09Apr2011
Steady Growth Ahead For Ice Cream
Ice cream sales are expected to do better this year than last, but don’t expect meteoric growth from the category over the next five years.
That’s the word from Mintel International Group, the Chicagobased market research firm. It forecasts that that by the year 2015, sales will be slightly higher than 2008. Private label has lost momentum (and share) lately, and the surge for decadent brands appears to be over, according to the company’s October 2010 report on “Spoonable Desserts.”
NOT ENOUGH DIFFERENCE
Mintel warns that branded companies must be wary of private label trial, since “Oftentimes, shoppers do not see a big enough difference between the two and will stick with private label even after the economy improves. Contributing to this is the fact that private label has more premium versions of ice creams available, which offer the combination of an attractive price point and an indulgent treat.”
The research firm adds that the speed with which decadent ice cream brands faded in popularity “underscores the importance of continuous innovation to identify the next big trend.”
Frozen yogurt has grown by nearly 25% since 2005, and doesn’t show signs of slowing down, Mintel says. “Much of this growth can be attributed to consumers’ interest in eating better. Compared to ice cream, frozen yogurt allows them to do this while still enjoying an ice cream-like taste experience. Also, younger consumers grew up with refrigerated yogurt, which makes them more comfortable with the idea of frozen yogurt than older shoppers,” Mintel explains.
While sorbets, sherbets and ices are healthier than ice cream, they lack a distinctive identity, according to the research. “There seems to be less marketing support for this segment, as it is hard to define and position in the eyes of consumers. This lack of a strong brand presence helped private label generate $75 million in 2010 FDMx sales, which gives it a little more than 40% of the segment’s sales in these outlets,” according to Mintel.
