Ice cream, frozen desserts growing in the recession
January 8, 2010
NEW YORK — The U.S. market for ice cream and frozen desserts increased 2% and reached $25 billion in 2009, according to market researcher Packaged Facts. The market is expected to reach $27 billion in sales by 2014.
“The recession has raised consumer commitment to finding the best price/value balance in their frozen desserts,” said Don Montuori, publisher of Packaged Facts. “Manufacturers, retailers and food service operators are all working to keep consumers happy by offering a wide assortment of deals. At the same time, frozen desserts represent an opportunity for relatively inexpensive indulgence. Here again, marketers are offering bargains in order to keep volume flowing, and retailers are improving and upscaling their private label offerings.”
Overall, the frozen desserts business in the United States has been considered recession-proof based on performance during previous downturns, and since the beginning of the current economic downturn, packaged frozen dessert marketers and food service operators have used various discounts and deals to keep volume sales up to appeal to cost-conscious consumers.
New products in the market appeal to social conscious consumers, those looking for Latin flavors and those looking for added healthy ingredients such as probiotics and omega-3 fatty acids. Given opportunities with the healthy aspects of yogurt culture, yogurt is expected to outpace other frozen dessert categories through 2014.
The research is part of Packaged Facts report, “Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities in Retail and Foodservice.”