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Ice Creams and Frozen Desserts Market Report 2002
Key Note Publications Ltd, Jan 2002
The UK ice creams and frozen desserts market forms part of the thriving food industry. In 2001, it was valued at £1.79bn, sales having increased by 12.3% since 1997, to outpace growth in the overall food market. Ice creams and frozen desserts are convenience products, which are ideally suited to current lifestyles and eating trends.
In the ice creams sector, sales of take-home ice cream have overtaken those of impulse products since the late 1990s. The success of multipacks of single-serve impulse items has contributed to this trend, as has innovation in bulk ice cream brands. As a result, stores are devoting more space to ice cream products which, in turn, is encouraging sales.
Sales of frozen desserts have declined since 1999, as a result of various factors, including fewer family eating occasions, the success of the chilled and single-serve dessert sectors, and the rise in own-label products. However, the sector contains strong brands and is subject to a high degree of new product development (NPD).
The national market for ice creams and frozen desserts is dominated by a few companies with strong brand portfolios. These include Birds Eye Wall's Ltd, Richmond Foods PLC, Hibernia Foods Ltd and RHM Frozen Foods Ltd. Medium-sized companies active in the market tend to have a more limited brand offer and focus more on regional or local markets.
Major trends in the market have been dominated by cross-branding from the confectionery market. Ice creams and frozen desserts based on established brands offer a lower-risk point of entry for new products than completely new product launches. Other developments have taken advantage of trends in the wider food market, such as the growing popularity of healthy-eating and organic brands.
The success of brand extensions and new products is a strong indicator that the market still has potential for positive growth in the short to medium term, and Key Note forecasts year-on-year growth to at least 2006.
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