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Summary of our market study
The global ice cream market has been projected to grow, driven by increasing demand, especially in emerging countries with rising living standards, such as those in Asia. The Asia-Pacific ice cream and sorbet market, in particular, is expected to expand significantly. Health consciousness among consumers has led to a surge in demand for premium, high-quality ice cream with exotic flavors and organic ingredients. Despite the COVID-19 pandemic, the UK ice cream market saw a 17% increase in demand in 2020, with Scottish producer Mackie's achieving a substantial 37% sales growth, taking over 6% of the market share. Seasonal consumption remains paramount, with warm summer months being peak periods for sales. The UK has also shown a growing interest in low-calorie, non-dairy, and customizable ice cream options. However, full numerical data regarding market size, growth rate, and specific figures from 2020 onwards is not available in the text and, therefore, cannot be provided.
The British Ice Cream Market: Insights and Consumer Preferences
In recent years, the United Kingdom has seen a significant evolution in its ice cream market. With an appetite for ice cream that is not only undiminished but growing, Britons have demonstrated a clear preference for a variety of flavors and types of ice cream products. The UK market is discerning, with an inclination towards luxury and premium segments, as well as a burgeoning interest in low-calorie and plant-based options. Despite fluctuations in consumption volumes over the years, a number of factors have contributed to the ever-changing landscape of ice cream demand in the UK. For instance, the UK has an established practice of importing more ice cream than it exports, with imports primarily coming from other European countries such as France, Germany, and Italy. The volume of imported ice cream amounts to three to four times the volume of ice cream that the country exports. It's worth mentioning that, exports increased by more than 65%, which reflects a growing competitiveness of British ice cream abroad despite the continued preference for foreign products domestically. When it comes to flavor preferences in the UK, vanilla reigns supreme with around 84% of Britons favoring it, followed by chocolate, strawberry, mint chocolate chip, and cookie dough.
The structure of the market is dominated by individual specialities such as cones and sticks and bulk products like sorbets and fruit tubs. Ice cream's popularity surges in the warmer months, approximately from mid-May to the end of August, with sales during this period accounting for around half of the annual total. The COVID-19 pandemic had a surprisingly positive effect on ice cream sales in the UK. Lockdown measures and the resulting increased time spent at home saw a surge in ice cream consumption. Warmer summer weather contributed to this uptick in consumption as well. Looking at the brands, Magnum sits atop the hierarchy of consumer preference, being the choice of almost a third of ice cream consumers in the UK. The preferred modes of ice cream include cones and tubs, while bars and sticks are less in vogue. British consumers also show a high loyalty to certain brands, with significant market shares held by international players like Unilever, Mars, Nestlé, General Mills, Lotte, and Dunkin' Brands.
Giants of the Frozen Dessert Arena: Industry Stalwarts Steering the UK's Ice Cream Market
Delving into the frosty domain of the UK's ice cream market, one cannot help but notice the dominance of a few prominent international brands. These titans not only rule the retail shelves but have also managed to secure a special place in the preferences of British consumers.
- Magnum, an icon of indulgence and Unilever's flagship brand, leads the pack with its luxurious chocolate-coated ice cream bars that have garnered a stalwart following. The Magnum brand has become synonymous with premium quality, offering a wide range of flavours and continuously innovating with new tastes and textures that cater to the sophisticated palate of the UK's ice cream lovers.
- Ben & Jerry's is another formidable contender, capturing both hearts and market share with its whimsical flavour names and a commitment to social justice. Their tubs, packed with chunky mix-ins and swirls, offer consumers an escape into a world of flavour, where cookie dough pieces and chocolatey chunks reign supreme.
- Haagen-Dazs, under the umbrella of General Mills, continues to enchant with its rich and creamy offerings. It's a brand that focuses on simplicity and quality, often highlighting just a few key ingredients to create an intense and satisfying taste experience.
- Carte D'Or, also part of the Unilever portfolio, offers a broad array of flavours from classic vanilla to more exotic varieties, catering to the diverse preferences of ice cream connoisseurs across the UK. Their presence affirms the consumers' love for tradition blended with innovation.
