USA Ice Cream Market Outlook to 2028

USA Ice Cream Market Overview

The USA ice cream market was valued at USD 13 Bn in 2023, driven by increasing demand for premium and artisanal products, as well as a rise in health-conscious alternatives.

Key players like Blue Bell Creameries introduced a limited-edition flavor that became a consumer favorite. This flavor, made with locally sourced ingredients, highlights the importance of innovation and understanding consumer preferences.

The increasing focus on health and wellness is driving demand for healthier ice cream options in the USA, with consumers favoring low-fat, sugar-free, and organic products. Organic food sales, including ice cream, reflecting a robust preference for healthier alternatives. The rise in lactose intolerance, affecting 36% of Americans as of 2023, also boosts the demand for lactose-free and dairy-free ice creams.

USA Ice Cream Current Market Analysis

The USA ice cream market offers a wide range of products, from traditional to innovative and health-conscious options like low-calorie and dairy-free, catering to diverse consumer preferences and trends.

Ben & Jerry's leads the market with its strong brand identity, innovative flavors, and commitment to social and environmental causes, which resonate deeply with socially conscious consumers. Their premium ice cream, characterized by rich flavors, high-quality ingredients, and unique combinations, dominates sales by appealing to those seeking a luxurious and indulgent ice cream experience.

The Dairy Business Innovation Initiatives (DBII), launched in 2018, provide grants to dairy businesses to innovate and improve their products. In 2024, the USDA allocated USD 20 million in grants under this initiative, helping ice cream manufacturers invest in new technologies and product development.

USA Ice Cream Market Segmentation

The USA Ice Cream Market can be segmented based on several factors:

By Product Type: The USA ice cream market is segmented by product type into premium ice cream, regular ice cream and low-fat & non-dairy ice cream. In 2023, premium ice cream is dominant because of its rich taste, high-quality ingredients, and unique flavors, this segment attracts consumers who are willing to pay more for a superior and indulgent ice cream experience. It stands as the largest and most profitable segment within the market.

By Flavor: USA ice cream market is segmented by flavor into vanilla, chocolate and fruit based. In 2023, vanilla stands out as the top flavor in the USA ice cream market by value percentage. The Flavor is known for its classic appeal and versatility, vanilla remains a favorite among consumers due to its ability to complement various toppings and desserts, maintaining its prominent position in the market.

By Distribution Channel: USA ice cream market is segmented by distribution channel into supermarkets & hypermarkets, convenience stores and online retail. In 2023, supermarkets and hypermarkets dominate the USA ice cream market's distribution channels by value percentage. They are known for their extensive reach, wide product variety, and convenient shopping experience, they serve as the primary outlets for ice cream sales, catering effectively to consumer demand.

USA Ice Cream Market Competitive Landscape

Company

Establishment Year

Headquarters

Unilever

1929

London, UK

Nestlé

1866

Vevey, Switzerland

Blue Bell Creameries

1907

Brenham, Texas, USA

Turkey Hill Dairy

1931

Conestoga, Pennsylvania, USA

Wells Enterprises

1913

Le Mars, Iowa, USA

Nestlé’s Investment in Bakersfield Facility: In 2023, Nestlé invested USD 100 Mn in their Bakersfield, California, facility to enhance production capabilities. This investment includes advanced production lines and refrigeration technology, improving efficiency and product quality.

Unilever’s Sustainability Initiative: Unilever committed in 2024 to reducing carbon emissions across its ice cream production by 2030. This involves investing in renewable energy and sustainable practices, aiming to lower the company’s carbon footprint and promote environmental sustainability.

Turkey Hill Dairy’s Organic Range Launch: In 2023, Turkey Hill Dairy launched a new organic ice cream range, free from artificial additives. This launch boosted their sales by 15% in the organic segment, reflecting strong consumer demand for natural and organic products.

USA Ice Cream Industry Analysis

USA Ice Cream Market Growth Drivers:

Technological Advancements: Technological advancements in ice cream production and preservation, such as cryogenic freezing, have enhanced product quality and shelf life. Automated production lines improve efficiency and reduce costs, enabling manufacturers to meet growing demand. These innovations ensure better texture and taste retention, making ice cream more appealing to consumers.

Rising Disposable Incomes: The increase in disposable incomes among American households is contributing to the growth of the ice cream market. According to the Bureau of Economic Analysis, personal disposable income in the USA reached USD 60,000 in May 2024. This rise in personal disposable income allows consumers to spend more on premium and indulgent ice cream products. The trend is particularly noticeable in urban areas where consumers are willing to pay a premium for high-quality, artisanal ice creams with unique flavors and ingredients.

Expansion of E-Commerce and Distribution Channels: The expansion of e-commerce, with online grocery sales projected to exceed USD 10 Bn in 2024, significantly drives ice cream market growth. Major e-commerce platforms and grocery delivery services facilitate convenient ordering and delivery of ice cream, supported by the growing use of mobile shopping apps and increased internet penetration in rural areas.

USA Ice Cream Market Challenges:

Environmental Impact and Sustainability: Environmental and sustainability concerns challenge the ice cream industry. Dairy production contributes to greenhouse gas emissions, and there's pressure to reduce plastic packaging. The industry must invest in eco-friendly technologies and practices, increasing costs but aligning with consumer and regulatory demands for sustainability.

Health Concerns and Dietary Restrictions: Growing awareness of health issues related to high sugar and fat intake challenges the ice cream market. With 42% of American adults obese, many are reducing their consumption of traditional ice cream. Manufacturers need to innovate and offer healthier alternatives to retain their customer base.

USA Ice Cream Market Government Initiatives:

Healthy Food Financing Initiative (HFFI): Implemented in 2020, the HFFI supports the availability of healthy food options in underserved areas. In 2024, it provided USD 30 Mn to expand access to nutritious foods, including healthier ice cream products, in low-income communities.

Sustainable Packaging Regulations: Introduced in 2021, these regulations promote eco-friendly packaging in the ice cream industry. The EPA reported a 10% reduction in plastic packaging waste by 2024, encouraging manufacturers to adopt sustainable solutions.

National Dairy Promotion and Research Program: Established in 2022, this program supports the dairy industry through marketing and research. In 2024, USD 50 Mn was allocated for initiatives to enhance the quality and appeal of dairy products, contributing to ice cream market growth.

USA Ice Cream Future Market Outlook

The USA Ice Cream Market is expected to show a significant growth driven by ongoing innovations in flavors and health-oriented options.

Future Market Trends

Plant-Based and Dairy-Free Ice Creams: The trend towards veganism and lactose-free diets will boost the popularity of plant-based ice creams made from almond, soy, coconut, and oat milk. Sales of plant-based ice cream are projected to increase significantly, driven by health, environmental, and ethical considerations.

Functional and Fortified Ice Creams: Ice creams with functional ingredients like probiotics, vitamins, and minerals will gain traction. Consumers will seek added health benefits in their treats, with probiotic-infused ice creams offering digestive health benefits. This trend will align with the rising interest in functional foods.

Indulgent and Exotic Flavors: There will be a growing demand for indulgent and exotic ice cream flavors inspired by global cuisines. Flavors like matcha green tea, ube, and black sesame will cater to consumers' desire for unique culinary experiences, influenced by social media trends.
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