Strong competition on the ice cream market forces producers and vendors to distinguish their product offerings through unique and innovative concepts, according to a new report by Technavio.
“During 2015, Europe dominated the ice cream market and accounted for more than 40% of the market share. The increasing demand for innovative premium products and the launch of several new flavors is expected to drive this market in the coming years. For instance, in 2015, Ledo ice creams launched 35 new flavors of ice cream in the Croatian market. Moreover, the rising demand for ice cream products from consumers above the age of 50 is another factor fueling the growth of this market,” a Technavio representative said.
In 2015, the impulse ice cream segment dominated the market and accounted for a market share of close to 39%. Factors such as the desire to indulge in ice cream and the rise in demand for small portion snacking options are expected to drive the market in the future.
Technavio’s market research analyst predicts the global ice cream market to grow at a moderate CAGR of more than 4% in the forecast period. The growing popularity and increasing prominence of private label brands to spur the growth of this market over the forecast period. Most private label ice creams are priced lower than branded products because of their operational efficiency. The emergence of private label brands such as Kroger has significantly helped in the establishing their market presence. Furthermore, most major retail chains have their private label ice cream brands that they make in their dairies. With several new private labels emerging, this market is expected to have a positive outlook until the end of 2020.
