UK ice cream spending rose by nearly 7%, driven by higher prices rather than increased sales volume. Despite a 4.4% drop in unit sales, 90% of households still buy ice cream. The cost-of-living crisis is impacting consumer habits, but opportunities exist to promote dairy products like cheese and butter, which are popular in various meals.
Market Trends
Ice cream’s share of the UK dairy retail market has expanded significantly, with spending on the product rising by 6.9% over the past year, as reported by the Agriculture and Horticulture Development Board (AHDB). This increase in expenditure is primarily due to higher prices, as unit sales have actually decreased by 4.4%. This trend indicates that consumers are paying more per unit, but buying less overall.
Consumer Behavior
The ongoing cost-of-living crisis continues to shape consumer habits, leading to reduced frequency and smaller quantities of ice cream purchases. Despite 90% of households still engaging with ice cream, the economic strain is causing many to limit their spending. Consumers are increasingly cautious about their discretionary spending, which includes non-essential treats like ice cream.
Seasonal Demand
Traditionally associated with summer, ice cream’s appeal could be broadened to maintain consumer interest throughout the year. The AHDB recommends shifting the perception of ice cream to a year-round indulgence rather than a seasonal treat. Marketing strategies could focus on ice cream’s versatility and suitability for various occasions beyond the summer months.
Other Dairy Opportunities
Beyond ice cream, there are notable opportunities for other dairy products. Cheese and butter remain integral to lunchtime meals, with cheese present in 24% and butter in 15% of such occasions. Cheese plays a crucial role in sandwiches, appearing in 65.5% of these meals. Additionally, there are growing opportunities for dairy in quick and convenient meal solutions.
Italian Dishes and Dairy
Italian cuisine continues to drive dairy consumption, with dishes like carbonara, pasta bakes, and spaghetti Bolognese contributing to higher dairy use. The popularity of these meals underscores a broader trend of incorporating dairy into diverse culinary experiences. This trend highlights the potential for promoting dairy in a variety of recipes and meal types.
Boosting Dairy Consumption
To mitigate the impact of rising prices, there is a strategic opportunity to promote dairy products as valuable and versatile ingredients. Emphasizing dairy’s role as a flavorful enhancement—such as adding cheese to pasta dishes or cream to desserts—can encourage more frequent use. Additionally, with an increase in milk used in coffee, providing inspiration for premium at-home coffee experiences could further boost milk sales. Marketing efforts could focus on the indulgent and versatile nature of dairy products, encouraging consumers to see them as worthwhile additions to their meals and treats.
