Europe Ice Cream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Ice Cream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The European ice cream market is expected to register a CAGR of 4.87% during the forecast period, 2021-2026.

The European ice-cream market exhibited sluggish growth due to the economic slowdown in the COVID-19 pandemic and an aging demographic. Market revenues continue to be impacted by rising health issues concerning lifestyle diseases and the pandemic. Availability of substitute goods such as flavored yogurt (e.g., Muller, Onken, and Danone) also resulted in fragmentation in the market share of ice-cream companies.

Demand for ice-creams that are low on fats, made using natural ingredients, yet do not compromise on taste and indulgence is growing. Germany and Russia are the biggest ice-cream markets in Europe, whereas Norway accounts for the highest ice-cream consumption per capita.

Over the medium term, indulgence and the increasing consumer preference for ice cream as a leisure product drove the growth of this market, and new innovative flavors, offered by companies, further act as a catalyst for demand generation.

Due to rising health concerns, consumer demand for naturally flavored and sweetened ice-creams and handcrafted ice-creams is growing. Companies have offered consumers more “better for you” options in smaller portion sizes and better ingredients, including vegetables, oats, soy, and dairy-free options, to compete with their rivals and gain a competitive advantage in this highly fragmented market.

Key Market TrendsHealth-based Ice-cream Innovations are Driving Sales

Owing to a rise in the lifestyle diseases like obesity, diabetes, a growing preference for veganism, and increasing health-consciousness among the consumers, ice creams without dairy ingredients are gaining momentum in the European market. For the consumers looking for a variety or following a special diet, there are more non-dairy ice creams and frozen treats available than ever before, with small brands and significant players offering low-calorie, vegan options as well as non-dairy versions of their classic flavors. Some replacements for dairy bases include coconut milk, almond milk, and oat milk. For instance, in 2021, Unilever's Ben & Jerry's launched Save Our Swirled Now non-dairy ice cream as an addition to its plant-based ice-cream portfolio. This new variant is a combination of coconut ice cream with chunks of chocolate and a cookie swirl. Furthermore, the US-based ice cream brand, Breyers (acquired by Unilever), launched Chocolate Chip and Mint Chocolate Chip vegan ice-cream tubs for catering to its growing vegan consumer base.

Increased Consumption of Italian Gelato Ice Cream in Europe

Increased consumption of gelato is one of the driving factors for the European frozen desserts market. Gelato, till a few years ago, had a relatively low consumer penetration rate but is now getting popular among the higher-income consumers as well among the younger buyers, as the European consumers are looking for new types of ice, particularly in the United Kingdom and Germany. The consumer demand for “artisan demand feel’ is leading to the growth of this segment too. Furthermore, Italian gelato is among the most popular ice cream variants extensively sold in the retail market. Some popular Italian ice cream flavors include Cioccolato, Pistacchio, Stracciatella, Mandorla, and Limone. For instance, Unilever-owned gelato brand Talenti released a new line by the name Talenti Gelato Layers, offering vanilla fudge cookies, salted caramel truffle, chocolate cherry cheesecakes, black raspberry vanilla parfait, peanut butter vanilla fudge, mint fudge cookie, and dark chocolate cherry flavors.

Competitive Landscape

More companies, including Unilever, Nestle SA, General Mills, and Mars Inc., among others, are resorting to collaborating with the large e-commerce platforms for improving brand visibility, to improve their market presence and further increase their market share in the European region. This includes ice-cream giants making their own online portals active and catering to the requirements of the consumers effectively, including sales-promotion techniques such as discounts, offers, and other incentives for converting the majority of the customers into consumers.

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• The market estimate (ME) sheet in Excel format
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