The global ice cream market is projected to reach $91 billion by the end of this year, reflecting its enduring popularity worldwide. This growth is driven by an increasing variety of flavors and formulations, innovations in production techniques, and rising demand for premium and artisanal options. Additionally, emerging markets are experiencing a surge in ice cream consumption due to rising incomes and a growing middle class. As manufacturers introduce novel products and cater to diverse consumer preferences, the market’s upward trajectory is expected to continue.
A recent study by Barry Callebaut shows that 75% of global consumers are eager to try new ice cream experiences. This shift in consumer behavior indicates a growing openness to unconventional and adventurous flavors. The allure of exotic ingredients, reinvented classic flavors, and innovative textures has made consumers more curious and willing to experiment. This trend in consumer market trends offers ice cream brands a chance to differentiate themselves with unique flavor profiles and limited-edition offerings that captivate their audience.
Ingredients are crucial in shaping the future of ice cream, driving new flavor experiences. Consumers increasingly seek products made with high-quality, natural ingredients that enhance taste and align with health and sustainability values. Popular trends include flavors inspired by florals, botanicals, and bakery treats like lavender honey, rose petal, and cinnamon roll. Sustainable and responsibly sourced ingredients are also gaining traction as consumers become more environmentally conscious. By focusing on innovative ingredients, ice cream brands can create memorable and enticing flavors that keep consumers coming back for more. Additionally, the incorporation of protein and other functional ingredients in dairy products addresses the growing health and wellness trends while maintaining the indulgence factor that consumers prefer.
Market Growth Projections
The ice cream market is poised for robust growth over the next few years, driven by evolving consumer preferences and continuous innovations in the industry with an expected CAGR of of 5.7%.
Here are some of the key drivers of growth-
- Innovation in Flavors and Ingredients: The introduction of exotic and novel flavors, as well as the use of high-quality, natural ingredients, will attract adventurous consumers.
- Health and Wellness Trends: Growing demand for healthier options, including low-sugar, high-protein, and functional ice creams, will expand the market.
- Sustainability and Clean Label: Increasing consumer awareness of environmental issues will drive the demand for sustainably sourced and clean-label ice cream products.
- Technological Advancements: Improvements in production, storage, and distribution will enhance product quality and availability, supporting market growth.
Consumer Trends
Recent research conducted by Barry Callebaut highlights a significant trend in the ice cream industry: 75% of global consumers are eager to try new ice cream experiences. This excitement reflects a broader shift towards adventurous and experimental eating habits. Consumers are no longer satisfied with traditional flavors; they seek innovative combinations and unique taste experiences that surprise and delight their palates. This growing curiosity presents an excellent opportunity for ice cream brands to introduce novel flavors and ingredients that cater to this adventurous spirit, thereby differentiating themselves in a competitive market.
Shannon Fitzgerald, marketing manager at Balchem in Montvale, N.J., underscores the enduring appeal of bakery-inspired flavors in the ice cream market. According to Fitzgerald, flavors such as caramel apple pie, cinnamon roll, and brownie batter tap into a sense of nostalgia while offering a comforting indulgence. These flavors resonate particularly well with consumers looking for a sense of familiarity and warmth in their treats. By incorporating elements of beloved baked goods, ice cream brands can evoke fond memories and provide a sense of home, all while delivering a deliciously indulgent experience. This trend not only drives consumer interest but also offers a creative avenue for flavor innovation.
50% of U.S. Gen Z consumers are motivated to purchase frozen treats featuring baked good flavors. This demographic shows a strong preference for ice cream that offers both novelty and indulgence. Gen Z consumers are particularly drawn to flavors that combine the comfort of traditional baked goods with innovative twists. This interest in unique yet familiar flavors provides ice cream brands with a roadmap for product development. By targeting Gen Z’s desire for experiential and Instagram-worthy flavors, brands can capture the loyalty of this influential and trendsetting consumer group.
Mike Hengelsberg, director of business development for Flavors and Functional Ingredients at Osage Food Products, notes the rising popularity of mash-up flavors in the ice cream market. These innovative combinations, such as spicy caramel or fruity chocolate, cater to consumers’ growing appetite for bold and unconventional tastes. Hengelsberg also highlights the successful introduction of traditional ice creams from around the world into the U.S. market. For instance, Turkish ice cream, known for its unique texture and elasticity, has gained traction among American consumers. This trend towards international flavors not only broadens the range of options available but also reflects the increasing globalization of taste preferences. By embracing mash-up and international flavors, ice cream brands can appeal to a more diverse and adventurous consumer base.
Flavor Innovations
The ice cream industry is embracing unique flavor trends, with florals (like lavender and rose), botanicals (such as basil and elderflower), and bakery-inspired flavors (like cinnamon roll and caramel apple pie) leading the way. These innovative flavors offer aromatic, refreshing, and nostalgic experiences that attract curious consumers and set brands apart in a competitive market.
Super premium ice cream products are gaining popularity for their high quality and indulgence. Made with the finest ingredients and featuring rich, decadent flavors, these ice creams provide a luxurious taste and texture. Despite economic challenges, consumers are willing to pay more for these exclusive treats, seeking small, affordable luxuries.
Innovative flavors like Turkish Ice Cream and Spicy Blood Orange are captivating adventurous eaters. Turkish Ice Cream offers a unique chewy texture and exotic taste, while Spicy Blood Orange combines citrusy sweetness with a hint of heat from turmeric and ginger. These flavors showcase the creativity of ice cream makers and cater to consumers’ evolving tastes.