- Not to be overshadowed, the Scottish producer Mackie's has made significant inroads into the market, priding itself on locally-sourced ingredients and family-run business charm. Their growth has been notable, capturing the hearts of those who lean towards supporting regional brands and wish to indulge in the authenticity of Scottish flavours.
- Additionally, the rise of Halo Top has been a testament to consumers' growing health consciousness. Specializing in low-calorie ice creams without sacrificing taste, Halo Top has resonated with those who keep an eye on their fitness and waistlines, successfully tapping into the healthy lifestyle segment.
- Beyond the giants, brands like Rowntrees and Calippo bring fruity and refreshing treats to the mix, thriving during the warm summer months and appealing to those who seek a sweet apart from the creamy richness of traditional ice creams.
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Summary and extracts
1 Market overview
1.1 Definition and scope of the study
Ice cream is a food made from from milk, sugar, fruit and a variety of flavours. A sorbet consists solely of sugar syrup and fruit pulp or flavorings.
There are different types of ice cream available in shops: cones and sticks (sometimes sold individually), ice cream specialities to share (logs and ice cream cakes) or even fruit tubs and jars of ice cream and sorbets sold in large food stores (e.g. supermarkets).
In terms of volume, the home consumption market is dominated by individual specialities (cones, sticks, etc.) and bulk sorbets and ice cream (particularly fruit tubs), with the remainder consisting of seasonal collective specialities (Christmas logs, etc.). It is the snack ice segment that plays the most important role in the sale of ice cream during the summer period and ice cream consumption varies considerably during the year and from one year to the next, depending on the weather conditions.
The world market for ice cream and sorbets was estimated at 57.9 billion in 2018. It is expected to grow at a CAGR (compound annual growth rate) of 4.9% between 2019 and 2025 to reach $84.9 billion by 2025. The global market is highly fragmented, but some of the main market players include Unilever, Mars, Nestlé, General Mills, Lotte and Dunkin’ Brands.
Ice creams can be categorised in different ways:
- Typology (cones, sticks, tubs etc)
- Flavours
- Segmentation (choc snacks, luxury ice cream, premium)
- Plant based or not
- Artisanal or industrial
In 2018, 385 million litres of ice cream were consumed by the British. The UK is a net importer of ice cream, regularly importing between three and four times the amount of ice cream it exports. Ice cream imports into the UK mostly come from France, Italy and Germany.
The overwhelming favourite ice cream in the UK is the classic Magnum, with almost 30% of Britons admitting preference for this type of ice cream. Vegan ice cream is a segment that is expected to grow rapidly over the next few years (CAGR of 7%) due to consumers' increasing health and ecological concerns. Vanilla is the favourite ice cream flavour for 84% of Britons.
The COVID-19 pandemic had a positive impact on the ice cream market in the UK. In fact, sales increased by 17%, compared to 2019, with companies like Mackie’s further consolidating a larger share of the national market. After the end of lockdown Britons wanted to be out, and the opening coincided with warmer summer months resulting in increased ice cream consumption.
1.2 The global ice cream market is growing
The global market for ice cream and sorbets was estimated at $**.* billion in ****. It is projected to grow at a CAGR (***) of *.*% between **** and **** to reach $**.* billion in ****.
World ice cream and sorbet market World, ****-*****, in billions of dollars Source : DPO
This growth is explained by the development and rise in living standards in emerging countries, particularly in Asia. Indeed, the ice cream and sorbet market in Asia-Pacific is expected to grow at a CAGR of *.*% between **** and ****. Moreover, market growth is also driven by an increase in the range of products due to the growing health concerns of populations. China is the largest market globally, surpassing the United States. In South America, Brazil is understandably the largest market for ice creams. The trend regarding the African continent is consistent with other regions and is expected to grow at a CAGR of *.*% between ****-**** [***]. Different types of ice cream are becoming more popular. Ice cream for immediate consumption is growing due to the increasing demand for snacks in small portions. Takeaway ice cream is also in high demand due to the increasing number of occasions and gatherings at home where ice cream is consumed as a snack or dessert. ...
