According to a new report published by Allied Market Research, titled, "Ice cream Market by sales type: Global Opportunity Analysis and Industry Forecast, 2017 - 2023," the global ice cream market was valued at $68,072 million in 2016, and is projected to reach $97,301 million by 2023, registering a CAGR of 5.4% from 2017 to 2023. In 2016, the take-home segment accounted for the highest ice cream market share, growing at a CAGR of 5.3% from 2017 to 2023.
Ice creams are made up of dairy items such as milk and cream combined with dry fruits, flavors, and other ingredients. Ice cream is a sweetened solidified nourishment made using milk and cream. The preparation of ice cream also involves natural products or different fixings and flavors. It is ordinarily sweetened with sugar or sugar substitutes. The major factors driving the market growth include rise in disposable income in emerging economies and increased preference for niche ice cream flavors. However, the seasonality of the ice cream products and health concerns associated with it act as a major restraint of the global ice cream market size.
In 2016, the take-home segment accounted for the highest share in the ice cream industry, and is expected to maintain its dominance during the forecast period. However, the artisanal ice cream segment is projected to register the highest growth during the forecast period as it manufactured both in dairy and water-based small producers for sale on premises. It also includes branded gourmet ice cream both on and off trade.
Consumers have become more conscious about sugar intake and prefer products offering high nutrition value; thus, the demand for sugar-free, organic, and calorie products is on a rise globally. According to Hudson Institute, Inc., 82% of the sales growth amid Healthy Weight Commitment Foundation member companies such as Kraft Foods and Nestle U.S. was due to lower-calorie food products in 2013. Manufacturers such as Mars are reformulating their products and focusing on development of sugar-free, functional, and organic variants. Introduction of these variants in the market is expected to boost value sales and help manufacturers in delivering products, which support ice cream market trends.
Introduction of slimming properties, combination of liquid & solid flavors, odor sensations, and energy boosts in ice cream products drive growth and development of ice cream market size globally.
In January 2016, International Monetary Fund (IMF) estimated the economic growth rate of advanced and emerging economies to rise from 1.9% to 4.0% in 2015 and 2.1% to 4.7% in 2017 respectively. Economic growth in emerging and advanced economies supports ice cream market growth as it increases purchasing power of the customers. There is high popularity of premium products in the middle-class customers, especially in emerging economies and thus rising disposable income encourages consumers to shift towards premium products. Growth in purchasing power also creates a demand for high-quality products.
Asia-Pacific and LAMEA collectively contributed about 40% share of the global ice cream market analysis, in terms of revenue, in 2016. The key players operating in the global ice cream industry are Unilever Group Nestle S.A., General Mills, Inc., Mars, Blue Bell Creameries, Lotte Confectionery, Wells Dairy Inc., Turkey Hill, Mihan Dairy Inc., and Meiji Holdings Co. Ltd.
Key Findings of the Ice Cream Market:
- Europe is expected to maintain its dominant position in the ice cream market, in terms of value during the forecast period.
- The take-home ice cream segment generated the highest revenue in 2016, and is projected to grow at a CAGR of 5.3% during the forecast period.
- In terms of volume, the artisanal ice cream segment is projected to witness the highest CAGR of 5.7% during 2017 to 2023.
- LAMEA accounted for approximately one-sixth share of the global ice cream market in 2016.
- The Asia-Pacific ice cream market is anticipated to grow at the highest CAGR of 6.5% during 2017 to 2023.
- North America accounted for approximately one-fourth share in the global ice cream market, and is expected to grow at a CAGR of 4.6%.