Global Panoramic view:
The global ice cream market size is estimated at 101.23 billion USD in 2023 and is expected to reach 125.93 billion USD by 2029, growing at a CAGR of 3.70% during the forecast period (2023–2029).
Off-trade is the largest distribution channel in the ice cream market, driven by an inviting shopping environment and large purchases. The market’s largest region is Europe, with high ice cream consumption in cold countries. Indulgence and increasing consumer preference for ice cream as a leisure product drive growth, while innovative flavours further drive the segment.
Off-trade is the fastest-growing distribution channel in the ice cream market, driven by the experimental economy and rising social media platforms. South America is the fastest-growing region, driven by health and wellness trends that lead consumers to prefer low-fat, lactose-free, and calcium-rich ice creams, with growth in gluten-free and low-sugar options.
The global ice cream market is primarily distributed through the off-trade segment, with consumers preferring to buy ice cream from supermarkets and hypermarkets due to discount coupons. This accounts for over 74% of overall sales as of 2023. Convenience stores are the second-largest channel, with sales value increasing by 3.4% in 2022 compared to 2021. These stores are more open than traditional retail stores, giving companies more time to sell their products.
Ice creams are commonly consumed as after-meal snacks in restaurants and foodservice channels, which is further boosting the global ice cream market’s growth. As of 2022, 47% of consumers consumed meals and ice cream at restaurants, and 31% ordered their food from foodservice channels globally. Consumption of ice cream, coffee, and desserts has become a sort of lifestyle in most developed countries.
In 2023, Africa had the highest global ice cream sales, accounting for 50%, primarily driven by the region’s strong preference for dining out. South Africa and Egypt were the leading countries in ice cream sales, covering 79% of total volume in 2022. South Africa had 3.5 million reservations in 2022, accommodating 17.8 million diners at restaurants across the country.
Consumers growing preference for sweet indulgence is driving market growth.
The global ice cream industry observed growth of 2.83% in 2022 compared to 2021. The growth was attributed to the rising number of consumers with a sweet tooth globally. In 2022, it was observed that the average Kiwi (people of New Zealand) consumed 28.4 litres of ice cream. The United States, Australia, and Finland had per capita consumption volumes of 20.8 lit, 18.0 lit, and 14.2 lit in 2022, respectively, compared to India’s low consumption of just 350 to 400 ml.
In North America, premium and regular ice cream hold 80% of the market. In 2022, 16% of the total population of North America preferred chocolate-flavoured ice cream, followed by cookie-n-cream and vanilla, preferred by 13% and 12% of the population, respectively. Some flavours, such as cookie dough and mint chocolate dip, were preferred by 11% of the population. In 2022, 37% of consumers preferred eating ice cream out of a bowl.
In the Middle East, consumers prioritize products’ shelf life to store them conveniently. Ice creams have a longer shelf life, ranging from 12 to 24 months, depending on the temperature. Consumers in the Middle East prefer to consume ice cream at home.
During 2017–2022, in Asia-Pacific, China dominated the ice cream industry with a whopping 4.3 billion litres worth of ice cream. India, Vietnam, and Indonesia amassed a total of 13 billion litres worth of ice cream sales. India sold 657 million litres of ice cream in 2021. With increased innovation in the ice cream industry, the demand for such products is expected to grow during the forecast period (2025–2029).
Global Ice Cream Market Trends
The strong penetration of ice cream parlours, the availability of diverse flavours, and the consumer preference for indulgent and healthier dessert options are driving the consumption of ice cream.
Ice cream is the most widely consumed dairy dessert globally, with strong penetration across different countries. The demand for ice cream is driven by the significant number of ice cream parlours and scoop shops emerging in response to the high consumer spending on different flavours of ice creams. Europe is a significant consumer of ice cream globally. In 2022, Germany, the United Kingdom, Italy, and Spain collectively covered 29.28% of the overall ice cream consumption.
Developed markets like the United States, the United Kingdom, Germany, and Australia are witnessing rising health concerns. Thus, consumers across the region prefer ice cream products that are GMO-free, preservative-free, dairy-free, low in calories, organic, and fat-free.
The Asian ice cream market is growing, with brands tapping into the ice cream trend from an indulgence and a health perspective. For example, per capita consumption of ice cream in India is expected to increase by 5.90% from 2023 to 2024. The growing consumer expenditure on food and beverages, the introduction of new flavours, increasing impulse purchasing, and strong demand for healthy ice cream products among consumers are some of the primary factors increasing the consumption of ice cream. 75% of consumers in Asia often try new or different varieties when purchasing ice cream products.
Ice Cream Industry Overview
The ice cream market is fragmented, with the top five companies occupying 28.04%. The major players in this market are General Mills Inc., Inner Mongolia Yili Industrial Group Co. Ltd., Nestlé SA, Unilever PLC, and Wells Enterprises Inc.
Ice cream market leaders
General Mills, Inc.
Inner Mongolia Yili Industrial Group Co. Ltd.
Nestlé SA
Unilever PLC
Wells Enterprises, Inc.
