Retail finance publication KamCity reports that things are looking sweet for sales of ice cream and despite economic uncertainty, ice cream sales hit the £1Bn mark in 2011, up from £998M in 2010.
Mintel’s research shows that in the last five years the UK ice cream, sorbet and frozen yogurt market overall has experienced more than 19% value growth and are expected to reach £1.1Bn in 2012, up from £910M in 2007. However, it seems things have turned sour for sales of sorbets. Valued at £5M in 2011, sales of sorbets fell 17% over the same two-year period declining from £6M in 2009. Although only accounting for 1% of all ice cream sales, frozen yogurt has been the star performer of the ice cream sector with the market having risen by 50% over the same two-year period from £4M to £6M in 2011.
While value sales of ice cream, sorbet and frozen yogurt overall have been thriving, Mintel said that volume sales have not fared quite as well, with the market declining by 7% over the same five year period, from 374M litres in 2007 to 347M litres in 2012. Indeed, while the overall market is expected to see modest growth over the next five years, with Mintel forecasting a 12% rise in value sales by 2017 to £1.2Bn, a 7% decline is expected in volume to 324M litres.
Amy Price, senior food analyst at Mintel, commented: “While the market has been fuelled by inflation which has seen the average price per litre of ice cream rise by more than a quarter over the past five years, ice cream remains an affordable treat for most of the nation. Ice cream occupies an affordable price position in the context of the overall food market, the relatively cheap cost being one of the most important drivers of underlying growth throughout the economic downturn, helping to position ice cream as an affordable treat.”