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The U.S. Market For Ice Cream and Other Frozen Desserts


Attention: There is an updated edition available for this report.

  1. Executive Summary

    Scope and Methodology

      Products Covered
      Report Methodology

    The Products

      Packaged vs. Frozen Novelties
      Types of Packaged Products Covered
      Frozen Desserts: Five Basic Categories
      Hard-Frozen and Soft-Serve Frozen Desserts
      Products Distinguished by Quality
      Products Distinguished by Various Key Ingredients

    The Market

      U.S. Retail Sales Reach $11.5 Billion in 1999
      Packaged Ice Cream Is Largest Category
      Frozen Novelties Are Second in Sales
      Half of All Sales through Supermarkets
      Table 1-1: Overall Dollar Sales of Ice Cream and Other Frozen
      Desserts: By Product Category, 1994-1999 (dollars): Regular Ice
      Cream, Frozen Novelties, Low-Fat/Non-fat Ice Cream, Frozen
      Yogurt, Other
      Table 1-2: Overall Frozen Desserts Sales: Percentage of Dollar Sales
      by Distribution Channel, 1999 (dollars): Supermarkets, Frozen
      Dessert Shops, Convenience Stores, Vending, Other
      At-Home vs. Away-From-Home Sales
      Figure 1-1: Overall Frozen Desserts Dollar Sales by Distribution
      Channel, 1999
      Factors Affecting Market Growth
      The Price of Milkfat
      The Weather
      U.S. Economic Boom
      Globalization of Economy
      Globalization of Culture
      Health Considerations
      Demographics: Baby Boom Echo
      Projected Sales of Frozen Desserts to Almost $12.8 Billion by 2004

    The Marketers

      Evolving Market Structure
      Unilever Is World and U.S. Leader
      Table 1-3: Frozen Dessert Market Leaders, 1999
      Private Labels
      Frozen Dessert Chains
      Industry Noted For Merger & Acquisition Activity
      Marketing Trends: Reaching a Segmented Market
      Limited Editions
      Guerrilla Marketing
      Targeting Kids
      Industry Trends: Consolidation
      Licensing, Co-Branding And Joint Ventures
      Globalization Of The Market
      Foodservice Outlets Multiply
      Product Trends: Health and Indulgence
      Return of Indulgence Products
      Healthy Products
      Organic Frozen Desserts
      Alcoholic Beverage-Based Frozen Desserts
      Smoothies
      Kids' Novelties
      Mix-ins
      Coffee-Flavored Frozen Desserts
      Ethnic Flavors

    Distribution and Retail

      Supermarkets Top Retail Distribution Outlet
      Frozen Dessert Shops Top Foodservice Channel
      Warehouse Delivery vs. Direct-Store-Delivery
      Owning the Distribution
      Consolidation of Distribution

    The Consumer

      U.S. Per Capita Consumption Second Highest in World
      Larger Households Have Greatest Tendency toward Regular Ice Cream
      Consumption
      Fat-Free/Low-Fat Ice Cream Consumers Present Upscale Profile
      Sherbet Use Highest among Black Consumers
      Women Are Main Frozen Yogurt Consumers
      Race a Key Factor in Superpremium Ice Cream Use

  2. The Products

    Introduction

      Scope of Study
      Types of Packaged Products Covered

    The Products: Classifications

      Five Ways to Classify Products
      Standards of Identity
      Frozen Desserts: Five Basic Categories
      Ice Cream
      Sherbet
      Water and Fruit Ices
      Water Ices
      Fruit Ices
      Sorbets
      Non-Dairy Frozen Desserts
      Frozen Yogurt
      Second Classification: Hard-Frozen vs. Soft-Serve Desserts
      Table 2-1: Hard-Frozen and Soft-Serve Frozen Dessert Production, 1985-1998 (gallons, percent of total)
      Third Classification: Packaged vs. Frozen Novelties
      "Packaged" Frozen Desserts
      Half-Gallons
      Quarts
      Pints
      Odd-Sizes
      Bulk Packs
      Frozen Novelties
      Bars
      Sandwiches
      Cones
      Cups
      Push-ups
      Freezer Pops
      Bite-Size Pieces
      Combination Products
      Smoothies
      Specialty Items
      Fourth Classification: Products Distinguished by Quality
      Superpremium
      Premium Plus
      Premium
      Regular
      Economy
      Fifth Classification: Products Distinguished by Various Key Ingredients
      Fat Content
      Sweeteners
      Natural Ingredients
      Organic Frozen Desserts
      rBGH vs. Non-rBGH Milk
      Alcoholic Frozen Desserts
      Nutraceutical Ingredients
      Foodservice Frozen Desserts
      Sundaes, Ice Cream Sodas, and Banana Splits
      Table 2-2: Sundae Varieties (names, ingredients)
      Blender Treats
      Smoothies
      Cakes and Pies
      Flavor Adventures

