Global Ice-Cream Market is Projected to Grow at a CAGR Over 5.74% Post 2030

November 2022, Market Research Future has published a Report on the Global Ice Cream Market

Global Ice Cream market

According to the MRFR analysis, the global ice cream market size is projected to reach USD  1,11,754.3  million by 2030 at a CAGR of 5.74%.

The global ice cream market has witnessed rapid growth over the last few years and is projected to expand at a CAGR of 5.74% over the forecast period. The shifting consumer preference towards frozen desserts is anticipated to act as a major driver for the growth of the global ice cream market during the forecast period. Additionally, the growth of the organized retail sector is expected to positively influence the sales of ice cream at the global level. Moreover, the increasing number of ice cream parlors across the emerging economies is likely to upsurge the sales of ice cream during the forecast period. However, the fluctuating raw material prices is anticipated to restrict the growth of the global ice cream market during the forecast period. On the other hand, the increasing popularity of artisanal ice cream among consumers is anticipated to offer a lucrative opportunity to the manufacturers of ice cream during the forecast period.

Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of the overall ice cream market. The key players in the market were identified through secondary research, and their market contributions in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market have been covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to arrive at the final quantitative and qualitative data. This data has been consolidated and detailed inputs and analysis added by Market Research Future before being presented in this report. The following figure is an illustrative representation of the overall market size estimation process employed for the purpose of this study.

Market Synopsis

The global ice cream market is projected to register a notable growth rate during the forecast period. The growing number of specialty stores is a major factor driving the market growth. Additionally, the growth of the organized retail sector is boosting the sales of ice cream in the retail industry. Moreover, high preference for chocolate flavor, changing consumer tastes, and growing popularity of artisanal ice creams present profitable growth opportunities for the manufacturers. However, fluctuating raw material prices, high production costs, and rising health concerns are restraining the market's growth.

Ice creams are considered a delicacy, and sometimes, an impulse buy. Factors such as these are considered by market players when opening specialty stores or ice cream parlors in high visibility locations, with an expectation of high foot traffic. The popularity of specialty stores is increasing due to social media, flyers, and guerilla marketing activities. Market players are switching from conventional distribution methods to ice cream shops to increase the sales of ice cream. Furthermore, consumers' preference for specialty stores is increasing as ice cream parlors offer a range of flavors that can be artfully crafted and customized. Specialty stores also celebrate special occasions and offer special products to gain traction among consumers. For instance, Baskin-Robbins celebrated World Chocolate Day on 7th July 2017 and introduced a range of desserts that can be paired with several chocolate flavors such as Traditional, Chocolate Mousse Royale, Chocolate Almond, Peanut Butter ‘n Chocolate, and World-Class Chocolate. Thus, such developments by prominent manufacturers and the rising number of specialty stores are expected to drive the growth of the global ice cream market during the study period.

COVID-19 Impact on Ice Cream Market

The outbreak of COVID-19 across the globe has restricted the production of various agricultural commodities, including cocoa beans and fruits. A major impact of the pandemic has been seen in the agricultural industry, as most of the laborers working in the fields migrated back to their native place. The lockdown restricted the availability of labor for planting and harvesting cocoa, fruits, and nuts, as well as in dairy plants. The restriction on harvesting will likely affect the shortage of supply of cocoa, nuts, milk/cream, and fruits. Moreover, harvesting fruits, nuts, and cocoa require agrochemicals such as fertilizers and crop protection chemicals. The majority of the raw materials required for the production of agrochemicals are imported from China, as the country is a key producer of agrochemicals. This has disrupted the cultivation of fruits, nuts, and cocoa, thereby creating a shortage in the production of ice cream.

The outbreak of COVID-19 created a panic situation among the consumers due to the temporary closures of retail stores in an attempt to slow the spread of the virus. This led to panic purchasing among the consumers as they focused on pantry stockpiling of longer shelf-life food products such as ice cream. The urgent measures taken by various countries and the increasing population working from home created an upward trend in ice cream sales. However, as the restrictions started easing among various countries, customers had easy access to daily essentials, stopping panic buying.

The prices of ice cream are not impacted by the COVID-19 outbreak, but it is likely that the prices will spike post lockdown. The manufacturers are anticipated to increase the prices of ice cream due to the increase in operational and raw material costs, as well as to overcome the losses caused due to the pandemic. Furthermore, many manufacturing companies have been promoted to shut down due to the pandemic's unpredictable nature. This has resulted in fewer manufacturing companies operating in the ice cream market, further increasing the prices of ice creams.

Competitive Landscape

The high competition among the players have encouraged the players to produce quality products in the market. In order to build new and quality products, numerous companies benefit from mergers, acquisitions, and product development. To preserve their positions and broaden their geographic reach, the players in the worldwide ice cream market are using a variety of strategies, including expansion, mergers and acquisitions, alliances, joint ventures, and expansion. To gain the largest possible market share, partnership was the growth strategy that was most frequently used by market participants.

There are numerous international, national, and regional players in the worldwide ice cream industry. There is a lot of competition in this sector, and everyone is trying to increase their portion of customers' wallets. When comparing prices and quality, as well as product availability across regions, different suppliers will use different metrics. In order to be competitive, suppliers must offer reasonably priced, high-quality ice cream. Market and economic conditions, government laws, and technological progress all affect how quickly and how large market actors can expand. As a result, businesses in this sector need to concentrate on increasing output and refining their offerings to keep up with consumer demand. These companies are investing heavily in creating new products. Although worldwide companies account for the vast majority of sales, smaller regional and local firms are also present.

