Demand for ice cream is cooling. How can the industry adapt?
Demand for ice cream is cooling. How can the industry adapt?
The consumer goods giant Unilever announced this week that it’s going to spin off its ice cream business. That includes some familiar names, such as Ben & Jerry’s, Popsicle and Klondike. The move comes as the ice cream industry as a whole is dealing with some challenges around demand.
In the U.S., we do tend eat a lot of ice cream — about 12 pounds per person annually, according to the USDA. But we used to eat more — about 16 pounds per person in the year 2000. This is the traditional, all-the-cream ice cream.
“So, regular ice cream consumption is decreased, mainly due to concerns over health impacts of fat consumption, sugar consumption,” said David Ortega, a food economist at Michigan State. “But also environmental impacts from dairy and the ice cream industry in terms of its carbon footprint.”
People’s preferences are evolving, noted Bob Roberts, who leads the food science department at Penn State.
“They’re constantly screaming for indulgent and yet constantly screaming for healthy and healthful,” he said.
Roberts (who’s also done some consulting for Unilever) said there’s a hunger for more dairy-free options. That means I scream, you scream, we all scream for — plant-based frozen desserts.
“That’s in a space where I don’t think anybody’s hit a home run yet,” he said. “But someone will hit a home run sooner or later. They’ve had a couple of doubles.”
We’re still figuring out how to coax the best flavors out of fava bean protein and pea protein.
“Taste always wins, right? So if we want to mass market, this stuff, it can’t just be good for you,” said Roberts.
Ice cream also faces a lot of competition from other sweets. One way to punch through all the choices is for small producers to lean into local flavors and traditions, per University of Arkansas agricultural economist Trey Malone.
“Just look at the customers that you have in your backyard and try to make a real connection with those people,” he said.
For example, here in Baltimore, one flavor I’ve seen is Old Bay Caramel.
And Malone pointed out, you never know. Maybe that Old Bay or pickle flavored ice cream will end up taking off with people everywhere.
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