    History of Frozen Desserts

      Origins of Frozen Dessert
      Development in Europe
      Frozen Desserts in America
      The 1800s: First Period of Innovation
      Early 1900s: Second Period of Innovation
      Development of Packaged Ice Cream
      The Modern Era
      A Return to Quality Products
      Healthy Frozen Desserts

    Frozen Dessert Manufacturing

      Production Process
      Production Equipment
      Quality Control
      Frozen Dessert Manufacturing Plants
      Table 2-3: Number of Ice Cream Plants, 1970-1998 (year, number, types)
      Co-Packing

    The Regulatory Environment

      Overview
      Nutrition Labeling & Education Act
      Nutritional Information Requirements
      Exemptions
      Nutrition Regulations In Foodservice
      Health Claims
      Table 2-4: Nutrients with Authorized Health Claims (types, conditions)
      New Health Claim For Soy Protein
      Product Recalls
      Easing of Listeria Regulations

  3. The Market

    Market Size, Growth, and Composition

      Note on Sales
      Overall Market Size and Growth
      Table 3-1: Overall Dollar Sales of Ice Cream and Other Frozen Desserts: By Product Category, 1994-1999 (dollars): Regular Ice Cream, Frozen Novelties, Low-Fat/Non-fat Ice Cream, Frozen Yogurt, Other
      Figure 3-1: Overall Frozen Dessert Sales, 1995-1999 (dollars): Regular Ice Cream, Low-Fat/Nonfat Ice Cream, Frozen Novelties, Frozen Yogurt, Other
      Packaged Ice Cream Is Largest Category
      Table 3-2: Overall Percentage of Dollar Sales of Ice Cream and Other Frozen Desserts: By Product Category, 1994-1999 (percent): Regular Ice Cream, Frozen Novelties, Low-Fat/Nonfat Ice Cream, Frozen Yogurt, Other
      Frozen Novelties Are Second In Sales
      Frozen Yogurt Sales Declining
      Half of All Sales Through Supermarkets
      Table 3-3: Overall Frozen Desserts Sales: Percentage of Dollar Sales by Distribution Channel, 1999 (dollars): Supermarkets, Frozen Dessert Shops, Convenience Stores, Vending, Other
      Most Supermarket Frozen Dessert Sales Are of Packaged Ice Cream
      Figure 3-2: Overall Frozen Desserts Dollar Share by Distribution Channel, 1999 (percent): Supermarkets, Frozen Dessert Stores, Convenience Stores, Vending, Other
      Table 3-4: Supermarket Dollar Sales of Frozen Desserts: By Category, 1999 (dollars): Ice Cream, Frozen Yogurt/Tofu, Sherbet/Sorbet/Ices, All Packaged Frozen Desserts, Frozen Novelties
      Almost Three-Quarters of Unit Sales from Ice Cream
      Table 3-5: Supermarket Unit Sales of Frozen Desserts: By Category,1999 (dollars): Ice Cream, Frozen Yogurt/Tofu, Sherbet/Sorbet/Ices, All Packaged Frozen Desserts, Frozen Novelties
      Packaged Frozen Desserts: Ice Cream Dominates in Share of Sales
      Frozen Yogurt: The Other Major Packaged Category
      Minor Packaged Categories: Sherbet Stable
      Table 3-6: Share of Dollar Sales: By Packaged Frozen Dessert
      Category, 1994-1999 (percent): Regular Ice Cream,
      Lowfat/Nonfat Ice Cream, Frozen Yogurt, Sherbet, Water/Fruit
      Ice/Sorbet, Non-Dairy
      Sorbet: Skyrocketing
      Water/Fruit Ices: Tiny, Declining
      Non-Dairy Frozen Desserts: Minuscule, Falling
      Frozen Novelties Sales Increasing
      Sales by Quality Categories
      Figure 3-3: Share of Dollar Sales: By Packaged Frozen Dessert Category, 1999 (type, percent share)
      Superpremium
      Premium
      Regular
      Economy
      Branded vs. Private Label Sales
      Table 3-7: Private Label Share of Frozen Dessert Sales in Supermarkets and Drugstores, 1998-1999 (Packaged Frozen Desserts, Frozen Novelties)
      Frozen Dessert Production, 1994-1998
      Table 3-8: Production of Ice Cream and Other Frozen Desserts: By Product Category, 1994-1998 (gallons, quarts per capita)
      Regional Production of Frozen Desserts
      Table 3-9: Production of Ice Cream and Other Frozen Desserts: By Region, 1998 (gallons, quarts per capita)
      Seasonality of Sales
      Table 3-10: Production of Frozen Desserts: By Month, 1998 (gallons, percent total)

