Ice Cream

 

The Flourishing Ice Cream Market in Asia-Pacific

The Asia-Pacific region has witnessed a remarkable surge in its ice cream market, driven by evolving consumer preferences, rising disposable incomes, and innovative product offerings. In 2023, the market was valued at approximately USD 42.15 billion and is projected to reach USD 58.79 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2030. 

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Drivers of Market Growth

Rising Disposable Incomes

Economic advancements in countries like China, India, and Japan have led to increased disposable incomes, enabling consumers to spend more on indulgent products such as ice cream. This financial flexibility has expanded the market for premium and artisanal ice cream varieties.​

Health-Conscious Consumer Trends

There's a growing demand for healthier dessert options. Consumers are increasingly seeking ice creams that offer functional benefits, leading to the introduction of products made with nutritious ingredients like mung beans and other plant-based components. This shift is evident in the launch of sugar-free and plant-based ice cream varieties. ​

Innovations and Product Diversification

Premium and Artisanal Flavors

The market has seen a surge in premium offerings, with brands introducing unique and gourmet flavors to cater to sophisticated palates. For instance, in April 2024, Havmor, under LOTTE Wellfood Co. Ltd, unveiled a new range of ice cream flavors, blending traditional favorites like Shahi Kesar and Rajwadi Kulfi with contemporary delights such as Blueberry Cheesecake and Cookie and Cream cones. ​Plant-Based Alternatives

The rise of plant-based diets has prompted companies to develop dairy-free ice cream options. In January 2024, Singapore's OATSIDE expanded its product line by introducing ice creams crafted from its signature oat milk, available in flavors like chocolate, peanut butter cookie dough, and coffee with mini chocolate chips.

Market Segmentation

By Source

The market is primarily divided into dairy & water-based and vegan segments. As of 2023, the dairy & water-based segment dominated, holding a significant revenue share of 94.5%. This dominance is attributed to the traditional preference for creamy textures and rich flavors associated with dairy-based ice creams. ​

By Flavor

Fruit-flavored ice creams are gaining popularity, projected to grow at the fastest CAGR of 5.5% from 2024 to 2030. Health-conscious consumers perceive fruit flavors as a more natural and wholesome choice, especially when made with real fruit purees or extracts. ​

By Packaging

Convenience plays a crucial role in packaging preferences. In 2023, the bars segment led the market with the largest revenue share of 32.8%. Ice cream bars offer portability and ease of consumption, making them a favored choice for on-the-go indulgence. ​

By Distribution Channel

Supermarkets and hypermarkets emerged as the leading distribution channels, accounting for 32.2% of the market share in 2023. These retail outlets provide a vast array of products, allowing consumers to explore various brands and flavors in one location. ​

Regional Insights

Countries such as Japan have shown a significant increase in ice cream consumption. Between 2011 and 2020, Japanese consumers' expenditure on ice cream grew by 135%, highlighting the expanding market in the region. ​

Key Market Players

The Asia-Pacific ice cream market is highly competitive, with major players including:​

• Nestlé SA: A global leader offering a diverse range of ice cream products.​

• Unilever PLC: Known for brands like Magnum and Cornetto, catering to various consumer segments.​

• Yili Group: A prominent Chinese dairy company expanding its ice cream portfolio.​

• General Mills Inc.: Offers a variety of ice cream products under its Häagen-Dazs brand.​

• Froneri International Limited: A joint venture between Nestlé and PAI Partners, focusing on ice cream and frozen desserts.​

These companies are investing heavily in research and development to introduce innovative flavors and cater to the dynamic preferences of consumers.​

Challenges and Future Outlook

While the market is on an upward trajectory, challenges such as rising production costs and health concerns related to sugar and fat content persist. However, the continuous innovation in healthier alternatives and exotic flavors is expected to sustain consumer interest and drive market growth.​

In conclusion, the Asia-Pacific ice cream market is experiencing robust growth, propelled by economic development, changing consumer tastes, and product innovation. As companies continue to adapt to market trends and consumer demands, the region's ice cream industry is poised for a prosperous future.