The Ice Cream market includes dairy ice cream, frozen yogurt, and sorbet, say survey maestros, Statista. This market only consists of products made via industrial production for general retail – handmade ice cream is not generally included. The key producers in this market are Unilever, Nestlé, and General Mills.
Last year was not a memorable one for the category. A wettish summer dampened consumer spending on frozen treats, and that, combined with the ongoing economic squeeze (some say changing health preferences, too) took the shine off sales. Nonetheless, there was what Statista calls “minimal growth”, ascribed – encouragingly – to convenience, and also to online innovation (probably local delivery, as we wouldn’t recommend ordering ice cream via Amazon).
Healthier options – including vegan (see Magnum’s new bar), dairy-free and zero sugar are making up the shortfall as far as market stimulation is concerned, but there is some colourful NPD innovation, for example from Walls, porting over Haribo into the freezer, and adding new flavours and textures to well-loved names such as Twister, Solero and Cornetto.
Another tactic to keep the category cool, calm and collected is – as we pointed out last time around – the tactic of going for luxury and premium indulgence. It is important to remember that ice cream is a fabulous cheerer-upper and a cheapo treat that will probably remain affordable even with the most luxurious tub or stick. A litre of the finest ice cream will satisfy at least as much (and last a lot longer) than the average pint of beer in a pub these days – and will easily be cheaper to buy.
Ice creamy landscape
According to the Agriculture and Horticulture Development Board (AHDB), ice cream sales are experiencing a surge in value, primarily driven by increased prices rather than a rise in volume: last year, 320 million kilograms of ice cream was eaten by Brits, the same as the previous year, although it cost them more.
“While the number of households purchasing ice cream remains high (around nine in 10), consumers are buying less frequently and in smaller quantities due to higher prices,” it says – unit sales overall are down 4.4 per cent [Kantar] – a trend linked to the cost-of-living crisis. Despite this, the UK ice cream market is predicted to grow, with a focus on promoting ice cream as a year-round indulgence.
As a response to weaker summer sales, AHDB suggests a modification in ice cream marketing to one promoting it as a year-round indulgence for consumers, “tapping into occasions beyond just a ‘cooling down’ treat on a summer’s day”. This might sound fanciful – with people enjoying cones on rainy or gloomy, freezing November days – but in Sweden, for example, where it is cold for most of the year, the link between ice cream and sunshine has long been broken, and Swedes enjoy it all through the long, dark winter – even as a sort of winter antidote.
Photo: iStock
Talking to Asian Trader, Kerry Cavanaugh, general manager at Mars Drinks and Treats, explained that despite a challenging year in 2024 for ice cream manufacturers, Mars continued to outperform the overall market in value sales, at two per cent growth, with ice cream multipacks notably up five per cent and value sales three per cent.
In other words, while the overall market might look a bit inert lately, the c-channel is actually benefitting from the impulse and indulgence angle.
“For the independent convenience channel specifically, Mars has seen the value sales of its multipacks increase by an impressive 89 per cent and total sales 25 per cent over the past three years," says Cavanaugh – so take advantage of freezer space to stock up on big packs of ice cream sticks and tubs, as savvy shoppers look to save money by buying bigger packs.
“In 2024, the weather had a clear impact on the sales of impulse bar in convenience,” she continued, “However it was interesting to see a significant spike in multipacks ice cream sales all year round, and particularly within the frozen food category during the autumn months." So, it wasn’t just the weather that was depressing, but the economy as a whole, and shoppers looked like they use ice cream at home as a pick-me-up as the nights started to get longer.
Snickers White Ice Cream
“This suggests that ice cream is no longer reserved for those looking for a treat to cool down with during the summer months, but it is also the dessert of choice for shoppers opting for nights in and group gatherings. With this in mind, we are encouraging retailers to ensure they have an all-year-round ice cream presence, offering a wide range across both impulse and multipacks.”
The confluence of the popularity of multipacks (byword for value) and the continuing taste for white chocolate was what led to a recent Snickers initiative by Mars.
“This year, we have extended our offering of multipacks with the launch Snickers White Ice Cream bar in packs of four. We know customers are drawn to the familiarity, and trusted taste of the brands they know and love.
“Snickers has long been a hero product of our range in the UK, and the white flavour has proved to be extremely popular in other European countries. In Germany, the Snickers White Ice Cream bar runs at 70 per cent of the original Snickers ROS.
