Ice Cream Production in the UK Industry Market Research Report Now Updated by IBISWorld

The Ice Cream Production industry has managed to keep its cool despite fluctuating revenue and difficult trading conditions. Ice cream consumption has remained stagnant for over a decade, with industry growth coming from product innovation and the targeting of home ice cream consumption. Unprecedented poor weather has forced operators to reshape their product offerings in favour of the take home segment to prop up demand. Volatile prices for commodity inputs such as milk and sugar have caused fluctuations in revenue and profit over the period, as these purchases make up the majority of costs. Nevertheless, IBISWorld estimates that in the five years through 2012-13, industry revenue has increased at an annualised 0.5% to reach £353.9 million. Industry revenue is forecast to decline by a marginal 0.1% in 2012-13. Over the next five years, the worldwide trend towards health consciousness is expected to drive new product offerings and demand, with an increase in low-fat ice creams. The growth in popularity of organic produce across all foods will extend to ice cream, encouraging many manufacturers to comply with the aim of scooping up the new demand. The recent introduction of frozen yogurt to the UK market will prove a significant threat to the industry, combining novelty with perceptions of healthiness to create a true ice cream headache. Major operators will move to create their own frozen yogurt ranges to ride out the fad. Over the five years through 2017-18, industry revenue is expected to increase. For these reasons, industry research firm IBISWorld has updated its report on the Ice Cream Production industry.

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IBISWorld industry market research
Consumers demand premium and healthier options

London, UK (PRWEB) November 13, 2012

The Ice Cream Production industry has managed to keep its cool despite fluctuating revenue and difficult trading conditions. According to IBISWorld industry analyst Patrick Ross, “ice cream consumption has remained stagnant for over a decade, with industry growth coming from product innovation and the targeting of home ice cream consumption”.
Unprecedented poor weather has forced operators to reshape their product offerings in favour of the take home segment to prop up demand. This trend played into the tightening of purse strings during the recession, as fewer Britons ate out. The historical resilience of feel-good products such as chocolate and ice cream during times of economic duress boded well for the industry as consumers perceive these products as inexpensive luxuries and indulgences. Volatile prices for commodity inputs such as milk and sugar have caused fluctuations in revenue and profit over the period, as these purchases make up the majority of costs. Nevertheless, IBISWorld estimates that in the five years through 2012-13, industry revenue has increased at an annualised 0.5% to reach £353.9 million. Industry revenue is forecast to decline by a marginal 0.1% in 2012-13.

Over the next five years, IBISWorld expects input prices to increase, while still characterised by volatility, causing hopes of profit margin growth to melt away. Industry growth is inextricably tied to innovation and new product development. Ross adds, “the worldwide trend towards health consciousness is expected to drive new product offerings and demand, with an increase in low-fat ice creams”. The growth in popularity of organic produce across all foods will extend to ice cream, encouraging many manufacturers to comply with the aim of scooping up the new demand. The recent introduction of frozen yogurt to the UK market will prove a significant threat to the industry, combining novelty with perceptions of healthiness to create a true ice cream headache. Major operators will move to create their own frozen yogurt ranges to ride out the fad. Over the five years through 2017-18, industry revenue is expected to increase.

The Ice Cream Production industry has a medium level of market share concentration as the top three manufacturers are estimated to account for 64.8% of industry revenue in 2012-13. Major companies include R&R Ice Cream, Unilever and Fredericks Dairies.

For more information on the Ice Cream Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Companies in this industry manufacture ice cream and other edible ice products such as sorbet and gelato. It excludes the activities of ice cream parlours and other retail sale of ice cream products.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.


Contact

  • Gavin Smith
    IBISWorld
    310 866 5042
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