The take home ice cream market has seen very high levels of growth over the last 6 years, growing by nearly 25%.
This long-term growth has been driven by branded ice cream products, specifically branded handheld products as they have grown more than 2.5 times faster than the total market.
These branded handheld products have seen growth of +62% which equates to a staggering £222m additional sales, almost 90% of the growth achieved in the total market (Nielsen).
There are three key shopper behaviours which have been contributing to the ice cream market growth: people snacking more on ice cream, people looking to treat themselves more, and people looking for more permissible options.
“When it comes to snacking on ice cream, this answers for a lot of the branded handheld ice cream growth as people are choosing handheld products when they want to snack on ice cream with sticks accounting for most of the snacking occasions, with cones and lollies also accounting for a significant amount of the snacking occasions,” comments Zak Dixon, Category Insights Manager at Froneri. “We know that if people are snacking it’s often on the go, so being able to take handheld ice cream products on the go makes them the perfect choice for a snack! Cadbury ice creams are ticking a lot of boxes for people with more Cadbury ice cream products present at family snacking occasions than any other brand in the category (Kantar).”
With the world the way it is, it’s no surprise that people want to treat themselves and what better food to do that with than ice cream, particularly very indulgent products such as chocolate coated sticks and pint-size tubs with inclusions and sauces.
People often refer to the “lipstick effect” when there is economic difficulty and we’ve been seeing signs of this in the ice cream market over the last year whilst inflation has been present.
People have still been buying these more indulgent products despite them being typically more expensive than the average ice cream, they’ve grown almost twice as fast in the last year (Nielsen).
Nuii has been meeting people’s needs more when they have been looking for something treaty too, and as a result it is currently the fastest growing added value sticks brand in the market (Nielsen).
“People are generally more health conscious so it helps if they can have something which is still a tasty and delicious thing to eat which is also seen as a little better than other options,” adds Dixon. “It’s this factor which has played a part in the huge growth in the ice lollies sector, again with brand leading the way here. Rowntree’s is the biggest brand in the ice lolly sector, accounting for over a quarter of all lollies sales and it has delivered over a third of the growth in the sector in the last 6 years. Because they are typically lower in calories than other ice cream products, made with real fruit juice and most importantly taste delicious, it has been an obvious choice for consumers looking for a permissible treat (Nielsen).”
Naturally, most of the products in the category were impacted by the HFSS legislation and could no longer be promoted from ends in store, which has historically been a significant driver of the category’s sales. Fast forward to a full year on from the legislation being implemented and we see people buying just as many packs of ice cream as they did the year before. So, it would seem that people are now used to the fact that they have to go down the aisle to find their favourite products on promotion. We have also seen an increase in in-store activation to bring the category to life at fixture which will have no doubt encouraged shoppers down the aisle.
Rowntree’s Fruit Pastilles Ice Lolly is the best-selling ice lolly in the entire market (Nielsen). The Rowntree’s brand is also the biggest HFSS compliant range in the market so it’s a great brand to still promote from end feature space.
Oreo Ice Cream Sandwich is the best-selling product in the entire impulse market (Nielsen).
Flake 99 Ice Cream Cone is the biggest cone in the entire market (Nielsen).
The Cadbury sticks range as a whole has gone from strength to strength over the last few years and in the latest year it has been the fastest growing range in the entire sticks sector (Nielsen).
This year Froneri is building on the success of the Cadbury sticks range and launching the confectionery favourite of Cadbury Caramel into the ice cream market. It’s a big year for Cadbury with the launch of another key favourite in both the confectionery and ice cream market – Crunchie. With the success of this brand in the ice cream stick format, Froneri has also launched it into a cone this year.
The Nuii range will be strengthened with the launch of New Zealand Honey and Caramelised Almond.
“Stick to the long-term trends when planning ranges,” says Dixon. “Whilst it can be important to be reactive and answer shorter-term trends with NPD, always make sure that this isn’t to the detriment of the total category by reducing the focus on the core range.”
The Cadbury range will be supported through a comprehensive advertising campaign throughout 2024 to drive consumer excitement and tap into the growing number of ice cream consumption occasions. Nuii will be backed by a multi-million-pound advertising campaign, spanning TV, out of home, sampling in major cities across the UK as well as, social and digital channels and in store activation. The campaign will run across the year.
Rowntree’s will champion fruit and fun through their most comprehensive marketing campaign. ‘Free the Fun’ aims to bring to life the fruity flavours of Rowntree’s ice lollies whilst encouraging the nation to release their inner child and enjoy moments of light-hearted fun. The campaign starts soon, running across TV, digital, social and in store media channels.
“Make sure that, when planning ranges and merchandising, we consider what are the long-term trends in the market. Ensuring that the right sectors in the market are getting the space they need to thrive. Handheld products have been driving the market growth but in a lot of places they’re still not getting enough space on shelf,” suggests Dixon.
“Make sure that people can find the products they’re looking for now that end promotions on non-compliant HFSS products are a thing of the past. This can be done by clear signposting of the promotions and any further activation to encourage shoppers down the aisle.”
Ice cream brand Häagen-Dazs has announced the launch of a game-changing new snacking format: Salted Caramel Bites and Chocolate Bites.
