By Cat Woods.
Convenience World summarises the state of the Australian ice cream market, outlining the information and inspiration behind what sells, what’s important to consumers, and which brands are leading the industry.
The launch of new and innovative ice cream flavours and the growing appeal of varieties aimed at the health conscious are fuelling consumer demand for the category.
Pandemic era performance
While good news for the economy has been in short supply recently, one industry experiencing strong sales is the adaptable, innovative ice cream market, both in Australia and globally.
The value of the ice cream manufacturing industry in Australia this year is $1bn across 293 businesses, employing 2,673 workers, according to IBISWorld research. The forecast is for the market to grow further over the next five years.
In 2019, the Australian market notched up $1,620.4m in total revenue, a growth of 2.4 per cent over the four years prior.
The biggest manufacturers in the sector included Regal Cream Products, Norco Co-operative, Unilever Australia Group and Riviera Holdings.
Amongst the offerings that have proven popular are take-home tubs, take-home multi-packs, individually packaged goods, scoop-and-serve products, gelato, sorbet, frozen yoghurt and frozen fruit ices or water-based ices.
Key sales drivers
Speculative reasons for the increasing popularity of ice cream include comfort eating during the pandemic, as many individuals were subject to lockdowns, working from home and
home schooling. The simultaneous rise in health concerns, likely a result of the both the enhanced focus on immunity and media focus on fitness during the pandemic, meant that the drive for ice cream products perceived to have a healthier profile drove sales of low-fat, low-sugar varieties.
It’s predicted that over the five years to 2027, the growth in niche products aimed at the health conscious, vegan varieties and premium take-home ice cream products will ensure the market continues to expand.
If flavour is the ultimate factor, then the appearance of ice cream is a close second in determining its appeal to consumers. In a busy market, and one only needs to look at the vast array of products in the supermarket to see how broad the ice cream choices are, packaging and product appearance can be the decisive factors in sales. Clean, clear labels stand out.
“If flavour is the ultimate factor, then the appearance of ice cream is a close second in determining its appeal to consumers.”
Undeniably, social media plays a role in influencing our food choices too. Products in eye-popping rainbow shades, or studded with chocolate, neon colours and swirls all appeal to the age of Instagram and Tik Tok videos.
Plant-based ice cream appeals to the health-conscious consumers, no longer the gym-honed fitness tribe, but across the age, culture and gender divides who have experienced a global health pandemic that has spared almost nobody. The appeal of plant-based ice cream appeals beyond just health benefits, and also appeals to the growing demand for ethical products that do not demand industrial-scale animal farming and methane contributions to carbon. Products based on soy, almond, cashews and oats mimic the varieties of milk now widely available.
Read the article in full in the August issue of Convenience World.
