Ice Cream Market (2024 - 2030)

Ice Cream Market Summary

The global ice cream market size was estimated at USD 113.40 billion in 2023 and is projected to reach USD 147.74 billion by 2030, growing at a CAGR of 3.9% from 2024 to 2030. Factors such as the rising demand for innovative flavors, types, and impulse ice creams such as cones, sandwiches, and pops in developing countries are expected to drive market growth.

The increasing health consciousness among consumers is also expected to fuel the demand for premium ice creams in the upcoming years. Moreover, health-conscious consumers are driving the demand for healthier alternatives in the ice cream industry. This has prompted manufacturers to innovate and introduce products with reduced sugar, fat, and calorie content, as well as options that cater to specific dietary preferences, such as dairy-free, gluten-free, and vegan ice creams. With an increasing emphasis on wellness and mindful eating, consumers are seeking guilt-free treats that align with their health goals without compromising on taste.

Single-serve ice cream products, such as handheld novelties, ice cream bars, and individual portions, are gaining traction among busy consumers looking for convenient snacking options. In addition, the expansion of distribution channels, including online retail platforms and food delivery services, has made it easier for consumers to access a wide variety of ice cream products anytime, anywhere.

Furthermore, the ice cream industry is being influenced by changing consumer demographics and cultural influences. As disposable incomes rise in emerging markets and urbanization accelerates globally, there is a growing demand for ice cream as an affordable indulgence and a symbol of the Western lifestyle. Moreover, cultural diversity and globalization have led to the adoption of exotic flavors and dessert traditions from around the world, enriching the variety of offerings in the market and appealing to diverse consumer tastes.

Manufacturers are increasing their product range by including functional ingredients and organic, herbal, and exotic flavors in product formulations to meet the changing consumer demand. According to an article published in Food Ingredients First in April 2021, manufacturers have been using functional ingredients to highlight the health benefits of frozen desserts. Plant sterols, lecithin, and Propylene Glycol Monoester (PGME) have been broadly used to replace synthetic ingredients in the development of ice cream products.

In April 2024, California-based Alec's Ice Cream announced the launch of nine new premium flavors meticulously crafted with sustainably sourced regenerative organic ingredients and A2/A2 dairy. All flavors are gluten-free and offer luxurious indulgence. These new additions will be available in the U.S., expanding the company's lineup to 14 flavors. Select Whole Foods Market locations and numerous independent stores will stock the entire range of flavors.

Market Concentration & Characteristics

The ice cream industry is highly innovative, with developments in unique and exotic flavors, health-conscious and plant-based options, and sustainable packaging. Advances in technology and direct-to-consumer models enhance the consumer experience, while creative marketing strategies and sensory innovations keep the market dynamic and engaging.

Regulations in the ice cream industry impact product formulation, labeling, and safety standards, ensuring consumer protection and product quality. Compliance with health and safety guidelines influences ingredient choices, while environmental regulations drive sustainable packaging and production practices. These regulations can also affect market entry and operational costs for manufacturers.

The ice cream industry sees a moderate level of M&A activities, driven by companies seeking to expand their product portfolios, enter new markets, and leverage innovative technologies. Established brands often acquire smaller, niche companies specializing in health-conscious, plant-based, or unique flavor offerings to stay competitive and cater to evolving consumer preferences.

End user concentration in the ice cream industry is diverse, encompassing children, families, and health-conscious adults. Market segments include traditional consumers seeking indulgence, as well as those preferring low-calorie, dairy-free, or functional ingredient options. Seasonal and limited-edition flavors also attract a broad range of consumers, maintaining high overall market engagement.

Product Insights

The bar ice cream accounted for a revenue share of around 33.41% in the year 2023. Ice cream bars offer a quick and easy way to enjoy a sweet treat without the need for utensils or bowls, making them an attractive option for busy consumers seeking instant gratification. This convenience factor is particularly appealing to younger demographics who prioritize portability and ease of consumption in their food choices. The increasing product innovations and the rising consumer for convenient product options are the factors expected to fuel the demand for bars & pops. For instance, in January 2020, Magnum launched Magnum Ruby Minis with indulgent velvety ice cream offering the ultimate premium product in the U.S.

