Ice Cream Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, New Zealand, Australia, Finland, Sweden - Size and Forecast 2024-2028

Ice Cream Market Size 2024-2028

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 hinges on several factors: extending ice cream product shelf life, introducing innovative flavors and diet-friendly options, and the proliferation of ice cream parlors. These elements collectively drive market expansion, catering to diverse consumer preferences and dietary needs while enhancing the availability and variety of ice cream products. The emphasis on longer shelf life addresses storage and distribution challenges, ensuring product quality and consumer satisfaction. Innovation in flavors and dietary variations reflects evolving consumer tastes and health-conscious trends, attracting a wider customer base. The growth in ice cream parlors not only increases accessibility but also promotes experimentation with different ice cream offerings, contributing to market diversification and revenue growth.

Moreover, the market in North America is experiencing a surge in demand, with the US emerging as the largest market in terms of revenue in 2023. This growth is attributed to various factors, including the increasing number of new product launches and substantial investments by market participants. As consumer demand for ice cream continues to rise, suppliers are strategically expanding their production capacities in North America. Agropur Dairy Cooperative stands out in this dynamic market, offering a diverse range of ice cream products, including soft serve, frozen novelties, and various other frozen dessert options, further contributing to the market's expansion and meeting the evolving preferences of consumers.

Market Overview

The market shows an Accelerate CAGR during the forecast period.

To get additional information about the market report, Request Free Sample

Market Dynamics

The market presents a diverse landscape characterized by a multitude of types and flavors. Herbal flavors and organic flavors appeal to health-conscious consumers, while exotic flavors like Exotic Strawberry, Blueberry Cheesecake, and Orange Chocolate cater to adventurous taste buds. Premium ice creams from renowned dairy brands offer a wide product range including frozen desserts, impulse ice creams, and innovative flavors such as Pops and Cones. Consumers are increasingly seeking functional ingredients like plant sterols, lecithin, and Propylene Glycol Monoester (PGME), driving demand for health-conscious options. The Ice cream category is further diversified with sandwiches, appealing to on-the-go consumers, and a range of synthetic ingredients and premium ingredients used in crafting ice cream products. These segmentation factors highlight the market's dynamism, catering to various consumer preferences and trends.

Key Market Growth Analysis Driver 

Increase in number of ice cream parlors is notably driving market growth. Most of the sales of ice cream are through ice cream parlors. The current shift to the organized format from the traditional format has accelerated the growth of different end-user industries. Convenience and value have become important parameters for consumers because of their hectic lifestyles. Many retail sales provide various products such as gelato, ice cream, yogurt, and sorbet under the same brand, enabling customers to save time and providing them with a variety of choices. Customers are increasingly purchasing products from ice cream parlors, which has led to an increase in the demand for organized ice cream parlors.

Moreover, companies such as Havmor by Lotte Confectionery Co. Ltd. are trying to expand their market presence, especially in Delhi (India). The company has 200 exclusive outlets, and its products are also sold across 30,000 retail outlets; it sells 160 flavors of ice cream. On the other hand, London Dairy by Unipex Dairy Products Co. Ltd. (UK) has 2,000 outlets in India at present. The company is focusing on the establishment of direct distribution. With such expansions, the market is expected to grow during the forecast period.

Significant Market Growth and Trends 

The rising popularity of vegan ice cream among millennials is an emerging trend shaping market growth. Plant-based products are becoming increasingly popular among health-conscious customers and also ethical considerations worldwide. One of the reasons for the shift to a plant-based diet is consumer health and food safety concerns about eating an animal-based diet. This increases customer demand for plant-based foods such as plant-based ice cream. A plant-based diet contains more antioxidants and useful chemicals than an animal-based diet, which provides numerous benefits.

Further, China's millennials' purchasing power is growing, and they are anticipated to constitute a sizable consumer sector during the forecast period. Vegan ice cream is gaining popularity among millennials in the US. The country's millennial generation, with an annual buying power of over USD 200 billion, is an attractive customer sector for market participants. To meet the increasing demand of the millennial demographics, market participants are also developing novel and innovative vegan ice cream flavors. This increasing popularity of vegan ice cream among millennials will drive the growth of the market during the forecast period.

Major Market Challenge 

The rising number of lactose-intolerant people globally is a significant challenge hindering market growth. The increase in the number of people who have lactose intolerance is one of the factors that are expected to negatively impact the market during the forecast period. Lactose intolerance refers to the inability of a body to digest lactose, a type of sugar found in milk and other dairy products, including ice cream. This is primarily attributed to the shortage of lactase enzymes in the body, which are needed to break down lactose into simpler forms, such as glucose and galactose. The number of lactose-intolerant people is increasing each year.

As a result, many consumers opt for lactose-free products due to their health benefits. The increasing incidence of lactose intolerance is expected to increase the sales of lactose-free products globally, including lactose-free ice cream. Thus, the increase in the demand for lactose-free foods and nutrients poses a challenge to the growth of the market in focus. Most ice cream products are dairy-based and, thus, contain lactose. Therefore, the rising number of lactose-intolerant people globally can have a negative impact on the growth of the market during the forecast period.

