Ice Cream and Frozen Desserts in Chile

PROSPECTS

Looking for balance between health and indulgence

Already positioned as an indulgence product, ice cream and frozen desserts is being less affected by government efforts to address the issue of obesity in the country than confectionery categories that compete more directly with health-focused snacks. Ice cream and frozen desserts maintained a positive performance throughout the review period, despite the introduction of the new food labelling law in 2016.

Emphasis on innovation

Innovation plays a key role in the development of ice cream and frozen desserts. The category’s indulgence positioning places a strong emphasis on novelty and ongoing new product development.

Greater focus on adults

The upmarket shift in manufacturers’ innovation strategies is likely to be strengthened by government efforts to reduce childhood obesity during the forecast period. Chile has one of the highest rates of childhood obesity in the world.

COMPETITIVE LANDSCAPE

Nestlé in a strong position

Nestlé Chile retained a strong lead in the Chilean ice cream and frozen desserts category in 2018, despite a slight erosion of its share. The company has a long-established presence in the market and has achieved widespread distribution through both traditional and modern grocery channels.

Advertising ban could undermine strength of major players

Unilever is the second largest player in ice cream and frozen desserts, underlining the importance of strong branding supported by significant investment in product innovation and marketing activity in the category. Ice cream and frozen desserts has traditionally been supported by high-profile advertising on TV and through large-scale street advertising.

Threat from artisanal segment

The growing demand for premium ice cream presents a potential threat to packaged ice cream and frozen desserts insofar as it is bolstering sales of artisanal and unpackaged premium products through foodservice channels. With consumers increasingly monitoring and limiting their consumption of indulgence products, sales of artisanal and unpackaged premium ice cream are likely to have an adverse effect on the performance of the packaged segment.

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