Ice Cream Production in Canada Industry Market Research Report from IBISWorld Has Been Updated

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Although consumers are projected to up their total spending on health-related costs, many Canadians will satisfy their sweet tooth by savouring the lower-fat, lower-calorie traditional ice cream varieties.For this reason, industry research firm IBISWorld has updated a report on the Ice Cream Production industry in its growing industry report collection.

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Consumers will turn to low-calorie, low-fat ice cream varieties to satisfy their sweet tooth

Canadians' appetite for ice cream has been melting away, as evidenced by weakening consumption and falling revenue. Production volumes of ice cream treats have dropped dramatically over the five years to 2014 as a result of growing health consciousness. In fact, with the exception of frozen yogurt, the production of all other types of ice cream goods have crumbled due to tepid demand, encouraged by growing awareness of health risks associated with the consumption of high-calorie, high-fat foods. According to IBISWorld Industry Analyst Antal Neville, “challenges mounted further due to wide fluctuations in the prices of key input items that go into ice cream manufacturing, namely milk and sugar.” Over the five years to 2014, IBISWorld estimates that revenue for the Ice Cream Production industry will dwindle.

Despite the industry-wide predicament, frozen yogurt producers' returns had been anything but tart. The public's growing awareness and understanding of the relative health benefits of frozen yogurt consumption have propelled demand for this emerging product segment. Encouraged by their domestic "fro-yo" frenzy, US producers like Pinkberry and Menchie's have effortlessly paved their way into Canadians' hearts. “As downstream markets increasingly indulge in this premium-priced frozen treat, producers are expected to benefit accordingly,” says Neville. Nevertheless, weak demand for the spectrum of industry products will hurt industry revenue, causing an expected decline in 2014.

Over the next five years to 2019, the conditions in the Ice Cream Production industry in Canada are expected to get a little sweeter. Although consumers are projected to up their total spending on health-related costs, many Canadians will satisfy their sweet tooth by savouring the lower-fat, lower-calorie traditional ice cream varieties. In addition, cravings for frozen yogurt products are anticipated to remain, driving revenue and profit growth. Encouraged by strong downstream demand, industry operators will take on more employees to boost production; the industry's workforce is expected to grow in the five years to 2019. Consequently, over the five-year period, revenue from ice cream production is forecast to grow.

For more information, visit IBISWorld’s Ice Cream Production in Canada industry report page.

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IBISWorld industry Report Key Topics

The Ice Cream Production industry comprises establishments that primarily manufacture ice cream, frozen yogurt, frozen ices, sherbet, frozen tofu and other frozen desserts (except frozen bakery foods, which are covered in IBISWorld report 31181CA). The majority of raw inputs come from the Dairy Farms industry (IBISWorld report 11212CA).

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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