"Unique Transformations and Health Benefits"... Growing Ice Cream Market

Growing Global Ice Cream Market Reaches $73.6 Billion Last Year
Domestic Decline Rebounds Post-COVID-19... Domestic Market Size at 1.8 Trillion Won

Photo of Lotte Confectionery ice cream products. Photo by Lotte Confectionery

As ice cream has become a habitual consumer product enjoyed regardless of the season, the global ice cream market size is gradually expanding. In particular, with the segmentation of consumer preferences and the spread of health and eco-friendly trends, ice cream with various ingredients and flavors is gaining popularity.

According to market research firm Fortune Business Insights on the 9th, the global ice cream market size, which was $71.5 billion (approximately 88.91 trillion KRW) in 2021, is expected to have increased by more than $2 billion (2.9%) to $73.6 billion last year. The global ice cream market size is projected to gradually grow to $105 billion by 2029, showing an average annual growth rate of around 5.20%.

The domestic ice cream market size was 1.6134 trillion KRW in 2019, down nearly 9% from 1.7725 trillion KRW in 2017, but expanded to 1.7269 trillion KRW in 2020, a 5.1% increase from the previous year, when COVID-19 began to spread in earnest. In 2021, the market size further increased to 1.8153 trillion KRW due to stay-at-home consumption, premium ice cream, and increased sales at ice cream specialty stores.

The global expansion of the ice cream market is largely due to the diversification of consumption channels such as online and delivery, compared to the past when ice cream was distributed in frozen form and heavily influenced by seasons. In Korea, the emergence of unmanned ice cream as a new offline distribution channel has also had a significant impact. Before COVID-19, it received relatively little attention, but it rapidly emerged as a major sales channel as contactless payment became a familiar consumer behavior starting from the pandemic. The number of unmanned ice cream stores in Korea increased nearly fivefold from about 880 in 2017 to over 4,000 in 2021.

In the ice cream market, as consumer demand for unique flavors and textures increases, exotic products such as 'sweet and salty' combinations that allow consumers to experience sweet and salty tastes at once, and products that replicate the taste of alcohol, are flooding the market. As the ice cream market expands, more people want ice cream with various themes beyond the usual flavors.

This trend is the same domestically. Lotte Confectionery, riding the popularity of spicy flavors, launched Korea's first spicy ice cream, 'Chaltteok Ice Spicy Cheese Tteokbokki Flavor,' in 2021. Binggrae also released limited-edition April Fool's products such as the spicy 'Menbung Eossamanco' and the energy drink ice cream 'Jolumsanyang,' which replaced the Heat Hunter. CJ CheilJedang also released a limited edition gelato ice cream product containing rice grains called Hetbahn Rice Cream last year, which gained great popularity.

Like other processed foods, products using healthy ingredients or plant-based ingredients, and products with eco-friendly packaging that consider health and the environment are also expanding. Lotte Confectionery's premium ice cream brand Natuur launched a new vegan ice cream product, 'Green Tea & Choconuts,' last year through the crowdfunding platform 'Wadiz.' At the recently concluded 'CES 2023,' SK Group Chairman Chey Tae-won was spotted tasting alternative milk protein ice creams from U.S. food tech companies 'Perfect Day' and 'Nature's Fynd,' in which SK has invested, at an exhibition hall and food truck installed by SK, drawing attention.

With the global expansion of the ice cream market, the scale of exports overseas is also expanding every year. According to Korea Customs Service export-import trade statistics, the annual export value of ice cream increased significantly from $54.18 million in 2019 to $60.66 million in 2020 and $72.42 million in 2021. During the same period, export volume also grew from 16,302 tons in 2019 to 18,177 tons in 2020 and 21,01 tons in 2021. Korea's share of global ice cream export volume is also gradually increasing, from 1.3% in 2019 to 1.4% in 2020 and 1.6% in 2021. By country, the U.S. had the highest market share in 2021, followed by China, Canada, the Philippines, and Vietnam. In the case of the Philippines, the export scale nearly doubled from 2020 to 2021.

An industry insider said, "While the global ice cream market is expanding, domestically, factors such as population decline and diversification of the dessert market suggest that the market will maintain its current level or stagnate in the future," adding, "Therefore, it has become even more important for manufacturers to secure competitiveness through marketing strategies, product differentiation, and quality improvement."

This content was produced with the assistance of AI translation services.