OVERVIEW OF THE UK ICE CREAM SECTOR

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The warm summer of 2013 provided a significant boost to the ice cream market with a more than 7% year-on-year rise in values when sales jumped from £1.04bn in 2012 to £1.12bn in 2013 and a more than 4% increase in volumes from 340m litres in 2012 to 352m litres in 2013.

Volume sales have been even more impressive as sales are estimated to have tripled growing from 1m litres in 2011 to 3m litres in 2014.

A third (35%) of all consumers worry about the sugar content when eating ice cream, but despite this, less than three in ten (28%) say they would prefer to eat less ice cream than switch to light versions such as reduced fat and sugar. This is great news for Italian gelato, lower in fat, higher in natural fruit content- the gelato positions itself in prime position to benefit from this trend.

In the US, the ice cream and frozen novelty market, which struggled for positive sales growth in 2009 and lost sales in 2010, turned a corner in 2011 with a 4.1% increase in total US retail sales to reach $10.7 billion, according to a new report from Mintel. Sales are expected to increase another 4.1% in 2012 to become an $11.1 billion industry.

New flavour profiles and ingredients:

Reduced fat (38%), reduced sugar (38%) and reduced calorie (36%) are the most important claims consumers are looking for on the packaging of their favourite frozen treat. However, gluten-free and dairy-free products are rapidly growing in popularity with 15% of Mintel respondents saying that they are “very or somewhat

important" to them. Creams production facility boasts of producing fruit sorbets that are delicious, low in fat, gluten free and dairy free.Serving size is important to 69% of survey respondents who buy frozen treats, and especially so among those aged 18-24 (74%) who are the most likely to eat away from home directly after purchasing it from the grocery or convenience store. Portion control containers also would fare well with those concerned with ‘low-in’ claims.

Ice Cream and Frozen Novelties - July 2014

"While more than half of frozen treat buyers express the importance of product price in their purchase decision, flavor rules. In practice, gelato (with its corresponding higher price point) has driven growth in the category in recent years." – Beth Bloom, Food and Drink Analyst.

This confirms the appeal of ice cream as an indulgence in itself, particularly in its more complex and sophisticated forms, for example in the premium and super premium segments. However, ice cream is also popular as an accompaniment to other desserts, with 39% eating it in this way. This reflects the breadth and versatility of ice cream in its suitability to be served in a number of ways.

Speaking of high-quality products, Mintel’s August 2013 report says that gelato- an Italian word for ice cream is one particular indulgence that’s moving into the mainstream. Not only does it contain less fat and cream than traditional ice cream, but it is also churned at a much slower pace, giving it a denser texture. The Americans and the British love it.