“In the UK, 13 per cent of all multipack ice cream sales are a white chocolate variant, and coupled with the popularity of the Snickers brand, we see a great opportunity to appeal to ice cream and white chocolate fans alike with the launch of Snickers White Ice Cream bar in 2025!”
A companion for those who still prefer their chocolate brown, Mars also offers the Galaxy Ice Cream bar, made with smooth vanilla ice cream and coated in Galaxy milk chocolate – available in convenience and wholesale channels, RSP £2.00.
Healthy innovations
In addition to shopper interest in new and unusual flavours (and flavour combinations), often premium and indulgent, there is a rising demand for healthier options, with manufacturers focusing on offering low-sugar and plant-based alternatives, driven by consumer concerns over health and sustainability, according to Statista.
Non-Dairy used to mean lower-quality, but these days it indicates vegan, plant-based, artisanal and healthy – and very often premium.
Specialist ice-cream maker Over The Moo, for example, has recently released its Plant-based Ice Cream Bites (£3.99, 88ml pouch), building on its UK indie store heritage.
At the heart of the brand’s escalating success has been its unflinching commitment to top drawer, ethically-sourced coconut milk, a far cry from all the original “cow milk” alternative offerings that were unable to escape their dependence on “bland” oat, almond or soya milks as their all-important alternative milk foundations – according to founder Simon Goodman, who says that 30 per cent of UK ice cream consumers now actively seek out credible, dairy-free alternatives.
Over The Moo Plant-based Ice Cream Bites
“By prioritising the fast-growing, ‘bites’ sub-category" – which took off in the category last year with Magnum bonbon – "it taps into on-the-hoof/sharing formats and classic flavour profiles (vanilla, caramel & most recently a rich chocolate),” says Goodman.
"Our brand is enjoying meaningful growth because on the one hand it taps into growing sustainable and health-conscious commitments being made by increasingly large swathes of the public (only 30 calories a bite), whilst riding the nostalgia wave of being closely associated with choc ices of yesteryear.”
Magnum, meanwhile, has introduced a brand-new vegan ice cream recipe for its vegan range including Magnum Vegan Almond (RRP £2.30), setting a benchmark for plant-based indulgence. The new “velvety” soy protein-based ice cream, paired with Magnum’s signature cracking vegan chocolate, delivers the luxurious ice cream experience Magnum is known for.
Soy replaces Magnum’s former pea protein recipe to offer consumers a softer, smoother taste and texture. In addition to the new recipe, the single stick will be available in a new eye-catching premium pack design to elevate its visibility in freezers and to help convenience retailers boost impulse sales.
Magnum Vegan Almond
Magnum’s vegan ice cream portfolio has seen incredible growth of over 75 per cent in the last year [March to March], largely attributed to the successful launch of the 2024 Magnum Blueberry Cookie innovation. With the number of consumers seeking plant-based alternatives continuing to grow – with 10 per cent of households containing a member following a vegan or vegetarian diet and five per cent containing a flexitarian member – the plant-based segment continues to drive incrementality in the ice cream category.
Magnum Vegan’s new recipe is well positioned to cater to evolving consumer trends, offering retailers a significant opportunity to drive sales year-round.
“Magnum is committed to providing delicious products that support consumers’ vegan, vegetarian, or flexitarian lifestyles all year-round,” said Daniel Lythgo, Brand Manager Magnum UK at Unilever. “This new soy-based recipe not only delivers an exceptional taste experience but also presents a significant opportunity for retailers to help drive incremental ice cream sales.
Traditional dairy milk offerings will always dominate the premium ice cream fixture but thanks to ambitious brands like Over the Moo, and Magnum experimenting with improved recipes, , dairy-free has a meaningful voice.
Tubs and ting
Ice cream tubs are doing very nicely, presenting a perfect way to serve ice cream in the increasingly popular home situation (watching a movie, during a BNI or at a dinner party, for example), and offering great value.
Ben & Jerry's have introduced two new indulgent (that’s the buzzword) flavours in Bohemian Raspberry and Brookies & Cream Sundae.
Bohemian Raspberry is a non-dairy music-inspired raspberry SKU celebrating 50 years of one of the world’s most iconic songs. Ben & Jerry’s Brookies & Cream Sundae is an innovative new taste, inspired by the flavour combination of brownies and cookies to create a brookie, bringing the bakery-favourite to the ice cream category for the very first time.
