South America Ice-creams and Frozen Desserts Market is Propelled by the Upheaving Demand for Dairy-Free Frozen Ice-Creams

26.02.2020 - 14:22 | 1796127

Artikel von IndustryARC

The South America ice-creams and frozen dessert market was valued at $11.5 billion as of 2018 and is anticipated to grow with a CAGR of 1.6% throughout the forecast period 2019-2025.

Liberalized governmental reforms such as the reduction in tariffs and food subsidies in developing economies in the F&B sector have ensued in the development of the production, processing, distribution, and promotion of food and beverages. Roughly 4.5 billion low-income people belonging to the developing countries collectively spend $2.3 trillion a year on food and beverage products. In the developed nations, this rate is even higher owing to the increase in the per capita incomes and changes in lifestyle that people lead. Some part of this money is spent on products like ice-creams and frozen desserts, which is flourishing the frozen desserts market. Increased demand for low-content sugar and calorie desserts and ice-creams backed by the consumer spending across the region is anticipated to be a key factor driving the market growth. The South America ice-creams and frozen dessert market was valued at $11.5 billion as of 2018 and is anticipated to grow with a CAGR of 1.6% throughout the forecast period 2019-2025.

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Packaged ice-creams and frozen dessert market cover major categories like ice-cream, ice pops, snow cone, and frozen novelties and other categories such as yogurt, sorbet, and frozen custard. Companies are investing more in improving the shelf life and facilities for storing frozen dessert items, which in turn, is estimated to influence market growth positively. The growth of the well-organized retail sector in developed and developing countries is the factor behind increasing the purchase of frozen desserts. Online shopping, the introduction of new mobile applications, and digitalization in the retail industry are the other factors influencing the ice-creams and frozen dessert market. Manufacturers are using effective marketing strategies through mobile apps, social media, and digital platforms in these emerging markets and are introducing new flavors to increase consumption and create new customer acquisition.

Due to convenience and variety, consumers are inclined toward online shopping. With economic development and rising purchasing power, consumers can afford products with improved nutritional value and shelf life. Nowadays, ice-cream novelties and artisanal ice-creams exhibit higher growth as ice-cream manufacturers strive for product innovation for their customers. The supermarkets, hypermarkets, and convenience stores accounted for the highest revenue share in the market value. Whereas, convenience stores are a popular choice among the urban population in developed countries, which will positively influence the frozen desserts market share and size in that region.

Brazil held the largest share in the South America ice-creams and frozen dessert market with a regional share of 38% as of 2018. A scoop of ice-cream is almost a necessity for every Brazilian in humid summers, where temperatures can start at over 85 degrees Fahrenheit and climb into the triple digits. Hypermarkets, supermarkets, ice-cream specialty shops, and mobile vendors are accounted for the leading distribution channels for ice creams in this country. The product type that will be creating the most lucrative opportunities for this market is ice-creams. This application segment is projected to grow at a CAGR of 1.7% through to 2025. The rise in the economic status and aspirations of the emerging middle class and a younger demographic in the economies are the significant factors to boost the segment growth.

South America Ice-creams and Frozen Dessert Market Growth Drivers

· Lactose-free Frozen Ice-Cream

Lactose-free frozen ice-cream market is driven by increasing rates of food allergies and intolerances. Dairy-free frozen desserts replace milk and cream with alternative cashew milk, soy, almond, and coconut. Lactose-free frozen ice-cream is one of the emerging trends anticipated to gain momentum in the ice-cream market in the upcoming years.

· A Rise in Demand for New Flavors

Consumers around the globe are willing to try new flavors in ice-creams and frozen desserts. Flavors provide a unique experience for customers to have at their favorite dessert bar. Many companies change their flavor selection very often to evoke a sense of excitement in their customers.

· Propelled Growth for Customization

Customization helps cater to customers need, whether, for dietary or allergy restrictions, taste preferences or nutritional information, the ability to indulge in frozen desserts especially catered to customers’ needs is a large trend that is growing within the food markets. Instead of picking and choosing from menus, customers create exactly what they want, the way they want. Mix-and-match options can elevate a few menu items into endless possibilities, and customer is willing to pay a premium for those options.

Eggloo, a new Korean ice cream introduced by a New York City concept, that begins with egg-rich, chewy waffle cones and are available in three flavors. These ice cream flavors are filled with various toppings such as diced nuts and fruity pebbles based on customer taste.

· Protein-Packed Ice-creams

Ice-creams that are lower in sugar, fat, and calories and rich in protein have higher demand around the globe. Many protein-packed ice-creams recipes use frozen fruit as a base ingredient.

· The major players in the South America Ice-creams and Frozen Dessert Market:

The prominent players in the South America ice-creams and frozen dessert market include Blue Bell Creameries, Chiquinho Ice Cream, Diletto, Frutos do Brasil, General Mills, Kibon, Mars, Mil Frutas, Nestle, and Unilever. These companies are continuously focusing on R&D investments, mergers and acquisitions, and partnership strategies to gain ground in the market.

Mergers and acquisitions are the other key strategies adopted by the players to stay ahead of their competitors. Unilever, a British-Dutch transnational consumer goods company announced acquisition with GlaxoSmithKline Consumer Healthcare Ltd. Such joint ventures aid the market players to expand their geographical boundaries and accentuate their footprint into the South America ice-creams and frozen dessert market.

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IndustryARC is a research and consulting firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.


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