Cones ice cream is projected to grow at a CAGR of 4.4% from 2024 to 2030, driven by the rising demand for convenient and portable dessert options. Consumers increasingly prefer easy-to-eat treats that fit their on-the-go lifestyles, and ice cream cones perfectly cater to this need. The convenience factor is especially appealing to younger demographics, such as millennials and Gen Z, who often seek quick and enjoyable snacking options. In addition, the nostalgic appeal of ice cream cones evokes fond memories of childhood for many adults, making them a popular choice across various age groups.

Type Insights

The dairy & water-based ice cream accounted for a revenue share of around 96.51% in the year 2023. Ice creams are dairy-based frozen delicacies that are typically eaten as sweets or snacks. According to federal laws or standards of identity, ice cream must contain 20% milk solids by weight and a minimum of 10% milk fat. With the rapidly growing urbanization and advancement in technology in the European dairy sector, the demand for luxury ice cream and daily ice cream desserts products continues to rise steeply in Europe. The utilization of novel ingredients like whole milk, skim milk, and sweetening & flavoring agent is the main factor driving the annual revenue of the Europe market.

The vegan based ice cream is projected to grow at a CAGR of 9.7% over the forecast period of 2024-2030. Ice cream manufacturers use a range of plant-based alternatives to milk, such as oats, almonds, soy, and pea milk, depending on their functional requirements. Plant-based innovations are rapidly gaining popularity in the ice cream industry. The demand for non-dairy/vegan ice cream is on the rise owing to the growing prevalence of lactose intolerance and dairy-related allergies across the globe, particularly across North America.

Distribution Channel Insights

The retail channel segment accounted for a revenue share of around 78.62% in 2023. This large share is attributed to the increasing consumer demand for indulgent and premium ice cream products. As disposable incomes rise, more consumers are willing to spend on high-quality, artisanal, and gourmet ice cream options that offer unique flavors and experiences. This trend is supported by the growing preference for premium ingredients and cleaner labels, with many consumers seeking out products made from natural and organic ingredients, free from artificial additives and preservatives.

The foodservice channel segment is estimated to grow at a CAGR of 3.4% over the forecast period of 2024-2030. Food service providers are increasingly experimenting with unique and exotic flavors, catering to adventurous consumers looking for novel experiences. This trend is also reflected in the growing popularity of artisanal and gourmet ice creams, which emphasize quality ingredients and distinct flavor profiles. Seasonal and limited-time offerings also create a sense of urgency and exclusivity, encouraging consumers to try new products.

Flavor Insights

Chocolate flavor ice cream accounted for a revenue share of around 32.82% in 2023. Chocolate-flavored ice cream has witnessed a surge in demand due to the proliferation of innovative flavor variations and premium offerings. Manufacturers are constantly experimenting with different cocoa blends, chocolate sources, and additional ingredients such as nuts, cookies, and caramel swirls to create unique and decadent flavor profiles. This diversity caters to a wide range of consumer preferences, ranging from traditionalists seeking a pure chocolate flavor to adventurous consumers opting for bold and exotic taste experiences.

Fruit flavor ice cream is projected to grow at a CAGR of 4.1% over the forecast period of 2024-2030. There is a growing consumer demand for healthier and more natural food options. Fruit-flavored ice creams are often perceived as healthier alternatives to traditional flavors due to their association with real fruit ingredients. With an increasing emphasis on wellness and nutrition, consumers are gravitating toward products that offer a balance between indulgence and healthfulness, making fruit-flavored ice creams an attractive choice.

Regional Insights

The ice cream market in North America held 20.52% of the global revenue share in 2023. People in North America have become more conscious about their health and thus have been changing their preference for healthy food alternatives over conventional products. According to a survey published in Food Insights in May 2021, 60% of the population of the region preferred healthy alternatives for popular food products, such as confectionery, desserts, and ice creams.

The ice cream market in North America is expected to witness growth on account of the growing demand for premium ice creams, diverse flavor availability, and increasing preference for healthy alternatives. The market is characterized by the growing demand for lactose-free and vegan ice cream, supported by new product development, especially in the U.S. For instance, in January 2022, Cold Stone Creamery, an ice cream chain, introduced a fully vegan ice cream Silk Chocolate Almondmilk Frozen Dessert in the U.S.

