Demographics of the Ice Cream Industry
The Canadian demographic for ice cream has been a constant presence of a sweet treat on a hot summer day. Thankfully, Canadians love ice cream, and enjoy it all year around. But, just who is enjoying this delicious milky treat, and what opportunities and threats does that leave the ice cream industry with? Opportunities
Canadians have loved ice cream for centuries, and it shows today as children as young as ages 2-12, and folks as mature as 75 and up love ice cream. (Canadians Crazy for Ice Cream, 2010, Para. 12). Parents have also been giving their children exposure to ice cream at ages as little as one year in moderation. This opportunity will allow ice cream to bring them childhood memories and friendly reminders of family days out and getting their cold treat. (Mamapedia, 2012, Para. 2) With multiple tastes and flavours, Canadian ice cream is just as diverse as its Country. Diversity allows for new flavours and mixtures to be created (Canadians Crazy for Ice Cream, 2010, Para. 5), and also allows for consideration of each person’s needs in ice cream as a product. This diversity can be exampled by the amount that kosher ice cream has held the rate of 1,084 claims verses all natural (340 claims) and no fat (416 claims) (Government of Canada, 2012, Para. 10). Having the exposure to this demographic opens an opportunity for people with religious beliefs to feel confident about the product that ice cream can now mean to them. However, Canada’s ice cream doesn’t just affect their Country, but also the United States of America.
Canada’s export to the USA consisted of 10 million kilograms being distributed in the year 2010 alone. (Government of Canada, 2012, Para. 9) Canadian and American trade serves as an important factor to Canadian economies as they support each other in the hospitality, food, beverage, and service industries; of which ice cream belongs to. In addition to Canadian ice cream spreading international success, Canadian branding has brought success to the ice cream demographic with innovative ways of improving ice cream. For example, Nestle products lead ice cream in 2012 with 34% thanks to its popular trend of Drumsticks and Haagen-Dazs brand names. (Euromonitor International, 2012, Para. 5) This act of branding contributes to trending when entered into the market as media, grabbing the attention of adolescent teenagers, children and elderly consumers, who haven’t been able to forget the sweetness of ice cream. Regardless, no matter how fulfilling ice cream can be to one person or the next, there will always be threats to spreading the demographic. Threats
Micro environmental factors will always manage to steal some attention away from the ice cream world with threats such as direct competitors, indirect competitors, and changing seasons. For example, a direct competitor with the Canadian ice cream industry would be the Canadian frozen yogurt industry. Not only is frozen yogurt starting to be seen as the healthier choice, but it’s also allowing consumers to go without ice cream all together based on manufacturing advances creating a great dairy experience without the calories, sugars, or digestive problems. (Frozen Yogurt vs. Ice Cream, 2013, Para. 5 & 7) However, even when health is put aside, frozen yogurt is taking a leap by trending in self-serve where their clients can make their own creations. (Stone, A, 2012, Para. 13 & 14) Or, an indirect competitor would be just as effective with freezes or a cold bottle of water. These two would be considered indirect because they would be grabbing the attention of the demographic on a hot summer day since they are cheap, and effective. Yet, where there are micro environmental factors, there’s also macro.
Macro environmental factors are affected by natural disasters such as the fire that caused $2million of damages at Chapman’s institution of Markdale (CTV Toronto, 2009, Para. 1& 16), which posed as a threat because the result was loss of an entire product plant as well as product growth. Other macro environmental factors also include the economy. If the economy goes down, the less people will spend money and the more they’ll cut out the little things, like ice cream. Other threats to obtaining the demographic span can be as simple as people who are lactose intolerant. Being lactose intolerant is actually having the high sugars in milk products not properly being broken down in the body. However, ice cream provides these high sugars, making it difficult and uncomfortable for the body to digest. (Canadian Digestive Health Foundation, 2013, para.1) While this seems like a mild threat, it holds the value of over 7 million Canadians who suffer from lactose intolerance and are not able to enjoy milk products, resulting in a large loss. (Canadian Digestive Health Foundation, 2013, Para 2)
Opportunity or Threat.
