New consumer preferences are emerging across Africa’s diverse markets, bringing fresh impetus for an industry dominated by international giants but in which local and smaller players also have an opportunity to grow the segment for unique indigenous flavors and offerings.
Bigger players in the African market include Unilever, which is spinning out its ice cream operations in December; Lactalis, and Froneri among others.
Consumption of ice cream is projected to top 1.74 billion kilograms this year, with Statista expecting this to reach about 2.01 billion kilograms by 2030.
From baobab to rooibos: Flavor preferences evolve
This uptake is being shaped up by shifting consumer preferences, although consumption patterns vary in different countries. Local flavors are now highly sought after in some African segments such as in Zambia, South Africa and Zimbabwe where there is an abundance of baobab trees.
“A growing sentiment among ice cream consumers in Africa is to look for healthier options and cultural choices, such as baobab and rooibos flavors,” Saifaddin Galal, team lead for Africa research at Statista told us in an interview.
This comes as African ice cream consumers have become “adventurous with flavour,” according to Klaus Plenge, managing director for Southern Africa at processing and packaging company, Tetra Pak.
“Consumers are becoming much more discerning about quality. There’s growing interest in how ice cream and frozen desserts are made, what they contain, and not just what they taste like,” said Plenge.
But among consumers with higher incomes, there is a shift towards plant-based and functional snacks. These trends, said Galal, “indicate a change in consumer preference and can provide industry innovations” and opportunities for growth.
Global and local players
Local and international brands have been characteristic of the African ice cream sector amid a push for consolidation of operations by international players. Unilever operates a production facility in South Africa that is now subject to being spun off in in December. A few years ago, Nestlé also disposed of its South African ice cream unity.
Despite this, international brands have remained dominant in African ice cream. In Nigeria, for instance, large-scale manufacturers such as Cadbury Nigeria and Friesland Campina are more prevalent in the market.
“Due to infrastructure restrictions, a significant portion of the ice creams are imported,” noted Galal, adding that Nestlé is a major player in the Egyptian market; although local brands such as Dara Ice Cream and Gomaa Ice Cream also have a presence.
The advancement of the ice cream industry in Africa is closely linked to the development of the dairy industry. Increased investment in the diary sector has helped strengthen the availability and quality of key input for ice cream production.
“As milk quality improves, production volumes rise, processing capacity expands, and cold chain infrastructure develops, the overall cost of production declines. This results in a wider variety and more affordable ice cream options for the consumer,” explained Galal.
Meeting demand
Although prospects for the ice cream industry in Africa have been lucrative, attracting both local and international players, the industry faces challenges that include a reliance on imported raw materials such as milk, as in the case of Nigeria.
Anaekwe Everistus Nnamdi, research analyst at Foraminifera Market Research, said Nigeria still imports significant quantities of milk powder and other raw materials to meet the demand for ice cream.
“This reliance on imports results in higher production costs and exposes manufacturers to exchange rate fluctuations, making the industry vulnerable to economic volatility.
“Nevertheless, the growing demand for frozen desserts provides opportunities for investment and the establishment of local production facilities,” he said.
Other challenges for African ice cream manufacturers includes supply chain issues. The need for reliable cold chain logistics was critical to ensuring ice cream products remain fresh during transportation and distribution.
With power shortages and poor infrastructure in most African markets, it has become difficult for producers to maintain the necessary cold storage systems, explained Nnamdi.
But innovative approaches to the cold chain can come in handy, ensuring that manufacturers and distributors are able to reach the last-mile consumers.
