Ice Cream Market Size Report | Growth & Forecast 2028

[Research Report] The ice cream market is projected to reach US$ 1,21,022.15 million by 2028 from US$ 90,272.08 million in 2021. It is expected to grow at a CAGR of 4.3% from 2021 to 2028.

Market Insights and Analyst View:

Ice cream are dairy products, which are sweetened with either natural sugar or artificial sweeteners. Variety of flavors are available in the market such as vanilla, chocolate, fruit, and amongst others. Over the past few years, functional ice cream has become a popular product among health-conscious consumers due to the presence of high-quality ingredients, and it fulfills consumers’ nutritional requirements more than regular ice cream. So, the increasing interest of ice cream manufacturers in fortification and the addition of functional ingredients may influence the consumer’s decision to select a healthy alternative. Beyond basic nutrition, functional food provides advantages that can help lower or prevent the risk of certain diseases. Moreover, sugar-free, low-fat functional ice creams are gaining huge popularity due to their health benefits.

Growth Drivers and Challenges:

Over the past few years, the lifestyles of people have evolved drastically. Changes in consumer food taste and convenience are the major reasons for the increasing demand for frozen dessert products globally. Moreover, increasing disposable income and the introduction of various products in the dessert category to cater to the choices of a vast group of consumers are driving the ice cream industry. The surge in the consumption of high-quality frozen desserts is one of the biggest trends in the food industry. The growing trend of consuming frozen desserts after a meal as an effective digestive product is boosting the demand for frozen desserts. The development and popularity of these frozen desserts are ascribed to many social changes, such as the growing number of smaller households and the rising millennial population worldwide. These factors are significantly increasing consumers’ demand for frozen desserts, such as ice cream.

Ice cream manufacturers are developing products with nutritional components, organic herbal fillings, and exotic flavors in product formulation to acquire a competitive advantage and appeal to more consumers. Manufacturers are introducing new exotic flavors such as coconut, lemon, and tropical fruits to adapt to shifting consumers' tastes. Additionally, consumers concerned about their health favor Skinny Cow, a low-calorie and low-fat ice cream brand. As a result, their consumer base is increasing. Additionally, the favorable regulations support the market innovations that were examined. For instance, the Food Drug and Administration (FDA) held a public hearing on cannabidiol (CBD) legislation in the US in May 2019. Thus, various manufacturers are tapping into this opportunity and introducing new products to differentiate their offerings. For instance, Ben & Jerry's launched an ice cream with a CBD additive. Further, liquor ice cream is gaining popularity across developed regions such as North America and Europe. The products contain less than 0.5% alcohol; therefore, they are widely retailed in grocery and specialty stores. For instance, Häagen-Dazs launched a spirit-infused ice cream with a flavor of five traditional pints made with Irish cream, rum, bourbon, and stout.

Ice cream manufacturers highly depend on artificial additives for ice cream production. Additives are substances added to food to maintain or improve its safety, freshness, taste, texture, or appearance. These artificial additives are used to keep foods fresh or enhance their color, flavor, or texture. However, a few people are sensitive to particular food additives and may have reactions such as hives or diarrhea. Sodium benzoate, artificial color, artificial flavor, artificial sweeteners, and potassium sorbate are a few of the artificial food additives used for ice cream production. It is often observed that the additives used to improve the market quality of food, such as artificial color, are the most common cause of allergic reactions. A few of these hypersensitive reactions include digestive disorders such as diarrhea and colicky pains and nervous disorders such as hyperactivity, insomnia, irritability, and respiratory problems. Thus, the negative impact of artificial additives on human health is hampering the ice cream market growth.

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Ice Cream Market: Strategic Insights

Market Size Value in	US$ 90,272.08 Million in 2021
Market Size Value by	US$ 1,21,022.15 Million by 2028
Growth rate	CAGR of 4.3% from 2021 to 2028
Forecast Period	2021-2028
Base Year	2021

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Report Segmentation and Scope:

The “Global Ice Cream Market” is segmented based on flavor, category, form, distribution channel, and geography. Based on flavor, the ice cream market is segmented into vanilla, chocolate, fruit, and others. Based in category, the ice cream market is segmented into conventional and sugar-free. On the basis of form, the market is segmented into cups & tubs, bars & sticks, and others. Based on distribution channel, the ice cream market is segmented into supermarkets & hypermarkets, specialty store, online retail, and others. The ice cream market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).

