GCC Ice Cream Market CAGR 6.52% by 2030, Driven by Health Trends and E-Commerce Expansion

According to the latest research report published by Markntel Advisors, the GCC Ice Cream Market is estimated to grow at a CAGR of around 6.52% during the forecast period, i.e., 2024-30. The growth of the market is attributed to various factors including GCC nation’s moving towards the digitalization of their economy, intensifying efforts for expansion, promoting local businesses & manufacturers, and the favorable weather and climate of the region for the consumption of frozen desserts.

Market Analysis: Key Drivers and Developments

• Health-Conscious Consumption: The rising prevalence of lactose intolerance and health awareness in the GCC region has led to increased demand for lactose-free and low-fat ice cream options. Manufacturers are responding by reformulating products to cater to these preferences.
• Government Initiatives: Programs like Saudi Arabia's 'Made in Saudi' initiative are actively supporting local food and snack producers, including ice cream manufacturers, by facilitating projects and providing financial assistance. This aims to reduce dependency on imports and foster local business growth.
• E-Commerce Growth: Governments in the region are promoting the development of e-commerce platforms through strategies like Dubai's e-commerce strategy and Bahrain's National E-commerce strategy. These efforts are contributing to the expansion of the e-commerce industry, leading to a noticeable shift in consumers' traditional in-store purchasing habits.
• Premium and Artisanal Trends: There is a growing demand for premium and artisanal ice creams, driven by consumers' willingness to spend more for distinctive tastes and high-quality ingredients. This trend is contributing to the expansion of the ice cream market in the GCC region.

Key Takeaways from the Market Research Report

• Rising Demand for Healthier Options: Increased health awareness is leading consumers to seek low-fat, sugar-free, and lactose-free ice cream alternatives.
• Government Support for Local Production: Initiatives aimed at boosting local manufacturing are providing financial assistance and facilitating projects for ice cream producers.
• E-Commerce Expansion: Strategic efforts to develop e-commerce platforms are changing consumer purchasing behaviors, favoring online channels.
• Preference for Premium Products: Consumers are showing a willingness to pay more for premium and artisanal ice creams with unique flavors and high-quality ingredients.

Leading Players Driving Innovation and Growth

Key companies operating in the GCC ice cream market include:

• Dunkin Brands, Inc.
• General Mills, Inc.
• Mini Melts, Inc.
• Nestle SA
• IFFCO Group
• Mars, Incorporated
• Graviss Group
• Unilever Group
• Saudi Ice-Cream Factory Ltd
• Saudi Dairy & Foodstuff Co Ltd
• Others (Batterjee Foodstuffs Factory, Cone Zone Co)

These companies are actively introducing new flavors, healthier options, and novel product formats to cater to evolving consumer preferences.

GCC Ice Cream Market Segmentation Analysis

By Product Type

• Impulse Ice Cream
• Take Home Ice Cream
• Artisanal Ice Cream
• Single Portion Dairy Ice Cream

By Flavor

• Mango
• Chocolate
• Vanilla
• Others (Strawberry, Butterscotch, etc.)

By Format

• Cup
• Stick
• Bricks
• Cones
• Others (Sandwich, Tubs, etc.)

By Sales Channel

Offline

• Supermarkets & Hypermarkets
• Convenience & Grocery Store
• Brand Owned Outlets
• Ice Cream Cart
• Others (Vending Machines, etc.)

Online

Embracing Health-Conscious Trends

The growing health consciousness among consumers in the GCC region is leading to a shift in dietary preferences. Ice cream manufacturers are responding by developing products that cater to these health trends, such as low-fat, sugar-free, and lactose-free options. This proactive approach is expected to drive the growth of the ice cream market in the GCC region in the upcoming years.

Dominance of Impulse Ice Cream Segment

The impulse ice cream segment is anticipated to hold a significant share of the GCC ice cream market. This growth is attributed to the increasing availability of single-serving impulse ice cream products, catering to the needs of consumers who prefer on-the-go consumption. The convenience and affordability of these products make them popular among individuals of all age groups.

Regional Market Insights: The UAE's Leading Role

The United Arab Emirates (UAE) is expected to hold a major share of the GCC ice cream market. This is due to the implementation of supportive policies for the growth of the food and beverage industry, such as the National Food Security Strategy 2051. The country's hot climate and diverse expatriate population contribute to the high demand for ice cream. Manufacturers are diversifying their product offerings to cater to the diverse cultural preferences of the UAE's rapidly growing population.

Future Outlook

With the growing trends, the industry is projected to grow and expand during the forecasting years, i.e., 2025-30, as the above-stated factors are changing the market landscape and opening doors to market players. Market players can enhance their market size and revenue by meeting the changing market dynamics and evolving consumer expectations. Additionally, market players, with the help of SWOT analysis, can adjust their existing settings regarding the evolving market trends, which would ultimately augment the size and volume of the entire industry at the global level.