III. Industry Analysis
Over the next five years, the Ice Cream Shop industry is expected to increase to more than $6 billion. This growth will be driven by per capita disposable income, which is expected to increase at an annualized rate of 2.1%.
Ice cream has long been a dessert staple in the United States and ice cream’s popularity in American culture has prevented a decline in demand for industry products. Therefore, while some consumers are eating less ice cream, the popularity of this item continues to drive demand for store offerings. However, industry operators have increasingly introduced new products and flavors with healthier options to cater to changing preferences.
The price of milk is also estimated to decrease at an annualized rate of 0.2%, lowering purchase costs and boosting profit margins for industry operators.Revenue volatility in the industry is low, and demand for ice cream and gelato products is largely seasonal. During the warmer summer months, industry operators experience increased demand as more consumers indulge in the cool treats.