It is no secret that competition in the ice cream industry is tough. With huge brands like Ben & Jerry’s and Jeni’s, your ice cream sales can be bumpy as a rocky road. Recognizing the factors that influence ice cream sales can help you make sound business decisions and formulate sales strategies to make your ride to success a smooth glide.
The six things that affect ice cream sales are:
- Rise in Demand for Premium Ice Cream
- Dietary Restrictions and Special Diets
- Increase in Popularity of Take-Home Ice Cream
- Ingredient Labels
- Ice Cream Color
- Ice Cream Price
In this piece, I’ll go through the factors that influence ice cream sales in depth and also provide some advice on how to deal with them.
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Rise in Demand for Premium Ice Cream
One thing that affects ice cream sales is the increasing demand for premium ice cream. That’s because consumers are increasingly looking for high-quality, one-of-a-kind ice cream flavors, and they are ready to spend extra on inventive or luxurious ingredients.
This can mean bad news in terms of sales for small ice cream businesses that don’t sell premium ice cream. So, it is best to offer premium ice cream products, particularly those manufactured with natural ingredients, that are low in calories and provide health advantages, since they’re starting to appeal more to consumers.
Dietary Restrictions and Special Diets
The increase in dietary restrictions and special diets is another factor that influences ice cream sales. This is because customers have become progressively concerned about their health. In response to that, more and more ice cream manufacturers are starting to focus on selling dairy-free and vegan ice cream.
According to Allied Market Research, in 2019, the worldwide vegan ice cream market was worth $520.9 million, and it is predicted to grow to $805.3 million by 2027. This means good news for ice cream businesses, especially those with a “healthy ice cream” brand image.
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Increase in Popularity of Take-Home Ice Cream
The growing popularity of take-home ice cream also has an impact on ice cream sales. Consumers are looking for ice cream that they can take home and eat later. This means that ice cream businesses that solely sell impulse ice cream may be at a disadvantage.
That’s why it’s best for ice cream businesses to offer take-out ice cream like ice cream pints. Not only will it help in increasing sales, but it will also enable ice cream manufacturers to be more creative with packaging and flavors.
Ingredient Labels
Ice cream sales are also affected by the ingredient information on packages. According to research, food labels can impact consumer and industry decisions. In fact, 59% of customers claim they always check the labels on packaged foods before purchasing.
As a result, it is ideal to utilize ice cream ingredients that appeal to customers because they will appear on the ingredient label. Using package symbols and icons such as Facts Up Front labels is also ideal since they can also influence purchase decisions.
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Ice Cream Color
Ice cream sales can also be influenced by the color of the ice cream. This is because color impacts the appearance of the ice cream, which influences customer perception. It can help to set consumers’ expectations about the ice cream’s probable taste and flavor. For example, if the strawberry ice cream is light in hue, it appears less appetizing.
So, matching the color with the ice cream flavor is ideal. On top of that, it’s best to use less artificial coloring on ice cream, as it appeals less to consumers.
Ice Cream Price
The price of ice cream greatly impacts its sales. This is because pricing plays a significant effect in consumer purchasing behavior. For example, if your prices are lower than competitors, you might see a significant increase in sales. However, if you establish a higher price, the response may be unsatisfactory.
To summarize, it is preferable to utilize the right pricing strategy to boost sales and differentiate yourself from the competition. Furthermore, it is advisable to undertake pricing research before product pricing to prevent assigning a price that is disagreeable to your customers.
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Conclusion
All in all, these are the 6 factors that influence ice cream sales:
- Rise in Demand for Premium Ice Cream – As more people seek premium ice cream, sales of regular ice cream might decline.
- Dietary Restrictions and Specialty Diets – Dairy-free and vegan ice cream sales can increase as consumers start to be more aware of their health.
- Increase in Popularity of Take-Home Ice Cream – Convenient, take-out ice cream is becoming more popular, which can affect impulse ice cream sales.
- Ingredient Labels – Food labels can influence customer behavior since they are what most people look at before purchasing a product.
- Ice Cream Color – Color influences the appearance of the ice cream, which affects customer expectations.
- Ice Cream Price – Price has a big impact on customer purchasing behavior, thus it is critical to employ the proper pricing strategy.
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Frequently Asked Questions
Before starting an ice cream business, there are 5 factors to consider: 1) The ice cream products, 2) The seasonality of the business, 3) The paperwork and permits for your business, 4) The location of your ice cream shop, and 5) The business plan.
Consumers mostly seek quality, a low price, and flavor when it comes to ice cream. Furthermore, when online grocery shopping became more popular, people began to seek healthier ice cream. Many Americans say they have switched to super-premium brands for health reasons, such as the low-carb or low-fat components included in such brands.
To learn more on how to start your own ice cream/gelato business check out my startup documents here
This blog post is provided for informational purposes only. The information contained is not intended to constitute legal advice or to substitute for obtaining legal advice from a qualified attorney.
Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online ice cream/gelato business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a ice cream/gelato business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Ice Cream Business Boss: I want to help ice cream and gelato business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.