Other important companies include Blue Bell Creameries LP, Dairy Farmers of America Inc., Lotte Corporation, and Smith Foods Inc.
Why Winter Is the Best Time to Eat Ice Cream
Many people believe that ice cream is a treat only for hot summer days; however, that is not true. Simply because the weather is cold during the winter doesn’t mean you can’t enjoy a cool treat!
You don’t have to worry about your ice cream melting.
One of the biggest pains of eating ice cream in the summer is the constant dripping of your ice cream. Having ice cream on the go is a nearly impossible task. During the winter, you don’t have to worry about constantly licking and checking on your ice cream. You can take your time to savour and enjoy it! You even have the luxury of having ice cream on the go. There’s no rush since the cold weather is your freeze.
Cold weather and ice cream actually go together. It can be enjoyed without the stress of it melting, and it is perfect for soothing the sore throats that take place during this chilly season. It can be accompanied by other treats to make for the ultimate experience! I hope leading ice cream manufacturers in India are taking note of this interesting revelation.
Ice cream in Canada
Now coming to the topic of our core discussion about Canada and ice cream in Canada, one fact that should be borne in mind while assessing the Canadian ice cream market is to understand the total population of Canada, which is equivalent to the population of Gujarat only.
According to a report by Statista, the retail sales of ice cream in Canada have been forecast to grow from around 1.36 billion U.S. dollars in 2018 to approximately 1.49 billion U.S. dollars in 2021. The Canadian ice cream market is projected to reach 628.00 million USD (in retail prices) by 2025, increasing at a CAGR of 0.16% per annum for the period 2020–2024.
The Canadian ice cream sector is led by the ‘take-home and bulk ice cream’ category in both value and volume terms, while the impulse ice cream, single serve’ category is forecast to register the fastest value growth during 2018–2023. In 2018, the per capita consumption of ice cream was higher in Canada compared to the global level. In Canada, the per capita consumption of ‘take-home and bulk ice cream’ was higher than other ice cream categories in 2018.
In terms of market share, as of 2017, the Canadian ice cream market was dominated by Unilever and Nestle S.A., with a market share of 35.9% and 34.7%, respectively. The leading ice cream brand in Canada in 2017 was Breyers, with a 26% share of the market, followed by Häagen-Dazs, with around 14% of ice cream sales. Private-label or store-branded ice cream held a 13% share of this market.
Among the leading ice cream brands in Canada in 2017, Breyers had the highest retail sales at approximately 343.6 million U.S. dollars. Häagen-Dazs came in second with around 183.4 million U.S. dollars’ worth of sales.
Vanilla, chocolate, and strawberry are three of the most popular ice cream flavours, so it only makes sense to combine them in this creamy mash-up known as Neapolitan ice cream.
Canadian ice cream production revenue has been decreasing at a CAGR of 2.6% over the past five years and is expected to reach $980.2 million in 2023. This includes a 0.2% drop in 2023 alone, when profit is expected to reach 1.8%.
Economic conditions have negatively affected demand for ice cream. The discretionary nature of ice cream products makes sales dependent on economic conditions. During times of lower disposable income, ice cream sales slowdown as consumers prioritizes necessities and switch to more affordable alternatives. Prominent inflation and rising food prices further discourage consumers from splurging on additional products, harming producers.
Ice cream, widely regarded as a beloved treat for the masses, is experiencing a steady decline in demand within the Canadian market. Although retail ice cream sales are on the rise, the overall demand, encompassing both retail and service outlets, displays a concerning trend of diminishing popularity.
Over the past few decades, the quantity of available ice cream in Canada has experienced a significant reduction, serving as a surrogate marker for individual ice cream consumption.
Statistics Canada indicates that approximately 40 years ago, the average Canadian consumed around 12 litres of ice cream per year. This figure has decreased to a mere 4.5 litres, signifying a substantial shift in the demand landscape.
The observed decline in ice cream consumption may be attributed to evolving dietary preferences and health-related apprehensions. An increasing awareness of food allergies and intolerances has prompted individuals to re-evaluate their consumption of ice cream, leading some to eschew traditional ice cream retail outlets altogether.
Furthermore, the perception of ice cream as a caloric indulgence characterized by high sugar and fat content has positioned it unfavourably among health-conscious consumers. The advent of healthier treat alternatives has further diminished ice cream’s allure, and the 2019 iteration of Canada’s food guide, with its reduced emphasis on dairy products, including ice cream, may have compounded these effects.
The year 2020 witnessed a transient surge in ice cream demand, colloquially termed the “COVID ice cream bump,” wherein ice cream consumption spiked by over a litre per person within a single year, primarily attributed to in-home indulgence during pandemic-related lockdowns. Nevertheless, these levels have since returned to pre-pandemic levels, suggesting that the pandemic’s influence on ice cream consumption was fleeting.
Demographic changes are instrumental in shaping ice cream consumption patterns. With a decline in the number of children and the prevalence of smaller households, the conventional appeal of ice cream parlours as family destinations has diminished. Conversely, adults continue to enjoy occasional treats, albeit with greater health consciousness influencing their consumption behaviour.
