South America Ice Cream Market, By Country, Competition, Forecast & Opportunities, 2020-2030F

The South America Ice Cream Market was valued at USD 4.26 Billion in 2024, and is expected to reach USD 5.15 Billion by 2030, rising at a CAGR of 4.17%. The South America ice cream market is experiencing steady growth, driven by rising disposable incomes, urbanization, and a growing preference for indulgent and innovative frozen desserts. Consumers in countries like Brazil, Argentina, and Chile are increasingly drawn to premium, artisanal, and health-oriented options, such as dairy-free, low-sugar, and functional ice creams. Expanding modern retail infrastructure, including supermarkets and e-commerce, is enhancing accessibility and boosting sales across the region. Additionally, international and domestic brands are investing in product innovation and flavor diversification tailored to local tastes.

Market Drivers

Rising Disposable Incomes and Urbanization

One of the strongest drivers of the South America ice cream market is the steady rise in disposable incomes, coupled with rapid urbanization across major economies like Brazil, Argentina, Chile, and Colombia. Approximately 80% of South America’s population lives in urban areas, making it one of the most urbanized regions globally. As more people move to cities, their lifestyles and consumption patterns shift towards convenience and indulgence, creating higher demand for ready-to-eat treats like ice cream. The middle-class population is expanding significantly, which increases the spending power on non-essential and premium products.

Urban centers also provide greater access to modern retail outlets, quick-service restaurants, and specialty dessert shops, making ice cream more accessible. Moreover, the growing trend of eating out, social gatherings, and the culture of snacking in urban areas has elevated ice cream consumption beyond a seasonal product, turning it into an everyday indulgence. This urban-driven transformation has given international and local ice cream manufacturers a stronger base to innovate and launch products targeted at an aspirational, quality-conscious consumer base.

Key Market Challenges

High Seasonality in Consumption

One of the biggest challenges for the South America ice cream market is its strong dependence on seasonal demand, with consumption peaking during the hot summer months and dropping significantly in colder or rainy seasons. This seasonal fluctuation creates challenges for manufacturers and retailers in maintaining steady sales volumes and managing inventory throughout the year. Companies often face difficulties in optimizing production capacity and logistics, as demand is not uniform across seasons. Although efforts to promote ice cream as an “all-year indulgence” are underway, consumer behavior in several countries remains strongly tied to weather patterns. This seasonality limits growth potential and adds pressure on producers to create innovative campaigns an

Key Market Trends

Growing Popularity of Plant-Based and Dairy-Free Alternatives

A key trend transforming the South America ice cream market is the surge in demand for plant-based and dairy-free alternatives, largely fueled by the rise of veganism, lactose intolerance awareness, and the broader shift toward plant-based diets. Countries like Brazil and Chile are witnessing a strong adoption of vegan and flexitarian lifestyles, particularly among urban millennials and Gen Z consumers, who seek indulgent yet guilt-free options. Manufacturers are innovating with bases such as almond milk, coconut milk, oat milk, and soy to replicate the creamy texture of traditional dairy ice cream while appealing to environmentally conscious buyers.

This trend is further supported by the growing discourse around sustainability and animal welfare, which encourages consumers to opt for ethical food choices. Brands that highlight clean-label, natural, and allergen-free claims on packaging are gaining traction, as consumers demand transparency and healthier formulations. The rise of specialty vegan ice cream parlors and the inclusion of dairy-free options in mainstream supermarkets are further accelerating this trend. With plant-based foods now a global movement, South America is catching up quickly, making dairy alternatives a central growth avenue for the region’s ice cream industry.

Key Market Players

Unilever
Nestle
Arcor
Heladeria Grido
Frutos do Brasil
Danone
Haagen-Dazs
Ben & Jerry's
Gelato & Co.
La Fama

Report Scope:

In this report, the South America Ice Cream Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

South America Ice Cream Market, By Product Type:

Brick
Tub
Cup
Cone
Stick
Others

South America Ice Cream Market, By Distribution Channel:

Supermarkets/Hypermarkets
Multi-Branded Stores
Online
Others