    Factors in Future Market Growth

      The Price of Milkfat
      The Weather
      U.S. Economic Boom
      Globalization of Economy
      Globalization of Culture
      Health Considerations
      Demographics: Baby Boom Echo

    Projected Market Growth

      Continued Growth Expected for Frozen Desserts
      Greatest Growth For Regular Ice Cream
      Likely Stop To Frozen Yogurt Sales Slide
      Table 3-11: Projected Overall Dollar Sales of Ice Cream and Other Frozen Desserts: By Product Category, 1999-2004 (dollars): Regular Ice Cream, Frozen Novelties, Lowfat/Nonfat Ice Cream, Frozen Yogurt, Other
      Figure 3-4: Overall Frozen Dessert Sales, 2000-2004 (dollars): Regular Ice Cream, Low-Fat/Nonfat Ice Cream, Frozen Novelties, Frozen Yogurt, Other
  4. The Marketers

    Overview: Frozen Dessert Marketers

      Evolving Market Structure
      International Conglomerates
      National Marketers
      Regional and Local Marketers
      Private Labels and Private Brands

    Overview: Frozen Dessert Foodservice Operations

      Menu Diversification
      Co-Branding
      Location Expansion
      Foodservice Trends

    Marketer and Brand Shares

      Overview
      Overall: Top Ten Marketers
      Table 4-1: Overall Marketer Share of Sales: Frozen Desserts, 1999 (percent): Top Ten Marketers, private label, other
      Top Ten Packaged Frozen Dessert Marketers
      Table 4-2: Marketer Share of Sales: Packaged Frozen Desserts, 1999 (percent): Top Ten Marketers, private label, others
      Top Ten Frozen Novelties Marketers
      Table 4-3: Marketer Share of Sales: Frozen Novelties, 1999 (percent): Top Ten Marketers, private label, others
      Top Fifteen Foodservice Chains
      Table 4-4: Sales and Units: Leading Frozen Dessert Foodservice Chains, 1998
      Top fifteen chains Brand Shares: Overall Frozen Desserts
      Table 4-5: Brand Share: Overall Frozen Desserts, 1999 (Top ten brands, private label, others)
      Brand Shares: Packaged Frozen Desserts
      Table 4-6: Brand Share: Packaged Frozen Desserts, 1999 (Top ten brands, private label, others)
      Brand Shares: Frozen Novelties
      Table 4-7: Brand Share: Frozen Novelties, 1999 (Top ten brands, private label, others)

    The Competitive Situation

      Consolidation the Dominant Competitive Trend
      Nestlé and Häagen-Dazs Joint Venture: Ice Cream Partners
      Yogen Früz Wins Eskimo Pie
      Yogen Früz Moves Up
      Ben & Jerry's Goes to Unilever
      The Dreyer's and M&M/MARS Partnership
      Mrs. Fields Acquires TCBY
      The Rise to Dairy Dominance of Suiza Foods
      Dean Foods Continues on Acquisition Binge
      Secondary Mergers and Acquisitions in 1998-1999
      Secondary Licensing, Joint Ventures, and Co-Branding Deals
      in 1998-1999

    Competitive Profiles: Good Humor-Breyers

      Joint Company a Unilever Creation
      Several Top Brands Owned by Good Humor-Breyers
      Magnum Launched in United States
      Popcicle Zone Created for Kids
      Significant Packaging and Production Changes Made
      Ice Cream Parlor Line Leads New Products For 2000

    Competitive Profile: Dreyer's

      A Dual Course to National Presence
      Direct-Store-Delivery a Key to Growth
      Quick Reactions to Changing Circumstances another Key
      Partnership with M&M/MARS One of Several New Agreements

    Competitive Profile: Ice Cream Partners

      Nestlé and Häagen-Dazs Join Distribution Forces
      New Products to Be Developed
      Nestlé Launches New Products around the Globe
      Häagen-Dazs Scores Big with Dulce de Leche

    Competitive Profile: Ben & Jerry's

      Ben & Jerry's Acquired by Unilever
      Both Parties Benefit
      Pressure from Dreyer's Led to the Deal
      A Return to Co-Packing

