2022 is the recovery year of retail ice cream products after the decline in total sales in the past few years due to the Covid-19 pandemic. Retail ice cream revenue reached 4.3 trillion VND (7%) in the quarter of 2022. However, the increasing popularity of ice cream is not enough to balance the serious decline in the food service industry. Consumer interest in take-home ice cream products is a strong motivation during the pandemic to motivate ice cream companies to create new and more attractive products.
Leading this category is Kido Group, the owner of two well-known brands, Celano and Merino, which have a strong distribution network from north to south. With innovations and improvements in product quality and taste, Kido has captured 44% of the retail market share and led the ice cream industry in 2022.
The ice cream and frozen dessert industry's promotional activities in 2022 are still in full swing as leading companies are looking to engage more with shoppers at the point of purchase. Looking at reality, Vietnamese people are generally still very open to new flavors and easily accept new ice cream brands into the market because of low consumer loyalty. In this context, in-store promotion is considered a sound investment.
One of the main factors supporting the growth of the ice cream industry is the increasing penetration of refrigeration equipment in the home. In recent years, the demand for freezers by middle-class urban consumers has increased sharply and the opportunity to store ice cream at home is supporting the need to buy ice cream at home. Although Vietnam's economy is suffering after the Covid 19 epidemic, it is impossible not to acknowledge the extraordinary economic growth and development in recent years.
Ice cream will continue to be a consumer product to enjoy as a hobby rather than for health or other benefits. Especially when the target customers of ice cream products are the younger generations. They focus more on pampering themselves than previous generations. These will be the outlook factors that predict the ice cream industry will grow sales during the forecast period.
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