The COVID-19 pandemic had a slightly negative impact on ice cream demand as consumers were negatively affected by the economic fallout in 2020. Reduced demand was mainly due to consumers’ economic uncertainty as they shifted their focus to buying essential goods rather than impulse buys, such as ice cream, as they increasingly economised their purchases.
Ice cream and frozen desserts is a product area dominated by domestic manufacturers. This is due mainly to the affordable prices of their economy brands compared with those of international premium brands, which remain often prohibitively expensive given diminished spending power among consumers in Algeria.
Prima Glaces will continue to lead ice cream and frozen desserts in 2021, with its value share rising to represent just over a quarter of total sales. The main reasons for Prima Glaces’s leadership include its wide and efficient distribution network, which ensures the presence of its products in both independent small grocers and supermarkets and hypermarkets.
Ice cream and frozen desserts will continue to witness strong interest and demand from consumers in 2022 and beyond, therefore supporting healthy growth. Manufacturers will continue working on product divarication, new exotic flavours, attractive packaging, extensive distribution and marking activities in order to boost their performance in the coming years.
Ice cream and frozen desserts is projected to continue being dominated by single portion ice cream sales over the forecast period. Indeed, single portion ice cream, especially the dairy variety, enjoys strong popularity and can be found in both small and large retailers.
Due to ongoing economic concerns, it is likely that consumers will reduce spending on non-essential food as disposable income continues to fall. Furthermore, consumer confidence is likely to be low, which will have a negative impact on sales of ice cream, especially as current unit prices are set to increase quite strongly again.
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This report originates from Passport, our Ice Cream and Frozen Desserts research and analysis database.
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