Dive Brief:
- The ice cream industry has had a strong run this year in both manufacturing and retail, according to a timeline Bloomberg created.
- Ice cream has done everything from making political statements and breaking Guinness records to meshing with other fast-growing categories like craft beer in 2016, and the neither the year nor summer are over yet.
- The increased consumer demand for production and innovation in the ice cream segment could be attractive for dairy manufacturers looking to diversify their portfolios.
Dive Insight:
Major ice cream producers made significant strides this year to push the category forward and align with both health and indulgence trends. It seems to be working. Americans spent nearly $6.5 billion on ice cream in the 52 weeks ending May 28, a 2.5% year-over-year increase, according to recent Nielsen data. The frozen custard and non-dairy ice cream segments reported the highest dollar sales growth rates in that time period — 134% and 43.7%, respectively — while frozen yogurt (-10.7%) and sherbet (-7.6%) posted the largest sales declines.
In February, Ben & Jerry's unveiled its line of non-dairy ice creams made with almond milk as more consumers avoid cow's milk and go for dairy alternatives.
Nestle announced ingredients changes for six brands under Dreyer's Ice Cream in April. Those changes vary depending on the product, but include removing artificial colors and flavors, high fructose corn syrup and GMO ingredients.
In May, Dean Foods announced it would acquire the manufacturing and retail ice cream business of Friendly's Ice Cream. Ice cream products are often more profitable than milk, and Dean Foods needed a way to boost its top line as sales continue to drop. Milk costs may also start rising again, which could cut into the company's overall profitability if it doesn't have a top-line driver to offset those costs.