Ice Cream and Frozen Desserts in Chile

2021 DEVELOPMENTS

Post-pandemic increase in impulse purchasing and on-the-go consumption will drive rebound in retail current value sales

Having declined during 2020, retail current value sales of ice cream and frozen desserts will rebound strongly during 2021. With COVID-19 restrictions likely to be eased, there will be a significant increase in both impulse purchasing and on-the-go consumption.

Having acquired Bresler, Empresas Carozzi SA seeks to wring synergies from its existing brand portfolio in confectionery and snacks

In July 2020, Empresas Carozzi SA acquired the Bresler brand of ice cream in Chile from Unilever Chile Foods Ltda. According to Empresas Carozzi SA, one of the reasons it bought Bresler was to achieve synergies with its other confectionery and snack brands.

Growing health consciousness leads some to opt for quality over quantity in ice cream

Ice cream is understood to be an indulgence and is not consumed for nutritional purposes, so the fact that it is high in fat and sugar content has traditionally not been an issue for most local consumers – in spite of the health warnings that these products are now required to display on their packaging. However, local consumers are becoming more health conscious – a trend that has been given additional impetus by COVID-19, which has greatly raised awareness of the health risks associated with obesity.

PROSPECTS AND OPPORTUNITIES

Heightened consumer interest in health and wellness will weigh on growth in retail volume sales

The rate of growth in retail current value sales of ice cream and frozen desserts will slow slightly from its 2021 peak and remain moderate for the remainder of the forecast period. Health and wellness will remain the dominant trend in ice cream.

With private label and multi-packs, modern grocery retailers will continue to put their traditional counterparts under pressure

During the forecast period, modern grocery retailers are likely to continue to gain retail value share from traditional grocery retailers, with their competitively priced multi-packs likely to play an important role in this. Private label is also likely to grow in importance in ice cream and frozen desserts, led by the likes of Cencosud Retail SA and Walmart Chile SA.

Premiumisation will grow in importance, as manufacturers seek to position their products as high-quality, occasional treats

The shift towards premiumisation in ice cream and frozen desserts will be accelerated by more intensive government efforts measures to reduce one of the highest rates of childhood obesity in the world. Advertising bans and strict packaging regulations will continue to make it difficult to market these products to children.