New research from Mintel has revealed that a quarter of American consumers are eating less ice cream than they were six months ago, despite the fact that more than 90% have purchased a frozen treat in the past six months.
Almost one-third of respondents to Mintel’s latest survey said that portion control was a factor in purchasing frozen treats – up from just 11% in 2013 – with 32% saying that they purchase single-serve products.
Consumer interest in premium offerings has kept sales afloat despite declining volume sales, Mintel continued. 22% of consumers purchase frozen treats that they consider premium and 34% have said that they are willing to pay more for it. The range of reasons given for buying premium ice cream include the taste (35%) and superior perceptions of healthfulness (14%).
“While little opportunity exists to acquire new customers in the universally penetrated frozen treat market, interest in premium and healthy options gives brands the opportunity to offer products that communicate health and wholeness, while also encouraging moderation, which can aid in increasing trials through smaller sizes,” said Beth Bloom, senior food and drink analyst for Mintel.
“Putting a heavy focus on quality, taste and health will resonate with consumers, and emphasising single-serving packs and messaging around the variety of products should appeal to Americans’ preference for snacking.”
Appealing to changing consumer taste preferences is particularly pertinent, as more than a quarter of consumers (27%) said that they had purchased a variety pack in the last six months, and 27% of respondents said that they typically have more than one type or flavour of frozen treat in their freezer at any given time.
While a single ice cream flavour is a more likely purchase type, Mintel said, a growing number of consumers are intrigued by flavours with mix-ins such as nuts and inclusions – 41% today compared to 24% in 2013.
“The wide range of single-flavour frozen treats and products with unique mix-ins are keeping consumers from becoming bored with the category,” Bloom continued. “The rise of new, trendy flavours speak to the dual-components nostalgia and indulgence play in the market, while internationally inspired varieties like mochi ice cream and gelato are succeeding in flavour and format.
“For more traditional offerings, mix-ins can give treats an added boost, with fruit and nut additions potentially alluring health-focused consumers.”
While premium and flavourful frozen treats pique consumer interest, the overall market is experiencing tepid growth, with sales increasing just 6% from 2011-15 to reach $12.6 billion. Over that same span, volume sales have declined by 5%, with all segments of the category experiencing decreasing volume sales from 2011-15.
Gelato remains a bright spot for the US market, drawing continued interest from consumers, but there has been a gradual slowdown in sales and new product development.
“Sales of ice cream and frozen novelties have kept up despite declining interest thanks to innovative new product development and continued interest in gelato,” Bloom concluded. “However, gelato may be nearing its peak, as sales increases and new product launches are in decline compared to recent years. It’s possible that gelato is going the way of Greek yogurt, and losing a little of its luster. That said, we predict that gelato will remain relatively popular as it carries strong appeal for indulgence and satisfaction, and delivers the cues of a premium product.”
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