With much-reduced impulse and on-the-go consumption occasions in 2020 due to Coronavirus (COVID-19) lockdowns, closures and travel restrictions, impulse and unpackaged ice cream sales declined, resulting in a negative performance by the overall market in this year. Take-home ice cream recorded positive growth, however, as more consumption moved into the home environment. Ice cream and frozen desserts is then expected to see a swift return to positive growth rates from 2021.
This report comes in PPT.
After posting positive annual growth rates up to 2020, albeit very modest ones at times, ice cream and frozen desserts slipped into decline in this year as distribution and sales were disrupted by the COVID-19 pandemic. Sales, up to 2020, were being driven by the extensive, and still improving, product availability, regular innovations and even a number of warm summers. In addition, industry players continue to try and reduce the seasonality of ice cream sales, for example with the introduction of special autumn, winter or holiday editions.
Sales of impulse and unpackaged ice cream were negatively affected in 2020 by the COVID-19 virus and the measures taken across the region to try and contain its spread. Although grocery stores were generally allowed to remain open, some retail outlets were forced to close, and people were spending a lot less time than usual in public, significantly reducing impulse consumption occasions, and therefore also sales of impulse and unpackaged products.
On the other hand, more consumption occasions moved into people’s homes, with people in lockdowns/quarantines and remote working/learning. This meant that take-home ice cream continued to grow in 2020, with consumers seeing these products as affordable treats and indulgences.
A regional CAGR of 2% is expected over 2020-2025, as impulse and unpackaged ice cream return to recording increasing sales from 2021, and with take-home ice cream continuing to see a positive development. There remains potential to further develop the trend towards healthier products in the category over the forecast period, with industry players likely to target consumers with innovations in HW areas and in terms of more natural ingredients.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.
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