Ice Cream and Frozen Novelties - US

Published by: Mintel International Group Ltd.

Published: May. 1, 2008 - 93 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Well-established market with high usage still manages to grow slightly

Competition is growing for at-home ice cream

The struggle for health and decadence affects segments

Supermarket sales challenged by “other outlets”…

…and convenience stores

Factors impacting ice cream sales

Nearly half of FDM sales generated by Nestlé and Unilever

Nestlé and Unilever seeking all consumers—the defining difference

Innovation driven by premium and health focuses

Ice cream is universal

Habits and beliefs of the ice cream consumer

Consumer attitudes regarding frozen yogurt and gelato

Market Size and Forecast

Key points

Mature market is challenged to produce significant growth

Figure 1: Total U.S. sales and forecast of ice cream, sherbet, frozen yogurt, and frozen novelties at current prices, 2002-12*

Figure 2: Total U.S. sales and forecast of ice cream, sherbet, frozen yogurt, and frozen novelties at inflation adjusted prices, 2002-12

Competitive Context

Competition from foodservice

Ice cream shops serve up an increasingly enticing proposition

Figure 3: Source of ice cream for in home consumption, March 2008

Scoop shops focus on advertising and promotion

Figure 4: Baskin-Robbins Reese’s ice cream, 2007

Segment Performance

Key points

Health and wellness influencing all segments

The decadence demand

Figure 5: U.S. FDMx sales and forecast of ice cream, sherbet, frozen yogurt, and frozen novelties at current prices, by segment, 2002-12

Figure 6: U.S. FDMx sales of ice cream, sherbet, frozen yogurt, and frozen novelties, by segment, 2005 and 2007

Segment Performance—Ice Cream

Key points

Ice cream sales shift as consumers seek out portion-controlled novelties

Bridging the gap between highly indulgent and healthy ice cream

Figure 7: U.S. FDMx sales and forecast of ice cream, 2002-12

Segment Performance—Frozen Novelties

Key points

Size matters—bite-size, minis, personal portions

Figure 8: U.S. FDMx sales and forecast of frozen novelties, 2002-12

Segment Performance—Sherbet/Sorbet/Ices

Key points

Super-premium brand provides boost to segment sales

Figure 9: U.S. FDMx sales and forecast of sherbet, 2002-12

Segment Performance—Frozen Yogurt

Key points

Functionality breathes life into frozen yogurt

Figure 10: U.S. FMDx sales and forecast of frozen yogurt, 2002-12

Retail Channels

Key points

Mass merchandiser expansion driving sales in “other” outlets

A mix of “other” outlets also contributing to success

Figure 11: U.S. sales of ice cream, sherbet, frozen yogurt, and frozen novelties, by retail channel, 2005 and 2007

Retail Channels—Supermarkets

Key points

Supermarkets sales dip slightly—challenge: impulse and convenience

Figure 12: U.S. sales of ice cream, sherbert, frozen yogurt, and frozen novelties at supermarkets, 2002-07

Retail Channels—Convenience Stores

Key points

C-stores and novelties—the perfect match

Figure 13: U.S. sales of ice cream, sherbert, frozen yogurt, and frozen novelties at convenience stores, 2002-07

Market Drivers

Yin and Yang—desires for health and indulgence

Hold the fat! No significant change in adult obesity rates

Children continue to battle the bulge

Figure 14: Attributes important to choosing snack for children, December 2007

Convenience store growth signals shift from grocery

Leading Companies

Key points

Nestlé yields gains by reaching two consumer types

Wells’ Dairy records the strongest growth with Weight Watchers success

Figure 15: FDMx sales of leading ice cream, sherbet, frozen yogurt, and frozen novelties companies, 2005 and 2007

Brand Share—Ice Cream

Key points

Dreyer’s/Edy’s capitalize on slow churn ice cream

Häagen-Dazs and Ben & Jerry’s—sophisticated ice cream experiences

Figure 16: FDMx brand sales of ice cream in the U.S., 2005 and 2007

Brand Share—Frozen Novelties

Key points

Nestlé and Unilever brands parlaying churned success into novelties

Weight Watchers and Skinny Cow—diet-branded novelties fuel sales

Dibs offers bite-sized, Blue Bunny promotes personal size

Figure 17: FDMx brand sales of frozen novelties in the U.S., 2005 and 2007

Brand Share—Sherbet/Sorbet/Ices

Key point

Häagen-Dazs offers super-premium sorbets featuring “clean labels”

Figure 18: FDMx brand sales of sherbet in the U.S., 2005 and 2007

Brand Share—Frozen Yogurt

Key points

The joy of soy—Turtle Mountain gains traction

Forward-thinking brands adding functionality to products

Dieters turn to Häagen-Dazs for its indulgent characteristics

Figure 19: FDMx brand sales of frozen yogurt in the U.S., 2005 and 2007

Brand Qualities

Standard—Unilever leads with traditional, fun and increasingly health-oriented products

Figure 20: Klondike Bar, 2007

Figure 21: Klondike Bar, 200

Premium—leaders market congruent product lines

Super-premium—indulgent defined differently

Innovation and Innovators

New products focus on premium positioning

“Mix-in” indulgence

Provenance

Ethnic Influences

Health and wellness drives innovation

Portion control

Functional innovations

Organic and ethical ice cream

Figure 22: Top 10 new ice cream & novelties product launches* by product claim and year, 2005-07

