Ice cream is no longer being eaten seasonally, but is increasingly purchased all-year round and more and more like a snack. Moreover, the health trend is taking over the segment, with a plethora of new free-from options and flavors.
By Dan Orehov
Better-for-you ice cream, characterized by low sugar and high protein has officially arrived in the UK. Having outsold ice cream giants like Unilever and Nestlé Dreyers to become the best-selling ice cream in the US over a four-week period in July 2017, Halo Top launched in the UK in 2018. According to Mintel, among UK ice cream eaters, almost a third (32%) say that ‘low sugar’ would encourage them to consume more ice cream. Alex Beckett, associate director, Mintel Food & Drink, said: “Ice cream brands which claim to offer health benefits have historically been hard to find in Europe. As consumers look to balance their diets with an occasional treat and a boost to their mood, more ice cream brands will emerge which aim to combine indulgence and health.”
A global picture
The global ice cream market was valued at USD68,072m in 2016 and is projected to reach USD97,301m by 2023, registering a CAGR of 5.4% by that year, according to information provided by Allied Market Research. Manufacturers are increasing their product range by including functional ingredients, organic herbal fillings, and exotic flavors in product formulations to meet the changing consumers’ demands. For instance, companies are including other exotic flavors such as tropical fruits, lemons, and coconuts to cater to changing taste of consumers. In addition, product innovation in ice cream products drive growth and development of the segment, globally.
Apart from this, retail channels such as hypermarkets, supermarkets, convenience stores, discounters, forecourt retailers, and grocery stores act as global marketing tool that assist in building an impressive premium image and increase brand exposure of wide variety of ice cream products. Expansion of these retail channels is also contributing in the growth of the ice cream market. Furthermore, rise in demand for innovative products and development of lactose-free ice cream provide growth opportunities for market expansion.
US Trends
With growing concerns over the high obesity rate in the US, an increasing number of consumers are looking for healthier options when it comes to ice cream and frozen desserts, such as low-calorie options, vegan alternatives and dairy-free products. This has resulted in the rise of Eden Creamery LLC with its Halo Top brand and other players that offer healthier options, says Mintel. With a relatively fragmented competitive landscape innovation and new product development is key in order to retain the interest of consumers. As a result, the key players continued to introduce new lines at the end of the review period.
The Mintel report shows that although Dreyer’s Grand Ice Cream Holdings Inc has retained its lead in ice cream and frozen desserts in 2018 it has seen a further decline in its value share. Its leading Häagen-Dazs brand continued to perform well with it introducing new flavors and healthier options in 2018, but other brands within its portfolio such as Dreyer’s/Edy’s and The Skinny Cow have declined. Moreover, Eden Creamery LLC’s Halo Top brand has risen from nowhere to take fourth place in the rankings in 2018, with it being the most dynamic player in ice cream and frozen desserts throughout the review period. With strong marketing and a clear positioning, the brand has received widespread attention in the press including Time, Reader’s Digest and Buzzfeed, among others, thanks to its wide range of low-calorie ice cream products. Another player to see strong growth in 2018 was Texas-based Blue Bell Creameries Inc. In 2015 the company’s Bluebell brand saw a dramatic decline after it had to recall products contaminated with listeria, with this eventually leading to it shutting down production while it resolved the problem.
You can read the entire article in the Jan-Feb print issue of Frozen Food Europe magazine.
