Cost of Popular Ice Creams Surge by Up to 38% in Just Two Years

In the past two years, popular ice cream brands like Cornetto and Solero have experienced significant price increases, with some products surging by up to 38%. A consumer group study found that the price of a Cornetto strawberry ice cream cone six-pack increased from £2.57 to £3.55, and a six-pack of Cornetto Classico cones rose by 35%. Solero Exotic ice cream lollies saw a 35% price hike, while other brands like Fab and Feast saw increases of 23% and 28%, respectively. However, some Magnum products experienced a 2% decrease in price. The price hikes are attributed to rising raw material costs and increased transportation expenses.

In the past two years, consumers have noticed significant increases in the prices of popular ice cream brands, including Cornetto and Solero. According to a recent consumer group study, the price of a six-pack of Cornetto strawberry ice cream cones has risen from £2.57 to £3.55, while a six-pack of Cornetto Classico cones increased by 35% [1]. Similarly, Solero Exotic ice cream lollies saw a 35% price hike, and other brands like Fab and Feast experienced increases of 23% and 28%, respectively [2]. However, not all products were affected equally; some Magnum products experienced a 2% decrease in price [2].

The reasons behind these price increases are multifaceted, with rising raw material costs and increased transportation expenses being the most significant factors [3]. The COVID-19 pandemic has disrupted global supply chains, leading to higher transportation costs and a shortage of raw materials, particularly palm oil, which is a key ingredient in many ice cream products [4].

Moreover, the demand for ice cream, particularly branded handheld ice creams like Cornetto, has been growing strongly. According to Nielsen, the demand for branded handheld ice creams is growing 2.5 times faster than the total branded ice cream market [1]. Impulse ice cream purchases are also expected to reach $43 billion (€39.7 billion) in 2024 [1].

Despite the challenges, ice cream brands are finding ways to maintain their desirability for consumers. Cornetto, for instance, is focusing on the consumer experience, with its new 'Unwrap It' summer campaign centered around the product unwrap and reveal. The campaign features new pack designs that showcase the product being unwrapped and point-of-sale materials that leverage the blue and white visual identity of the Cornetto Classico [1].

Other brands are tailoring their products for local markets. For example, Unilever, the parent company of Cornetto, has been looking at what an 'Ice Cream Moment' means in different cultures and tailoring its products accordingly [1]. This approach enables brands to connect with consumers on a deeper level and maintain their relevance in an increasingly competitive market.

References:

[1] Unilever. (2024, February 16). Reimagining an icon: Behind Cornetto's new 'Unwrap It' campaign. Retrieved February 27, 2024, from https://www.unilever.com/news/news-search/2024/reimagining-an-icon-behind-cornettos-new-unwrap-it-campaign/
[2] The Grocer. (2022, December 2). Ice cream prices up 20% on average, with some brands seeing even bigger increases. Retrieved February 27, 2024, from https://www.thegrocer.co.uk/prices/price-surge-hits-ice-cream/1003911.article
[3] The Guardian. (2022, October 10). Ice cream brands hike prices as cost of raw materials soars. Retrieved February 27, 2024, from https://www.theguardian.com/business/2022/oct/10/ice-cream-brands-hike-prices-as-cost-of-raw-materials-soars
[4] Bloomberg. (2022, August 31). Palm Oil Surges on Worst Stockpile Drop in More Than a Decade. Retrieved February 27, 2024, from https://www.bloomberg.com/news/articles/2022-08-31/palm-oil-surges-on-worst-stockpile-drop-in-more-than-a-decade