    Competitive Profile: ConAgra

      ConAgra's Healthy Choice a Frozen Dessert Success

    Leading Regional Marketers

      Blue Bell Creameries
      Dean Foods
      H.P. Hood
      Marigold
      Prairie Farms
      Suiza Foods
      Turkey Hill
      Wells' Dairy

    Frozen Novelties Leaders

      Overview
      Eskimo Pie
      M&M/MARS

    Leading Frozen Dessert Shop Chains

      Baskin-Robbins
      Carvel
      Cool Brands (Yogen Früz World-Wide)
      International Dairy Queen
      Friendly Ice Cream
      TCBY

    Significant Minor Marketers

      Brigham's
      Culver's Frozen Custard
      Delicious Alternative Desserts
      Fieldbrook Farms
      Jeremy's MicroBatch
      Rita's
      SMS Brands
      YOCREAM International

    Marketing Trends

      Marketing Trends: Reaching A Segmented Market
      Targeting Kids
      Microbatch and Limited Editions
      Guerrilla Marketing
      Footprints

    Industry Trends

      Consolidation
      Licensing, Co-Branding, and Joint Ventures
      Globalization of the Market
      Foodservice Developments

    Product Trends

      Overview
      Return of Indulgence Products
      Healthy Products
      Organic Frozen Desserts
      Alcoholic Beverage-Based Frozen Desserts
      Smoothies
      Kids' Novelties
      Flavor Developments
      Mix-ins Stay Popular
      Coffee Trend
      Kids' Flavors
      Ethnic Flavors
      Dulce de Leche
      International Innovations

    Packaging/Labeling Trends

      User-Friendly Packaging Innovation
      Packaging Materials Remain Fairly Consistent
      The ECO-Pint
      Labeling Challenges, Opportunities
      Graphic Packaging Redesigns and Upscaling
      Examples of U.S. and International New Product Introductions
      Table 4-8: New Product Introductions: U.S. Market, 1998-2000 (list): marketers, brands, description
      Table 4-9: New Product Introductions: International Market, 1998-2000 (list): marketers, brands, description

    Consumer Advertising Expenditures

      Low Ad Spending for Frozen Desserts
      Large Swings in Frozen Dessert Ad Spending
      Frozen Dessert Chain Operators Are Biggest Ad Spenders
      Häagen-Dazs Tops in Packaged Frozen Dessert Advertising in 1999
      Good Humor-Breyers Has Highest Average Ad Spending
      Spot Television Most Often Used by Frozen Dessert Advertisers

    Advertising Positioning and Promotions

      Consumer Ad Positioning: Fun
      Flavors and Ingredients
      Packaging
      Indulgence
      Celebration and Reward
      Consumer Promotions: Tie-Ins
      Games and Contests
      Trade Advertising
  5. Distribution And Retail

    Distribution

      Overview
      Warehouse Distribution
      Food Brokers
      Direct Store Delivery
      Electronic Data Processing And Transmission
      Business-To-Business E-Commerce
      Owning The Distribution
      Gaining Distribution
      Consolidation of Distribution
      Distribution Wars

    Retail Outlets

      Overview
      Table 5-1: Overall Frozen Desserts Sales by Distribution Channel, 1999 (dollars): Supermarkets, Frozen Dessert Shops, Convenience Stores, Vending, Other
      Supermarkets
      Table 5-2: Percent Share by Category of Frozen Dessert Sales through Supermarkets, 1999 (percent): Packaged Frozen, Frozen Novelties
      Slotting Allowances
      Smaller Groceries
      Convenience Stores
      Warehouse Clubs
      Health Food Distribution
      Catalogs
      Internet Distribution

    Foodservice Distribution

      Overview
      Frozen Dessert Shops
      Co-Branded Shops
      Restaurants
      Kiosks
      Carts and Trucks
      Vending
      Other Foodservice Outlets
  6. The Consumer

    The Consumer: Overview

      Eating Occasions
      Frozen Desserts as Snacks
      Frozen Desserts as Desserts
      At-Home Consumption
      Away-From-Home Consumption
      The Impulse Buy
      U.S. per Capita Consumption
      Table 6-1: Total and Per Capita Production of Frozen Desserts,
      1919-1998 (gallons, quarts)
      U.S. Per Capita Consumption Second Highest in World

