According to a new report published by Allied Market Research, titled, “Sugar-Free Ice Cream Market by Type, Flavor, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global sugar-free ice cream market size is expected to reach $7,355.0 million by 2030 at a CAGR of 9.6% from 2021 to 2030.
Sugar-free ice cream is a special type of ice cream made by substituting sugar with sugar alcohol. Sugar alcohols are compounds derived from sugar, which resemble sugar in terms of both taste and appearance but contains fewer calories. Xylitol, erythritol, sorbitol, and maltitol are few popular sugar alcohols that may be used to make sugar-free ice cream.
People perceive sugar-free ice cream as a healthier alternative to regular ice creams, due to fewer calories and fewer negative health effects. This is a key factor propelling the growth of the sugar-free ice cream market globally. Moreover, increase in prevalence of diabetes, obesity, and heart disease is boosting the demand for sugar-free ice cream. Around 1.5 million deaths were recorded across the globe that were directly associated with diabetes. Therefore, increase in health consciousness, rise in trend of living an active & healthy lifestyle, and surge in demand for healthy food coupled with high disposable income act as the key driving forces of the global sugar-free ice cream market.
In addition, increase in popularity of sugar-free ice cream among the diabetic & health-conscious people notably contributes toward the sugar-free ice cream market growth. This is attributed to the fact that sugar-free ice cream is a rich source of vitamins A, B-6, B-12, C, D, and E. Moreover, it is a rich source of minerals like calcium and phosphorous. Consuming ice cream provides energy and stimulates brain. Therefore, these nutritional and health benefits are anticipated to contribute significantly to the growing demand for the sugar-free ice cream globally.
According to the sugar-free ice cream market trends, the availability of wide range of flavors in the market is attracting a large consumer base and help serve the customers based on their taste and preferences. According to the International Dairy Foods Association (IDFA), chocolate, vanilla, strawberry, and mint chip are the most preferred sugar-free ice cream flavors across the globe, due to their deliciousness and ability to enhance the taste of other treats and desserts.
However, the sugar-free ice cream industry was negatively impacted due to the COVID-19 pandemic. The rumors and misconceptions further ruined the demand for the sugar-free ice creams in the market, for instance, consuming ice cream can make an individual susceptible to COVID-19 virus, as one can catch cold. Furthermore, rise in prices of inputs such as packaging materials and freight reduced the profitability during the pandemic. Moreover, closure of production facilities, disruptions in the supply chain, and rise in unemployment rates during the pandemic adversely affected the sugar-free ice cream market.
According to the sugar-free ice cream market analysis, the market is segmented into flavor, form, end use, distribution channel, and region. On the basis of flavor, the market is categorized into vanilla, chocolate, mint chip, strawberry, salted caramel, peanut butter, coffee, and others. As per form, it is divided into pints, bars/stick, sandwich, and others. Depending on end use, it is bifurcated into B2B and B2C. According to distribution channel, it is fragmented into supermarkets & hypermarkets, convenience stores, specialty stores, and others.
Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Finland, Sweden, Denmark, Poland, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, Singapore, Australia, New Zealand, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and the rest of LAMEA).
As per the sugar-free ice cream market forecast, the Asia-Pacific is expected to show the fastest growth owing to the factors such as rising disposable income, growing health consciousness, and rising consumer awareness regarding low-calorie consumption.
The major players operating in the global sugar-free ice cream market are Amul, Baskin-Robbins, Beyond Better Foods, LLC, Havmor, Hershey Creamery Company, Mammoth Creameries, Nestlé S.A, Turkey Hill Dairy, Unilever, and Wells Enterprises, Inc.
Key findings of the study
- The market was valued at $2,524.5 million in 2020, and is estimated to reach $7,355.0 million by 2030, growing at a CAGR of 9.6% during the forecast period.
- By flavor, the salted caramel segment is estimated to witness the fastest growth, registering a CAGR of 10.9% during the forecast period.
- In 2020, depending on form, the pint segment was valued at $924.0 million, accounting for 36.6% of the global sugar-free ice cream market share.
- In 2020, the U.S. was the most prominent market in North America, and is projected to reach $928.6 million by 2030, growing at a CAGR of 9.6% during the forecast period.