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Value for Money Plays Important Role in British Retail Ice Cream Sales

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Ice cream is extremely popular in the United Kingdom, but according to the Mintel market research company, 2022 saw more at-home consumption occasions lost, reflected in a 3% fall in volume sales to 365 million liters. However, price inflation fueled 6% value growth in the ice cream sector size to £1.7 billion in 2022, and Mintel forecasts the market will reach to £1.8 billion by 2027.

“To the week ending June 11, 2023, the total grocery value of the ice cream category in the UK was £1,425,898,000,” advised Rupert Ashby, chief executive of the British Frozen Food Federation (BFFF). “This figure provides a clear picture of the market’s significance within the retail sector, with 14% year-over-year growth. Volume sales dipped slightly compared to the same period last year (-1.2%), but this is not as significant as expected, given that many consumers are cutting back on luxuries due to the cost-of-living crisis.”

Trends

Changes in consumers’ lifestyle and eating habits, which includes managing increasingly busier job and family schedules as well as ongoing reverberations from the Covid-19 pandemic, have resulted in more on-the-go eating and snacking.

“Consumers have stuck with habits they formed during lockdown and when looking at consumption data, we can see that 23% of all ice cream consumption occasions are as a snack – up from just 19% three years ago,” said Zak Dixon, category insight manager at Foneri. “And with snacking on the rise, we see hand-held ice cream like chocolate-coated sticks, lollies, cones and small tubs being chosen more and more as a snack because it’s convenient for people at this need state, such as being tasty and treaty, easy to eat on the move and generally not too filling.”

Another key consumer trend is “elevated experience,” which has seen demand for premium products with innovative flavors and multi-sensory appeal. In fact, Mintel found that three in five global consumers are interested in trying new sensory experiences.

“Visually, consumers want to be excited with ripples, swirls and specks of color,” said Ashby. “Chunks of cookie dough, meringue and fudge add interesting mouthfeel, and flavors that emulate other desserts like banoffee pie or birthday cake have a ‘two for one’ appeal.”

Health

According to the BFFF, consumers’ focus on health has resulted in “enriched” ice creams with low calorie and higher protein content remaining popular choices, as well as plant-based alternatives that cater for a wider range of special dietary requirements and lifestyle choices.
“Traditionally frozen yogurt is seen as a healthy alternative as it is low in fat and can be paired with fresh fruits,” said Tamara Jones, new product development manager at DiSotto Foods. “Now, with the rise in vegan desserts, frozen yogurt has probably been replaced with plant-based flavors.”

Best Sellers

The biggest brands in the market by volume are Magnum, followed by Cadbury ice cream, Ben & Jerry’s and Rowntree’s. The top selling flavors remain strawberry, vanilla and chocolate.

“In both retail and foodservice sectors, there’s a significant proportion of customers that want to gain new experiences, discover new tastes and trial the latest creations,” said Niki Jenman, director at New Forest Ice Cream (NFIC). “It is for this reason that we offer a full range of 500ml take home tubs that include Vanilla Pod, Salted Caramel and our award-winning Iced Latte – as well as something a little bit different including Rhubarb & Ginger, Honeycomb Crunch and fruity Clotted Cream Strawberry Shortcake.”

DiSotto Foods’ best seller is Madagascan Vanilla, but in July of this year its Lemon and Mango sorbets were among the top sellers, showing that consumers are perhaps health conscious and choosing a vegan option.
“In the hot weather they find sorbet more refreshing than ice cream,” said Jones. “Other top sellers are chocolate chunk and strawberry cream. This shows that whatever trends come and go, vanilla, chocolate and strawberry will always be the core three flavors, followed by salted caramel, and cookies and cream.”

New Products

NFIC has been busy coming up with a range of flavored innovations. Following the success of the brand’s Clotted Cream Raspberry Ripple, it developed Blackberry Clotted Cream ice cream, which combines classic clotted cream with ripples of blackberries mixed in.

“The new flavor captures the taste of late-summer berry picking and cool, creamy indulgence thanks to the use of whole milk and double cream,” explained Jenman. “Only natural ingredients free from artificial colors and preservatives are used.”

Environmentally conscious operators and customers will also appreciate the fact that a portion of sales from this offering goes toward supporting the New Forest Trust in its conservation efforts.

NFIC has also introduced Maple Pancake Dairy Ice Cream. Made with whole milk and double cream, this variety features a pancake flavor base and a sweet maple syrup ripple throughout.

In celebration of its 40th Anniversary, NFIC introduced Ruby Dairy Ice Cream which combines Prosecco, white chocolate and raspberry.

“This summer saw the launch of Cadbury Caramilk into the Ice Cream category in the form of a chocolate-coated stick and a premium tub,” said Dixon. “There were also several other new flavors launched in existing brands, such as the Italian Roasted Hazelnut Nuii Ice Cream stick.”Meanwhile, the winner of the BFFF’s Annual Frozen Food Award for Best New Ice Cream Product in the retail category was Aldi’s Dairyfine Crumbly Chocolate Ice Cream. In the foodservice category, the winner of the Best Dessert was Ice Cream Treats’ Moo’d brand Cookies and Cream Ice Cream.

“While shoppers are often looking for a treat to enjoy at home as they cut back on eating out, there’s no denying that they are demanding value from every mouthful,” said Ashby. “No matter how luxurious the product or how special the occasion, price is a big deciding factor in the ice cream category.”

— Reported by Sarah Welsh