The Resurgence of Ice Cream in the American Market
Americans Turn to Ice
Cream Once Again
o
After years of declining sales, ice cream made a
comeback during the 52 weeks ending August 6,
2017, increasing 3.9% to $6.1 billion. The North
American ice cream market is expected to have a
CAGR of 4.1% from 2018 through 2023.
o
Despite consumer health trends, only 11% of US
consumers surveyed reported reducing their
consumption of ice cream for health reasons and
10% said they avoided healthier versions of ice
cream because it is “meant to be a treat.”
o
Dollar sales of other frozen treat categories
perceived as being healthier, such as frozen
yogurt/tofu, decreased 7.7% and unit sales
decreased 10.9%.
Ice Cream Brands
o
Within the ice cream category, private label is
the biggest subcategory and accounted for
more than $1 billion in sales. Sales for this
subcategory, however, decreased 4.3% in
dollars and 3.7% in units.
o
Dollar sales for the frozen novelty subcategory
increased 0.6%, but unit sales decreased
1.7%, to 1.4 billion.
o
Private-label brands generated the most dollar
sales for the 52 weeks ending October 8,
2017, or $1.09 billion; followed by Ben &
Jerry’s, $639.7 million; Häagen-Dazs, $531.0
million; Breyers, $517.1 million; and Blue Bell,
$511.8 million.
Ice Cream Trends
o
Consumers are gravitating toward ice
cream brands with more natural,
recognizable ingredients: 56% say clean
labels are important and 44% cited natural
products. They also want GMO-free,
organic and other options.
o
The biggest breakout brand during 2017
was Halo Top, the leader in the lower-
calorie, low-sugar and high-protein frozen
treat category. Other companies, such as
Breyers and Yasso, are following suit and
introducing their own lines.
o
Ice cream companies are introducing a
variety of innovative flavors, such as
Campfire Toasted S’mores from Pierre’s Ice
Cream, PM ‘N Cones from Blue Bunny and
Cookie Butter from Carvel. Inclusions such
as fruit and cookie pieces add texture.
Ice Cream Specialty Shops
o
According to IBISWorld, there are 15,140 ice
cream stores in the US, employing 128,150
people and generating approximately $5 billion
in annual revenue.
o
Barriers to entry are relatively low compared to
other restaurants because owners only need
the equipment to sell one kind of food and do
not need to accommodate a large number of
seated customers.
o
The top-5 ice-cream franchise chains, based
on 2017 or 2018 total US units, were Dairy
Queen, 4,442; Baskin-Robbins, 2,560; Cold
Stone Creamery, 914; Culver, 623; and Carvel
Ice Cream, 341.
Frozen Yogurt Shops
o
According to data from Franchise Help, 69%
of frozen yogurt shops are self-service. One-
quarter of consumers say tart flavors, which
compete less with ice cream, are their
favorites. Toppings bars add revenues since
yogurt is priced by weight.
o
The top-five frozen yogurt chains accounted
for more than 60% of the overall market:
Menchie’s, 13.6%; TCBY, 10.8%;
Yogurtland, 10.6%; sweetFrog, 10.4%; and
Red Mango, 7.8%.
o
Ice cream is more likely to be eaten at home
(83%) compared to frozen yogurt (67%).
According to
Entrepreneur
, frozen yogurt
franchises are still a good business, even
though the market is crowded. Trending
flavors are gelato and frozen custard.
Advertising Strategies
o
July is National Ice Cream Month and July
15
th
National Ice Cream Day, which are
excellent opportunities to help local food
stores and ice cream shops create and
implement promotions to maximize foot
traffic and sales.
o
Because topping bars generate extra
revenues for frozen yogurt shops, promote a
special of 5 toppings for the price of 3, or
any other combination that is likely to attract
new customers.
o
Consider a cross-promotion with a specialty
dental clinic that offers teeth replacement,
by providing a coupon for a gallon of ice
cream for patients who have not been able
to eat ice cream. Mention the clinic in your
promotion and/or distribute its brochure in
the store/shop.
New Media Strategies
o
Host a “We All Scream for Ice Cream” Promotion
during July. Ask customers and social media
visitors to record videos of someone enticing
them with ice cream, and then screaming for it.
Invite everyone to vote for the best scream and
award appropriate prizes.
o
Create elaborate ice cream sundaes and post
videos of their creation and photos of the
finished products on your social media pages.
o
During one weekend of National Ice Cream
Month, allow customers create an ice cream
sundae with an ice cream of their choice and a
combination of toppings. Discount the sundaes
when they agree to pose for a photo and/or
video for posting to your social media.