    Consumer Use

      The Simmons Consumer Survey
      Demographic Characteristics of Regular Ice Cream Consumers
      35-44-Year-Olds More Likely to Be Heavy Users
      Upscale Consumers Indicated For Fat-Free/Low-Fat Ice Cream
      Consumption
      Asian-Americans Are Fat-Free/Low-Fat Resisters
      Sherbet Use Highest Among Black Consumers
      Asian-Americans Are Sherbet Resisters
      Women Are Main Frozen Yogurt Consumers
      Seniors Are Heavy Users Of Frozen Yogurt
      Frozen Yogurt Resisters
      Superpremium Ice Cream Users
      Table 6-2: U.S. Demographic Characteristics Favoring Use of Regular Ice Cream, 1999 (total users, heavy users)
      Table 6-3: U.S. Demographic Characteristics Favoring Use of Fat-Free/ Low-Fat Ice Cream, 1999 (users, resisters)
      Table 6-4: U.S. Demographic Characteristics Favoring Use of Sherbet, 1999 (users, resisters)
      Table 6-5: Demographic Characteristics Favoring Use of Frozen Yogurt, 1999 (users, resisters)
      Table 6-6: U.S. Demographic Characteristics Favoring Use of Superpremium Ice Cream, 1999 (Häagen-Dazs, Ben & Jerry's)
  7. Appendix I: Examples Of Consumer And Trade Advertising And Promotions
  8. Appendix II: Addresses Of Selected Marketers

The 1990s have been a period of intense merger and acquisition activity for the $11 billion frozen dessert industry. This new, updated report offers a comprehensive review of the factors driving this industry consolidation, profiles the companies involved and assesses the global context in which the drive for domination of the U.S. market is taking place. In addition, the report identifies the start-ups that have managed to gain a toehold in the market and analyzes the innovations that have made them successful. The report also tracks market trends, detailing the ups and downs taking place among the various product categories. Regulatory issues are also reviewed, as well as product trends.


Scope and Methodology

Products Covered

This Packaged Facts study focuses on the U.S. retail market for ice cream and other frozen desserts, including sherbet, frozen yogurt, water and fruit ices, and non-dairy frozen desserts. These products are marketed through a wide variety of retail outlets and also sold through several types of foodservice channels. Products are divided into two basic categories, multi-serving packaged frozen desserts and single-serve frozen novel-ties. Products can be consumed either as desserts or snacks.

The ice cream products are further distinguished by their fat content, dividing the category into regular and fat-free/low-fat products. The frozen dessert products covered are also distinguished by whether they are hard frozen or soft-serve. They can further be distinguished by their quality levels, which include superpremium, premium plus, pre-mium, regular, and economy.

Report Methodology

The information contained in this report is based on secondary research. Sec ondary research involved canvassing information and articles appearing in financial, marketing, and trade publication, company literature, and independent financial reports. Statistics on market size and growth are based mainly on data supplied to Packaged Facts on an exclusive basis by Information Resources, Inc. Information on consumer use of products is based on data compiled by Simmons Market Research Bureau and data from the United States Department of Agriculture. In addition, limited primary research was conducted entailing examination of frozen dessert products in retail stores and consulta-tions with industry participants.

Categories Covered:

  • Ice Cream
  • Frozen Yogurt
  • Sorbets
  • Water And Fruit Ices
  • Sherbet
  • Non-Dairy Frozen Desserts

Issues Addressed:

  • Current And Future Market Growth
  • Affect Of Health And Demographic Trends
  • Flavor Development
  • Kids’ Novelties
  • Developing Trends, Including Organic, Alcoholic, Smoothies
  • Return To Full-Fat Products
  • Hard Vs. Soft Frozen Desserts
  • Foodservice Frozen Dessert (Sundaes/Ice Cream Sodas/Banana Splits)
  • Current Quality Levels And Control
  • Licensing, Co-Branding, Joint Ventures

Tables And Graphs:

  • Overall Sales By Product Category, Retail Channel
  • Frozen Dessert Market Leaders
  • Sundae Varieties
  • Hard Vs. Soft Serve Frozen Dessert Production
  • Number Of Ice Cream Plants
  • Market Share By Category, Brand

Competitive Profiles:

  • Baskin-Robbins
  • Ben & Jerry’s
  • Blue Bell Creameries
  • Brigham’s
  • Carvel
  • Dairy Queen
  • Dean Foods
  • Delicious Alternative Desserts
  • Dreyer’s
  • Eskimo Pie
  • Fieldbrook Farms
  • Friendly Ice Cream
  • Goo Humor-Breyers
  • Haagen-Dazs International Yogurt
  • Jeremy’s MicroBatch
  • Marigold
  • Mars
  • Nestle
  • Rita’s
  • Smith Dairy
  • SMS Brands
  • Suiza Foods
  • TCBY
  • United Dairy Farmers
  • Velvet Ice Cream
  • Wells
  • Yogen Fruz Worldwide

Hours of Research: 650

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