Market Segmentation by Type

Dairy-based ice cream is a significant category in the market, distinguished by its creamy texture and rich flavor profile made from dairy ingredients. These ice creams typically contain milk, cream, sugar, and flavorings as primary ingredients. The use of dairy results in a smooth consistency, which adds to the indulgent and satisfying experience associated with traditional ice cream. Nestle SA and Unilever PLC are two of the most prominent companies in the dairy-based ice cream segment. Nestle SA, a global food and beverage company, sells a wide variety of dairy-based ice creams under well-known names, such as Haagen-Dazs and Nestle Ice Cream. Haagen-Dazs, in particular, is well-known for its premium quality and indulgent flavors, which combine high-quality ingredients to create a luxurious ice cream experience. These companies are constantly innovating to meet changing consumer tastes, introducing new flavors and frequently expanding their product lines to include variations such as low-fat and sugar-free options. The newly developed products will propel the growth of the dairy-based segment in the market during the forecast period.

Market Segmentation by Product

The market share growth by the impulse segment will be significant during the forecast period. Ice cream impulse purchases are intended for immediate consumption. Ice cream bars, ice cream sandwiches, ice lollies, ice cream cones, ice cream cups, and ice cream sticks are examples of these. The desire for indulgence, as well as the growing demand for small-portion snacks, are some of the factors driving consumers to buy ice cream impulsively. 

The impulse segment was the largest and was valued at USD 30.56 billion in 2018.

For a detailed summary of the market segments Request for Sample Report

The companies in the market in focus are also investing in new and innovative marketing campaigns to attract consumers. Effective marketing campaigns can help in the growth of the segment during the forecast period. For instance, Unilever PLC offers a 'Talking Ice Cream' campaign to promote its new range of products in the impulse ice cream segment. The campaign included experiential and sampling activities and online and social media promotions. The increasing popularity of eating in dining establishments will also assist the impulse market to expand. The above-discussed factors are expected to lead to high growth of the impulse ice cream segment in the market during the forecast period.

Key Regions for the Market

North America is estimated to contribute 34% to the growth of the global market during the forecast period

Get a glance at the market share of various regions View PDF Sample

Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. North American demand for ice cream is rising, and in 2023, the US became the largest market for ice cream in North America in terms of revenue. Some of the factors that are expected to contribute to the expansion of the market in North America during the forecast period are the rising number of new product launches and the rising investments by market participants. The market's suppliers are also investing in expanding their production capacities in North America to fulfill rising consumer demand for ice cream.

In addition, the increasing health consciousness of customers is raising the demand for low-fat and plant-based ice cream. For instance, Breyers by Unilever PLC has new ice cream bars comprised of an oat milk base encased in a creamy chocolate shell and are offered in four flavors: Chocolate Fudge, Strawberry Swirl, Salted Caramel, and Vanilla. Consumer demand for low-calorie ice cream is increasing, as seen by rising sales of these products. These factors are anticipated to drive the regional market's expansion during the forecast period.

Company Overview

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.

• Key Offering- Eclipse: The company offers ice cream such as homemade vanilla, cookies and cream, dutch chocolate, mint chocolate chip, and rocky road.
• Key Offering- Erhard Patissier Glacier: The company offers ice cream under the brand name Friendlys such as ice cream cakes, ice cream cartons, ice cream cups, ice cream bars, cones, and more.

The 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.

Segment Overview

The market research 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.

• Product Outlook
  • Impulse
  • Take home
  • Artisanal

• Type Outlook
  • Dairy
  • Non-dairy

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

You may also interested in below market reports:

•  Gourmet Ice Cream Market: Global Gourmet Ice Cream Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, Belgium, UK, China - Size and Forecast 
• Commercial Ice Cream Freezers Market: Commercial Ice Cream Freezers Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, Canada, China, Japan, Germany - Size and Forecast 
• Ice Cream Processing Equipment Market: Ice Cream Processing Equipment Market by Product, Type, and Geography - Forecast and Analysis 

Market Analyst Overview

The market encompasses a wide array of types and offerings, ranging from premium ice creams to frozen desserts and organic flavors. Brands like Keventers and Natural's Ice Cream are known for their diverse product range and innovative flavors such as Belgian Chocolate, Alphonso Mango, Triple Chocolate, and Mocha Almond Fudge Brownie. The market landscape depends on the Chocolate paste, Temperature, Automotive components, Refrigeration capabilities, Transport requirements, Product demand, and Popsicle. Consumers today are seeking health-conscious options, leading to the rise of vegan segments and functional ingredients like plant sterols and lecithin.

Moreover, the Europe market has seen a surge in demand for ice cream products, especially those catering to food allergies and premium ingredients. With an emphasis on convenience and product innovations, companies are exploring various distribution channels including retail segments, restaurants, cafes, and lounges. The market landscape relies on elements such as Magnum, Vegan segment, and Retail segment. The bars & pops segment and dairy & water-based segment are particularly popular, offering consumers a range of sundaes, popsicles, and fusions. However, challenges such as storage costs, logistics, and energy usage remain significant considerations in the ice cream category. Despite this, the market continues to thrive with ongoing product innovations, a focus on taste, and an ever-expanding flavor segment including classics like vanilla flavor alongside exotic flavors to cater to diverse consumer preferences.

BUY NOW Full Report and Discover more

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch