Revenues, competition on the rise in $2.1 billion Australian ice cream manufacturing market  

Demand from hospitality outlets and export customers in Asia has helped the ice cream manufacturing sector, currently worth $2.1 billion in revenues, to a compound annual growth rate of 6.1 per cent, according to new market research.

According to IBISworld’s Ice Cream Manufacturing in Australia – Market Research Report (2015-2030), the leaders by market share are Peters Ice Cream, Bulla Dairy Foods and Unilever Australia.

Despite robust growth, this year is tipped to be one of slight decline (estimated at 1.1 per cent) before the industry resumes expanding “over the coming years, thanks to continuing demand in downstream hospitality establishments.”

The report summary, last updated on Monday, states that, “Export opportunities in Asian markets have also contributed to rising industry revenue” in the last five years. 

“However, swelling input costs, particularly for dairy, have weighed on profit margins. 

The level of competition was classified as “high and increasing” by IBISworld.

The number of businesses operating in the sector has grown an average of 0.6 per cent a year between 2020 and 2025 to currently number 181.   

“Domestic competition has intensified as imported brands like Ben & Jerry’s gain popularity, while changing demographics and evolving culinary preferences continue to shape the market” the summary adds. 

“Health-conscious consumer trends have pushed ice cream manufacturers to create healthier, dairy-free and vegan alternatives, broadening their customer base and supporting growth.”

Picture: credit Bin im Garten (CC BY-SA 3.0)