The research found there is a rise in nutrient-rich ice-cream due to an increase in people wanting healthier lifestyles.
Artisan ice cream
Consumers are demanding naturally-processed sweeteners and preservatives. and the emergence of non-dairy ice cream alternatives with naturally-processed coconut and almond milk will open up new opportunities for industry growth.
Global Market Insights predicts the US organic ice cream market will generate more than $500m in revenue by 2024.
A large presence of domestic producers coupled with consumer preference for organic products even at premium price will positively influence regional industry growth.
Australia, New Zealand, the US, Sweden, Denmark, and Italy are among the highest per capita/liter consuming countries.
The organic ice cream market includes: artisanal ice cream, impulse ice cream and take home ice cream with ingredients including: whole milk, skimmed milk, cream, sweetening and flavoring agents and others (egg, stabilizers, emulsifiers, water based ice cream ingredient).
Shrikesh Powar, executive, digital marketing, Global Market Insights, said global industry share is at a nascent stage with Nestlé, Lotte Confectionery, Weight Watchers International, Mars, Tillamook, Blue Bell, So Delicious Dairy Free, Dean Foods, Amul, Unilever and Mikawaya being the major industry players.
“Rising product adoption for preparing smoothies, sorbets, and shakes will enhance organic ice cream market penetration. Growing preference for homemade ice cream due to its natural content will fuel artisanal ice cream market growth. The segment will surpass $350m in revenue by 2024,” he said.
“Take home dominates the overall product demand and accounted for over 50% of industry share in 2016. Rising demand from families for multi serving frozen food items providing improved ease of handling in occasions and gatherings will propel demand.”
Organic Ice Cream Market, By Flavor
- Butter pecan
- Black raspberry
- Mint chocolate Chip
- Others (Chocolate Raspberry, Coconut Almond, Vanilla Fudge Ripple)
- Others (Dollar stores, Vending machines, duty free shops)
Impulse products will see a 3.5% plus growth up to 2024 led by rising economies with an upsurge in consumer purchasing power. Sandwiches, snow lollies, popsicles, and cones are key revenue generating product type.
Whole milk accounted for more than 22% of the overall ingredient segment in 2016. Increasing whole milk usage as an ingredient for product due to a growing preference for fat free products will also propel demand.
Vanilla flavor accounted for more than 29% in the overall organic ice cream market share in 2016.
Rising consumer awareness regarding pure and natural ingredients have propelled food manufacturers to use pure vanilla in recent times.
Chocolate industry expansion owing to increasing awareness associated to natural cocoa will drive demand in this segment. Mint chocolate, butter pecan, strawberry, and black raspberry are among the key revenue contributing flavors.
Among several key distribution channels, on trade holds the largest industry share with more than 60% of overall demand.
Shifting preference to consume a product before or after meals along with an increase in the number of local restaurants, hotels and product parlors will fuel industry growth.
The report states limited material availability at a premium price will impact organic ice cream market profitability.
Paper & board packaging accounted for more than 43% in 2016, attractive packaging at competitive prices is among the key factor fueling demand in this segment.
Rigid plastics packaging will see the highest gains over the forecast period. Superior properties including improved impact strengthened along with attractive decorative and see-through prints for labeling will be key.
Source: Global Market Insights
Date: June 2017