ICE CREAM AFTER THE COVID-19 PANDEMIC

Ice cream, the big winner of the pandemic: its consumption increased by 80% in one year, it is the dessert whose demand grew the most between January 2020 and January 2021.

The COVID-19 pandemic, also known as the coronavirus pandemic, the first cases were identified in December 2019 in the Chinese city of Wuhan. The World Health Organization (WHO) declared it a public health emergency of international importance on January 30, 2020, a condition that it maintained until May 5, 2023, when the WHO declared the end of the health emergency.

In search of explanations for this phenomenon, confinement and the need to seek "rewards" for so much concern made ice cream (and sweets in general) a resource to calm the anxiety so present in everyone these days.

No one can ignore how we were living our lives during that time, the radical change and fear is still present.

Consumers around the world are burdened with stress from the COVID-19 pandemic and the resulting social isolation, the effects and uncertainty of climate change, and the cost of living crisis with threats of recession.

Ice cream and other frozen desserts represent the perfect refuge from that combination of stress, and ice cream indulgence has blossomed into a major consumer fact.

According to statistics published by the home delivery app Rappi, ice cream orders grew by more than 80% between January 2020 and January 2021 (in Latin countries).

While the COVID-19 pandemic highlighted the importance of maintaining a healthy diet, it also reinforced a rewarding relationship with food. In a sample of British consumers, 48% said that COVID-19 made it easier to justify consuming rewarding foods or drinks. The proportion was even higher among younger adults.

This global pandemic changed people’s lifestyles, routines and habits, creating a new normal. From bite-sized snacks to mini cones, cups and bars, snack formats have become a staple of category innovation in recent years.

Indulgence, flavour innovation and exciting snack formats are dominating the global ice cream landscape. Opportunities to “premiumise” ice cream through texture, processing method, ingredients or provenance are abundant.

Stress brought on by economic uncertainty is driving up consumption of comfort foods like ice cream. Global crises will increase consumer appetite for fun, excitement and escapism through ice cream, while emerging technologies will boost ice cream consumption. At the same time, it is even more crucial to offer consumers value for money.

There were also changes in Sustainability.

Although environmental concerns are low on the list of factors driving ice cream purchases, consumers will expect brands to adopt sustainable practices as a basic condition of operation. And environmental concerns will lead to innovation in the supply chain and reduction of water consumption (cooling tower, see more...). The environmental impact of the ice cream distribution chain will be under scrutiny in the coming years.

This is already happening in some countries and perhaps worldwide, for example: Denmark's vanilla banana ice cream is made from leftover bananas to minimise food waste – "less waste, more flavour". Similarly, US brand Salt & Straw partnered with Renewal Mill to create a vegan ice cream that incorporates Renewal's recycled dark chocolate brownie mix.

Now we are targeting millennials with innovative flavors and adding a touch of security.

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Spicy flavour launches are on the rise around the world. A sure bet for seeking growth through food product innovation is to target millennials (born between 1980 and 1996), who tend to be adventurous.

There is no doubt that in Mexico we love spicy food and we have consumed it since pre-Hispanic times, but after the pandemic this has emerged all over the world, for example:

In Spain, 43% of millennials try new flavors all the time, compared to 31% of all Spanish consumers. In addition, millennials are more likely than other adults to break the rules and combine unexpected flavors.

Spicy ice creams generally refer to those containing hot spices, such as chilli or wasabi.

These spicy spice accompaniments are often short-lived novelties, but there is an opportunity to combine sweetness with spiciness. This appeals to millennials, who are more interested in spicy flavours in desserts and confectionery than other age groups.

34% of German millennial ice cream drinkers are interested in ice creams with spicy flavours (vs. 27% of all ice cream drinkers)

But brands need to reassure consumers that adding hot spices will enhance the flavour of ice cream, rather than overwhelm it. Some brands have introduced spice ratings, and others add descriptions such as “both spicy and cool”.

As for sweet spices, the use of cinnamon in ice cream has remained stable at around 2% of global launches over the past five years. And the use of cloves, nutmeg and cardamom is now increasing, particularly in the Middle East, but also in Germany, where younger people enjoy Middle Eastern food.

This requires being prepared to manage flavour requirements such as allergens, because not everyone is equipped to digest these types of spices.

Ice cream market analysis

The Ice Cream Market size is estimated at USD 111.62 Billion in 2024 and is expected to reach USD 135.60 Billion by 2029, growing at a CAGR of 3.97% during the forecast period (2024-2029).

Source: https://www.mordorintelligence.com/es/industry-reports/ice-cream-market

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