Extruded Ice Cream Market Size, Share & COVID-19 Impact Analysis, By Product Type (Stick bars, Sandwiches, Cones, and Others), By Flavor (Chocolate, Strawberry, Caramel, Mixed, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Ice Cream Parlors, Online Retailers, and Others), and Regional Forecast, 2023-2030

The extruded ice cream market size was valued at USD 8.59 billion in 2022 and is projected to grow from USD 9.12 billion in 2023 to USD 15.01 billion by 2030, exhibiting a CAGR of 7.37% during the forecast period. Europe dominated the extruded ice cream market with a market share of 48.31% in 2022.

Extrusion is a manufacturing method used to obtain a finished product with a unique shape and design. In this method, the raw materials are pushed through a die, imparting the cross-sectional design and shape of the die to the finished products. Novelty ice creams with complex shapes, textures, and designs are manufactured using the extrusion process. The extrusion processing equipment helps blend the raw materials properly and improves product stabilization. With the rising demand for novelty products, the demand for extruded ice cream is expected to increase rapidly in the market.

COVID-19 IMPACT

Supply Chain Disruption Caused Sales of Extruded Ice Cream to Plummet During Pandemic

The ice cream industry suffered an initial setback when the first wave of the COVID-19 pandemic hit countries globally in the early few months of the onset of COVID-19. As several countries imposed lockdowns to curb the spread of the disease, manufacturing, distribution, and sales suffered significant obstacles. Availability of raw materials and skilled laborers was significantly hampered due to movement restrictions imposed by the government to curb the disease spread in several countries. Such movement restrictions hampered the logistics, causing a declining export of raw materials and finished products, resulting in the limited availability of imported extruded ice cream products in the market. 

As the pandemic hit during the onset of the summer, which is the peak season for ice cream sales, the supply chain disruption negatively hampered product sales. Several retail outlets, such as ice cream parlors, supermarket chains, and convenience stores, were closed, causing the manufacturers to adopt alternate channels, such as e-commerce platforms, for distributing their products in the market. Poor cold chain infrastructure and delivery delays resulted in several products getting spoiled en route, causing losses to the manufacturers.   

LATEST TRENDS

Changing Dietary Lifestyle of Young Consumers to Influence Extruded Ice Cream Market Trend

Young consumers are becoming highly conscious about the daily intake of calories through their diet. Hence, while consuming indulgent food, such as extruded ice cream, they focus on the calorie content of the products. Thus, to meet the growing demand for better-for-you frozen products among such consumer segments, the manufacturers are launching low-calorie, sugar-free, or fat-free varieties of products for such target markets. For instance, in 2023, N! C.K., a Swedish ice cream company, launched novelty ice cream bars with low-calorie and low-fat content.

Some manufacturers are also adopting a product reformation strategy to create innovative flavors and textures of ice cream for the growing market. Bright-colored, multi-flavored, multi-layered, and unique crunchy coating ice cream products are being launched for consumers, providing them with a wide selection of products. 

New plant-based extruded ice cream products are also being launched for consumers who prefer vegan or animal fat-free products. The changes in dietary lifestyle are playing a crucial role in influencing new product launches in the market.

DRIVING FACTORS

Increased Frequency and Duration of Heatwaves to Support Market Growth

Drastic weather changes induced by global warming significantly influence consumers' purchasing behavior. Over the last few years, there has been a continuous rise in the earth’s temperature, leading to longer summers and shorter winters. Several countries suffer from long extended heatwaves, forcing consumers to consume cold products. The rise in temperature and extreme summer heat are forcing consumers to opt for frozen products to keep their bodies cool and also provide the necessary energy to the body. As the weather patterns are expected to remain warmer, the demand for novel ice cream products such as extruded ice cream is expected to increase soon.   

For instance, as per data provided by the United States Environmental Protection Agency, the frequency of heat waves in the U.S. increased from two heat waves per year in the 1950s to six in the 2020s. Similarly, as per data from the Indian Meteorological Department (IMD). India had the hottest summer in 2022, with 203 heatwave days. The number of heatwaves was five times more than in 2021.

