Ice Cream Stores in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC OD4024Revenue
$421.2m
Past 5-Year Growth
Profit
$XX.Xm
Employees
2,513
Businesses
529
Wages
$XX.Xm
Ice Cream Stores in Australia industry analysis
The Ice Cream Stores industry has been under significant strain in recent years due to compounding impacts of the pandemic, a rising cost of living and changing consumer preferences. Lockdowns and social distancing measures disrupted normal trading, with many establishments introducing delivery services to combat falling revenue. Since then, the rising cost of living and declining discretionary incomes have further shrunk revenue, as households have cut back on non-essential spending. Additionally, changing tastes towards products like gelato and frozen yoghurt, coupled with a growing focus on health and wellbeing, have necessitated introducing healthier ice cream alternatives like dairy-free and sugar-free options, presenting additional challenges for traditional ice cream stores.
Trends and Insights
- Consumers have reduced their spending at ice cream stores as the growing cost of living has weighed on household budgets. Profit margins have struggled to stabilise, with rising purchase costs exacerbating pressure on ice cream store owners.
- Younger consumers under 25 frequent ice cream stores often due to the social appeal. Cost-of-living pressures have impacted the spending of consumers aged between 25 and 64.
- Ice cream stores in Australia strategically position themselves in high-density areas with significant foot traffic, like shopping centres and CBDs. This approach targets diverse demographics, including families during weekends and university students.
- Substitute competition poses a significant challenge to traditional ice cream stores. Fast food establishments leverage lower pricing to attract consumers, while supermarkets use economies of scale to offer high-value ice cream products.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.4 % over the past five years, to reach an estimated $421.2m in 2024.
Trends and Insights
A cost-of-living crisis is reducing spending on ice cream
- The Ice Cream Stores industry has been dealing with a multitude of issues that’ve caused demand to dwindle. The pandemic kickstarted the industry’s troubles, as lockdowns and social distancing requirements disrupted stores’ ability to trade normally.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Intensifying competition could offset some of the benefits of positive downstream conditions
- Discretionary income and consumer sentiment are projected to grow over the coming years as the Australian economy comes out of an inflationary crisis. This positive outlook in consumer sentiment is likely to bolster demand for ice cream stores, as spending habits will be less frugal.
Biggest companies in the Ice Cream Stores in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Franchised Food Company | 44.2 | |
Baskin-Robbins Australia | 36.7 | |
Wendys | 31.0 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Gelato, Sorbet and Soft-serve ice cream. Gelato is the largest segment of the Ice Cream Stores in Australia.
Trends and Insights
Demand for traditional hard-serve ice cream has fallen
- The hard-serve ice cream segment includes traditional ice cream that’s scooped from an ice cream tub and placed in a cone or a small cup.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Supermarkets and Grocery Stores in Australia
- Convenience Stores in Australia
Complementors
- Milk and Cream Processing in Australia
- Ice Cream Manufacturing in Australia
- Chocolate and Confectionery Manufacturing in Australia
- Dairy Produce Wholesaling in Australia
International industries
- Ice Cream Stores in the US
- Ice Cream Production in Canada
- Ice Cream Manufacturing in New Zealand
- Ice Cream Stores in the UK
- Cafés & Ice-Cream Parlours in Germany
Table of Contents
About this industry
Industry definition
The industry includes retail outlets that primarily prepare or serve ice cream, ice cream treats, gelato, yoghurt, frozen yoghurt and sorbet. Industry stores generally provide products for consumption instore, takeaway or delivery. Some ice cream stores also sell other food and beverages, such as cakes, waffles, smoothies and milkshakes.
What's included in this industry?
Gelato Sorbet Soft-serve ice creamHard-serve ice cream Yoghurt products Ice cream cakes and sundaesHot dogs, pancakes and wafflesMilkshakes, thick shakes, smoothies, soft drinks, slushies, coffee and teaCompanies
Franchised Food CompanyBaskin-Robbins AustraliaWendysPurchase this report to view all 7 major companies in this industry.
Related Terms
MASTER FRANCHISEFRANCHISEEHARD-SERVE ICE CREAMSOFT SERVE ICE CREAMIndustry Code
ANZSIC 4512 - Ice Cream Stores in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consumers have reduced their spending at ice cream stores as the growing cost of living has weighed on household budgets. Profit margins have struggled to stabilise, with ris...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Younger consumers under 25 frequent ice cream stores often due to the social appeal. Cost-of-living pressures have impacted the spending of consumers aged between 25 and 64.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ice cream stores in Australia strategically position themselves in high-density areas with significant foot traffic, like shopping centres and CBDs. This approach targets div...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Substitute competition poses a significant challenge to traditional ice cream stores. Fast food establishments leverage lower pricing to attract consumers, while supermarkets...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major brands like Baskin-Robbins and Franchised Food Company (Cold Rock Ice Creamery) have a sizable position in the industry. Wendy's Milk Bars has historically been a power...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Franchised Food Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Baskin-Robbins Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Wendys's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Franchised Food Company, and factors influencing its performance in the industry
- Description and key data for Baskin-Robbins Australia, and factors influencing its performance in the industry
- Description and key data for Wendys, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is subject to relatively low levels of regulation. Food Standards Australia New Zealand is a notable authoritative organisation, requiring ice cream stores to di...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Ice cream stores have strategically minimised wage costs by employing casual staff. This strategy has helped reduce wage expenses over recent years.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Ice Cream Stores industry in Australia in 2024?
The market size of the Ice Cream Stores industry in Australia is $421.2m in 2024.
How many businesses are there in the Ice Cream Stores in Australia industry in 2024?
There are 529 businesses in the Ice Cream Stores industry in Australia, which has grown at a CAGR of 0.6 % between 2019 and 2024.
Has the Ice Cream Stores industry in Australia grown or declined over the past 5 years?
The market size of the Ice Cream Stores industry in Australia has been declining at a CAGR of 3.4 % between 2019 and 2024.
What is the forecast growth of the Ice Cream Stores industry in Australia over the next 5 years?
Over the next five years, the Ice Cream Stores industry in Australia is expected to grow.
What are the biggest companies in the Ice Cream Stores market in Australia?
The biggest companies operating in the Ice Cream Stores market in Australia are Franchised Food Company, Baskin-Robbins Australia and Wendys
What does the Ice Cream Stores in Australia include?
Gelato and Sorbet are part of the Ice Cream Stores industry.
Which companies have the highest market share in the Ice Cream Stores in Australia?
The company holding the most market share in Australia is Franchised Food Company.
How competitive is the Ice Cream Stores industry in Australia?
The level of competition is moderate and increasing in the Ice Cream Stores industry in Australia.
