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The ice cream market size is projected to increase by USD 29.58 billion, at a CAGR of 5.99% between 2023 and 2028. Market growth depends on several key factors, including the extended shelf life of ice cream products, the introduction of innovative flavors, and the availability of diet-friendly options such as sugar-free ice cream. These aspects collectively drive market expansion by catering to diverse consumer preferences and dietary needs while enhancing the variety of ice cream offerings. The focus on longer shelf life addresses storage and distribution challenges, ensuring product quality and consumer satisfaction. Innovations in flavors and dietary options reflect changing consumer tastes and health-conscious trends, attracting a broader customer base. The increase in ice cream parlors and the growing demand for gourmet ice creams not only enhance accessibility but also encourage experimentation with different offerings, contributing to market diversification and revenue growth.
The market shows an Accelerated CAGR during the forecast period.
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The ice cream market growth and trends report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Dairy-based ice cream is a significant category in the market, distinguished by its creamy texture and rich flavor profile made from dairy ingredients. Dairy-based ice creams typically consist of milk, cream, sugar, and flavorings as their primary ingredients. The incorporation of dairy contributes to a smooth texture, enhancing the indulgent and satisfying experience associated with traditional ice cream. Two leading companies in the dairy-based ice cream market are Nestlé SA and Unilever PLC. Nestlé SA, a global food and beverage leader, offers a diverse range of dairy-based ice creams under well-known brands like Nestlé Ice Cream. Renowned for their premium quality and rich flavors, they use high-quality ingredients to deliver a luxurious ice cream experience. These companies continuously innovate to align with evolving consumer preferences, introducing new flavors and often expanding their product lines to include options such as low-fat and sugar-free varieties. These newly developed products are expected to drive growth in the dairy-based segment of the ice cream market throughout the forecast period.
The market share growth of the impulse segment will be significant during the forecast period. Impulse purchases of ice cream are primarily meant for immediate enjoyment. Examples include ice cream bars, sandwiches, lollies, cones, cups, and sticks. Factors such as the desire for indulgence and the increasing popularity of smaller portion snacks contribute to consumers' tendency to buy ice cream on a whim.
The impulse segment was the largest and was valued at USD 30.56 billion in 2018.
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Companies in the market are increasingly investing in innovative marketing campaigns to engage consumers. Well-executed marketing initiatives can drive growth in this segment throughout the forecast period. For example, Unilever PLC launched the 'Talking Ice Cream' campaign to promote its new product line within the impulse ice cream category. This campaign featured experiential and sampling activities, along with promotions on online and social media platforms. Additionally, the rising trend of dining in restaurants will further support the expansion of the impulse market. These factors are anticipated to contribute to significant growth in the impulse ice cream segment of the overall ice cream market during the forecast period.
North America is estimated to contribute 34% to the growth of the global market during the forecast period.
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Technavio's analysts have provided detailed insights into market forecasting, highlighting regional trends and drivers that will influence the market's direction throughout the forecast period. Demand for ice cream in North America is on the rise, with the U.S. emerging as the largest market for ice cream in the region in terms of revenue in 2023. Contributing factors to market growth in North America during this period include an increasing number of new product launches and heightened investments in innovations, such as artisan ice cream, by industry participants. Suppliers are also expanding their production capacities in North America to meet the growing consumer demand for ice cream.
Moreover, heightened health awareness among consumers is boosting the demand for low-fat and plant-based ice cream options. For example, Breyers by Unilever PLC has introduced new ice cream bars made from an oat milk base, coated in a creamy chocolate shell, available in four flavors: Chocolate fudge, strawberry swirl, salted caramel, and vanilla. The rising interest in low-calorie ice cream is evident from the increasing sales of these products. These trends are expected to drive growth in the regional ice cream market throughout the forecast period.
The market features a wide variety of types and flavors. Herbal and organic options attract health-conscious consumers, while adventurous flavors like strawberry, blueberry cheesecake, and orange chocolate appeal to those seeking unique tastes. Premium ice creams from well-known dairy brands provide an extensive product range, including frozen desserts, impulse ice creams, and innovative items such as pops and cones. There is a growing demand for health-conscious options incorporating functional ingredients like plant sterols, lecithin, and propylene glycol monoester (PGME). The ice cream category has also expanded to include sandwiches, catering to consumers on the go, along with a variety of synthetic and premium ingredients used in their production. These segmentation factors underscore the dynamism of the ice cream market, addressing diverse consumer preferences and trends.
The North American market is witnessing increased demand, with the United States emerging as the largest revenue-generating market in 2023. This growth is driven by several factors, including a rising number of new product launches and significant investments from market participants. As consumer interest in ice cream continues to grow, suppliers are strategically enhancing their production capabilities in North America. Agropur Dairy Cooperative is a key player in this evolving market, offering a wide variety of ice cream products, including soft serve, frozen novelties, and an assortment of other frozen desserts, thereby supporting the market's growth and catering to the changing preferences of consumers.
The growth of the ice cream market is significantly driven by the increasing number of ice cream parlors. A substantial portion of ice cream sales occurs through these establishments. The ongoing transition from traditional formats to organized ones has accelerated growth across various end-user sectors. Convenience and value are essential for consumers, particularly due to their busy lifestyles. Many retailers now offer a range of products, including gelato, ice cream, yogurt, and sorbet under the same brand, allowing customers to save time while enjoying diverse choices. This trend has led to a rising demand for organized ice cream parlors.
