Ice cream makers are betting that consumers still want treats, just healthier ones. High temperatures might be boosting summer sales, but behind the scenes, the industry is preparing for a future where guilt is a smaller ingredient. The rise of appetite-suppressing GLP-1 drugs and growing ingredient scrutiny are pushing manufacturers to reduce portion sizes and clean up recipes.
A Shift in Ingredients and Portions
U.S. ice cream sales volumes fell 1.5% year-on-year through June 13, according to NielsenIQ. Meanwhile, Boston Consulting Group research shows GLP-1 users cut frozen treat consumption by at least 10%. Yet, manufacturers do not see signs that shoppers are abandoning the category entirely. Instead, they are reformulating products to align with wellness goals.
Ferrero-owned Blue Bunny reports strong demand for its 150-calorie Mini Swirls. The company is removing ingredients like high-fructose corn syrup and artificial colors. “We know that there are certain ingredients that they don’t want to see in their products as much anymore,” said Andrew Mondzelewski, senior director for brand marketing at Blue Bunny.
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The shift reflects a broader challenge facing the industry as changing eating habits reshape what consumers expect from indulgent foods.
The ‘Wellness Halo’ Takes Over
The Magnum Ice Cream Company is accelerating its focus on wellness-oriented offerings. Citing strong growth in Yasso, a frozen Greek yogurt brand, the company notes that products like Breyers CarbSmart and Popsicle Sugar-Free are particularly popular with GLP-1 consumers. Yasso has delivered average annual growth of around 20% over the past five years.
“We still want to indulge, but do it with a little bit of a halo of a wellness play,” said Lisa Vortsman, U.S. chief marketing and innovation officer at The Magnum Ice Cream Company. Magnum’s brands make up a 26% share of the $2.2 billion U.S. wellness and functional ice cream segment.
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The company is accelerating its wellness innovation funnel disproportionately faster than in the past.
Global Trends and Future Demand
Ferrero’s Halo Top brand aims to offer the same experience with half the calories. It has delivered double-digit percentage sales growth over the last two years, compared with around 2.5% for the wider market. “Consumers have stopped giving indulgence a free pass,” said NielsenIQ’s Vice President of Food Thought Leadership Chris Costagli.
Approximately 16 million Americans are currently taking GLP-1 medicines, a number expected to climb by the end of the decade. Food companies from Nestle to Conagra are reformulating to add protein and fibre.
