France boasts nearly 400 industrial ice cream manufacturers, making it the largest producer of ice cream in Europe (behind Italy) and the second-largest exporter globally after Germany.
Small and medium-sized businesses in the industry are thriving, even in the face of industry titans like Nestlé (Extrême, La Laitière), Unilever (Miko, Magnum), and Häagen-Dazs. As such, this is a market that is constantly changing and more dynamic than before.
According to Taste France, following a year of unprecedented post-lockdown revenue, 2022 broke previous records with a 14% value gain in revenue of EUR1.397bn. The French Ice Cream Making Businesses’ Association Annual Report states that with a 27% market share, ice cream bars are the most popular choice among customers, followed by tubs (13.1%) and cones (17.8%), which are growing at an impressive rate of +28.4%. According to an OpinionWay poll conducted for the French Ice Cream Making Businesses’ Association, 60% of French people consider the nostalgic frozen delicacy to be a small luxury that they can afford to indulge in during an inflationary period. Indeed, according to 82% of respondents, “ice cream is a pleasure purchase that is both comforting and affordable.”
Trends in a Constantly Changing Market
With new goods accounting for 5.2% of revenue, the market is innovation focused. Customers are drawn to things that are customized and unique. As a result, producers have created vividly colored products with an extensive assortment of toppings (such as fresh fruit, cookies, chocolate chips, and more), sauces (such as caramel, chocolate, and berries), and customizable flavors. To appeal to a target audience that is lured to aesthetically pleasing things, presentation and packaging are careful and imaginative.
Innovative items such as creamy sorbet or ice cream with a frothy texture are being made with the help of new technologies. Manufacturers are always riding fads such as back-to-nature, sugar-free, lactose-free, and vegan or plant-based ice cream to surprise customers with unique goods. Because consumers want products manufactured with basic, all-natural components and free of additives or preservatives, naturalness is a major trend in the business.
For this reason, premium ingredients are being used more and more, such as organic milk, fresh fruit, and locally produced goods. French ice cream producers are dedicated to fulfilling the demands of the modern environment, especially about lessening the impact of their packaging. ADEME is now conducting a study to have a better understanding of what consumers expect from CSR. It is noteworthy that according to the OpinionWay Survey conducted on behalf of the French Ice Cream Making Businesses’ Association, 66% of French consumers would be willing to pay extra for ice cream that is produced locally or in France.
To read the entire article, please access your complimentary e-copy of Frozen Food Europe September-October, 2023 issue here.