Segmental Analysis:

Based on flavor, the global ice cream market is segmented into vanilla, chocolate, fruit, and others. In 2021, the vanilla ice cream segment accounted for the largest revenue in ice cream market share. Chocolate segments are also expected to account for the fastest growing compound annual growth rate over the forecast period. Chocolate flavors contain cocoa content. Dark chocolate, white chocolate, milk chocolate, brute chocolate, and bittersweet chocolate are a few types of chocolate flavor. The flavor provides many health benefits as its consumption protects cells from inflammation, improves body function, and boosts immunity and cardiovascular health because it is a rich source of flavanols. Therefore, its plenty of variations and health benefits encourage millennials to opt for chocolate flavor, which drives the demand for chocolate flavors. Based on category, the global ice cream market is segmented into conventional and sugar-free. In 2021, the conventional segment accounted for the largest revenue share. The sugar-free segment is also expected to account for the fastest growing compound annual growth rate over the forecast period.

Regional Analysis:

Based on geography, the ice cream market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global ice cream market was dominated by North America which accounted for US$ 28 billion in 2021. Europe is a second major contributor in the global market. Asia Pacific is expected to register the considerable growth at a CAGR of 5.3% over the forecast period. Availability of numerous flavors, increasing demand for premium ice creams, rising adoption of non-preservatives and natural ingredients, and significant presence of market players are among the prominent factors propelling the ice cream market growth in North America.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the ice cream market are listed below:

1. In January 2022, Baskin-Robbins has a lineup of exciting flavors that will keep that sweet tooth satisfied all year long. We’re kicking off 2022 with a brand-new Flavor of the Month! Keep reading for the inside scoop on Magic Layer Bar.
2. In January 2019, Nestlé has today announced its partnership in Loop, a subscription home delivery service for foods and household goods with reusable packaging.

Covid-19 Impact: 

In the pre-pandemic period, the ice cream market was mainly driven by high demand for frozen desserts, such as ice cream, owing to people's changing lifestyles and seasonal demand for products. However, many industries faced unprecedented challenges due to the COVID-19 outbreak in 2020. The shortage of the large labor force needed in the manufacturing units and the break of on-premises sales through specialty stores, supermarkets, and convenience stores due to the subsequent lockdowns and the closure of retail stores further negatively affected the market sales. Despite witnessing a major hit due to the pandemic, several companies reported that the industry witnessed an immense boost in the take-home consumption segment by the end of 2020. Due to work-from-home mandates, the at-home consumption trend emerged significantly during the pandemic. However, industry experts believe that, apart from lockdown restrictions, ice cream sales were affected by the fear or misconception that ice cream could make one susceptible to COVID-19 because one could catch a cold. This is one of the major factors that restrained the growth of the ice cream market during the pandemic.

As consumers' focus increased on immunity and wellness during the peak pandemic period, the demand for healthy and immunity-boosting food also increased. The pandemic also triggered changes in the overall dietary preferences of consumers. As a result of this, manufacturers began to introduce immunity-boosting ice creams. For instance, in 2020, ice cream brand, Dairy Day, launched a range of ice creams with immunity-boosting ingredients under the brand name Dairy Day Plus. The company introduced turmeric flavor ice cream and Chyawanaprash ice cream in the launch phase. However, as the supply chains were highly disrupted, a shortage of raw materials created a shortfall in production volumes. Many leading ice cream manufacturers with high inventory levels were able to cater to the increased demand; however, the profits of small to medium-sized manufacturers with low inventories were negatively impacted.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global ice cream industry are Unilever; Nestlé SA; General Mills Inc.; Mars, Incorporated; LOTTE CONFECTIONERY CO., LTD; Wells Enterprises; Baskin-Robbins; Turkey Hill Dairy; Dairy Farmers of America, Inc.; Blue Bell Creameries; among others. These players offer wide variety of ice cream in flavors, shape and design to attract a large number of consumers.