Projections for ice cream sales indicate significant growth for the next seven years. A new report from Grand View Research, Inc estimates the global ice cream market will hit $78.8 billion by 2025. In 2016 the global market size was valued at $54.8 billion. California is the leading ice cream-producing state in the U.S and produced approximately 118 thousand gallons of ice cream in 2016.
Demand from North America, Europe and other developed regions for premium products is one of the major driving factors behind the anticipated growth. Expansion of the ice cream market is also foreseen in developing areas such as Latin America, the Middle East, and Africa. The Asia Pacific was the largest market share in 2016 and is also poised for continued growth. China and India are also expected to boost sales due to the larger consumer base in those countries. China became the largest market in 2014, surpassing the U.S., as consumers in China increasingly saw ice cream as a snack.
The ice cream market is divided into impulse, artisanal and take-home categories. Impulse products include cones, sandwiches, and ice cream bars and make up the largest share of the market. Artisanal products are a smaller share of the market, but marginal growth is anticipated with the rising demand for hand-made products comprised of high-quality ingredients. Advances made in packaging providing better convenience are driving demand for take-home products.
Many producers are also developing new flavors to introduce to consumers, which is expected to contribute to the growth of the overall market by increasing sales. Demand is also pushing for premium products in the marketplace as sales of lower quality ice creams continue to decline.
One of the potential limiters to the expected growth of ice cream sales will come from the growing number of consumers who are becoming more health conscious in their food choices. Other possible challenges relate to lactose intolerant consumers and their choice for lactose-free ice creams.