Americans have rediscovered their love for ice cream, with sales increasing and a shift towards natural ingredients and innovative flavors. Despite health trends, ice cream remains a popular treat, outperforming perceived healthier alternatives like frozen yogurt. Specialty ice cream shops and franchises continue to thrive, reflecting the enduring appeal of this frozen dessert in the U.S. market.
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Presentation Transcript
Americans Turn to Ice Cream Once Again o After years of declining sales, ice cream made a comeback during the 52 weeks ending August 6, 2017, increasing 3.9% to $6.1 billion. The North American ice cream market is expected to have a CAGR of 4.1% from 2018 through 2023. o Despite consumer health trends, only 11% of US consumers surveyed reported reducing their consumption of ice cream for health reasons and 10% said they avoided healthier versions of ice cream because it is meant to be a treat. o Dollar sales of other frozen treat categories perceived as being healthier, such as frozen yogurt/tofu, decreased 7.7% and unit sales decreased 10.9%.
Ice Cream Brands o Within the ice cream category, private label is the biggest subcategory and accounted for more than $1 billion in sales. Sales for this subcategory, however, decreased 4.3% in dollars and 3.7% in units. o Dollar sales for the frozen novelty subcategory increased 0.6%, but unit sales decreased 1.7%, to 1.4 billion. o Private-label brands generated the most dollar sales for the 52 weeks ending October 8, 2017, or $1.09 billion; followed by Ben & Jerry s, $639.7 million; H agen-Dazs, $531.0 million; Breyers, $517.1 million; and Blue Bell, $511.8 million.
Ice Cream Trends o Consumers are gravitating toward ice cream brands with more natural, recognizable ingredients: 56% say clean labels are important and 44% cited natural products. They also want GMO-free, organic and other options. o The biggest breakout brand during 2017 was Halo Top, the leader in the lower- calorie, low-sugar and high-protein frozen treat category. Other companies, such as Breyers and Yasso, are following suit and introducing their own lines. o Ice cream companies are introducing a variety of innovative flavors, such as Campfire Toasted S mores from Pierre s Ice Cream, PM N Cones from Blue Bunny and Cookie Butter from Carvel. Inclusions such as fruit and cookie pieces add texture.
Ice Cream Specialty Shops o According to IBISWorld, there are 15,140 ice cream stores in the US, employing 128,150 people and generating approximately $5 billion in annual revenue. o Barriers to entry are relatively low compared to other restaurants because owners only need the equipment to sell one kind of food and do not need to accommodate a large number of seated customers. o The top-5 ice-cream franchise chains, based on 2017 or 2018 total US units, were Dairy Queen, 4,442; Baskin-Robbins, 2,560; Cold Stone Creamery, 914; Culver, 623; and Carvel Ice Cream, 341.
Frozen Yogurt Shops o According to data from Franchise Help, 69% of frozen yogurt shops are self-service. One- quarter of consumers say tart flavors, which compete less with ice cream, are their favorites. Toppings bars add revenues since yogurt is priced by weight. o The top-five frozen yogurt chains accounted for more than 60% of the overall market: Menchie s, 13.6%; TCBY, 10.8%; Yogurtland, 10.6%; sweetFrog, 10.4%; and Red Mango, 7.8%. o Ice cream is more likely to be eaten at home (83%) compared to frozen yogurt (67%). According to Entrepreneur, frozen yogurt franchises are still a good business, even though the market is crowded. Trending flavors are gelato and frozen custard.
Advertising Strategies o July is National Ice Cream Month and July 15thNational Ice Cream Day, which are excellent opportunities to help local food stores and ice cream shops create and implement promotions to maximize foot traffic and sales. o Because topping bars generate extra revenues for frozen yogurt shops, promote a special of 5 toppings for the price of 3, or any other combination that is likely to attract new customers. o Consider a cross-promotion with a specialty dental clinic that offers teeth replacement, by providing a coupon for a gallon of ice cream for patients who have not been able to eat ice cream. Mention the clinic in your promotion and/or distribute its brochure in the store/shop.
New Media Strategies o Host a We All Scream for Ice Cream Promotion during July. Ask customers and social media visitors to record videos of someone enticing them with ice cream, and then screaming for it. Invite everyone to vote for the best scream and award appropriate prizes. o Create elaborate ice cream sundaes and post videos of their creation and photos of the finished products on your social media pages. o During one weekend of National Ice Cream Month, allow customers create an ice cream sundae with an ice cream of their choice and a combination of toppings. Discount the sundaes when they agree to pose for a photo and/or video for posting to your social media.