U.S. Ice Cream Market Trends

The ice cream market in the U.S. is expected to grow at a CAGR of 3.8% from 2024 to 2030. The U.S. market is mainly driven by the demand for premium ice creams. According to the IDFA, in 2022, the ice cream industry had a USD 13.1 billion impact on the U.S. economy. Ice cream parlors generate maximum revenue from March through July, as these months are the busiest for ice cream production in the U.S.

Asia Pacific Ice Cream Market Trends

Asia Pacific accounted for a revenue share of around 37.17% in the year 2023. The increasing expenditure on ice creams in Asian countries such as India, Japan, and New Zealand is projected to support market growth. For instance, according to Japan’s Ministry of Internal Affairs and Communications (MIC), expenditure on ice cream among Japanese consumers witnessed a 135% growth between 2011 and 2020. Moreover, Asia Pacific is characterized by an increasing demand for high-end ice creams. The changing consumption habits of consumers and the vast diversity in the region have led to the demand for varied flavor combinations and innovative ice creams.

Europe Ice Cream Market Trends

The ice cream market in Europe is projected to grow at a CAGR of 3.5% from 2024 to 2030. The European market is mainly driven by innovation in ice creams and new product development. Italy, Germany, the UK, France, Spain, and the Netherlands are among the key countries in Europe in terms of ice cream consumption. Gelato ice creams are gaining popularity globally, but the demand for gelato ice creams is fast-growing in Europe. Gelato ice cream brands in Europe are expanding their presence to different countries. For instance, in February 2023, Italian gelato brand Amorino announced the expansion of its UK franchise via a partnership with food franchise specialist Seeds Consulting. The brand has been a recipient of many awards on account of its focus on organic flavors and emphasis on environmental-friendly production methods.

Key Ice Cream Company Insights

Numerous small and mid-size players operating in various countries contribute to the overall growth of the market. The manufacturers are introducing new flavors and formats to enhance their sales volume which has been decreasing especially in developed regions such as North America and Western Europe. Nowadays, ice creams with natural ingredients, low calories, and health claims appeal the most to consumers, thus, manufacturers are focused on launching products with these attributes.

Recent Developments

• In April 2024, Unilever’s Magnum brand introduced the Magnum Pleasure Express, a trio of mood-inspired ice cream flavors that represent a significant innovation for the brand. The three new Magnum Pleasure Express flavors are Magnum Euphoria, a lemon ice cream with a raspberry sorbet core and white chocolate shell with popping candy; Magnum Wonder, toffee-flavored ice cream with a dated core, golden chocolate, and caramelized almonds; and Magnum Chill, a vegan option with vanilla-biscuit ice cream, blueberry sorbet core, cookie pieces, and vegan chocolate couverture. The launch of these ice creams is part of a comprehensive multi-channel customer journey, supported by Magnum's award-winning advertisements and a media campaign featuring Magnum enthusiasts boarding the 'Pleasure Express' train.

• In April 2024, Cold Stone Creamery launched a limited-time offering called the Waffle Ice Cream Taco, available exclusively from April 30 to May 5, 2024, at its stores nationwide. This unique creation features Sweet Cream Ice Cream within a freshly made waffle taco shell, coated with rich chocolate and sprinkled with crunchy peanuts.

• In February 2024, Nestlé announced its 2024 range of sharing bags inspired by popular ice cream flavors. The new selection includes Aero Melts, a Neapolitan flavor, Munchies Cookie Dough Ice Cream, Raspberry Ripple, Milkybar Buttons, and ice cream-shaped Rowntree’s Randoms Foamies.

• In March 2024, Dairy Queen announced the opening of the DQ Freezer for the first time, which contains all past Blizzard Treat flavors. To celebrate, two iconic flavors-Frosted Animal Cookie and Brownie Batter-will return for a limited time as part of the Summer Blizzard Treat Menu, available from April 1. New flavors include Peanut Butter Cookie Dough Party Blizzard Treat, Picnic Peach Cobbler Blizzard Treat, and Ultimate Cookie Blizzard Treat.

Ice Cream Market