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Ice Cream Production in the US in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Dec 23, 2013, 10:00 ET

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Rising income and product innovation will drive revenue growth and profitability

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New York, NY (PRWEB) December 23, 2013 -- Lower disposable income during the recession caused many consumers to reduce spending on discretionary items such as ice cream. Many consumers either bought fewer industry products or purchased more affordable brands. In addition to reduced consumer spending, volatile input costs harmed the performance of industry operators. In particular, the price levels of the industry's two primary inputs, milk and sugar, fluctuated drastically over the five years to 2013. For instance, the price of sugar rose 44.3% in 2010, while the price of milk grew 12.6% in the same year. Many producers absorbed these higher costs at the expense of their earnings, lowering industry profitability in 2010. On the other hand, some producers raised their product prices, causing volume sales to decline. Overall, Ice Cream Production industry revenue is estimated to decrease an annualized 1.2% to $8.0 billion over the five years to 2013.

Growing health concerns among consumers also placed downward pressure on industry revenue growth. In response to new diet and health trends, producers introduced innovative products to appeal to health-conscious consumers. The leading industry producers launched low-calorie brands such as Nestle's Skinny Cow, while new companies that specialize in the reduced fat product category have emerged. More companies also introduced smaller serving sizes to appeal to people who want to limit their consumption of sugary foods. Finally, as more Americans have returned to work in the years following the recession, consumers' need for convenience spurred demand for frozen novelties that can be consumed while on the go. These new products are anticipated to boost industry revenue by 1.7% in 2013.

Over the five years to 2018, the industry is forecast to achieve consistent revenue growth as per capita disposable income levels rise, allowing consumers to purchase a greater volume of industry goods and trade up to premium brands of ice cream. Additionally, the development of nutritious frozen treats and innovative flavors will drive demand for premium and super-premium ice cream brands in the domestic market and abroad. Ice cream producers will also benefit from less volatile input costs, which will help boost industry profitability.

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

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
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IBISWorld industry Report Key Topics

Operators in the Ice Cream Production industry make ice cream, frozen yogurt, sherbet, frozen tofu and other frozen desserts (except frozen bakery foods, which are included in the Bread Production industry (IBISWorld report 31181). The majority of raw inputs are sourced from the Dairy Farms industry (IBISWorld report 11212) and the Sugar Manufacturing industry (IBISWorld report 31131).

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 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.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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