Ice-cream interest

Europe led launch activity, accounting for nearly 40% of the total, followed by the USA with just over 30%. While per capita consumption of ice-cream is much higher in the USA than in Europe, at over 10 L compared with an average of closer to 7 L in Western Europe and 3 L in Eastern Europe, the greater number of countries and companies has kept levels of innovation relatively high. The highest per capita levels globally are actually found in Australia and New Zealand, at about 12 L, but the small population of the countries and the relatively few companies in the market mean that launch activity is more limited there at less than 5% of the global total.

Innova has already recorded over 650 introductions globally in the first three months of 2011, representing a double-digit increase over the same period in 2010.

The ice-cream market has always been one that has been problematic to develop because of its seasonality and weather dependency. These factors still tend to dictate sector performance overall despite ongoing supplier initiatives to increase and extend consumption occasions. In an era of rising basic raw material prices, including those for milk, cocoa and sugar, the need to add value has never been more acute. Flavour innovation, supported by technological advances, allowing more complex flavour and texture combinations, appears to be continuing unabated. This is an increasingly competitive marketplace dominated by fewer, larger players, who need to offer something new to maintain interest in the market overall and in existing brands. Limited edition products offer the ideal opportunity to try new, indulgent and perhaps more unusual flavour options alongside more traditional and classical variants.

Lu Ann Williams, Research Manager for Innova Market Insights, summarises, “Within such a large market, even one so weather dependent, innovation is obviously highly important, and the key trend emerging on a global scale in recent years has almost certainly been the rising popularity of luxury and premium lines for consumption as indulgent snacks or treats. The economic situation of the past few years has proved challenging for this trend in some instances. This move to premium products has also been closely associated with developments in flavourings, which have also become increasingly indulgent, complex and exotic in line with rising consumer desires and expectations.”

Innova Market Insights (Australasia) Pty Ltd

www.innova-food.com.au