Segmentation

By Product Type

1. Sticks/Bars: Ice cream bars are frozen desserts on a stick. Ice cream sticks or bars are popularly made by freezing flavored liquid such as sugar water, fruit juice, or purée. Ice creams sticks/bars are available in different flavors such as orange, mango, buko, grapes, and avocado. Almost any fruits or even chocolates can be used to produce ice cream sticks/bars. Market players also use chocolate as a coating to prevent the ice cream from melting. Sticks/bars are prepared for individual consumption.


2. Cones & Cups: Cones & cups are the most popular ice cream types. Cones enhance the taste and texture of the ice cream. The popular cones available in the market include waffles and sugar cones. Cones and cups contribute toward convenience in consumption as well as create traction with innovations in design.


3. Tubs & Bricks: The tubs & bricks segment was the largest product type segment of the global ice cream market, accounting for a XX% share in 2020. The segment is expected to retain its dominance during the forecast period. The popularity of ice cream in tubs and bricks is driven by bulk consumption.


4. Others: The others segment includes candies, dots, sundaes, sorbets, floats, gelato, and snow cones. Advancements in the confectionery industry offer market players opportunities to innovate with different types of ice cream packaging. Moreover, the rising demand for ice cream is expected to propel the growth of the others segment at a global level in the near future.

By Flavor Type

1. Chocolate: Chocolate is a natural or chemically flavored form of ice cream that generally includes cream, cocoa powder, eggs, and sugar as prime ingredients. Chocolate ice cream is widely consumed as desserts such as cakes, mugs, and smoothies. Additionally, dark chocolate ice cream is packed with flavonoids and antioxidants, which help lower bad cholesterol and improve heart health. Rapid urbanization and an ever-expanding bourgeois population in emerging economies encourage the consumption of chocolate flavored products, thereby fuelling the segment growth.


2. Vanilla: Vanilla is a widely accepted flavor worldwide obtained from the orchids of the genus Vanilla. The vanilla plant is fortified with vitamins and minerals which provide energy, stimulate brain functions, and offers several other benefits such as hair and skin health. The prospect of consuming pure and organic flavored products has encouraged ice cream manufacturers to use pure vanilla flavors, thus bolstering the growth of the segment.


3. Tutti Frutti: Tutti-frutti is the amalgamation of vanilla ice cream and jam coupled with the sweetness of raisins with some fresh fruits and nuts. Availability of different colors such as green, yellow, red, and orange followed by customization options as per consumer preference is likely to boost the segment growth during the years to come.


4. Blends: The demand for flavor blends in ice cream is growing at an alarming rate. The factors such as availability of various flavours such as banana ripple, black cherry, and pink cotton candy coupled with health benefits of different ingredients are aiding to the segmental growth worldwide. Different ingredients offer specific health benefits that add value to the end product. In addition, products made with dairy blends generally have a lower saturated fat content than traditional dairy products, which is further boosting the segmental growth.


5. Others: The other segment includes flavors such as mint chocolate chip, butter pecan, coffee, black raspberry, and strawberry. Consumers across the globe are attached to taste several flavors as per their choices. Thus, key manufacturers are embarking on various marketing activities to innovate different flavors, further building a consumer base across the world. Such trends are likely to bolster segmental growth.

By Category

1. Dairy-Based: The segment’s dominance can be attributed to the lack of awareness regarding the health benefits associated with the consumption of plant-based products and the limited availability of non-dairy products in the developing countries of Asia-Pacific as compared to the developed nations of North America and Europe. Most of the market players active across the developing nations of Asia-Pacific do not offer non-dairy products due to the high investment cost incurred in building and raising a plant-based processing facility.


2. Non-Dairy: Ice creams contain dairy ingredients, and due to dietary habits, such as religious beliefs, lactose intolerance, vegetarianism, and several other ideologies, a large population is unable to consume dairy-based ice cream. Such consumer groups are substituting conventional ice cream with frozen desserts containing soy protein as a substitute for milk protein. Such trends encourage popular ice cream brands such as Unilever and Halo Top Creamery to focus on the vegan market and launch products with plant-based ingredients such as soy protein and coconut milk in ice cream.

By Distribuion Channel

1. Store-Based: The store-based segment has been further divided into supermarkets and hypermarkets, convenience stores, specialty stores, and others. The supermarkets and hypermarkets sub-segment is expected to be the largest as these channels account for the maximum sales of ice cream. Convenience stores also play a significant role in the distribution of ice creams. Key ice cream manufacturers are expanding their product portfolio, which, in turn, is driving the growth of the market across the globe. Innovation in flavors of ice cream is one of the main factors expected to boost sales of the products through the store-based segment.


2. Non-Store-Based: The non-store-based segment includes e-commerce, wherein manufacturers distribute ice cream through various online shopping sites and their websites. Companies face difficulties in reaching consumers in different regions through brick-and-mortar stores. Thus, e-commerce channels enable companies to cater to consumers’ needs and increase brand presence. Additionally, this mode of distribution helps vendors create brand awareness.

By Region

1. North America: Innovation in flavor blends of ice cream is one of the main factors expected to positively impact the growth of the market. Moreover, key manufacturers emphasize promotional activities to create strong awareness among consumers regarding product launches, which, in turn, is accelerating the growth of the North American ice cream market.


2. Europe: The growth of the ice cream market in Europe can be attributed to the high demand for natural and organic food products, which is encouraging key players to introduce organic and plant-based ice cream in the region in order to gain a competitive edge.


3. Asia-Pacific: The growth of the ice cream market in the region can be traced to urbanization and a growing middle-income population driving the consumption of frozen desserts. Moreover, the increasing per capita disposable incomes have led to the growing sales of ice cream.


4. Rest of the World: The consumption of ice cream is exceptionally high in Brazil and other South American countries. Changing lifestyles of people, coupled with demographic changes, are expected to be key driving factors for market growth.