The UAE ice cream market is accounted to US$ 118.6 Mn in 2018 and is expected to grow at a CAGR of 5.5% during the forecast period 2019 – 2027, to account to US$ 191.3 Mn by 2027.
The rising number of cold storage facilities and supermarkets has bolstered the growth of the UAE ice cream market.
Market Insights
The rising number of cold storage facilities and supermarkets to increasing health consciousness amongst consumers
The rapidly expanding cold storage infrastructure has been contributing significantly to the growth of the ice-cream industry worldwide. The cold storage facilities help prevent the spoilage of eatables during storage and transportation. The advent of mobile refrigeration systems and active refrigerated transport systems has played a crucial role in the storage and transport of ice-cream products. Mobile refrigeration systems are used in transporting perishable foodstuffs such as ice-cream from the manufacturing site to refrigerated warehouses. The refrigerated warehouses store these products, along with other perishable products, in low-temperature conditions. The expansion of cold chain systems is expected to be a major factor in driving the ice-cream market during the forecast period. UAE heavily relies on food imports and hence, has developed a vast network of cold chains and cold storage facilities. Sprawling cold chains and cold warehouses to store perishable foods such as ice cream has underpinned the growth of the ice cream market. The proliferation of convenience stores and retail malls selling ice-cream products is another factor driving the ice-cream market in UAE.
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Growing demand for gluten- and lactose-free ice-creams provides an opportunity for the ice cream market growth
Lactose is one of the main constituent sugars in dairymilk. Lactose intolerance a condition found in many humans; it is characterized by the inability to digest sugar (lactose) in dairy products fully. It is usually caused by a deficiency of the lactase enzyme due to the inability of the body to synthesize it. The growing rate of lactose intolerances around the world has created a demand for gluten- and lactose-free products, including ice-creams. The rapidly expanding trend of veganism has further driven the market for vegan, lactose- and gluten-free ice-cream varieties made from ingredients that are devoid of animal products, based on other milk substitutes, such as almond milk and coconut milk. The growing incidences of lactose intolerance in the UAE is expected to generate high demand for gluten- and lactose-free ice cream products during the forecast period.
Type Insights
The UAE ice cream market by type has been categorized in impulse ice cream, take-home ice cream, and artisanal ice cream. The demand for impulse ice cream is rising as they can be readily consumed without the need for portioning or preparation. Impulse Ice Cream includes ice cream products such as ice cream cones, ice cream sandwiches, chocolate-coated ice creams, and single-serve ice cream tubs. Impulse ice cream products such as ice cream cones and ice cream sandwiches are sold in individual packages while the traditional ice cream ball in the wafer is sold without a package. Impulse ice creams segment dominates the ice cream market owing to its high popularity among individuals of all age groups. Impulse ice creams offer the convenience of eating ice cream whenever and wherever one wants.
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Distribution Channel Insights
On the basis of the distribution channel, the UAE ice cream market has been segmented into supermarket/hypermarket, convenience store, specialist store, and others. Under the distribution channel segment, the specialist store is the leading segment in the UAE ice cream market. Specialist stores are shops that cater to a single retail market. Some instances of specialist stores include ice cream shops, pharmacies, book stores camera stores and stationeries. They specialize in sales of just one type of product of the range. Since specialty stores are category specialists, they use their buying power to negotiate lower prices, excellent terms and assured timely supply. The growing number of specialist stores selling a wide range of ice cream products is expected to drive the specialist stores market in the forecast period.
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