Artisanal ice cream market nears $100bn mark as consumers are ‘willing to pay a premium for quality and taste’
By 2030, the global artisanal ice cream market’s valuation is projected to grow by 50% as consumer demand for clean-label foods is set to intensify.
According to a report by Market Research Future (MRF), the artisanal ice cream industry, which was valued at $63.6bn in 2022, will grow to $95.8bn by 2030 driven by changing consumer tastes and preferences.
The segment’s association with small-batch manufacturing and seasonal, locally-sourced ingredients is attractive for consumers, as are creative flavor combinations and experimental ingredients such as spices, herbs, avocado, nuts and protein enhancements. Different textures – fried ice cream anyone? – and a trend towards nutritious (e.g. protein-enhanced) varieties as well as organic, gluten-free and vegan ice cream, would also contribute to the segment’s growth.
The analysts note that despite the typically higher price tag of artisanal ice cream, consumers ‘are willing to pay a premium for quality and taste’.
Based on distribution channel, specialty stores had the largest share (around 35%-40%)of the distribution market in 2021. By region, North America had the largest market share of $14.6bn in 2021 and is expected to grow at a 7.43% CAGR as health awareness pushes shoppers towards organic goods. The US artisanal ice cream market held the largest market share, but the Canadian market is predicted to be the fastest-growing in North America.
According to Market Research Future, North America’s share is expected to shrink slightly from its 14.6bn valuation by 2030 – likely due to market oversaturation - but will remain ahead of Europe and Asia-Pacific, which will both record growth over the period.
Europe is predicted to be the second-largest market for artisanal ice cream, with UK leading the pack as the largest market on the continent. In Asia-Pacific, China will continue to be the largest market, while India will also be an attractive destination as demand for artisanal ice cream grows, MRF predicted.
“Major market players are spending a lot of money on R&D to increase their product lines,” the analysts said, “which will help the artisanal ice cream market to grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, M&As, increased investments and collaboration with other organizations.
“Competitors…must offer cost-effective items to expand and survive in an increasingly competitive market environment.”