As ice cream and frozen novelty consumption remains near-universal among Americans, a less-is-more mindset is prevailing: new research from Mintel reveals that while nine in 10 (92%) consumers have purchased frozen treats in the past six months, one quarter (22%) are buying less. What’s more, while just 11% of consumers considered portion control as a purchase factor in 2013, today, one third (32%) report that they purchase single-serving frozen treat packages.
While reduced consumption could impact category sales, consumer interest in premium offerings has kept market sales afloat despite declining volume sales. Nearly one quarter of consumers purchase frozen treats that they consider premium and 34% agree that they are willing to pay more for such treats. Another one third agree that premium frozen treats taste better than regular frozen treats.
“While little opportunity exists to acquire new customers in the universally penetrated frozen treat market, interest in premium and healthy options gives brands the opportunity to offer products that communicate health and wholeness, while also encouraging moderation, which can aid in increasing trials through smaller sizes,” said Beth Bloom, senior Food and Drink Analyst at Mintel. “Putting a heavy focus on quality, taste and health will resonate with consumers, and emphasizing single-serving packs and messaging around the variety of products should appeal to Americans’ preference for snacking.”
While premium and flavorful frozen treats pique consumer interest, the overall market is experiencing tepid growth, with sales increasing just 6 percent from 2011-15 to reach USD2.6bn. However, over that same span, volume sales have declined 5 percent, with all segments of the category experiencing decreasing volume sales from 2011-15.
“The wide range of single-flavor frozen treats and products with unique mix-ins are keeping consumers from becoming bored with the category. The rise of new, trendy flavors speak to the dual components nostalgia and indulgence play in the market, while internationally-inspired varieties like mochi ice cream and gelato are succeeding in flavor and format. For more traditional offerings, mix-ins can give treats an added boost, with fruit and nut additions potentially alluring health-focused consumers,” continued Bloom.
Gelato remains a bright spot for the US market, drawing continued interest from consumers; however, there has been a gradual slowdown in sales and new product development. Mintel research reveals that 43% of consumers purchase gelato today, up from 39% in 2015.
“Sales of ice cream and frozen novelties have kept up despite declining interest thanks to innovative new product development and continued interest in gelato. However, gelato may be nearing its peak, as sales increases and new product launches are in decline compared to recent years. It’s possible that gelato is going the way of Greek yogurt, and losing a little of its luster. That said, we predict that gelato will remain relatively popular as it carries strong appeal for indulgence and satisfaction, and delivers the cues of a premium product,” concluded Bloom.