Designed to be shared and transform ‘me’ time into ‘we’ time, the new Bites offer indulgent moments of perfection for friends and family to enjoy together. The Salted Caramel Bites feature the luscious, salted caramel ice cream Häagen-Dazs is known for, with a mouthwatering caramel sauce core. A crunchy golden caramel white chocolate coating creates the perfect blend of sweet and salty notes.
For chocolate lovers, the Chocolate Bites showcase the richness of the ice cream with an indulgent chocolate sauce core, encased in the same crunchy couverture coating to serve as the ideal mouthful.
The new format from Häagen-Dazs caters to growing demand within the snacking segment for bite-size ice cream products, with the category seeing +69% sales growth over the past two years (Nielsen).
Nicole Whelan, Head of Häagen-Dazs UK, said: “As the Ice Cream of Ice Creams, Häagen-Dazs is no stranger to innovation, continually bringing ultra-indulgent flavours and tantalising textures to our consumers. “Now, we’re thrilled to launch a totally new format, expanding our portfolio of pints, mini-cups and sticks with a new bite-sized moment of pleasure that can be enjoyed at any time of the day, week, or year. We’re confident they will fly off the freezer shelves!”
In the UK, the ice cream market top value is £3.7 million (IRI) with wrapped handheld multipacks dominating the category as the largest segment worth £1.9 million (IRI).
Despite a challenging year in 2023 for ice cream manufacturers, Mars has continued to outperform the overall market in value sales (+3%) and notably multipack value sales (+4%) which was its best performing sector for 2023 (IRI).
Michelle Frost, General Manager at Mars Chocolate Drinks and Treats, says: “The continuous growth of handheld multipacks in the category is driven by consumers looking to enjoy ice cream as an in-home treat. Last year, Mars manufacturer delivered an impressive (+6%) value growth in the category and an outstanding (+18%) increase in units. This performance, four times more than other manufacturers, firmly solidifies its position as a frontrunner in the competitive category (IRI).”
Branded Mars and Snickers products continue to be Mars Chocolate Drinks and Treats’ best sellers, showing there is still an appetite for the flavours of these iconic confectionery bars.
MCDT is also seeing growth with brands such as Twix and Bounty, which switched to a four-bar multipack in 2023.
“In 2024, consumers are actively looking out for products with special offers, more than ever! Increasingly favouring products that will not break the budget. This shift is fuelled by the rising cost of living and consumers looking to stay home. Retailers should tap into the trend and strategically adapt their offerings and promotions to align with the changing economic landscape, ensuring they effectively cater to the evolving preferences and financial priorities of their customers,” adds Frost.
“To optimise freezer space, retailers should focus on selecting a range of top-selling, recognised ice cream brands, alongside a mix of flavour and format innovations.”
New Maltesers Ice Cream bar combines soft malt flavoured ice cream, scattered with mini Maltesers honeycomb pips, covered in a smooth milk chocolate.
Both multipacks and singular impulse bars are available now, at an RRP of £2.50 for the multipack and £2.00 for the single bar.
Daniel Jalalpour, Marketing Director for Desserts at Premier Foods, comments: “Premier Foods continues to reinvigorate the ice cream tub category by reimagining the distinctive and iconic flavours of well-loved brands into new formats. From Mr Kipling to Ambrosia and Angel Delight, these brands allow us to broaden the appeal of ice cream, bring new shoppers into the category and give consumers another way to enjoy their sweet treats and dessert-inspired favourites, at any time of the year.
“We’re in a unique position to offer something different and relevant to the ice cream category and appeal to a wider demographic of shopper. For example, Ambrosia is a uniquely loved brand across generations, Angel Delight has high brand awareness across the UK and Mr Kipling appeals to pre-family, families and empty nesters too.”
The Mr Kipling and Ambrosia ice cream tubs launched back in November 2021, with the Angel Delight range hitting shelves a few months later in January 2022. Ambrosia ice cream is inspired by the brand’s popular Devon Custard, with a silky-smooth texture and recognisable flavour. Angel Delight Butterscotch and Angel Delight Strawberry have been turned into a unique, fluffy soft-serve ice cream inspired by the famous airy texture of the original mousse-like dessert. And finally, Mr Kipling favourites have been reimagined in three distinctive and different ice cream flavours – Viennese Whirl, Cherry Bakewell and French Fancy.
At the end of last year, Premier Foods used its extensive consumer research to help improve its base recipes across its range and improve in-store stand out with a new cardboard tub too. Since their launch, the products have received positive consumer feedback with ratings of four out of five or above.
“As a result of more people swapping their big night out for a big night in, many will be looking to ice cream as an affordable treat to cater for those occasions at home,” adds Jalalpour. “There is a real opportunity for at-home treats to shine and we are well placed to offer products that are unique to our brands, recognisable to consumers and good value for money, with no compromise on taste. Due to their format, ice cream tubs are ideal for sharing and can be easily portioned by shoppers to ensure they go even further. Just take the 800ml Angel Delight Butterscotch and Angel Delight Strawberry ice creams, which provide shoppers with more portions per tub, at an affordable price point of £3.50 (MSSP).”
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