Innova Market Insights discusses ice cream market trends

19-Mar-2021

The drive for cleaner label, lower sugar and dairy products remains secondary to flavour concerns

Flavour is the single most important choice factor and purchase driver for ice cream shoppers, Innova Market Insights research has revealed, although other popular trends include non-dairy formulations, low sugar recipes, cleaner labels and ethical ingredients.

Non-dairy ice cream has reportedly been booming in recent years. Launch numbers rose at a CAGR of almost 30% over 2016-2020 and non-dairy lines now account for 10% of all ice cream introductions. According to Innova, this accounts for as much as one-quarter of all activity in North America and one-fifth of launches in Australasia.

Low sugar formulations are also gaining ground, reaching penetration of 6% of launches in 2020. “The development of more natural sweeteners has attracted more attention to sugar reduction,” says Lu Ann Williams, Director of Innovation at Innova Market Insights. “Artificial sweeteners have steadily lost ground, and erythritol, stevia and monk fruit are now the top three choices in low sugar and sugar-free ice cream.”

Meanwhile, when it comes to clean label development, shorter and simpler ingredients lists are popular. Some brands have even flagged the number of ingredients, or indeed the full ingredient list, on their packaging.

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Although these are all growing trends in ice cream development, Innova notes, flavour is still king. Even where alternative positionings are used to target specific consumer interests, taste choices remain vital. They can be even more important in healthier recipes, helping to cement an indulgent image. For example, salted caramel is one of the biggest winners in recent flavour development, rising to fifth in the flavour rankings in 2020. However, its penetration in non-dairy ice cream is more than twice as high as in regular dairy ice cream.

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