1.3 The growing UK market
In the UK the retail value of ice cream has been increasing for over a decade. The same cannot be said for the retail volume of ice cream in the UK, which has fluctuated. In **** the retail value and volume of this market were estimated at *** million GBP and *** million litres, respectively. By **** these figures were projected to be *.*** billion GBP and *** million litres.
Evolution of retail value and volume of ice cream UK ****-****, in millions of GBP and millions of litres Source: ****
As we can see from this graph, the retail value of ice cream has been drastically increasing, with the retail volume staying around the same, some years increasing and some decreasing. There is a premuimisation of the market with market growth being driven by the price instead of the volume.
For ice cream manufacturers in the UK, the market is not exactly stable, both in terms of volume and in terms of value. After seeing a period of growth in the early ****s, there was a massive drop off in ****, followed by a very slow recovery leading up to ****. However, in ****, the ice cream market in the UK had generated total revenues of *.* billion GBP, growing ...
1.4 Import & Export: Britons prefer foreign ice cream
The stereotypes and anecdotes of the poor quality of British cuisine seem to extend within the reality of the ice cream market. The UK historically imports a lot of ice cream from abroad (***). However, the UK also exports its own ice creams throughout the world.
Using the UN Comtrade database, and the specific code **** which corresponds to ice creams, which tracks imports and exports, we can observe the patterns of ice cream trade in the UK.
Imports and Exports of ice cream UK, ****-****, in millions of £ Source: ****
As can be observed in the graph above it took ** years for British ice cream exports to (***) double. In these ** years, exports grew by more than **% from *** million GBP in **** to *** million GBP in ****. The years of **** and **** saw noticeable dips in both imports and exports, the same was observed in ****, but it was negligible. Both imports and exports of ice cream to and from the UK stayed almost the same between **** and ****.
As mentioned above, the UK's main trade partners regarding ice cream are from the EU. In fact, **% of EU ice cream exports (***) were destined to the UK. The flow of trade is in fact bi-lateral with **% of non-EU ice cream ...
1.5 The Impact of COVID-19
The COVID-** pandemic and ensuing economic fallout had a significant impact on the ice cream market in the UK. However, unlike most other markets and economic segments ice cream sales actually increased, and the market as a whole grew. This can be attributed to different reasons:
Families are the main consumers of ice creams: due to the extended periods of lockdown more families were more at home, this resulted in increased ice cream sales and therefore growth Lockdowns, extended isolation, periods of sadness/depression due to the losing of jobs, family members and social contact all led to a boost in the consumption of ice cream. Despite appearing stereotypical/ridiculous, the consumption of sugary, high calorie comfort foods (***) does see an increase in what are deemed 'difficult times' After the months of lockdown the UK (***) experienced a warm summer. These two factors compounded resulted in more people being out more frequently. In fact, Kantar calculated that in the months of June-July-August there were ** million more ice cream consumption occasions per week than the previous year
**** saw a boost in both home and out of home ice cream sales, it was seen as a convenient and affordable snack that had a ...
2 Demand Analysis
2.1 Seasonality and consumption habits
As mentioned earlier, summers and periods of warm weather represent the most important period for the consumption of ice cream. The particularly warm summer of **** saw a boost in sales which the relatively cooler summer of **** did not benefit. It is estimated that the period of time between mid-May and end of August represents around **% of ice cream sales. Artisanal, off-brand and to-go ice cream producers and sellers particularly benefit during these months [***].
The graph below represents the proportion of searches for the term 'ice cream' in the UK since ****, compared to when it was the most searched (***). Therefore, a value of ** means that the keyword has been used less often in the region concerned, and a value of * means that there is insufficient data for this keyword.
Over the last * years, we observe that demand has been strongly cyclical, with a peak in interest during the summer months, which is consistent with the results detailed above.
