Artisanal segment of Organic Ice Cream Market is set to grow at 4% CAGR by 2024

Rigid plastics segment of organic ice cream market will witness CAGR at around 4.5% in terms of revenue up to 2025owing to consumer preference for ready-to-use and on-the-go products with need to a healthy functioning and convenient packaging.

North America dominated the global organic ice cream market, accounting for over 40% share in 2018. The key aspects supporting the business growth the region include strong demand for natural based products, growing organic milk production, and highest ice cream consumption. As per AGMRC, the U.S. organic milk production reached 4.03 billion pounds in 2016. Further, rise in consumer health consciousness along with government initiatives to ensure authenticity of products will support the market expansion.

On-trade distribution channel including restaurants, hotels, sorbet parlors will witness significant gains at over 4.5% up to 2025. The crucial factors driving the on-trade distribution revenue include rise in per capita income, rapid urbanization. Increasing market of impulse ice cream is also one of the major reason driving the distribution channel growth. Hotels and sorbet parlors have more impulse sorbet options when compared to other distribution channels, thus providing strong outlook for industry growth.

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Rigid plastics packaging is projected to witness around 4.5% CAGR up to 2025. Factors such as durability and protection, flexibility, and increased recycling capabilities driving this packaging segment growth. Manufacturers are opting it as suitable packaging option in line with government regulations regarding plastics, and concern for health and environment. Increasing usage of natural raw materials over synthetic materials during manufacturing of rigid plastic packaging types is likely to propel rigid plastics packaging sales.

Favorable government policies to supporting the organic food & beverage production will drive the industry development. Manufacturers are more focused on launching innovative & natural fruit flavors to enhance the product adoption. For instance, in January 2019, Alden's launched 8 new favors in the U.S. to enhance their product portfolio. Technological advancements to produce reduced-fat, low-calorie, and improved nutrition content play an important role. However, premium price of organic sorbet as compared to the conventional one can hamper the product adoption rate.

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Skim milk is projected to witness over 4.5% CAGR from 2019 to 2025. Reduced fat content as compared to whole milk is among the key factors supporting the industry share. Also, skim milk is higher in nutritional content with presence of calcium, protein, vitamin D, and vitamin A. Rise in production of skim milk to meet the growing demand of organic ice cream market will augment the product penetration.

Vanilla flavor dominated the global organic ice cream market accounting at over 25% share in 2018. The global popularity for vanilla has surpassed all other flavors including chocolate and pecan. According to the survey conducted by International Ice Cream Association in 2017, vanilla is voted as the most popular flavor of ice cream in America followed by chocolate. Rise in global vanilla production along with regional preferences for single flavored ice creams will generate notable gains.

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Increasing organic milk production owing to adoption of biological farming practices is fueling the product penetration. For instance, as per the statistics provided by the European Commission, the total organic farming area in the EU increased by 25% from 2012 to 2017. Developed regions including Europe and North America are among the leading organic milk producers. Rise in sorbet consumption coupled with growing healthier alternatives demand among young generation will create new growth opportunities. Countries including the U.S., New Zealand, Australia, Finland, and Sweden observe the highest ice cream consumption per capita in 2018 and expected to provide business outlook for industry participants.

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Name: Arun Hegde
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Organization: Global Market Insights, Inc.

Release ID: 88889028