Increasing Demand for Novel Frozen Products Boosts Market Growth

With the rise in industrialization and rising employment in the formal sector, disposable income has increased significantly globally. This has also created a hectic lifestyle for consumers, resulting in changes in their purchase behavior. Convenience food products with innovative flavors, shapes, and tastes have become more prominent among young consumers. The Westernization of food habits has also positively influenced the growth in sales of frozen food items, including ice cream, in Asian and Middle Eastern countries. As the demand for novel ice cream products increases, extrusion technology plays a pivotal role in supporting the market’s growth. Premium novel products such as sandwiches, stick bars, and ice cream cones are mainly manufactured using this technology. The growing demand for such products among consumers is expected to support market growth.

RESTRAINING FACTORS

High Production Costs and Availability of Economical Alternatives Impedes Market Growth

Production of extruded ice cream requires highly efficient machinery, such as extrusion machines, which can impart the specific shape and size of the finished products. The initial investment cost of such machines is high. Hence, it becomes difficult for startups and mid-sized firms to break even and generate profits after highly investing in machinery and other fixed assets.

Moreover, novelty ice cream costs more than conventionally produced ice cream. Therefore, cost-conscious consumers can switch to healthier and low-cost alternatives, such as conventional ice cream, yogurt, and other products. Furthermore, the continuous innovation in snacks, beverages, and frozen food categories also provides a viable alternative for consumers to make an informed choice and purchase a suitable product.

SEGMENTATION

By Product Type Analysis

Stick Bars is the Leading Segment Owing to the Convenience of Eating Ice Cream with Ease 

On the basis of product type, the market is segmented into stick bars, sandwiches, cones, and others. The stick bars account for the highest market share compared to other product varieties. Stick ice cream novelties are available in a wide range of shapes, sizes, and colors and have been used for a long time. Using wooden sticks in such novelties helps grab the products, thus making it easier for children and adults to consume them.

The cones have also become popular among consumers, and the manufacturers have launched several new product varieties of cones in different markets. The wafer cups are eco-friendly and crispy, enhancing the overall ice cream consuming experience and making the product popular among consumers.

The sandwich ice cream is an emerging product variety expected to gain popularity among consumers looking for novel products. Similar other product varieties, such as logs and stick-less bars, are being launched by the manufacturers in different regions.   

By Flavor Analysis

Mixed Flavor Segment Accounts for Highest Market Share as Such Flavors Provide a Unique Taste Experience to the Consumers

Based on flavor, the market is segmented into chocolate, strawberry, caramel, mixed, and others. The mixed flavor segment accounts for the highest extruded ice cream market share. Indulgent flavors, including a combination of standard flavors with exotic varieties, are growing globally. Several brands, such as Haagen Daaz, Klondike, and Breyers, are providing ice creams in innovative flavors to attract new consumers and entice existing consumers to purchase their products.

Other flavors, such as chocolate, strawberry, caramel, mango, raspberry, and others, remain popular, and manufacturers continue to produce products in standard flavors.

By Distribution Channel Analysis

Supermarkets/Hypermarkets Accounts for Highest Market Share Owing to Wider Product Range Availability

By distribution channel, the market is segmented into supermarkets/hypermarkets, ice cream parlors, online retailers, and others. The supermarkets/hypermarkets segment accounted for the highest market share in 2022. Industrially produced extruded ice cream novelties manufactured by companies, such as Nestle S.A., Unilever, and others are available through these retail outlets. These retail outlets provide the convenience to choose from a wide selection of domestically produced and imported product varieties.

Ice cream parlors also allow consumers to purchase a particular variety and brands from their stores. Manufacturers, such as Amul and others, are launching their own ice cream parlors and new products in the Southeast Asian region.

The COVID-19 pandemic has boosted the growth of e-commerce platforms as an alternate distribution channel for manufacturers. As cold chain logistics is improving globally, this channel is expected to register the highest growth during the forecast period.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe accounts for the largest market share, amounting to USD 4.15 billion in 2022. Apart from major European countries, Nordic countries, such as Denmark, Norway, Sweden, and Finland, are some of the major consumers of extruded ice cream. The demand for healthier versions among regional consumers has increased rapidly. Impulse ice creams, available in smaller packaging formats, such as cones, sandwiches, and ice cream bars, are gaining prominence among health-conscious consumers. Among product varieties, sugar-free and low-calorie content products are being launched by manufacturers specifically targeted toward health and weight-conscious consumers. Young consumers inclined toward experimental food are opting for exotic mixtures of ice cream flavors, shapes, and textures. Furthermore, as more consumers opt for vegan diets, the demand for vegan ice creams is also increasing rapidly in the region. For instance, in 2023, Italy-based vegan food product brand ‘Valsoia’ launched vegan ice cream sandwiches and cones for European consumers.

