In 2020, due to home seclusion, take-home ice cream, especially multipack ice cream, enjoyed dramatic double-digit growth while impulse ice cream suffered a loss due to channel disruption. In 2021, the trend has reversed as the pandemic has been gradually brought under control and an end to home seclusion and channel disruption has been observed.
Despite the slightly negative impact of the pandemic in 2020, China’s ice cream market still displays strong consumer purchasing power, which attracts multinationals to make further investments in the market. Unilever, which has two successful brands Cornetto and Magnum in China, announced a EUR100 million investment in China in June 2020 to establish a new ice cream factory to support future cross-category innovations.
In 2020, ice cream was infused with non-traditional flavours to trigger curiosity and hence stimulate sales. Flavours such as hot pot, smelly tofu and fried squid have been adopted that combine sweetness with spiciness or saltiness.
Breaking seasonality to extend the consumption period continues to be an important mission for manufacturers. One direction of innovation lies in positioning ice cream as snacks, which can be achieved through cross merchandising.
To fight against declining demand, ice cream manufacturers need to continue to deliver value-added products that either provide health benefits or unique taste or emotional experiences. Health benefits can be achieved through ingredient upgrades.
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This is the aggregation of all sales of ice cream and frozen dessertsSee All of Our Definitions
This report originates from Passport, our Ice Cream and Frozen Desserts research and analysis database.
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