Found in nearly all US homes, frozen treats accounted for 94% of purchases over the last six months. Even during inflation, the category proves to be valuable. While consumers prioritize flavor and size, brands with affordable prices will garner more attention.

Engendering a sense of urgency through promotions in the category not only drives purchases when prices are low but also enables financially-struggling consumers to indulge in frozen treats. Even co-branded offerings and familiarity can engage consumers during financially challenging times by providing comfort and accessibility. Established brands can capitalize on this by expanding their flavor and format offerings.

When it comes to ice cream and frozen novelties, taste plays an important role in consumer decisions. With consumers finding comfort in the familiar, innovation can find it tough to compete, but not entirely.

Consumers are also looking for items that offer personal benefits that are either economical, health-related, or exciting. For instance, sticking to the basics should also be expanded upon. Chocolate, a leading flavor, followed by vanilla and strawberry, can stand out in the market by updating the texture or combining flavors.

Health should be considered too. With sugar being a deterrent to frozen treat consumption, brands can look into plant-based formulations, natural sugar, and lactose-free options. Equally important is the occasion for consumption. Novelties are regarded as more of a solo snack, while ice cream is more often enjoyed on celebratory occasions. Broadening the association through diversifying formats can help break social constructs.

Most consumers purchase food and drink based on taste. This notion rises even higher when it comes to frozen selections. Consumers want to enjoy indulgence items, suggesting flavor innovation and expanding occasion times can help bring variety.

Kantar Profiles/Mintel, March 2023

Ice cream and frozen novelties received a 7% increase in sales last year. Frozen novelties outshined all other frozen treat launches, surpassing the category favorite, ice cream. Promoting versatility through customizations helped the segment, but while sorbets saw growth last year, capturing the essence of enjoyment remains a challenge. The segment will need to accentuate the pleasure aspect while maintaining their health and value perceptions.

Amidst the pandemic, frequent home purchases helped keep the category afloat. Inflation’s influence on prices also helped skew the category upward. Still, with inflation in place, consumers will engage in more cost-saving behaviors, prioritizing more home goods purchases. Changes in eating habits such as reduced sugar and dairy consumption will also have an impact on purchases, but brands can retain consumer loyalty by focusing on the familiar and reminding them about indulgent permissibility.

Ice cream takes the lead when it comes to frozen treat purchase, but novelties such as sherbet/sorbet and gelato are doing well. Benefitting from solo eating and an expansion of extreme flavors, the category has captured the attention of younger consumers.

Kantar Profiles/Mintel, March 2023