(last updated Jun 2023)
What has been happening in the ice cream industry
The market for ice cream in this country has expanded since the dramatic drop in sales in 2014 as different types of ice creams have been introduced by manufacturers. This increase in popularity has led to a growth in the number of different outlets that now sell ice cream. As well as providing a healthy sector for your business, it also means more competition. There has been a huge growth in supermarket sales of ice cream and there has been an increase in the number of small businesses run by farmers selling ice cream made from their own milk - it is estimated there are about 1,000 artisan ice cream makers in the UK. In addition, there has been a significant increase in the number of ice cream parlours themselves.
The revenue from ice cream sales in the UK has continued to rise even during the pandemic. The most popular flavour is chocolate.
Weather has a marked effect on the market, with sales affected by:
- hours of sunshine
- temperature
- rainfall
So as you would expect, sales of ice cream are most buoyant in a warm, dry, sunny summer.
The vast majority of ice cream products can be divided into two main sectors - 'impulse' and 'take home'. Impulse products include cones, bars, small tubs and stick products (like lollies), while take home products include large tubs and multi-packs. Both the impulse and take home sectors have benefited in recent years from:
- the increased popularity of adult and premium products. Once ice cream was thought of more as a children's product but manufacturers have launched new lines, mostly with a high dairy content, that appeal to adults as a sophisticated dessert or snack
- ice cream becoming somewhat more popular all year round (631,000 admit to eating ice cream every day)
- strong and growing demand for 'healthy eating' products like frozen yoghurt
Rising ingredient and energy prices as a result of Brexit and the war in the Ukraine have made things even more difficult for the industry. However, even at the most difficult of times people like to cheer themselves up with a treat, so ice cream parlours which got their menu and prices right and served tasty ice creams generally continued to get customers in through the door.
At the end of 2014 food labelling regulations which set out special minimum content requirements for products labelled as 'ice cream' and 'dairy ice cream' were scrapped, leading some in the industry to express concerns that bulk producers would start selling 'artificial' ice cream products made from cheap ingredients and containing little or nothing in the way of dairy products. Others, however, point to the opportunities for manufacturers to introduce healthier low-fat ice cream products, and suggest that UK manufacturers will switch to using the Euroglaces Code for Edible Ices that has been in use throughout much of the rest of Europe for many years.
At the same time as scrapping the minimum content requirements for ice cream, the government implemented new EU food information labelling regulations which require catering businesses like cafes and ice cream parlours to provide information for their customers about any specified allergens which are used in their dishes and products. The list of specified allergens includes nuts, eggs, milk and milk products.
One trend which has had a huge impact on catering and hospitality businesses is the rise of review websites - particularly TripAdvisor. A good rating on TripAdvisor or Google Business is now very important to the majority of businesses like cafes and ice cream parlours, with some finding that a poor review and rating can have a very serious negative impact on trade. Businesses which are listed on TripAdvisor can take certain steps to manage and enhance their listing, as well as responding to customer feedback.
Keeping up to date with developments
Joining a trade association is an excellent way of keeping up to date with developments in your industry. The catering industry in general - and the ice cream industry in particular - are represented by several national associations, including:
- The Ice Cream Alliance
- UKHospitality
- Nationwide Caterers Association (NCASS)
- The Institute of Hospitality
You can find out more about these organisations and get contact and membership details on their websites.
The Ice Cream Alliance publishes Ice Cream magazine, a regular trade journal for the ice cream industry and another excellent way of staying up to date.
Trade shows and exhibitions are another good way of keeping in touch with what's going on. There are several annual exhibitions for the catering industry - you can find out about dates and details on the Exhibitions UK website. The Ice Cream Alliance also organises specialist exhibitions and other events including Ice Cream Expo.
More content for ice cream parlours from across the Donuts
- How to start up an ice cream parlour
- Ice cream parlour legal issues
- How we found the right location for our new business