Ben & Jerry’s Bohemian Raspberry launches in partnership with Queen and celebrates the 50th anniversary this year of the band’s iconic song, Bohemian Rhapsody. The collaboration flavour of Bohemian Raspberry is part of Ben & Jerry’s Non-Dairy range, made with the brand’s oat-based non-dairy recipe. The new tub includes fudgy brownies and rich raspberry swirls tapping into the growing trend for berry and raspberry flavours which saw more than 18 million searches in 2024. Proceeds from Bohemian Raspberry will go to the Mercury Phoenix Trust, which helps fund the global fight against AIDS.
Ben & Jerry’s Non-Dairy Bohemian Raspberry
Ben & Jerry’s Brookies & Cream Sundae is the latest addition to Ben and Jerry’s successful Sundaes range, which has grown 32 per cent YoY, bringing together the ice cream innovators two most popular flavours (Cookie Dough & Chocolate Fudge Brownie) into one legendary Sundae. The new SKU features creamy vanilla ice cream packed full of fudgy brownie-style cookie dough, golden cookie swirls, and white ampersand chunks, “perfectly showcasing how the best things are even better when they’re together”, says the brand.
Ferrero likewise expanded its ice cream offering with Nutella tubs (470ml, RSP: £5.50) last August, taking advantage of the near-universal popularity of its hazelnut spread, and spreading the love into the freezer cabinet.
The brand had expanded into new categories over the years, successfully moving into biscuits, bakery, and now the frozen aisle. Nutella Ice Cream Tubs feature tasty layers of Nutella on top and throughout, with delicate hazelnut-flavoured ice cream and Nutella swirls.
“Early strong performances across Europe confirm the potential of Nutella Ice Cream here in the UK," said a Ferrero spokesperson. "When you consider that the tubs segment in the UK is the largest across Europe at a value of just above £300M, the potential for retailers operating in this market is incredibly exciting – particularly with the brand’s loyal fan base.”
In the UK, Nutella holds a whopping 98 per cent brand awareness amongst adults, is number one in the sweet spreads and chocolate spreads categories, holds 21 per cent household penetration and has 30 million Facebook fans across the globe.
Nutella Ice Cream Tub
Dani Hayward-Bradley, Regional Marketing Director, Ferrero UK & Ireland, said: "We are thrilled to be adding to our range of ice creams with such a huge fan favourite. Our dedicated team of experts has spent years perfecting the recipe, inspired by our much-loved brand, Nutella. We know that fans will be eager to try the unique Nutella taste and melt-in-the-mouth creaminess of our ice cream and we’re happy that now we can give them a new and exciting way to experience the brand."
The rollout of the new Nutella should by now be complete.
In other cool news, Wall’s UK has initiated its collaboration with Haribo as well as releasing new products from its Solero and Twister brands, two new Cornetto and Carte D’Or products.
Wall’s (Unilever) is uniting forces with Haribo and its signature Gold Gummy Bears to launch a Haribo push-up ice cream, available in a single stick format in the convenience channel. The new ice cream combines vanilla ice cream, strawberry sauce and Haribo Gold Bears within the stick, with a unique and eye-catching pack design to boost visibility in impulse freezers.
The collaboration aims to capture the attention of a broader shopper base and enhance product appeal by expanding into the confectionery category. The Haribo push-up is HFSS-compliant and is made without artificial colours and flavours.
Twister is launching a new ice-cream, Twister Mallow, which combines sour raspberry and juicy grape flavours with a sweet creamy marshmallow swirl. By combining ice cream with confectionery, this addition aims to recruit a wider shopper demographic and make ice cream a new go-to sweet snacking option for consumers.
Walls Twister Mallow
Twister is currently seeing strong value growth, up +17 per cent, driven by a strong HFSS-compliant pipeline of innovation that continues to deliver fruity permissible treats. The new Twister Mallow ice cream is the latest addition to the brand’s HFSS-compliant line-up.
“We know that innovation is the number one driver for category growth, so this year we are bringing shoppers and retailers new products that we hope will generate excitement and help boost ice cream sales," said Emily Gooding, Brand Manager Wall’s, at Unilever.
“Our role as a market leader is to expand ice cream into new occasions and create new formats that shoppers can enjoy all year round, and this innovation across Twister and our exciting collaboration with Haribo will deliver just that.”
With Unilever delivering six of the top ten new products (NPD) last year and remaining the UK’s number one branded ice cream manufacturer, these new offerings provide retailers with a compelling opportunity to increase sales, attract new shoppers and drive basket spend.
With a great summer just getting underway, 2025 looks like it can easily take up the slack from last year’s underwhelming category performance.