Market Trends of South America Ice Cream Industry
This section covers the major market trends shaping the South America Ice Cream Market according to our research experts:
Active Participation of Medium and Small Enterprises in Brazil
In order to gain competitive advantage and cater to the rising demand for economically priced ice cream, country level players are differentiating their offerings in terms of flavor, ingredients, size, packaging design, and marketing initiatives. For instance, in 2018, there were around 8000 players operating in Brazil ice cream industry, out of which around 7,200 were micro and small enterprises. Small enterprises have a significant presence in the ice cream market of Brazil, especially in the market for popsicles, as they come up with the offerings that fulfill the need of local customers. Owing to such a competitive market, small players are adopting various strategic moves in order to broaden their presence. For instance, Sorvetes Jundiá Indústria e Comércio Ltda and Sorveteria Creme Mel SA are slowly increasing their penetration.
Growing market for Frozen Desserts and Hybrid Products in Argentina
The Argentine ice cream market is mature and offers a wide choice of products. As the demand for ice cream is driven by consumer desire, ice cream companies are tapping into this trend by offering products that help people achieve these desires. In order to gain market share, existing companies are changing their product portfolio by introducing novel products. For instance, a new trend that will continue to be popular in the coming years is the trend of hybrid products, i.e. ice cream in combination with cakes, cookies, marshmallows, etc. The Argentine frozen desserts market was valued at USD 0.15 billion in 2016, and is forecasted to reach USD 0.35 billion by 2024, registering a CAGR of 11.17% over the forecast period. Chilled dairy desserts have been a preferred substitute for the Argentines; but there has been strong growth in the purchase of impulse ice cream in the country, due to considerable volume growth of companies, such as Nestle Argentina SA and Arcor SAIC in this sector.