Search interest for 'ice cream' UK, ****-**** Source: Google trends
For the past decade, consumers in the UK have been eating more and more ice cream. In fact, the average purchase per person per week of ice cream (***). Regarding tubs, the average consumption ...
2.2 Preferences in terms of flavours, typology, and brands
According to a recent survey by the Ice Cream Associations vanilla is overwhelmingly the preferred ice cream flavour in the UK, followed by chocolate, strawberry, mint chocolate chip and cookie dough. Ice cream sellers confirmed this preference with **% of them stating that vanilla was their most sold flavour.
Ice creams, and therefore preference for ice cream can be classified in terms of their typology:
Cones Tubs (***) Bars Sticks Mini format (***)
Year after year cones are the preferred type of ice cream, followed by tubs, bars, stick, and the mini format.
Preferred type of ice cream UK, ****-****, in millions of users Source: ****
While the preference for ice cream in the form of cones, tubs and mini-format has remained relatively constant with minor fluctuations, bar ice creams have steadily become less popular, with sticks seemingly gaining.
When speaking of preferred brands, Britons seem to have a high degree of preference within each type of ice cream. Yougov ran a poll to determine the favourite 'ice lolly' in the UK. While 'ice lolly refers' exclusively to "products made from mainly fruit juice or puree, water and sugar but may include flavour, flavouring or colours and have minimum fruit content for non-citrus fruits of ...
2.3 On the couch, on the go & at the table: where Britons eat their ice cream
In a survey conducted by TheGrocerUK, it was revealed where British people consume their ice cream. * situations/locations were possible answers to this survey (***). Respondents could pick more than one answer as they were not mutually exclusive. Over **% of responders said they eat their ice cream on the couch or on the go, while **% said they don't eat ice cream.
Where Britons eat their ice cream UK, ****, in % share of respondents Source: ****
It is important to note that answers were not mutually exclusive and respondents could choose more than one answer, which explains why the total percentages surpass ***.
2.4 Latest trends in demand
The latest consumer trends are quite varied concerning the ice cream market in the UK: they range from nutritional characteristics, to flavour, to typology of ice cream and much more.
As one may expect, as more people become acutely aware of their diets, a shift toward lower-calorie, low sugar, no preservatives/colourants ice cream has been taking place. Brands such as Halo saw a CAGR of ***% in their low calorie ice cream in the years ****-**** [***].
An increase in appeal of non-dairy ice cream has also taken place over the last few years with **% of UK adults saying they avoid consuming dairy altogether and **% saying they have avoided eating dairy in the * months prior [***].
**% of ice cream consumers in the UK have also expressed openness/favourability towards the possibility of customised ice cream (***) [***].
Handheld format ice creams are also increasingly appreciated for two reasons: they can be eaten in one sitting but also while moving. In fact, **% of ice cream consumers in the UK stated that they appreciated a product that can be consumed 'on the go' [***].
Premium ice creams have also seen a huge surge in popularity with **% of ice cream shoppers revealing that they would be willing to ...
2.5 The incessant growth of vegan & plant-based
The desire for plant based & vegan ice creams are increasing worldwide
Consumers in the UK are becoming more and more conscious about what they eat and this is no different regarding their ice creams.
In the UK, the vegan ice cream market is expected to show a swift CAGR of *% for the years ****-****. The main factors pushing this trend are health, ecological/environmental concerns, and animal treatment concerns among others. The median age is increasing, and older people are generally more aware and careful about their diet. This segment of the population is also more inclined to spend higher amounts of money on better quality food. This trend is also reflected by the increasing offer in both supermarket aisles and individual shops [***].
There is serious competition regarding this specific sector of the ice cream market. This is due to a lower degree of differentiation between products, similar prices between products (***) as well as a volatile market [***].
According to Mintel's Global New Product Database, new vegan ice cream launches accounted for *% of all new ice cream launches in the UK in ****/**. This represents a large share of a newly emerging market, and a huge increase compared to just *% in ****/**. Additionally, since ...