North America is another major market, which is also expected to register continued growth. Ice cream is one of the most popular desserts consumers purchase in the region, although there is a slight decline in the consumption of these products in the U.S. and Canadian markets. However, consumers are willing to experiment with premium ice creams. Hence, the demand for ice cream novelties, such as sandwiches, sugar-free, stick bars, and cones, is witnessing steady growth among consumers. Flavors followed by miniature ice cream packets are becoming popular in the region. Thus, manufacturers focus on new product development with experimental shapes and flavors to attract consumers and increase their product sales. For instance, in 2023, Bimbo Bakeries USA collaborated with Sorrisa Group Inc. and announced plans to launch new ice cream novelties in the U.S. market.  

Asia Pacific extruded ice cream market growth is attributed to the increasing influence of Western food culture in the region and the rise in disposable income. Furthermore, the advancement in the cold supply chain in Asian countries and the rapid expansion in supermarket chains, e-commerce platforms, and traditional retail outlets have made it easier for consumers to access and purchase products. Several extruded ice-cream manufacturers, such as Unilever and Nestle S.A., are thus expanding their market presence and production capabilities in the region to meet the growing demand. For instance, in 2021, Nestle S.A. upgraded its R&D facility in Singapore, enhancing its extruded ice-cream production capabilities and developing products tailored to local customers' preferences.

South America and the Middle East and Africa is expected to grow significantly during the forecast period. High temperature in the region, increase in disposable income, and the influx of international tourists and professionals are some of the major factors favorably supporting the increasing consumption of high quality and new variety of snacks, such as ice cream in the region. Furthermore, Western cuisines and food habits are also growing in popularity in the region, which acts as another factor favorably supporting market growth.

KEY INDUSTRY PLAYERS

Growing Focus of Key Players in New Product Launches and Capacity Expansion Strategies to Aid Market Growth

Some of the key players operating in the global market include Unilever PLC, Nestle S.A., General Mills, and others. Expansion in product offerings, capacity expansion through the launch of new extrusion lines, and large-scale expansion by setting up new ice cream processing facilities in key markets are some of the major strategies adopted by them to increase their market share and product sales. For instance, in August 2021, Nestle Singapore significantly invested in upgrading its Singapore R&D facilities, including snacks and confectionery business segments. Adopting advanced technologies, such as continuous freezers, helps manufacturers produce extruded ice-cream on a large scale. Some startups are collaborating with other major players to launch limited edition products to create positive word of mouth among consumers and increase their market presence in related markets. Manufacturers are also partnering with packaging solution provider Tetra Pak, a provider of high-capacity and medium-capacity extrusion lines, to develop single-portion ice creams for the growing market. 

List of Key Companies Profiled:

• Unilever (U.K.)


• Tillamook (U.S.)


• Nestlé S.A., (Switzerland)


• GCMMF (India)


• General Mills (U.S.)


• Dunkin' Donuts LLC (U.S.)


• Blue Bell Creameries (U.S.)


• NOTO (India)


• Vadilal Group (India)


• Turkey Hill Dairy (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Unilever launched new ice cream flavors and products in the global market. It includes double gold caramel ice cream bars and Caramel duet bars, to its premium product lineup.


• March 2022: Turkey Hill, a U.S.-based company, launched new ice cream bars named Dipped Duos premium ice cream bars. These products contain two different flavors swirled in a single bar. The product is available in 4 combinations of flavors and is mainly aimed at expanding their premium product offering segment.


• January 2022: Oreo expanded its presence in the frozen novelties segment and launched ‘Oreo Frozen Treats’ for consumers. The new product lineup contains sandwiches, bars, and cones, which are available in retail stores across the U.S.


• January 2022: Nestle Thailand launched Blueberry Cheesecake Sandwich Ice Cream, which resembles a cheesecake sandwich dessert. This company also planned to launch this product in other Southeast Asian markets.


• May 2021: Kwality Walls launched a new edition of sandwich ice cream in Malaysia. The new special edition LINE FRIENDS Wall’s Ice Cream Sandwich helps consumers indulge in a fun, easy on-the-go snack.

REPORT COVERAGES

The market report includes quantitative and qualitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible market segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.