Vermont Business Magazine Ben & Jerry's will continue to be one of the major forces in the US ice cream market for the foreseeable future, but pressure is building in the market from private label (store brand, etc) sellers for both market share and price, which will lead to an overall slowly growing market with thinner margins. The report author, Technavio, announced last week the top six leading vendors in its ice cream market in the US report. This research report also lists 12 other prominent vendors that are expected to impact the market during the forecast period. According to the report, the ice cream market in the US is subject to rapidly changing consumer demands and preferences.
Vendor performance in the market will be affected by the changing consumer spending pattern. It will also be affected by consumer tastes, demographic trends, and regional, national, and local economic conditions. “The changing economic conditions are affecting customers’ living standards and can also affect vendors' businesses. The vendors in the market compete on the basis of numerous factors such as price, quality, innovation, service, reputation, distribution, and promotion,” says Vijay Sarathi, a lead analyst at Technavio for food research industry, which is based in London.
Ben & Jerry's recently introduced the ice cream Brrr-ito.
The increasing vendor competition will lead to vendors reducing their product prices, which will negatively affect vendor margins and market growth. Further, any technological advances by any player in the market can render other vendor products that are being sold currently, or future products, obsolete or uneconomical. The current market includes companies of varying sizes; some are also more specialized than others with respect to particular commodities. Some companies also have larger financial resources than other companies.
Top six ice cream market vendors in the US
- Blue Bell Creameries
- Ben and Jerry’s
- Nestlé USA (Haggen-Dazs, Edy's, Dreyer's)
- Turkey Hill
- Unilever USA (Ben & Jerry's, Breyers, Cornetto)
- Wells (Blue Bunny, Weight Watchers)
Ben & Jerry’s
Ben & Jerry’s was founded in 1978 and is headquartered in South Burlington, Vermont, US. The company produces a wide range of premium ice cream, yogurt, and sorbet. Its products are distributed in 35 countries in supermarkets, convenience stores, grocery stores, restaurants, franchise Ben & Jerry’s Scoop shops, and other venues. It operates as a subsidiary of Unilever (a consumer goods company).
The company offers a comprehensive range of ice cream, yogurt, and sorbet. It categorizes the ice cream by ingredients, such as chocolate, vanilla, fruit, caramel, nuts, cookies, cakes, brownies, marshmallow, and coffee. These are available as pint, quart, bar, mini cup, and scoop shop flavors.
Blue Bell Creameries
Blue Bell Creameries was founded in 1907 and is headquartered in Brenham, Texas, US. It is an ice cream manufacturer. The company distributes its products through the company’s private fleet of refrigerated vehicles to states in the southeast US.
Wide geographical presence: It operates through its production facilities in Oklahoma, and Alabama. Blue Bell Creameries' products are available in 23 US states, including Alabama, Arizona, Arkansas, Indiana, Kansas, Kentucky, Colorado, and Florida. It maintains 60 distribution facilities across the US.
Nestlé USA
Nestlé USA is headquartered in Glendale, California, US. It manufactures and markets a range of food items and beverages. It operates as a subsidiary of Nestlé in Vevey, Switzerland. As of 2014, Nestlé USA had over 51,000 employees and product sales of USD 26 billion. It operates 25 production facilities, 43 distribution centers, and 13 sales offices throughout the US.
Nestlé USA established its presence in the ice cream market with its offerings through the brands such as Edy’s, Frosty Paws, Häagen-Dazs, Skinny Cow, Wonka, Nestlé frozen dairy dessert treats, Nestlé Drumstick, and Dreyer’s.
Turkey Hill
Turkey Hill is headquartered in Conestoga, Pennsylvania, US. The company manufactures refrigerated iced teas, fruit drinks, and ice cream. Its sells its products in 49 states in the US as well as in many countries worldwide. The company has been taking diverse strategic initiatives, which can create significant growth opportunities for the company.
On January 12, 2015, Turkey Hill opened a USD 30 million warehouse in Manor Township, Pennsylvania, US. It had more than double the refrigerated storage for its plant along River Road.
Unilever USA
Unilever USA is headquartered in Englewood Cliffs, New Jersey, US. The company manufactures and sells refreshments, food, and home and personal care products. It offers 400 brands. It operates as a subsidiary of Unilever (headquartered in London, UK). As of 2014, Unilever USA employed more than 11,000 people and generated revenue of more than USD 8 billion.
The company established its presence in the ice cream market with its offerings through its brands, Magnum, Talenti, Fruttare, Good Humor, and Klondike.
Wells Enterprises
Wells Enterprises was founded in 1913 and is headquartered in Le Mars, Iowa, US. It is a manufacturer of ice cream and frozen products. The company offers ice creams, water ice products, frozen desserts, and frozen novelties under the brand names Blue Bunny, Bomb Pop, and Weight Watchers.
The company markets its products through convenience and club stores, mobile vending trucks, and food service settings such as educational institutions, hospitals, and restaurants. It has two SQF (safe quality food)-certified production facilities in Iowa, US.
Outlook of the ice cream market in the US
Technavio’s market research analyst predicts the ice cream market in the US to grow at a modest CAGR of around 2% by 2020. The growing consumption of take-home ice-cream products is the primary growth driver for this market. Recently, it has been observed that the demand for private label ice cream products is on the rise as they provide better value for money. There is also a significant rise in retailers offering private label ice creams owing to the widespread availability of a wide array of flavors at lower prices in comparison with branded ice creams. Additionally, factors such as the emergence of ice cream as a snack and a rise in the availability of ice cream in unique styles and flavors will impel market growth during the estimated period.
The augmented demand for private label products will drive the prospects for market growth during the predicted period. Private label ice-cream products are perceived to offer better value for money than branded products. Also, retailers in this segment offer products in a variety of flavors. The ability of private label ice cream manufacturers to offer products in a variety of flavors and to offer better value for money will result in the growing popularity of private label ice cream products during the forecast period.
Type-based segmentation of the ice cream market in the US
- Take home
- Impulse
- Artisanal
The take-home ice cream products segment currently dominates this market and accounts for more than 50% of the total market share. The rising demand for innovative flavors and varieties will drive the sale of take-home ice creams during the forecast period. Eminent factors such as innovations in packaging solutions and an increasing number of distribution channels will foster the consumption of take home ice creams until 2020.
Segmentation by distribution channel and analysis of the ice cream market in the US
- Supermarkets and hypermarkets
- Specialist retailers
- Convenience stores
- Service stations
The supermarkets and hypermarkets segment currently accounts for more than half of the total market share and is the most preferred distribution channel for the sale of ice creams due to its high convenience and price advantages.
Competitive landscape and key vendors
The ice cream market in the US is subject to rapidly changing consumer demands and preferences. Factors such as intense competition and declining profit margins will negatively influence the vendors’ revenue generating capacity. With increased competition, the industry has been witnessing consolidation, due to which the smaller entities are being acquired by major players. To survive and succeed in this market, the vendors have to distinguish their product offerings through a clear and unique value proposition.
Other prominent vendors in the market include Amy's Ice Creams, Bliss Unlimited, Marina Ice Cream, Mikawaya, Oregon Ice Cream, Rich Ice Cream, So Delicious Dairy Free, Three Twins Ice Cream, Tillamook, and Weight Watchers International.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the ice cream market in the US?
- What are the key market trends impacting the growth of the ice cream market in the US?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the ice cream market in the US?
- What are the key outcomes of the five forces analysis of the ice cream market in the US?
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
Technavio also offers customization on reports based on specific client requirement.
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LONDON--(BUSINESS WIRE)--Technavio 5.3.2016