3 Market structure
3.1 Main players
The ice cream market in the UK is dominated by well known international brands, which are part of large global groups. In **** the most valuable brands were Magnum, Ben&Jerry's, Haagen Dasz and Carte D'Or.
Most valuable ice cream brands and year-on-year growth UK, ****, in millions of £ and % Source: ****
NB The growth for Halo Top from **** to **** was of over *.***% which could not be included in the graph
Three of the most valuable brands in ****, Rowntrees, Halo Top and Calippo were not in the ranking for **** and experienced huge growth. This demonstrates a certain degree of openness to new players. Halo Top specialises in low-calorie products and is the main player for this type of product. Additionally, its products were exclusively sold at Tesco [***].
In terms of market share regarding premium ice cream six brands hold an overwhelming majority of this market.
Market share of premium ice cream UK, ****, in % Source: ****
It is important to note that Mackie's control **% of the market share in Scotland, indicating territorial loyalty (***).
Many of the most valuable and best-selling brands are parts of big international groups. For example, Magnum, Cornetto and Calippo are all part of the Unilever group, while Kit-Kat, Smarties, Oreo and Milka ...
3.2 Value chain
Source: ****
The challenge in the production and distribution of ice cream and sorbets is not to break the cold chain. Products must be kept at a temperature of -** °C or below. Ice creams or sorbets must be kept at -** °C until they are delivered to the consumer.
3.3 Production
The production of ice cream is structured around * steps:
*) The different raw materials (***) are mixed and then pressurised. The mixing is carried out at a temperature of -*°C.
*) The mixture is churned slowly for about ** hours in order to make the "ice cream" homogeneous.
*) Then comes the pre-freezing stage which consists in solidifying and aerating the mixture.
*) The mixture is frozen in order to finish solidifying the ice. This is known as the forming.
*) The ice cream is placed in a temperature of -**°C and will be kept under this temperature.
Industrialists are investing to increase their means of production
To keep up with the increase in demand, manufacturers have invested in their production facilities. One example is General Mills, which increased its capacity by **% for Häagen Dazs. These increases in capacity are to be compared with the increase in exports. Domestic production capacities are increasing to cover for British demand but also to satisfy the export ambitions of producers.
Manufacturers are also investing in qualitative production means. Consumers value the taste and appearance of artisanal ice cream. Manufacturers are also adapting their production by segmenting their capacities between classic ice cream and ...
3.4 Distribution
In the UK the distribution and sale of ice creams is highly concentrated. In fact, mass retailers buy almost **% of the production of ice cream in the UK. Tesco is the main seller with **.*% of market share, followed by Sainbury's with **.*% and ASDA with **%.
Market share of ice cream distribution UK, ****, in % Source: ****
3.5 Different sized manufacturers
In the UK, ice cream manufacturers can be categorised by their overall turnover. A large minority finds themselves between the £***.***-£***.*** annual turnover. In **** there were no manufacturers with a turnover superior to £*** million.
Share of ice cream producers by annual turnover UK, ****, in % Source: ****
4 Analysis of the offer
4.1 A huge and varied offer
The structure of the offer
The ice cream and sorbet market offers a wide range of products, differentiated by many factors:
Flavour;
Typology;
Cones Tubs (***) Bars Sticks Mini format (***)
Segmentation;
Choc snacks Luxury ice cream Premium ice cream Kids Cones/Sticks Standard Adult refresh Individual dessert
Vegan/plant-based or not;
Artisanal or industrial and many more.
Nevertheless, despite this great diversity, a large part of the market is concentrated between few types of products. As seen above, cones are by far the most popular format, with stick and bars also being largely appreciated in the UK. This signals towards consumers preference in single sitting consumer products that can be eaten on the go. Vanilla is an overwhelming favourite regardless of typology of ice cream.
Overview of the main types of products
Individual ice cream
Individual ice creams include cones, sticks, ice cream tubes and mini formats. There are several brands such as Magnum, Cornetto, for Unilever. Wall's produces its very famous Twister
Ice cream to share
These are the more copious formats such as ice-cream cakes or party ice cream like logs. The best known brands are, Nestlé Signature, Vienneta or Carte d'or.
