The ice-cream sector includes take-home products (bought to be eaten at home and thus more likely to be a planned purchase) and wrapped impulse products (ice-cream bars and lollies bought and consumed `on the go’).
The sector has gained from the development and success of premium and luxury brands. Cross-branding has been another feature of the sector, with labels extended from the confectionery market finding particular success.

The frozen-desserts sector comprises a range of products, including gateaux, pies, traditional sponge puddings and tarts. The sector has been reinvigorated by the entry of brands such as Aunt Bessie’s, as well as retailers’ own labels. There has been some investment in new products, as well as promotion, which has boosted the category. The development of
healthy-eating brands and smaller portions has also been significant.

The summer season is of key importance to the ice-cream sector, particularly for impulse products. Two successive poor summers in 2007 and 2008 had an adverse effect on sales of wrapped impulse products as consumers cut back on days out. There was also a slowdown in take-home sales, due to lower temperatures and the reduced likelihood of outdoor entertaining at home.

Suppliers have been actively trying to develop products to deseasonalise
the market. One aspect of this has been the targeting of different eating occasions, such as sharing occasions at home and family entertaining throughout the year. New products have included share packs of miniature ice creams, while luxury ice-cream brands have already had some success in positioning themselves in the year-round dessert and treat category.

With the UK officially in recession at the beginning of 2009, the outlook for sales of ice cream and frozen desserts is mixed. Food products — and treat foods in particular — have had some success in previous downturns, because consumers view them as inexpensive indulgences. However, there is some scope for trading down (from luxury to premium ice cream, for example) and price-based promotions are an ongoing feature of the frozen category as a whole, meaning that consumers may choose to buy special-offer products rather than retain their brand loyalty. When the economy returns to growth, the prospects for the market will improve.

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