Europe Ice Cream Market - Growth, Trends, and Forecasts (2023-2028)

The European ice cream market is projected to record a CAGR of 4.87% over the upcoming five years.

Demand for ice creams that are low on fats, made using natural ingredients, yet do not compromise on taste and indulgence is growing across Europe. Germany and Russia are the biggest ice cream markets in Europe. Over the medium term, indulgence and the increasing consumer preference for ice cream as a leisure product drove the growth of this market, and new innovative flavors, offered by companies, further act as a catalyst for demand generation.

One of the popular trends in the European ice cream market is the premiumization of ice creams. Europeans prefer premium ice creams due to their distinctive flavors and portions. Premium ice cream has a higher percentage of butterfat and fewer air particles per ice cream particle. The demand for luxury ice cream and regular ice cream desserts is also rising sharply in the European market due to the continent's rapidly expanding urbanization and the dairy industry's improved technological improvements. The key causes driving the increase in the European ice cream market's annual sales are the use of novel ingredients such as whole milk, skim milk, and sweetening and flavoring agents.

Additionally, there has been an ongoing trend of artisanal ice cream across European regions like Italy, France, and others regions. The key players in the market are expanding their reach to different countries in the region. In September 2021, Barilla, an Italian food company, collaborated with Algida, a Unilever brand, to cater to the Italian customer base with a new range of ice creams.

Europe Ice Cream Market Trends

Rising Demand for Healthy Ice Creams

Owing to a rise in the lifestyle diseases like obesity, and diabetes, a growing preference for veganism, and increasing health consciousness among consumers, ice creams without dairy ingredients are gaining momentum in the European market. Owing to the demand for healthy/free-from ice cream, companies have been launching new products and expanding into new markets, for example, in February 2021, Sweden-based company, LUB Foods subsidiary brand Nick’s secured USD 30 Million in funding to execute its plans for expansion of its sugar-free ice cream products in international markets, mainly in the United States and Germany, along with the construction of a production facility located in Europe.

For consumers looking for a variety or following a special diet, there are more non-dairy ice creams and frozen treats available than ever before, with small brands and significant players offering low-calorie, vegan options and non-dairy versions of their classic flavors. For instance, in 2021, Unilever's Ben & Jerry's launched 'Save Our Swirled Now' non-dairy ice cream as an addition to its plant-based ice cream portfolio. This new variant is a combination of coconut ice cream with chunks of chocolate and a cookie swirl. Non-vegan health-conscious individuals demand low-calorie and natural ingredients in ice creams.

Increased Consumption of Artisanal Ice Cream in Europe

Increased consumption of artisanal ice cream is one of the driving factors for the European frozen desserts market. The consumer demand for artisanal ice cream is leading to the growth of the overall European ice cream market. Gelato forms a major segment of artisanal ice creams. Furthermore, Italian gelato is among the most popular ice cream variants extensively sold in the retail market. This is the reason why a majority of companies like Unilever, Nestle SA, and General Mills are focusing on extending their range of gelato ice creams, catering to the demand for artisanal ice creams. Some popular Italian ice cream flavors include Cioccolato, Pistacchio, Stracciatella, Mandorla, and Limone. For instance, Unilever-owned gelato brand Talenti offers a new line by the name 'Talenti Gelato Layers', offering vanilla fudge cookies, salted caramel truffle, chocolate cherry cheesecakes, black raspberry vanilla parfait, peanut butter vanilla fudge, mint fudge cookie, and dark chocolate cherry flavors.

Europe Ice Cream Market Competitor Analysis

More companies, including Unilever PLC, Nestle SA, General Mills, Wells Enterprises, Inc. (Halo Top), and Mars Inc., are collaborating with large e-commerce platforms to improve brand visibility, improve their market presence, and further increase their market share in the European region. This includes ice cream giants making their own online portals active and catering to the requirements of the consumers effectively, including sales-promotion techniques such as discounts, offers, and other incentives for converting the majority of the customers into consumers.

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