DEMOGRAPHIC
Ice cream is becoming exposed to children at young ages.(Mamapedia, 2012, Para. 2) -This is an opportunity for the ice cream industry because as the ice cream industry grows, people grow with it. The early exposure of ice cream to children can create cravings, thus creating more growth in revenue for the industry. With multiple tastes and flavours of ice cream, it allows for Canada to become as diverse as its society. (O). -This is an opportunity because it allows for various flavours to suit every persons need and/or want, for example, certain religions do not allow people to eat specific items because it is against the religion/belief, by creating an ice cream that perhaps has little to no dairy in it, it opens up growth of revenue and the culture of ice cream. (Canadians Crazy for Ice Cream, 2010, Para. 3). (Government of Canada, 2012, Para. 10) Canada’s ice cream doesn’t just affect the country, but also the United States of America. Canada’s export to the USA consisted of 10 million kilograms being distributed in the year 2010 alone. (O). (Government of Canada, 2012, Para. 9). -This allows for an opportunity of success within Canada because trading is a large part of growth in revenue.
The more trades that are made, means the more product growth which essentially means bringing more money into the ice cream industry. Lactose intolerance has become more and more common within the past few years. (O) (Canadian Digestive Health Foundation, 2013, para.1) -This is an opportunity as well as a threat (that is discussed within the threat section), because it allows for the ice cream industry to create lactose-free products to fit consumer needs, for example, soy ice cream would be a large opportunity for the ice cream industry because consumers would be able to have ice cream, as opposed to depriving themselves. Strong branded names such as Nestle and Haagen-Dazs create more opportunity within the ice cream industry as their products expand. For example, Nestle Drumsticks and the Haagen-Dazs chocolate-covered ice cream on a stick with nuts are favourites of many consumers. (Euromonitor International, 2012, Para. 5). (O). – This act of branding contributes to trending when entered into the market as media, grabbing the attention of adolescent teenagers who haven’t had time to forget the sweetness of ice cream as well as younger children and elder people. The frozen yogurt industry is growing as people start to live healthier lifestyles. (T). -This is a threat to the ice cream industry because this has allowed consumers to go without ice cream all together based on manufacturing advances creating a great dairy experience without the calories, sugars, or digestive problems. (Frozen Yogurt vs. Ice Cream, 2013, Para. 5 & 7). When health is put aside, frozen yogurt is taking a leap by trending in self-serve where their clients can make their own creations. (T). (Stone, A, 2012, Para. 13 & 14). -This is a threat to the ice cream industry because people want something that can be served fast and easy, and although ice cream can be served fast and easy, self-serving is a much faster option, as well as a larger variety in the sense that you can put what you want on it, to fulfill your wants.
Some frozen yogurt companies, for example, menchies, have now made this possible, whereas ice cream companies are not as advanced yet. Dairy allergies and lactose intolerance are becoming more apparent in people. (T). – While this seems like a mild threat, it holds the value of over 7 million Canadians who suffer from lactose intolerance and are not able to enjoy milk products, resulting in a large loss of consumers within the Ice Cream industry. (Canadian Digestive Health Foundation, 2013, Para. 2) Macro-environmental factors such as natural disasters take a large toll within not only the ice cream industry, but ever industry. (T). – A threat would be the fire that caused $2million of damages that resulted in a loss of an entire plant and growth of product in 2009. (CTV Toronto, 2009, Para. 1& 16)
Demographic Bibliography
1 Canadians Crazy for Ice Cream. (2010, June, 29). Retrieved from http://lifewise.canoe.ca/FoodDrink/Eat/2010/06/07/14293141.html 2 Mamapedia. (2012, August 12). At What Age Did You Start Giving Your Child Cake, Ice Cream, Etc. [Web Log Post] Retrieved from, http://www.mamapedia.com/article/at-what-age-did-you-start-giving-your-child-cake-ice-cream-chocolate-etc 3 Government of Canada. (2012, February, 29). Ice Cream and Frozen Desserts. Retrieved from http://www.ats-sea.agr.gc.ca/amr/6196-eng.htm 4 Euromonitor International. (2012, November, 21). Ice Cream in Canada. Retrieved from http://www.portal.euromonitor.com.library.sheridanc.on.ca/Portal/Pages/Statis
