Ice cream manufacturers are overhauling recipes and shrinking portions as consumers worldwide increasingly scrutinize what they eat — and a growing class of appetite-suppressing drugs is accelerating the shift, Reuters reported.
U.S. ice cream sales volumes fell 1.5% year-on-year through mid-June, according to NielsenIQ. Research from Boston Consulting Group estimates that users of GLP-1 weight-loss drugs have cut frozen treat consumption by at least 10%, a trend executives say is impossible to ignore. Around 16 million Americans are currently taking GLP-1 medications, with that number expected to grow substantially by decade's end.
Rather than accepting declining demand, ice cream makers are betting consumers will keep buying treats — provided those treats come with fewer calories, higher protein and shorter ingredient lists.
"We still want to indulge, but do it with a little bit of a halo of a wellness play," Lisa Vortsman, chief marketing and innovation officer at The Magnum Ice Cream Company, told Reuters.
The company, which owns Magnum and Ben & Jerry's among other brands, has reported average annual growth of roughly 20% over the past five years for its frozen Greek yoghurt brand Yasso. Its Breyers CarbSmart and Popsicle Sugar-Free lines have found particular traction among GLP-1 users.
Ferrero-owned Blue Bunny has seen strong demand for its 150-calorie Mini Swirls and is removing ingredients such as high-fructose corn syrup and artificial colours from its recipes. Ferrero's Halo Top brand meanwhile has posted double-digit percentage sales growth over the past two years, compared with about 2.5% for the broader market, per data from research firm Circana.
Despite the volume dip, dollar sales in the U.S. ice cream market rose approximately 2.8% over the past year, with super-premium products the only segment to record volume growth. "Consumers have stopped giving indulgence a free pass," said Chris Costagli, NielsenIQ's vice president of food thought leadership.
The trend extends beyond the United States. Glacier, one of Europe's largest private-label producers, says taste remains the factor that determines whether reformulated products succeed. "There's no point in nudging customers into better-for-you foods if they feel they're compromising on taste," executive director Matt Frost told Reuters, "because they'll stop."
