The Australian ice cream market is set to expand to AU$2.7 billion by 2026, with a compound annual growth rate of 1.7 percent. This comes against a backdrop of fewer COvid restrictions, tourism resurgence, and more outdoor public mobility.
“As the authorities lifted most COVID-19 restrictions, people have visited outdoor attractions more often, leading to a dip in at-home consumption of ice cream and an increase in on-premise and on-the-go consumption. Additionally, impulse purchases of ice creams resurged, in line with rising consumer footfall at retail stores and on-trade venues. The growing health concerns accentuated by the pandemic also spurred the demand for better-for-you ice creams with less fat,” said Bobby Verghese, GlobalData Consumer Analyst.
Ice cream expenditure per capita increased from $23.10 in 2016 to $35.4 in 2021. The global average is $5.20. In 2021, hypermarkets and supermarkets were the leading distribution channels, followed by food and drinks specialists and convenience stores. Unilever, Australasian Food Group and Bulla Dairy Foods were the top three companies in the market, with Blue Ribbon and Magnum as the leading brands.
“The new COVID-19 wave in late 2022 is set to suppress the consumption of chilled and frozen foods such as ice cream during the peak summer months from December 2022 through February 2023. Moreover, the cost-of-living crisis triggered by the Russia–Ukraine conflict will compel consumers to curtail non-essential purchases or switch to cheaper brands and private labels or smaller packs, thereby slowing market growth.
“However, as the pandemic conditions and inflationary pressure subside, consumers will trade up to premium and artisanal ice creams with organic and low-fat/-sugar recipes. Vegan alternatives are also expected to gain mass-retail appeal. These healthy alternatives, combined with the launch of new flavours and the resumption of marketing activities, will accelerate ice cream sales in Australia.”
