Long Summers and Hot Climate Conditions Contribute to UAE Ice Cream Market Growth
According to our latest study on “UAE Ice Cream Market Forecast to 2028 – COVID-19 Impact and Analysis – by Type (Impulse Ice Cream, Take-Home Ice Cream, and Artisanal Ice Cream) and Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Specialty Stores, and Others),” the market is projected to reach US$ 157.46 million by 2028 from US$ 126.21 million in 2021; it is expected to grow at a CAGR of 3.2% from 2021 to 2028.
Ice cream, a sweet frozen delicacy, is usually prepared from cream or milk and sweetened with sugar, corn syrup, or artificial sweetening agents. It is added with flavoring agents such as vanilla and cocoa to impart characteristic flavors. Ice creams became more common after the development of cold warehouses, and HVAC and refrigeration systems. The burgeoning popularity of ice cream has led to the introduction of a number of variations, including frozen yogurt, frozen custard, and non-dairy versions made with ingredients such as coconut milk. Ice creams with less than 10% milk fat content are classified as ice milk and widely known as low fat ice cream. Ice creams with high milk fat content have a smoother texture and rich appearance as they contain low water content and a fewer ice crystals.
Ice cream remains the favorite frozen dessert in the UAE as it has a subtropical arid climate with long hot summers and briefly warm winters, and thus, it is consumed throughout the year by expatriates, tourists, and locals. The consumption is further likely to increase with the entry of multinational ice-cream manufacturers such as Mars GCC and Unilever Middle East. A large number of ice-cream manufacturers have been instrumental in introducing new ice-cream varieties and flavors. Moreover, the growth of the tourism sector and restaurant businesses is also expected to support the growth of the ice-cream market in the country.
The key players operating in the UAE ice cream market include Desert Chill; Dunkin' Brands Group, Inc.; General Mills Inc.; IFFCO Group; Maras Turka; MARS Incorporated; MINI Melts Inc.; Nestlé S.A.; Pure Ice Cream Co. LLC.; and Unilever. The market players have been constantly focusing on business strategies such as product developments and strategic business plans to expand their footprint in the country as by addressing the growing demands.
Impact of COVID-19 Pandemic on UAE Ice Cream Market
The COVID-19 pandemic has affected economies and industries in various countries due to lockdowns, travel restrictions, and business shutdowns. The UAE also implemented a country-wide lockdown that resulted in the shutdown of restaurants, malls, retail outlets, and manufacturing plants, which adversely affected the food & beverage industry, including the ice cream production. Moreover, there has been an increase in panic buying and confusion among the consumers amid the pandemic, which disrupted the standard demand estimations of food and beverage products in the UAE. The demand for long-shelf-life products gained ~20–25% while categories such as ice cream and confectionaries experienced a decline of 30–35%. The economy is recovering with the relaxations in lockdown, and reopening of supermarkets, malls, and other retail outlets. Moreover, various ice cream manufacturing companies are also resuming operations in the UAE.
The report segments the UAE ice cream market as follows:
Based on type, the UAE ice cream market is segmented into impulse ice cream, take-home ice cream, and artisanal ice cream. On the basis of distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, specialty stores, and others.
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