Additionally, the ice cream market faces heightened competition from an array of frozen dessert options, such as frozen yoghurt, gelato, and sorbet, which cater to evolving consumer preferences. The diversification of ice cream offerings, featuring elaborate toppings and ingredients, further complicates consumer choices compared to the more straightforward options available in the past.
The contemporary lifestyle, characterized by time constraints and a preference for convenience, may also contribute to the declining demand for ice cream, as consuming ice cream requires a significant investment of time and attention.
The declining demand for ice cream in Canada embodies a nuanced interplay of factors, encompassing shifting dietary preferences, health concerns, demographic dynamics, intensified market competition, and the brief impact of the COVID-19 pandemic.
A list of the best Canadian ice cream brands
Kawartha Dairy Company
Chapman’s Ice Cream
Neilson Dairy
Village Ice Cream
La Diperie
Cows Creamery
Moo Shu Ice Cream
Earnest Ice Cream
Statistics Canada indicates that approximately forty years ago, the average Canadian consumed around 12 litres of ice cream per year. Presently, this figure has decreased to a mere 4.5 litres, signifying a substantial shift in the demand landscape.
The Canadian ice cream market had total revenues of $754.1 million in 2021, representing a compound annual growth rate (CAGR) of 2.3% between 2016 and 2021. Market production volume increased with a CAGR of 2% between 2016 and 2021, reaching a total of 146.9 million kilograms in 2021.
The top spot: New Zealand! Maybe it is the hot climate, the Kiwi birds, or the lush landscape that is perfectly complemented by an ice cream cone—no one knows. What we do know is that New Zealanders love themselves some ice cream, as each person consumes almost 28 litres (8 gallons) every year.
Second place: The United States! While Americans can sometimes get a bad reputation for eating a lot of ice cream, it turns out that they have secured only the second spot globally for ice cream consumption! No flavour is off limits, though, as each American goes to town on almost 26 litres (seven gallons) annually.
Third: Australia. The Aussies love ice cream almost as much as their southern neighbours. A full 18 litres (five gallons) are consumed per capita each year. But the real question is: Do the koalas enjoy it just as much?
Fourth: Finland Even though it is quite cold in Finland for the majority of the year, a Finn’s sweet tooth does not go into hibernation during the wintertime. As a whole, each Finn consumes 14 litres (four gallons) of ice cream annually.
Fifth: Sweden The Finns’ western neighbours in Sweden also enjoy their frozen desserts! On average, each Swede indulges in 12 litres (three gallons) of the sweet treat each year.
Sixth: Cananda It looks like Canada is quite different from their allies to the south, considering each Canadian only eats 5.49 litres (one and a half gallons) of ice cream each year. Oh, Canada, we know you can do better than that.
As you can see, this frozen dessert is popular in every corner of the globe. So where does India rank?
Now let’s understand Canada and its ice cream market through questions and answers.
What was the market size of the ice cream production industry in Canada in 2022?
The market size, measured by revenue, of the ice cream production industry in Canada was $981.9 million in 2022.
What was the growth rate of the ice cream production industry in Canada in 2022?
The market size of the ice cream production industry in Canada increased by 2% in 2022.
Has the ice cream production industry in Canada grown or declined over the past 5 years?
The market size of the ice cream production industry in Canada has declined by 0.6% per year on average between 2017 and 2022.
Is the ice cream production industry in Canada expected to grow or decline over the next five years?
Production is expected to increase. The potential for high per capita consumption is already there. Considering this industry is likely to grow in the coming years, over 6% of the total Canadian population is comprised of Indians. Considering this aspect, I see a great deal of scope for ice cream brands with traditional Indian flavours and tastes. The market for ice cream exports from India also looks optimistic.
How has the ice cream production industry in Canada performed compared with other Canadian industries over the past five years?
The market size of the ice cream production industry in Canada declined faster than the economy overall.
How has the ice cream production industry in Canada performed compared with the manufacturing sector in Canada?
The market size of the ice cream production industry in Canada declined faster than the manufacturing sector overall.
Where did the ice cream production industry in Canada rank in terms of market size in 2022?
The ice cream production industry in Canada was the 123rd-ranked manufacturing industry in Canada by market size and the 381st largest.
What factors affect the growth of the ice cream production industry in Canada?
The primary negative factor affecting this industry is high competition, while the primary positive factor is consumer spending.
What is the biggest opportunity for growth in the ice cream production industry in Canada?
Consumer spending tracks the total dollar amount spent by consumers over a given year. Ice cream is a standard consumer good, and rising income levels and consumer spending often indicate swelling demand for ice cream products. Consumer spending is forecast to expand in 2023, representing a potential opportunity for the industry.
Another trend visible in Canada is the sale of ice cream through delivery vans, especially in the summer.
During my frequent visits to malls and marts like Wall Mart and other large stores, I have come across gallon packs of bulk ice cream in cones, sticks, and tubs being sold even in moderate or cold weather.