Regardless of the season, ice cream is a favorite among consumers of all ages. Even more so this year, as previously unseen health measures meant spending a lot more time at home, as pointed out in the latest Frozen Food Dossier.
As it follows a generational trend, ice cream moves towards a more conscious approach, turning to vegan or dairy-free ingredients. Even though it evolves into bold, new directions, ice cream remains one of the most sought-after indulgence products. The global ice cream market had total revenues of USD64.2bn in 2018, growing at a rate of 4.3% between 2014 and 2018, according to a MarketLine report. Europe accounted for the highest share in the global ice cream market at 35.8% in 2018, followed by Asia-pacific with 31.9%. What’s interesting is the evolution of ice cream specialties: the global vegan ice cream industry was estimated at USD520.9m in 2019 and is expected to hit USD805.3m by 2027, registering a CAGR of 13.7% from 2020 to 2027 according to a report titled “Vegan Ice Cream Market: Global Opportunity Analysis and Industry Forecast, 2020–2027” published by Allied Market Research. Based on geography, Europe, followed by Asia-Pacific and North America, held the major share in 2019, garnering more than one-third of the global vegan ice cream market. At the same time, Asia-Pacific would manifest the fastest CAGR of 14.9% during the study period. By source, the almond milk segment contributed to nearly one-third of the global vegan ice cream market share in 2019 and is expected to retain its dominance by the end of 2027. ADJUSTING TO ‘THE NEW NORMAL’ COVID-19 has impacted both consumers and producers and, like all other sectors, ice cream has had to adjust to changes across divisions in this ‘new reality’, comments Normunds Staņēvičs, CEO of Food Union Europe. “But each market has reacted differently. Some markets have experienced an increase in sales as people retreat to comfort foods and treats, and others are showing limited signs of recovery this quarter. Overall, the ice-cream industry tends to be optimistic and resilient.”
Normunds Staņēvičs says trends are defined by consumers’ lifestyle, daily practices, and personal beliefs, adding that over the past 8 months, consumers’ need for joy, comfort, and nutrition from trusted brands has increased in the fast-moving consumer goods (FMCG) industry, including the ice cream sector. “Consumers’ daily lives have been inundated with increasing concerns and our products can bring comfort during uncertain times, provide joyful moments, and a kind of ‘sweet escape.’ When customers taste their favorite ice cream, they should get momentarily lost in the nostalgia that the flavor brings.” For example, Food Union creates a wide variety of specialty ice creams with ingredients sourced from local small-scale suppliers in Denmark. In Norway, there is a passion for licorice and vegan alternatives. In the Baltics, the company creates modern interpretations of classic products. And in Russia, they create rich, decadent, and creamy ice creams. “We have also seen consumers move towards functional products, with a focus on health benefits. Consumers are more aware of their health, and even in the ice cream category, they are seeking out healthier alternatives. This includes vegan and dairy-free ice creams, or ice creams that are aligned with keto diets. Consumers are also becoming more aware of their lifestyle behaviors”, Staņēvičs points out.
To read this and other articles, please access your e-copy of Frozen Food Dossier Autumn edition here.