stores
- Factors impacting ice cream sales
- Nearly half of FDM sales generated by Nestlé and Unilever
- Nestlé and Unilever seeking all consumers--the defining difference
- Innovation driven by premium and health focuses
- Ice cream is universal
- Habits and beliefs of the ice cream consumer
- Consumer attitudes regarding frozen yogurt and gelato
- Market Size and Forecast
- Key points
- Mature market is challenged to produce significant growth
- Figure 1: Total U.S. sales and forecast of ice cream, sherbet, frozen yogurt, and frozen novelties at current prices, 2002-12*
- Figure 2: Total U.S. sales and forecast of ice cream, sherbet, frozen yogurt, and frozen novelties at inflation adjusted prices, 2002-12
- Competitive Context
- Competition from foodservice
- Ice cream shops serve up an increasingly enticing proposition
- Figure 3: Source of ice cream for in home consumption, March 2008
- Scoop shops focus on advertising and promotion
- Figure 4: Baskin-Robbins Reese' s ice cream, 2007
- Segment Performance
- Key points
- Health and wellness influencing all segments
- The decadence demand
- Figure 5: U.S. FDMx sales and forecast of ice cream, sherbet, frozen yogurt, and frozen novelties at current prices, by segment, 2002-12
- Figure 6: U.S. FDMx sales of ice cream, sherbet, frozen yogurt, and frozen novelties, by segment, 2005 and 2007
- Segment Performance--Ice Cream
- Key points
- Ice cream sales shift as consumers seek out portion-controlled novelties
- Bridging the gap between highly indulgent and healthy ice cream
- Figure 7: U.S. FDMx sales and forecast of ice cream, 2002-12
- Segment Performance--Frozen Novelties
- Key points
- Size matters--bite-size, minis, personal portions
- Figure 8: U.S. FDMx sales and forecast of frozen novelties, 2002-12
- Segment Performance--Sherbet/Sorbet/Ices
- Key points
- Super-premium brand provides boost to segment sales
- Figure 9: U.S. FDMx sales and forecast of sherbet, 2002-12
- Segment Performance--Frozen Yogurt
- Key points
- Functionality breathes life into frozen yogurt
- Figure 10: U.S. FMDx sales and forecast of frozen yogurt, 2002-12
- Retail Channels
- Key points
- Mass merchandiser expansion driving sales in "other" outlets
- A mix of "other" outlets also contributing to success
- Figure 11: U.S. sales of ice cream, sherbet, frozen yogurt, and frozen novelties, by retail channel, 2005 and 2007
- Retail Channels--Supermarkets
- Key points
- Supermarkets sales dip slightly--challenge: impulse and convenience
- Figure 12: U.S. sales of ice cream, sherbert, frozen yogurt, and frozen novelties at supermarkets, 2002-07
- Retail Channels--Convenience Stores
- Key points
- C-stores and novelties--the perfect match
- Figure 13: U.S. sales of ice cream, sherbert, frozen yogurt, and frozen novelties at convenience stores, 2002-07
- Market Drivers
- Yin and Yang--desires for health and indulgence
- Hold the fat! No significant change in adult obesity rates
- Children continue to battle the bulge
- Figure 14: Attributes important to choosing snack for children, December 2007
- Convenience store growth signals shift from grocery
- Leading Companies
- Key points
- Nestlé yields gains by reaching two consumer types
- Wells' Dairy records the strongest growth with Weight Watchers success
- Figure 15: FDMx sales of leading ice cream, sherbet, frozen yogurt, and frozen novelties companies, 2005 and 2007
- Brand Share--Ice Cream
- Key points
- Dreyer' s/Edy' s capitalize on slow churn ice cream
- Häagen-Dazs and Ben & Jerry' s--sophisticated ice cream experiences
- Figure 16: FDMx brand sales of ice cream in the U.S., 2005 and 2007
- Brand Share--Frozen Novelties
- Key points
- Nestlé and Unilever brands parlaying churned success into novelties
- Weight Watchers and Skinny Cow--diet-branded novelties fuel sales
- Dibs offers bite-sized, Blue Bunny promotes personal size
- Figure 17: FDMx brand sales of frozen novelties in the U.S., 2005 and 2007
- Brand Share--Sherbet/Sorbet/Ices
- Key point
- Hägen-Dazs offers super-premium sorbets featuring "clean labels"
- Figure 18: FDMx brand sales of sherbet in the U.S., 2005 and 2007
- Brand Share--Frozen Yogurt
