Most countries in GCC, such as Saudi Arabia, UAE, Kuwait, and Bahrain, have traditionally been oil economies, but in recent years they have started to promote themselves tourist hubs in the Gulf. Therefore, the demand for ice cream has also surged due to increasing tourism in some of the countries such as the UAE and Saudi Arabia. GCC countries enjoy hot sunny days during the most part of the year. Summer is an undisputed season for the consumption of ice cream and related products. The hot climate and sweltering afternoons in the GCC make for a perfect atmosphere to relish frozen desserts and ice creams. This further boosts the ice cream market in GCC.
The climate in GCC countries such as Saudi Arabia, UAE, Qatar, and Bahrain, among others, is very hot. The UAE has a desert climate, characterized by pleasantly mild winters and very hot, sunny summers. Summers in the UAE are very hot, and the temperature ranges from 38 °C to 42 °C. Likewise, Saudi Arabia is an extremely dry country, and rainfall is minimal. In summers, the country witnesses blistering heat and humid temperatures thus, making it uncomfortable to get around. The climate of Qatar can be described as a subtropical dry, hot desert climate with low annual rainfall, very high temperatures in summer. The harsh climatic condition results in high demand for cold food and beverages. Therefore, ice-cream remains the favorite frozen dessert in GCC countries such as Saudi Arabia, UAE, Qatar, and Bahrain. A large number of ice-cream manufacturers operating in the GCC ice cream market are focusing on introducing new ice-cream variants in the GCC market. Additionally, the growth of the tourism sector and restaurant businesses in the UAE, Qatar, and Bahrain is also expected to support the growth of the ice-cream market.
Lactose is one of the main constituent sugars in dairy milk. Lactose intolerance a condition found in many humans; it is characterized by the inability to digest sugar (lactose) in dairy products fully. It is usually caused by a deficiency of the lactase enzyme due to the inability of the body to synthesize it. The growing rate of lactose intolerances around the world has created a demand for gluten- and lactose-free products, including ice-creams. The rapidly expanding trend of veganism has further driven the market for vegan, lactose- and gluten-free ice-cream varieties made from ingredients that are devoid of animal products, based on other milk substitutes, such as almond milk and coconut milk. People of Arab ethnicity are more prone to lactose and gluten intolerances. The growing incidences of lactose intolerance in the GCC is expected to generate high demand for gluten- and lactose-free ice cream products during the forecast period. These factors lead to surge in demand for gluten- and lactose-free ice cream market.
The GCC ice cream market by type has been categorized in impulse ice cream, take-home ice cream, and artisanal ice cream. The demand for impulse ice cream is rising as they can be readily consumed without the need for portioning or preparation. Impulse Ice Cream includes ice cream products such as ice cream cones, ice cream sandwiches, chocolate-coated ice creams, and single-serve ice cream tubs. Impulse ice cream products such as ice cream cones and ice cream sandwiches are sold in individual packages while the traditional ice cream ball in the wafer is sold without a package. Impulse ice creams segment dominates the ice cream market owing to its high popularity among individuals of all age groups. Impulse ice creams offer the convenience of eating ice cream whenever and wherever one wants.
On the basis of the distribution channels, the GCC ice cream market is bifurcated into supermarket/hypermarket, convenience store, specialist store, and others. Under the distribution channel segment, the specialist store is the leading distribution segment in the GCC ice cream market. Specialist stores are shops that cater to a single retail market. Some instances of specialist stores include ice cream shops, pharmacies, book stores camera stores and stationeries. They specialize in sales of just one type of product of the range. Specialist stores have to compete with other types of stores such as grocery stores, department stores, supermarkets, general stores, and variety stores. Since specialty stores are category specialists, they use their buying power to negotiate lower prices, excellent terms and assured timely supply. The growing number of specialist stores selling a wide range of ice cream products is expected to drive the ice cream market in the forecast period.
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GCC Ice Cream Market: Strategic Insights
| Report Attribute | Details |
|---|---|
| Market size in 2018 | US$ 543.0 Million |
| Market Size by 2027 | US$ 969.1 Million |
| Global CAGR (2019 - 2027) | 6.7% |
| Historical Data | 2016-2017 |
| Forecast period | 2019-2027 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | GCC
|
| Market leaders and key company profiles |
The List of Companies
Long summers and hot climate conditions are influencing the market for ice cream in the GCC region. The climate in GCC countries such as Saudi Arabia, UAE, Qatar, and Bahrain, among others, is very hot. The UAE has a desert climate, characterized by pleasantly mild winters and very hot, sunny summers. The climate of Qatar can be described as a subtropical dry, hot desert climate with low annual rainfall, very high temperatures in summer. The harsh climatic condition results in high demand for cold food and beverages. Therefore, ice-cream remains the favorite frozen dessert in GCC countries such as Saudi Arabia, UAE, Qatar, and Bahrain. It is a lucrative market for frozen desserts and dairy products as the consumption is expected to grow rapidly.
The leading type of ice cream was the impulse ice cream. In 2018, the impulse ice-cream segment held the major market share of 46.7% in the GCC ice cream market and is expected to grow at a CAGR of 6.5%. Impulse ice cream is a single-serve ice cream purchased for immediate consumption. They can be readily consumed without the need for portioning or preparation. Impulse ice creams segment dominates the ice cream market owing to its high popularity among individuals of all age groups. Impulse ice creams offer the convenience of eating ice cream whenever and wherever one wants.
Saudi Arabia led the GCC ice cream market with a market share of 50.7% in 2018. Rapid industrialization, urbanization, and its shift from the oil economy to becoming a tourism hub have spurred the growth of the ice cream industry in Saudi Arabia over the past few years. Ice creams are consumed throughout the year by people of all age groups in Saudi Arabia. The influence of western culture in Saudi Arabia has brought about a cultural change in the conservative Arab country. Western cuisines, desserts, and ice cream have now become a part of their diets. These factors further propel the demand for ice cream in Saudi Arabia. The emergence of new ice cream parlors and convenience stores in Saudi Arabia has supported the growth of the ice cream market in Saudi Arabia.