Consumers will turn to low-calorie, low-fat ice cream varieties to satisfy their sweet tooth
New York, NY (PRWEB) October 08, 2014
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).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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