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Froneri: The Ice Cream and Frozen Desserts Market Shows Steady Growth Over Decades

World 15.05.2024
Source: The DairyNews
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This is reported in the company's financial report for the year 2023. “We analyze our markets by dividing them into the at-home ice cream segment, where products are purchased from retailers for home consumption, and the out-of-home ice cream segment, for immediate consumption. The at-home market for Froneri products is larger, although both segments are significant in most of the Group’s key territories,” the report notes.
Froneri: The Ice Cream and Frozen Desserts Market Shows Steady Growth Over Decades
It is noteworthy that approximately 87% of Froneri's ice cream volume is sold under branded labels, including iconic brands such as Häagen-Dazs (USA), Extrême, Drumstick, Oreo, Nuii, Cadbury, Milka, Outshine, and Pirulo.

The share of private labels is significantly smaller, although Froneri has a substantial presence of private labels in some key countries.

Overall, Froneri ranks second in revenue volume in global markets (second only to Unilever).

According to company analysts, the main growth factors in the market are snacks, "premiumization," innovation, convenience, and accessibility.

Moreover, the report states that Froneri has increased the value of the snack and premium segments and is well-positioned for further growth in these markets. The company is also developing products to adapt to changing consumer trends (expanding snack ranges, wellness products, and enhancing nutrition), according to the company.

For the year ended December 31, 2023, Froneri's revenue amounted to €5,292 million (2022: €5,074 million), EBITDA was €966 million (2022: €831 million), and operating profit was €530 million (2022: €414 million). As of December 31, 2023, the Group's net assets were €1,468 million.
Torsten Hemme, Founder & Chairman, Dairy expert
Torsten Hemme, Founder & Chairman, Dairy expert
Rebecca Marquez
Rebecca Marquez
Director of Custom Research at PMMI
Private-label products, sometimes known as private brands or store brands, have enjoyed steady growth since even before the COVID-19 pandemic. And dollar sales continue to grow. In 2023, total dollar sales rose 6%, while units sold grew 0.9% compared to the prior year. Often presented as the lower-cost option, high inflation has helped the private-label market, which is valued at more than $217 billion, according to a report from Chicago-based market research firm Circana.