Artisanal Ice Cream Market

The global artisanal ice cream market is expected to grow at a rapid pace during the review period. The growth of the global artisanal ice cream market can be attributed to the changing consumer tastes and preferences and the growing number of specialty stores. Additionally, the increasing demand for specialty and artisanal ice cream is expected to positively influence the expansion of the market during the forecast period. However, the high costs of artisanal ice cream and the rising prevalence of health conditions such as diabetes are likely to hamper market growth during the review period.

The popularity of artisanal ice cream is increasing as it is available in unique flavors with natural ingredients and is hand-crafted. Artisanal ice cream manufacturers avoid the use of artificial flavors and ingredients, thereby offering food safety to health-conscious consumers. Furthermore, due to the availability of a wide range of natural ingredients such as mint, chocolate, vanilla bean, and fruit, artisanal ice cream parlors create unique flavor combinations.

Across the globe, consumer preferences have been changing from single-flavor and traditional ice cream such as vanilla and chocolate to unique flavor blends offered by market players looking to gain a larger customer base. Consumers, especially in North America, are inclined to experiment with food and ethnically inspired flavors such as green tea and mango. Other preferred ice cream formats include Japanese mochi and Indian kulfi. The growing popularity of gelato, a frozen dessert originating in Italy, is further boosting the demand for artisanal ice cream. The availability of a large number of flavor options is expected to propel the growth of the market during the forecast period.

The rising health concerns due to conventionally made food products are giving rise to a demand for organic products. Consumers are self-motivated to switch to green-label products owing to the severe health issues caused by artificial flavors in food products, such as ice cream. Due to the use of artificial additives to simulate flavors such as mint, citrus, and cinnamon, the US Food and Drug Administration (FDA) has removed seven synthetic flavoring substances—benzophenone, ethyl acrylate, eugenyl methyl ether, myrcene, pulegone, and pyridine—from the list of allowed additives in ice cream. The growing demand for organic ice cream is, thereby, expected to offer lucrative opportunities to market players during the forecast period.

Similarly, the increasing adoption of veganism and growing prevalence of lactose intolerance are fueling the demand for vegan and lactose-free artisanal ice cream ice creams. Market players can modify their production methods to include plant-based ingredients, such as soy and nut milks, to cater to this growing customer base. For instance, McConnell’s Fine Ice Creams launched a dairy-free frozen dessert in 2018 that uses pea protein. McConnell’s dairy-free dessert also claims to be low in fat and sugar, cholesterol-free, and non-GMO.

Artisanal ice cream is generally priced high due to the use of quality ingredients, time-consuming production process, and limited distribution networks. The use of all-natural ingredients in artisanal ice cream such as milk, butter, eggs, and real cream makes it highly popular and trending alternative to conventional ice cream. The use of cream, which is full of healthy butterfat, eliminates the need for additives as taste enhancers. Moreover, artisanal ice cream is healthier than mass-produced frozen desserts and conventional ice cream since market players are required to follow the guidelines set by the US Department of Agriculture (USDA). For instance, ice cream must weigh at least 4.5 pounds/gallon and contain at least 10% fat from milk. Furthermore, artisanal ice cream is made in batches unlike regular ice cream hundreds of gallons of which is produced at a time. This requires labor, energy, and time, thereby increasing production costs. Commercial producers make ice cream using continuous freezers, while artisanal makers use batch freezers where production is limited to a set amount. The batch production process is necessary for the continuous monitoring and maintenance of high quality standards of artisanal ice cream. For instance, Van Leeuwen’s artisanal ice cream costs approximately USD 11–14 in the US. Bi-Rite offers six packs of artisanal ice cream for USD 89. However, conventional ice cream retails for approximately USD 4.85 per 1/2 gallon in the US. These factors all contribute to the high cost of the final product, which is expected to hinder the growth of the global artisanal ice cream market during the forecast period.

Ice cream has a high content of ingredients that affect cardiovascular health, leading to issues such as high cholesterol and diabetes. They are high in saturated fats which can increase cholesterol levels and the risk of type 2 diabetes. Furthermore, the high sugar content in artisanal ice cream may contribute to weight gain and impact glucose levels, thereby resulting in diabetes. High sugar levels in the human diet can lead to health issues such as diabetes, obesity, non-alcoholic fatty liver, and heart disease. However, growing awareness among consumers regarding the health issues caused by confectionery items has given rise to safer alternatives such as organic, dairy-free, and low-sugar ice cream. Due to several government initiatives to limit the use of harmful ingredients, market players have modified production methods to produce artisanal ice cream with a focus on health. For instance, in 2019, Jeni's Splendid Ice Creams launched dairy-free ice cream across the US.