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During the hottest months of the year, nothing seems more attractive or quite as cooling, as a cone filled with Rocky Road, Mint Chocolate Chip or plain Vanilla ice cream. In fact, Americans are consuming ice cream all year long. In 2002, total U.S. sales of ice cream and frozen desserts reached $20 billion. By 2004, total U.S. production of ice cream and frozen desserts equaled 1.6 billion gallons, over 5 gallons per person.

Are consumers looking for healthier, low-fat frozen desserts or more for rich, high quality and full calorie premium ice cream? Well, both.

One might think that given the low-carb, low-fat and low-sugar trends with other food items, that the popularity of “skinnier” ice-cream would also be on the rise. According to the USDA, reduced-fat, light or low-fat ice cream already accounts for 28% of the market. In a study conducted by Incepta Market Intelligence Research, 73% of ice cream consumers would "probably or definitely," purchase a low-fat or low-sugar ice cream.

While Americans are seriously considering the benefits of eating low-sugar/fat ice cream, they are certainly not giving up their richer, decadent frozen desserts, especially when it comes time for a trip to the ice cream shop. While overall ice cream store sales were flat at $9 billion dollars per year, shops like Cold Stone Creamery have created a new niche for themselves as upscale, high quality ice cream experiences. Cold Stone Creamery and Marble Slab Creamery are increasingly profitable chains, with shops averaging $400,000 and $260,000 respectively.

While these two new trends shape the ice cream industry, the basic trend stays the same: There’s nothing like an ice cream cone on a July afternoon.

- Carolyn Ellis

Sources:

JUST THE FACTS: ICE CREAM SALES AND TRENDS
http://www.idfa.org/facts/icmonth/page2.cfm

SWEET SUBSTITUTES
http://www.findarticles.com/p/articles/mi_qa3846/is_200505/ai_n13642223

What's Hot in Ice Cream?
http://www.findarticles.com/p/articles/mi_m0OUH/is_5_34/ai_n13668910

Tate & Lyle taps into healthy ice cream market
http://www.dairyreporter.com/productnews/news.asp?id=60351&k=tate-lyle-taps

Industry Snapshot: Ice Cream

I scream, you scream, we all scream for ice cream. Doesn't that bring back good memories of your childhood and those hot summer days? That tradition still continues on today. According to the International Ice Cream Association, 90% of United States households consume ice cream and over 1.4 billion gallons were produced in 2003.

Take a look at our full industry report on ice cream (PDF Format). If you are interested in other industry snapshots, visit our SBDC Business Advisors Toolkit

- Sarah Barrette

Links of Interest

International Dairy Foods Association
The National Ice Cream Retailers Association
International Association of Ice Cream Vendors

Did You Know?

Having trouble keeping your finger on the pulse of consumer and business trends? Want a glimpse at some of the newest marketing ideas and some interesting insights? Take a look at Trendwatching.com. Each month they identify new trends and make up new buzz words like "floridastation," "dormandize," and "insperience."

 

Are You Paying Attention to
Demographic Trends?

Recently, The Pew Internet & American Life Project did a study on Internet use in rural areas. In 2000, 41% of rural residents reported using the Internet, while in 2003, the rural Internet penetration increased to 52%. While this is a significant increase, it still lags behind urban and suburban rates.

A few highlights from the survey:

- Rural residents have few choices regarding how they access the Internet. Many have only one ISP available to them. Broadband access is also very limited in some rural areas.
- Rural users are more likely to use the Internet for spiritual/religious information and less likely to make purchases online.
- Rural Americans who are new to computers and technology tend to be more wary of it, while those with some experience are more likely to be even more positive about technology than experienced urban and suburban individuals.

View the full survey.

See also our website for information on demographics:
http://sbdcnet.org/SBIC/demographics.php

- Carolyn Ellis

Contact Us

SBDCNET
UTSA Institute for Economic Development
University of Texas at San Antonio
501 W. Durango Blvd.
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http://sbdcnet.org/
sbdcnet@utsa.edu
800.689.1912