GCC Ice Cream Market Research Report: Forecast (2024-2030)

Market Definition

Ice cream is a frozen dessert, primarily made from a blending of cream, milk, sugar, and other flavorings. Some ice cream consists of fruits, nuts, and chocolates as well. Further, this mixture is churned and cooled down below the freezing point of water and stirred to remove the air spaces between the liquid to avoid crystal forming. Ice creams have a wide variety of flavors including vanilla, chocolate, strawberry, and others. Ice cream comes in various forms including cones, scoops, pies & cups, and is also used as an ingredient in the milkshakes.

Market Insights & Analysis: GCC Ice Cream Market (2024-30):

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.

GCC region located in the Arabian Peninsula and covered by vast desert lands as the climate of the region generally remains warm to hot throughout the year and sometimes in summer, the temperature of various nations reaches up to more than 45 degrees Celsius. Thus, the consumers in this region prefer the consumption of frozen desserts such as ice cream due to the suitability of weather. The government is actively promoting local manufacturers, encouraging self-sufficiency in food production. This initiative includes launching various programs and providing funding to support local food and snack producers. For instance,

• Saudia Dairy and Foodstuff Company in 2021, announced the opening of a new ice cream factory in Saudi Arabia for supporting the government’s ‘Made in Saudi’ Program.

Thus government initiatives accompanied by the funding for supporting the growth of the food & beverage industry lead to the growth opportunities for the ice cream manufacturers in the region in the forthcoming years.

Moreover, governments in the region implementing different strategies such as Dubai ecommerce strategy, Bahrain’s National E-commerce strategy, etc. for the development of e-commerce platforms to establish the region as a global logistic hub as well as to attract foreign direct investment in this sector. Such efforts resulted into the growth of the e-commerce sector leading to the shift in consumer's traditional in-shop buying style has been also witnessed in this region. Thus, in the upcoming years, the demand for the online platform is expected to increase due to the presence of local & global manufacturers with a wide variety of offerings along with vast budgets and styles preferences.

GCC Ice Cream Market Driver:

Growing Demand for Gluten and Lactose Free Food products – Over the years, the increasing prevalence of lactose intolerance in the GCC region has led to a shift in consumer preferences, with more people prioritizing their health and well-being by becoming increasingly conscious of their dietary choices. This change in consumer food habits led to the demand for lactose-intolerant food products including snacks, and cooling beverages. To capture the attention of this growing segment, various food & ice cream manufacturer, made significant changes in their product formulations. For instance, in 2020, Brooklyn Creamery launched chocolate-covered ice cream bars with low-fat and lactose-free characteristics without artificial colours. Furthermore, as ice cream manufacturers establish separate production lines for gluten and lactose-free ice cream to meet the expected surge in demand, this proactive approach is poised to drive the growth of the ice cream market in the GCC region in the upcoming years.

GCC Ice Cream Market Opportunity:

Burgeoning Demand for Nutritional Ice Cream Owing to Increasing Health Concerns – Over the years, in the GCC region, most of the countries suffering from health issues such as obesity, diabetes, and others. As the health concern among the population of this region increases, a shift in their dietary preference also has been seen over the years. Hence, the consumer in this region seeks healthier options to satisfy their cravings as well as to avoid the consumption of high-sugar and fat-content food products. Therefore, ice cream producers making considerable changes in their product formulations to address the shifting demand. Thus in 2021, Brooklyn Creamery launched a new ice cream protein pot in the UAE, that is lower in fat and calories, and high in protein. Such new healthy segment ice cream also encourages other producers to launch their products in this segment for consumer capturing. Therefore, ice cream manufacturers developing healthy formulations of ice cream consistently to comply with changing consumer preferences would further accelerate the growth of market in the forecast period.

GCC Ice Cream Market Challenge:

Government Stringent Regulations for the Packaging, Expiration and Transparent Labelling of Food Products – Nations in the GCC region, implementing strict regulations, that mandate the mention of allergen ingredients on the labels of all food products including ice cream. Meeting stringent regulatory requirements involves significant investments in packaging materials, labeling, and quality control measures. The compliance costs result in an increase in the overall production cost of ice cream products.

Moreover, the GCC Standardized Organization implementing regulations for standardizing the solid content and dairy content in the ice cream products which is affecting the manufacturer to reconsider their formulations to comply with the rules. Most of the ingredients that are used in the production process of ice cream are outsourced by the manufacturer, which should meet the quality standardization. Thus, the presence of allergen ingredients could negatively affect the producer’s reputation, and credibility of the products and affect the company’s image, across the region further impacting the overall ice cream market size across the region.

GCC Ice Cream Market Trend:

Introduction of Innovative Fusion of Local and Global Flavors Sparking Consumer Interest in GCC Ice Cream Market – The GCC region has a rich culture and a growing population of expatriates with different backgrounds and taste preferences. Ice cream manufacturers introduce a local and international fusion of flavors in the GCC market, seeking the attention of the consumer and capturing a wide base of customers. For instance,

• In 2023, Simple Ice Cream launched seven new flavors including Caramelized Walnut, Cinnamon, Honey and figs, Mango and cardamom, Pistachio, Turkish Delight and rose, Pomegranate and mint Sorbet in the middle eastern market.

Furthermore, manufacturers launch ice cream flavors on a theme basis according to the festivals and seasons, capturing the diverse consumer base. Therefore, the fusion of flavors and an increasingly diverse background population would accelerate the adoption of these innovation in ice cream which is further expected to flourish the market growth in the forthcoming years.

GCC Ice Cream Market (2024-30): Segmentation Analysis

The GCC Ice Cream Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. According to the analysis, the market has been further classified as:

Based on Product Type:

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

Impulse ice cream is expected to witness significant growth in the market during forecast period. This growth could be attributed to the availability of impulse ice cream in single-serving packages which provides convenience to the consumers such as tourists and the working population to grab and enjoy on the go. The accessibility and pricing of these ice cream make it more appealing to consumers. These ice creams are easily available in high foot traffic areas such as gas stations, convenience stores, etc. Impulse ice cream often comes in pre-determined portions which helps consumer with specific dietary controls to manage their ice cream intake and avoid overconsumption. This convenience in consumption and easy availability are the main factors anticipated to drive the market growth in the near future.

GCC Ice Cream Market (2024-30): Country Analysis

Geographically, the GCC Ice Cream Market expands across:

• The UAE
• Saudi Arabia
• Qatar
• Kuwait
• Oman
• Bahrain

The UAE is anticipated to hold a major market share in the upcoming years owing to the implementation of a supportive policy for the development of the food & beverage industry, followed by the national food security strategy 2051 which offers long-term financial stability to the foreign investors. The UAE accounted for around 18% of the middle east region's food & beverage trading. Also government intensifying efforts to develop e-commerce platforms by promoting digital payment.

Furthermore, the country’s dry weather, followed by longer summer leads to the demand for cooling beverages such as ice cream in the country. Also, ice cream manufacturers launching innovative ice cream flavors to cater the demand of diverse cultural background expatriates in the country. These factors, combined with the nation's passion for frozen treats, are expected to drive continued expansion and opportunity within the UAE's ice cream market.

GCC Ice Cream Industry Recent Development:

• In 2022: Al Ain, launched camel milk based ice cream in the UAE, in the various flavours including date, saffron, cardamom, chocolate, etc.
• In 2022: Saudia Dairy and Foodstuff Company (Sadafco), opened new ice-cream factory combined with the existing Sadafco milk factory in Jeddah, Saudi Arabia.

Gain a Competitive Edge with Our GCC Ice Cream Market Report

1. GCC Ice Cream Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & to make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Ice Cream Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.