Additionally, companies such as Havmor, part of Lotte Confectionery Co. Ltd., are expanding their market presence, particularly in Delhi, India. With 200 exclusive outlets and products available in 30,000 retail locations, Havmor offers 160 ice cream flavors. Similarly, London Dairy, owned by Unipex Dairy Products Co. Ltd. (UK), currently operates 2,000 outlets in India and is focusing on establishing direct distribution. Such expansions indicate a positive outlook for ice cream market growth during the forecast period.
The growing interest in vegan ice cream among millennials is a key trend influencing market growth. Plant-based products are gaining traction among health-conscious consumers, driven by ethical considerations and an increasing awareness of food safety issues related to animal-based diets. This shift has resulted in higher demand for plant-based foods, including ice cream, which offers more antioxidants and beneficial compounds compared to traditional dairy options.
Moreover, the purchasing power of millennials in China is on the rise, positioning them as a significant consumer demographic during the forecast period. In the US, vegan ice cream is also becoming increasingly popular among millennials, who collectively have an annual purchasing power exceeding USD 200 billion. This demographic presents a compelling opportunity for market participants. To address the growing interest from millennials, companies are introducing innovative and unique vegan ice cream flavors. The rising appeal of vegan ice cream among this demographic is expected to significantly contribute to market growth throughout the forecast period.
The growing number of individuals with lactose intolerance worldwide presents a significant challenge to market growth. This increase in lactose intolerance is expected to adversely affect the market throughout the forecast period. Lactose intolerance is the body's inability to digest lactose, a sugar present in milk and other dairy products, including ice cream. This condition is mainly due to a deficiency of lactase enzymes, which are essential for breaking down lactose into simpler sugars like glucose and galactose. Each year, the number of lactose-intolerant individuals continues to rise.
Consequently, many consumers are turning to lactose-free products for their health advantages. The escalating incidence of lactose intolerance is anticipated to drive the demand for lactose-free items globally, including lactose-free ice cream. Therefore, the growing preference for lactose-free foods and nutrients presents a challenge to the growth of the ice cream market. Since most ice cream products are dairy-based and contain lactose, the increasing prevalence of lactose intolerance worldwide could negatively impact the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The ice cream market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Agropur Dairy Cooperative, Dairy Farmers of America Inc., Eclipse, Erhard Patissier Glacier, Ferrero International S.A., Froneri International Ltd., Gujarat Cooperative Milk Marketing Federation Ltd., Humphry Slocombe, Inspire Brands Inc., Lotte Corp., Mars Inc., Nestle SA, New Forest Ice Cream Ltd., NIF Pvt Ltd., Perfect Day Inc., Blue Bell Creameries, Danone, McDonald Corp., NADAMOO, Oatly Group AB, Unilever PLC, Unipex Dairy Products Co. Ltd., JENIS SPLENDID ICE CREAMS LLC, Aldi Group, Morinaga and Co. Ltd., and Vadilal Industries Ltd.
The market analysis and report of qualitative and quantitative analysis of companies have been conducted to help clients understand the wider business environment, market research and growth as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market includes a broad range of products, from premium ice creams to frozen desserts and organic flavors. Brands are recognized for their diverse offerings and innovative tastes, such as Belgian chocolate, Alphonso mango, triple chocolate, and mocha almond fudge brownie. The market landscape is influenced by factors including chocolate paste, temperature, automotive components, refrigeration capabilities, transport requirements, product demand, and popsicles. Today's consumers are increasingly interested in health-conscious choices, which has led to the growth of vegan options and the incorporation of functional ingredients such as plant sterols and lecithin.
In Europe, there has been a notable rise in demand for ice cream products, particularly those catering to food allergies and utilizing premium ingredients. With a focus on convenience and product innovation, companies are exploring various distribution channels, including retail outlets, restaurants, cafes, and lounges. The bars and pops segment, along with the dairy and water-based segment, are especially popular, providing consumers with a variety of sundaes, popsicles, and unique combinations. However, challenges such as storage costs, logistics, and energy consumption remain significant considerations within the ice cream category. Despite these hurdles, the market continues to thrive, driven by ongoing product innovations, a commitment to taste, and an expanding array of flavors that range from classic vanilla to exotic options, catering to diverse consumer preferences.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.99% |
Market growth 2024-2028 |
USD 29.58 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.44 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, New Zealand, Australia, Finland, and Sweden |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agropur Dairy Cooperative, Dairy Farmers of America Inc., Eclipse, Erhard Patissier Glacier, Ferrero International S.A., Froneri International Ltd., Gujarat Cooperative Milk Marketing Federation Ltd., Humphry Slocombe, Inspire Brands Inc., Lotte Corp., Mars Inc., Nestle SA, New Forest Ice Cream Ltd., NIF Pvt Ltd., Perfect Day Inc., Blue Bell Creameries, Danone, McDonald Corp., NADAMOO, Oatly Group AB, Unilever PLC, Unipex Dairy Products Co. Ltd., JENIS SPLENDID ICE CREAMS LLC, Aldi Group, Morinaga and Co. Ltd., and Vadilal Industries Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Market trends and analysis, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our ice cream market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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