Global Ice Cream Market - 2021-2028
Ice cream is dairy product, which is sweetened with either natural sugar or artificial sweeteners. Various ice creams are provided by the companies present in the market, including hard ice cream, soft ice cream, light ice cream, low-fat ice cream, and others. The growth of the ice cream industry is driven by availability of various flavored ice creams. As a result, the ice cream consumers pay a premium price for these products, which in turn increases the revenue of the market. Moreover, rapid technological advancements in the field of refrigerated transport systems, cold chain infrastructure, equipment's and storage facilities will foster new opportunities for the industry landscape. The global ice cream market valued USD XX million in 2020 and is forecasted to reach USD XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028)
Market Dynamics: Product innovation is expected to drive the global ice cream market
Manufacturers are increasing their product range by including functional ingredients, organic herbal fillings, and exotic flavors in product formulations to meet the changing consumers' demands. For instance, companies are including other exotic flavors such as tropical fruits, lemons, and coconuts to cater to changing taste of consumers. In addition, for health-conscious customers prefer a low-calorie and low-fat ice cream called Skinny Cow. In this way, product innovation in ice cream products drive growth and development of the market globally.
Companies are continuously innovating their products in order to stay in the market. Children are the major consumers of ice cream, thus companies are producing products as per the interest of children. For instance, Unilever launched a product, Wall's Cornetto Rainbow Pop Ice Cream in Thailand and Indonesia. It is the first rainbow ice cream consisting of popping candy on the top. Companies are also focusing on flavor innovation, for instance, Tasty, one of the largest social food networks in the world, has launched four new limited offer flavors, Peanut Butter 'S'mores Smash, Vanilla Galaxy Twist, White Chocolate Raspberry Lava Cake and Chocolate Caramel Pretzel Crunch to attract more consumers.
Moreover, there is a growing demand for lactose-free products across the globe. The increase in demand for lactose-free products is driven by an increase in the cases of food intolerances and allergies. Thus, the consumers having lactose intolerance pick lactose-free ice creams. Also, these products are opted by consumers who are health conscious and prefer healthy foods. Lactose intolerant patient is not able to digest lactose which is a sugar found in milk and dairy products. As per the U.S. National Library of Medicine, around 65.0% of the human population is lactose intolerant. This condition is also common in people of Italian, Greek, Jewish, Arab, and West African descent.
However, the health concerns associated with ice creams restrain the ice cream market growth.
Market Segmentation: Impulse ice cream segment is expected to be the largest segment with a share of XX% during the forecast period
The global ice cream market has been segmented by type into impulse, artisanal, and take-home among others. The impulse segment held the largest share as of 2020. Impulse ice creams are bought for immediate consumption. These include cups, cones, ice-lollies, sandwiches, ice cream bars, and sticks. Ice cream is likely to remain an impulse purchase as manufacturers in the developing regions have failed to lure consumers with their bulk products. Artisanal ice cream segment is expected to have a significant market revenue share of XX% in the year 2020. The growth is attributed to the rising demand for hand-made ice creams containing high-quality ingredients. On the other hand, take-home products are immensely popular in developed regions such as Western Europe and North America. Innovations in packaging are also contributing to the growing demand for take-home products as these new packs are more convenient to carry and store as compared to old ones
Geographical Penetration: Asia Pacific is expected to dominate the global ice cream market
By geography, Asia Pacific is expected to dominate the global ice cream market in the year 2020, growing with a CAGR of xx% during the forecast period. The rise in income along with an increased indulgence for sweet dishes drives the growth of this market in the region. Amul, Hindustan Unilever's Kwality Walls, Mother Dairy, Havmor, Vadilal and Cream Bell are some of the leading players in the Asia Pacific ice cream market. On the other hand, North America held significant market revenue share of XX% in the year 2020. Currently, the United States is leading the way due to the introduction of handcrafted ice creams, which is relatively linked to market maturity. MEA are also expected to show decent growth over the forecast period owing to the rising demand for ice creams from younger demographics and emerging middle class. The prolonged summer season in the MEA region is also expected to drive the demand for ice creams in countries such as South Africa, Saudi Arabia, and Israel.
The global ice cream market is highly fragmented. Unilever, Nestle, Blue Bell, Herdez, and Dunkin Brands are the major players in the market. These players compete on different factors, including product offerings, quality, taste, flavors, price, functionality, size, packaging, and marketing activities, in order to gain a competitive advantage in the market. For instance, in 2018, Ben & Jerry's launched ice cream with 60-70% less fat and 35% fewer calories than its traditional ice creams. In May 2017, Ben & Jerry's introduced three new flavors in summer to increase their sale. These flavors include Oat of this Swirled, Truffle Kerfuffle, and Urban Bourbon. In March 2016, Three Twins Ice Cream announced to launch new organic cone products including Organic Sugar Cones and Organic Cake Cones with zero calorie content to cater the calorie conscious consumers.
COVID-19 Impact: Slow product innovation due to the imposition of lockdown in numerous major countries of the market
Ice cream is not considered an essential commodity. So, during the lockdowns, there was neither manufacturing nor transportation of ice cream. The month of May, which is the peak sales period for ice creams has shown decrease in sales. The drop in consumption is largely due to adherence to prescribed norms of movement restriction, which has led to the closure of retail channels, vending carts, and others, and hence the drop in consumption. Logistical restrictions and labor shortages have become top concerns for producers. Many producers have had to stop or halt their production, particularly small and medium-sized enterprises (SME). Moreover, industry experts believe apart from lockdown restrictions, ice cream sales were affected by fear or misconception that ice cream makes one susceptible to COVID because one can catch a cold. Brands that are largely dependent on the ice cream parlors to reach customers are the most hit.
Presently, the situation has improved with the number of new confirmed cases falling. As the outbreak is well controlled and transportation restrictions are lifted in recent months, the demand will increase in the coming summer season. Some companies are focused on adoption and making the best of the altering market dynamics and demand drop of the product in the wake of the COVID-19. For instance, though the world is learning to adjust to the challenges the COVID-19 pandemic has brought, India-based Amul Dairy is endorsing ancient ways of protecting immune systems, with the help of Ayurveda alongside practicing a healthy lifestyle. The company has declared the launch of a new Haldi ice cream, which is made with the goodness of Haldi (turmeric), pepper, and honey and the richness of dry fruits, including dates, almonds, and cashews. The clever marketing solutions and digitalization can help operating companies to sustain growth and revenue generation during this pandemic period.