Industry Analysis & Industry Trends
Shifts in consumer tastes have hampered performance for the Ice Cream Production industry over the past five years. In response to these trends, industry operators have introduced new brands or reformulated their existing frozen-dessert lines with higher-quality ingredients. Despite stagnant volume sales for most of the five-year period, plummeting milk and sugar prices in recent years have helped boost profit margins across the industry as a whole. Over the five years to 2021, the industry is forecast to decline steadily as demand for the industry's largest product segment continues to wane in line with rising health consciousness. Conversely, the development of nutritious frozen treats and innovative flavors will drive demand for premium and super-premium ice cream brands... purchase to read more
Industry Report - Industry Investment Chapter
The Ice Cream Production industry displays a moderate level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on labor in the industry, $0.30 will be spent on capital in 2016. Most modern manufacturing plants require high levels of capital expenditure to improve productivity without increasing labor. Machines include mixers and freezers that automatically control mixing speeds and temperatures. However, the production process still requires manual labor to operate the machines.
Over the past five years, depreciation has risen as existing producers have upgraded their machines while new enterprises have purchased new facilities and equipment... purchase to read more