Advertising and Promotion

Overview

Healthy indulgence

Figure 23: Edy’s Slow Churned, 2008

Figure 24: Breyers Double Churned, 2008

Small size

Figure 25: Blue Bunny Supremes, 2008

Figure 26: Blue Bunny Supremes, 2008

Figure 27: Edy’s Dibs, 2008

Premium

Figure 28: Breyers All Natural, 2008

Usage

Figure 29: Usage of ice cream, frozen novelties, sherbert, frozen yogurt, gelato, and custard, by gender, March 2008

Figure 30: Usage of ice cream, frozen novelties, sherbert, frozen yogurt, gelato, and custard, by age, March 2008

Figure 31: Usage of ice cream, frozen novelties, sherbert, frozen yogurt, gelato, and custard, by HH income, March 2008

Trended usage of ice cream and sherbet

Figure 32: Household usage of ice cream and sherbet, 2003-07

Trended usage of frozen yogurt

Figure 33: Household usage of frozen yogurt, 2003-07

Trended usage of frozen novelties

Figure 34: Household usage of frozen novelties, 2003-07

Brand Usage and Purchasing Habits

Ice cream brand usage

Figure 35: Top 10 brands of ice cream used by households, 2006 and 2007

Figure 36: Top 10 brands of ice cream used by households, by HH income, May 2006-June 2007

Figure 37: Top 10 brands of ice cream used by households, by race/ethnicity, May 2006-June 2007

Frozen novelty brand usage

Figure 38: Top 10 brands of frozen novelties used by households, race/ethnicity, May 2006-June 2007

Ice cream brand purchasing patterns

Figure 39: Purchasing habits of respondents who have bought ice cream in past year, by gender, 2006 and 2007

Ice Cream Purchase Venues

Figure 40: Source of ice cream for at home consumption, March 2008

Ice Cream Usage Patterns, Attributes, and Types

How ice cream is used

Figure 41: How ice cream is used, by gender, March 2008

Figure 42: How ice cream is used, by age, March 2008

Ice cream attributes

Figure 43: Ice cream attributes, by gender, March 2008

Figure 44: Ice cream attributes, by age, March 2008

Light and regular usage compared to last year

Figure 45: Light and regular ice cream use compared to last year, by gender, March 2008

Figure 46: Light and regular ice cream use compared to last year, by age, March 2008

Attitudes of Frozen Yogurt Eaters

Figure 47: attitudes of frozen yogurt eaters, by age, 2007 and 2008

Attitudes Toward Gelato

Figure 48: Reasons for eating gelato, by gender, March 2008

Other Attitudes

Figure 49: Attitudes toward customization, fruit content, ice cream shop quality, and gelato, by race/ethnicity, March 2008

Figure 50: Attitudes toward prepackaged candy “mix-ins,” by gender, March 2008

Figure 51: Attitudes toward prepackaged candy “mix-ins,” by HH income, March 2008

Figure 52: Attitudes toward prepackaged nut “mix-ins,” by race/ethnicity, March 2008

Figure 53: Attitudes toward ice cream/yogurt with green tea, by age, March 2008

Appendix: Mid-Level Brand Share Tables

Ice cream

Figure 69: FDMx mid-level brand sales of ice cream in the U.S., 2005 and 2007

Frozen novelties

Figure 70: FDMx mid-level brand sales of frozen novelties in the U.S., 2005 and 2007

Appendix: Other Useful Consumer Tables

Attitudes of frozen yogurt eaters

Figure 71: attitudes of frozen yogurt eaters, by HH income, March 2008

Appendix: Trade Associations

Abstract

This report explores the ice cream and frozen novelty category-going beyond discussion of market trends, segment performance and brand sales to include insight on how this mature market can continue to reach its wide audience as well as opportunities to expand into non-traditional applications and provide a new 'hook' to increase consumer appeal.

You will find thoughtful discussion on topics that include:

• How the category's maturity supports shifts in sales between segments and leaves little room to maneuver-suggesting potential through non-traditional applications and occasions for use
• How the competitive landscape for away-from-home ice cream consumption impacts at-home sales
• How the impact of American's desires for health and wellness anddecadence influence segment sales and opportunities they create
• How the shift in retailer sales of ice cream and frozen novelty impacts innovation and future sales
• Defining the two consumer need states-health and indulgence and how they drive sales
• How the changes in adult and child obesity rates affect market sales, innovation and marketing
• How major players in ice cream and novelties are successfully addressing two distinct consumer needs as well as establishing brands that can blur the lines between them
• Recognition of how leading suppliers are not defined by a single brand; rather, they recognize varying consumer needs through differentiated brand qualities
• Insight on innovation and innovators in the category with discussion based on core themes-premium/indulgence and health/wellness
• Why and how marketers are spending money to highlight key propositions regarding a product's health and wellness, product size or portion-control, and premium positioning
• Discussion of household penetration of ice cream and related products
• Results of which ice cream brands consumers prefer
• Where consumers go to buy ice cream for at-home consumption
• Discovery and discussion of attitudes of ice cream users regarding how they use the product, attributes they desire, usage of light vs. regular
• Discovery and discussion of attitudes of frozen yogurt users as well as gelato users

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