- Key points
- The joy of soy--Turtle Mountain gains traction
- Forward-thinking brands adding functionality to products
- Dieters turn to Häagen-Dazs for its indulgent characteristics
- Figure 19: FDMx brand sales of frozen yogurt in the U.S., 2005 and 2007
- Brand Qualities
- Standard--Unilever leads with traditional, fun and increasingly
health-oriented products
- Figure 20: Klondike Bar, 2007
- Figure 21: Klondike Bar, 200
- Premium--leaders market congruent product lines
- Super-premium--indulgent defined differently
- Innovation and Innovators
- New products focus on premium positioning
- "Mix-in" indulgence
- Provenance
- Ethnic Influences
- Health and wellness drives innovation
- Portion control
- Functional innovations
- Organic and ethical ice cream
- Figure 22: Top 10 new ice cream & novelties product launches* by product claim and year, 2005-07
- Advertising and Promotion
- Overview
- Healthy indulgence
- Figure 23: Edy' s Slow Churned, 2008
- Figure 24: Breyers Double Churned, 2008
- Small size
- Figure 25: Blue Bunny Supremes, 2008
- Figure 26: Blue Bunny Supremes, 2008
- Figure 27: Edy' s Dibs, 2008
- Premium
- Figure 28: Breyers All Natural, 2008
- Usage
- Figure 29: Usage of ice cream, frozen novelties, sherbert, frozen yogurt, gelato, and custard, by gender, March 2008
- Figure 30: Usage of ice cream, frozen novelties, sherbert, frozen yogurt, gelato, and custard, by age, March 2008
- Figure 31: Usage of ice cream, frozen novelties, sherbert, frozen yogurt, gelato, and custard, by HH income, March 2008
- Trended usage of ice cream and sherbet
- Figure 32: Household usage of ice cream and sherbet, 2003-07
- Trended usage of frozen yogurt
- Figure 33: Household usage of frozen yogurt, 2003-07
- Trended usage of frozen novelties
- Figure 34: Household usage of frozen novelties, 2003-07
- Brand Usage and Purchasing Habits
- Ice cream brand usage
- Figure 35: Top 10 brands of ice cream used by households, 2006 and 2007
- Figure 36: Top 10 brands of ice cream used by households, by HH income, May 2006-June 2007
- Figure 37: Top 10 brands of ice cream used by households, by race/ethnicity, May 2006-June 2007
- Frozen novelty brand usage
- Figure 38: Top 10 brands of frozen novelties used by households, race/ethnicity, May 2006-June 2007
- Ice cream brand purchasing patterns
- Figure 39: Purchasing habits of respondents who have bought ice cream in past year, by gender, 2006 and 2007
- Ice Cream Purchase Venues
- Figure 40: Source of ice cream for at home consumption, March 2008
- Ice Cream Usage Patterns, Attributes, and Types
- How ice cream is used
- Figure 41: How ice cream is used, by gender, March 2008
- Figure 42: How ice cream is used, by age, March 2008
- Ice cream attributes
- Figure 43: Ice cream attributes, by gender, March 2008
- Figure 44: Ice cream attributes, by age, March 2008
- Light and regular usage compared to last year
- Figure 45: Light and regular ice cream use compared to last year, by gender, March 2008
- Figure 46: Light and regular ice cream use compared to last year, by age, March 2008
- Attitudes of Frozen Yogurt Eaters
- Figure 47: attitudes of frozen yogurt eaters, by age, 2007 and 2008
- Attitudes Toward Gelato
- Figure 48: Reasons for eating gelato, by gender, March 2008
- Other Attitudes
- Figure 49: Attitudes toward customization, fruit content, ice cream shop quality, and gelato, by race/ethnicity, March 2008
- Figure 50: Attitudes toward prepackaged candy "mix-ins," by gender, March 2008
- Figure 51: Attitudes toward prepackaged candy "mix-ins," by HH income, March 2008
- Figure 52: Attitudes toward prepackaged nut "mix-ins," by race/ethnicity, March 2008
- Figure 53: Attitudes toward ice cream/yogurt with green tea, by age, March 2008
- Appendix: Mid-Level Brand Share Tables
- Ice cream
- Figure 69: FDMx mid-level brand sales of ice cream in the U.S., 2005 and 2007
- Frozen novelties
- Figure 70: FDMx mid-level brand sales of frozen novelties in the U.S., 2005 and 2007
- Appendix: Other Useful Consumer Tables
- Attitudes of frozen yogurt eaters
- Figure 71: attitudes of frozen yogurt eaters, by HH income, March 2008
- Appendix: Trade Associations