Health and Indulgence Balance
Sugar reduction in ice cream remains a niche segment, despite growing health trends. According to recent data, only about 3% of new ice cream launches in the 52 weeks through March 2024 featured a low-sugar, no added sugar, or sugar-free claim. This statistic underscores the challenges in maintaining the desirable texture and flavor of ice cream without sugar, as it plays a crucial role in the product’s consistency and mouthfeel.
"Sugar reduction isn’t happening broadly with ice cream innovation. In the 52 weeks through March 2024, only about 3% of new ice cream launches featured a low-sugar, no added sugar, or sugar-free claim"
The market for plant-based and reduced-sugar ice creams is experiencing notable growth, driven by health-conscious consumers and dietary restrictions. Plant-based ice creams made from almond milk, oat milk, and coconut milk are becoming mainstream, appealing to vegans and those with lactose intolerance. Additionally, there is a growing segment of reduced-sugar ice creams, utilizing natural sweeteners and innovative ingredients to cater to those seeking healthier alternatives without compromising on taste.
Healthier ice cream ingredients are gaining traction as consumers prioritize wellness. Ingredients like prebiotics and probiotics are being incorporated to enhance gut health, while protein-enriched formulations cater to fitness enthusiasts. Natural sweeteners, such as stevia and monk fruit, are replacing traditional sugars to reduce calorie content. Additionally, fiber-rich ingredients like inulin and soluble tapioca fiber are being used to improve texture and add nutritional benefits. These trends reflect a broader movement towards creating ice cream that is both indulgent and aligned with modern health and wellness goals.
The ice cream industry is seeing the introduction of innovative ingredients that enhance both the quality and health benefits of frozen desserts. EXBERRY Carotenes, derived from saltwater algae, provide vibrant yellow hues naturally, supporting clean-label initiatives without impacting flavor. Citri-Fi citrus fiber, produced from citrus juicing byproducts, offers natural thickening, creaminess, and emulsification, making it ideal for improving texture in ice creams. ViaTech, another breakthrough, helps brands reduce sugar while maintaining a clean, rounded flavor profile. These new ingredients not only meet the demand for natural and sustainable options but also improve the sensory qualities of ice cream.
Incorporating prebiotic and protein ingredients into ice cream is revolutionizing the market by adding functional health benefits. Prebiotics, such as inulin, promote gut health by fostering beneficial bacteria, making ice cream a more appealing option for health-conscious consumers. Protein-enriched ice creams cater to fitness enthusiasts and those seeking longer-lasting energy. Ingredients like pea protein and whey protein concentrate are being used to enhance the nutritional profile without compromising taste or texture. These additions make ice cream not just a treat, but a functional food that supports overall health and wellness.
Leading companies are setting the pace with innovative ice cream products that incorporate advanced ingredients. Cargill’s portfolio includes ViaTech for sugar reduction and Zerose erythritol to manage bulking and freezing point depression, enabling lower-calorie options without sacrificing texture. Global Organics offers Organic Agave Inulin powder, which acts as a prebiotic and helps reduce sugar content while increasing dietary fiber. BENEO’s faba bean protein concentrate and Orafti Inulin provide plant-based protein and act as fat substitutes, respectively, enhancing the creaminess and nutritional value of ice creams. These companies are at the forefront of blending indulgence with health, meeting the evolving demands of modern consumers.
Future Market Dynamics
Sustainability in ingredient sourcing and manufacturing is crucial for the ice cream industry. Consumers increasingly demand transparency and eco-friendly practices. Sustainable sourcing involves using ingredients from regenerative agriculture and fair-trade practices, while sustainable manufacturing focuses on reducing carbon footprints, minimizing waste, and optimizing energy efficiency. Prioritizing sustainability not only protects the environment but also builds consumer trust and loyalty.
Several companies are leading the way with eco-friendly practices in the ice cream industry. Alec’s Ice Cream uses Regenerative Organic Certified (ROC) ingredients, supporting sustainable farming. Florida Crystals operates the largest organic farm in Florida, focusing on regenerative agriculture. BENEO’s Pemuco, Chile site invested significantly to increase capacity while reducing energy consumption by 35%. These initiatives showcase successful integration of eco-friendly practices, benefiting both the environment and brand reputation.
There is a growing consumer demand for clean-label and plant-based ingredients in ice cream. Clean-label products, free from artificial additives and preservatives, appeal to health-conscious consumers seeking natural, wholesome foods. The plant-based movement is also gaining momentum, with more people seeking dairy-free alternatives due to dietary preferences, lactose intolerance, or ethical concerns. Ingredients like almond milk, oat milk, and coconut milk are popular bases for plant-based ice creams, offering creamy textures and rich flavors without animal products. Brands meeting these demands attract a broader consumer base and capitalize on shifting consumer market trends.
Conclusion
The ice cream market is experiencing dynamic growth driven by key factors such as consumer demand for natural, clean-label, and sustainable ingredients. Unique flavor trends, including florals, botanicals, and bakery-inspired varieties, are capturing interest, while indulgent and nostalgic flavors remain favorites. Super premium products highlight a preference for high-quality experiences, and the rise of plant-based and nutrient-dense ice creams caters to health-conscious consumers. Innovations in ingredients and the impact of commodity prices are also shaping the market. These drivers and trends forecast a vibrant future for the ice cream industry.
Ai Palette uses advanced AI to help ice cream brands stay ahead of consumer trends and consumer market trends. By analyzing data from multiple sources, Ai Palette identifies emerging trends and provides insights into consumer sentiment and purchasing behavior. This enables brands to make informed decisions on product development and marketing. Ai Palette’s predictive analytics forecast future trends, allowing proactive innovation. With Ai Palette, ice cream manufacturers can navigate market complexities, optimize ingredient sourcing, and create products that resonate with modern consumers.
