Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Artisanal Ice Cream Market – Insights
Artisanal ice cream is a handmade ice cream made by an artisan or skilled craftsperson. The ingredients used in artisanal ice cream include milk, butter, cocoa, dried fruit, eggs, and cream, which are blended together and whisked to make a light, melt-in-the-mouth texture. The market is projected to reach US$ 22,075.2 million by the end of 2027, at a CAGR of 7.4% over the forecast period, owing to increasing demand for organic ice cream. Artisanal ice cream is largely made of organic ingredients and does not include chemicals or preservatives and hence demand for the ice cream is increasing.
Rising health consciousness among the population is driving growth of the global artisanal ice cream market. Companies around the world are focusing on offering low sugar or sugar-free artisanal ice cream for diabetic patients. Furthermore, companies are also providing healthy flavors in the artisanal ice cream, which include a variety of vegetables. These factors are expected to increase the demand for artisanal ice creams over the forecast period.
Distribution channel of artisanal ice cream includes hypermarkets & supermarkets, specialty stores, online channel, and others. Other distribution channel comprises convenience stores and departmental stores. The online channel is predicted to grow at a faster pace during the forecast period, attributing to increased penetration of internet and mobile phones across the globe.
According to Internet and Mobile Association of India (IAMAI)’s report published in 2017, the number of internet users in India was 481 million in December 2017 and is expected to reach 500 million by June 2018, recording an increase of 11.34% over the period. This factor is expected to contribute to growth of the e-commerce industry in the near future, thereby boosting the sales of artisanal ice creams through the online distribution channel.
High prices associated with artisanal ice cream is projected to hamper the market growth. The high prices of artisanal ice cream are a result of three factors: ingredients, production processes, and distribution. However, players operating in artisanal ice cream industry are focused on developing production technology that can offer better product quality with a higher shelf life. For instance, DuPont offers the CREMODAN 500 COLDLINE emulsifier & stabilizer system, which is specially designed to boost quality of traditional, handmade ice cream without homogenization or pasteurization. It provides flavor as well as storage stability without heat treatment. The emulsifier and stabilizer system provides highly stable ice cream with high freshness and flavor.
The global artisanal ice cream market was valued at US$ 11,642.2 million in 2018 and is expected to register a CAGR of 7.4 % in terms of revenue over the forecast period (2019– 2027).
Figure 1. Global Artisanal Ice Cream Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018
North America accounted for the largest market share of around 30.3% in 2018, owing to rising health consciousness among the population. Increasing incidence of disorders such as food intolerance and diabetes is encouraging a significant amount of population to opt for artisanal ice cream, which is organic or vegan.
Furthermore, companies are focusing on increasing their market share by adopting various strategies such as new product launches. For instance, in January 2019, Van Leeuwen Ice Cream launched a new ice cream named as ‘Couch Potato’, which contains cannabinoid (CBD) oil. Couch Potato ice cream starts with a base that uses potato chips and then folds in even more salty accents such as chocolate covered pretzels and roasted peanuts.
Figure 2. Global Artisanal Ice Cream Market Share (%), By Flavor, 2018
Source: Coherent Market Insights, 2018
Among flavors, chocolate segment held significant market share of 38.3% in the global artisanal ice cream market in 2018. Chocolate flavor is utilized as a core ingredient and is being infused with other ingredients to innovate flavors for artisanal ice cream such as vanilla chocolate chip flavor, chocolate caramelized oat, banana walnut chocolate, peanut butter chocolate swirl, chocolate chip cookie dough, and others. Therefore, innovations in flavors, considering chocolate as a core ingredient in global artisanal ice cream market, is expected to propel growth of the segment.
Players operating in the global artisanal ice cream market are adopting various growth strategies such as mergers & acquisitions and business expansion to cater to increasing demand for artisanal ice creams. For instance, in September 2018, High Road Craft Brands acquired Bella Gelato Co. Inc., a producer of gelato and sorbetto in Boston, U.S. This acquisition will help High Road Craft Brands to expand its presence in global artisanal ice cream market.
Major players operating in the global artisanal ice cream market include Unilever, Van Leeuwen, Nestlé S.A., Bi-Rite Creamery, Carmela Ice Cream Co., Gracie's Ice Cream, Boho Gelato, High Road Craft Brands, True & 12 Handmade Ice Cream, and Fiasco Gelato Cafes Ltd.