Tubs (***)
These are ice cream containers of ...
4.2 Prices and production costs
From **** to **** in the UK, the average price for ice cream has fluctuated. Over this period of time the average price per liter of ice cream was £*.**, peaking in **** at £*.** per litre and hitting a low of £*.* per liter in ****.
Average price per litre of ice cream UK, ****-****, in £ per litre Source: ****
Prices for individual types of ice creams vary according to ice cream but also based on geographic location (***).
Product UK Retail Price Price in Dorset local supermarket Small store in Manchester Price in Central London (***) Price in highway gas station near Derbyshire Average Magnum classic £*.** £* £*.** £*.** £*.** £*.** Twister (***) £*.** £*.** £*.** £*.** £*.** £*.** Calippo orange £*.** £*.** £*.** £*.** £*.** £*.** Feast £*.** £*.** £*.** £*.** £*.** £*.** Magnum almond £*.** £*.** £*.** £*.** £*.** £*.** Solero exotic £*.** £*.** £*.** £*.** £*.** £*.**
Source: ****
NB The average is calculated taking into account multiple other locations that are not displayed in this table
When speaking of the cost of production for the same time period (***) production costs have been increasing. Using the code MM** on the Office for National Statistics website, which corresponds to ice cream, the producer price inflation over time can be observed.
Producer price inflation UK, ****-****, base *** in **** Source: ****
An initial decrease in production costs could be observed in **** and since then there has been a steady increase which has been constant and persistent up ...
5 Regulation
5.1 Production regulations
UK regulations, in accordance with the Ice Cream Alliance (***), set out very clear specifications for what qualifies as ice cream, dairy ice cream, sorbet etc.
Ice creams are exclusively categorised as a frozen product containing a minimum of *% fat content and no less than *.*% milk protein 'not necessarily in natural proportions'. It is manufactured through the emulsion of milk solids, sugar and fat (***) is permitted. Up until Brexit these were complemented by EU Regulation ****/**** which took into consideration health concerns for consumers, producers and environmental standards.
Dairy ice creams follow the same regulations as ice cream, however, the fat content must exclusively be of milk fat (***).
Milk ice are products which contain a minimum of *.*% dairy fat and at least *% milk solids (***), 'excluding any other fat or protein from a non-dairy souce'.
Ice lolly/water ice are products whose main ingredients are water and sugar. These can include flavourings and colourants
The denomination of sorbet is maintained exclusively for products which contain a maximum added fat content of *%. This type of product must contain 'when reference is made to fruit(***) content must be at least **%. When the concerned fruit is of the citrus variety, the content can be reduced to **%. The ...
5.2 Selling regulations
To sell ice cream (***) a specific licence is needed.
If an ice cream shop has chairs on the sidewalk or pavement a street trader's licence is needed If you are a vendor from a bicycle, motorcycle or four-wheel vehicle the same licence is needed (***), the case is the same for kiosks and mobile stalls If you are selling your own ice cream at a market you need a market trader's licence If you are selling ice cream on private land you don't need any license as long as you are at least * metres away from any public road or highway (***)
Source: ****
If you sell ice cream from a moving vehicle, and you have chimes, regulations are quite strict.
Your chimes cannot be played at more than ** decibels and cannot be played more than two times per hour on the same street Chimes cannot be longer than ** seconds and cannot be played within the sight of any other ice cream selling vehicle The interval between chimes must be at least * minutes Chimes cannot be played within **m of schools (***)
Source: ****
Businesses that sell ice cream must comply with the Food Standards Agency (***). Visit from inspectors are regular and thorough
Selling businesses must ...
6 Positioning of the players
6.1 Segmentation
- Unilever Groupe
- Nestlé Groupe
- Tesco
- Sainsburys
- Aldi
- General Mills
- Marks & Spencer
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the ice cream and sorbet market | UK
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