Mintel: More Scream for Premium Ice Cream
By Christine Lavelle on Sep. 21, 2016CHICAGO -- Category managers probably have noticed that ice cream isn't bringing in the volume sales they'd like to see.
Mintel's 2016 Ice Cream and Frozen Novelties-U.S. report suggests that smart retailers will add more premium varieties.
As "healthier-for-you" takes front and center across the industry, the report noted customers have shown some reluctance to indulge in ice cream, and sales have sagged.
Here are some ideas to get the back ...
Consumers still love ice cream. The Mintel report said nine in 10 consumers bought frozen treats in the past six month, but 22% said they are buying less. However, 34% said they are willing to pay more for premium varieties.
Even as volume sales have been declining, dollar sales are growing, thanks to premium and smaller sizes. Growth is expected to be 1.8% this year, reaching $12.6 billion, the report said.
“Interest in premium and healthy options gives brands the opportunity to offer products that communicate health and wholeness," said Beth Bloom, senior food and drink analyst for Mintel. She said the trend toward moderation also encourages trials of smaller sizes.
Ice cream may get more attention in the summer months, but as the weather cools, retailers are analyzing summer 2016 and considering set adjustments for the warm days of 2017.
In the Mintel study, more than a third of consumers agreed premium ice cream tastes better than conventional varieties, and 14% perceived such options as healthier. Single-serving packs are also an attraction, the study said, and ideal for the c-store shopper.
Mintel pointed out that smaller formats are particularly appealing to target consumer groups, including millennials. A third of consumers reported buying single-serve frozen treat packages, up from 11% in 2013. Also, nearly half of consumers are eating ice cream as a snack, compared with 55% of consumers who enjoy it for dessert.
Variety is another key driver of ice cream sales. More than a fourth of consumers said they have purchased a variety pack in the past six months.
“The wide range of single-flavor frozen treats and products with unique mix-ins are keeping consumers from becoming bored with the category,” Bloom said. “The rise of new, trendy flavors speak to the dual components nostalgia and indulgence play in the market, while internationally inspired varieties like mochi ice cream and gelato are succeeding in flavor and format."
Mix-ins such as fruit and nuts also can attract health-focused consumers, the report said.
And don't overlook gelato when thinking about premium additions to the lineup. Forty-three per cent of consumers purchased gelato, up from 39% last year. Retail sales of gelato and gelato-based novelties increased an estimated 32% over last year, Mintel said.
Bloom warned, however, that “gelato may be nearing its peak, as sales increases and new product launches are in decline compared to recent years." But gelato likely will remain popular, she said, because of its appeal for indulgence and satisfaction, and its perception of being a premium product.
Founded in 1972, Chicago-based Mintel is a market intelligence agency.