South America Ice Cream Market, By Product Type (Brick, Tub, Cup, Cone, Stick, Others), By Distribution Channel (Supermarkets/Hypermarkets, Multi-Branded Stores, Online, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

South America Ice Cream Market was valued at USD 4.26 Billion in 2024 and is expected to reach USD 5.15 Billion by 2030 with a CAGR of 4.17% during the forecast period. ​ The South America ice cream market is experiencing steady growth, driven by rising disposable incomes, urbanization, and a growing preference for indulgent and innovative frozen desserts. Consumers in countries like Brazil, Argentina, and Chile are increasingly drawn to premium, artisanal, and health-oriented options, such as dairy-free, low-sugar, and functional ice creams. Expanding modern retail infrastructure, including supermarkets and e-commerce, is enhancing accessibility and boosting sales across the region. Additionally, international and domestic brands are investing in product innovation and flavor diversification tailored to local tastes.

Market Drivers

Rising Disposable Incomes and Urbanization

One of the strongest drivers of the South America ice cream market is the steady rise in disposable incomes, coupled with rapid urbanization across major economies like Brazil, Argentina, Chile, and Colombia. Approximately 80% of South America’s population lives in urban areas, making it one of the most urbanized regions globally. As more people move to cities, their lifestyles and consumption patterns shift towards convenience and indulgence, creating higher demand for ready-to-eat treats like ice cream. The middle-class population is expanding significantly, which increases the spending power on non-essential and premium products. Urban centers also provide greater access to modern retail outlets, quick-service restaurants, and specialty dessert shops, making ice cream more accessible. Moreover, the growing trend of eating out, social gatherings, and the culture of snacking in urban areas has elevated ice cream consumption beyond a seasonal product, turning it into an everyday indulgence. This urban-driven transformation has given international and local ice cream manufacturers a stronger base to innovate and launch products targeted at an aspirational, quality-conscious consumer base.

Shift Toward Premium, Artisanal, and Innovative Flavors

South American consumers are increasingly moving beyond traditional vanilla, chocolate, and strawberry offerings, with a growing appetite for premium, artisanal, and unique flavor experiences. This shift is being fueled by rising exposure to global food trends, social media influence, and an expanding younger demographic that values novelty and personalization in food. Local players and multinational brands are investing heavily in crafting new flavor combinations that resonate with regional tastes, such as tropical fruits (mango, passion fruit, guava), dulce de leche, and flavors inspired by traditional desserts. Artisanal ice cream shops, especially in Brazil and Argentina, have gained popularity by offering fresh, small-batch products with natural ingredients and creative blends. Consumers are also increasingly drawn to premium categories that highlight high-quality ingredients, rich textures, and health-conscious alternatives like dairy-free, sugar-free, or protein-enriched ice creams. This premiumization trend not only caters to evolving consumer preferences but also allows companies to command higher margins, making flavor innovation a critical growth driver in the South American ice cream market.

Expansion of Modern Retail and E-Commerce Channels

The retail landscape in South America is undergoing a significant transformation, with modern trade formats such as supermarkets, hypermarkets, convenience stores, and specialty food chains expanding rapidly. In 2023, Brazilian e-commerce reached USD 36.19 billion, growing 4% from 2022. This growing retail infrastructure is providing greater shelf space and visibility for ice cream brands, both domestic and international, leading to higher consumer accessibility. In parallel, the rapid adoption of e-commerce platforms and food delivery apps in urban markets has reshaped the distribution of frozen desserts. Online channels have made it easier for consumers to explore a wide variety of ice cream products, including niche and premium brands, with home delivery ensuring convenience. The COVID-19 pandemic further accelerated the adoption of online food and grocery shopping, a trend that continues to thrive as consumers value convenience and choice. Partnerships between ice cream brands and delivery platforms like Rappi, iFood, and Uber Eats have expanded the reach of ice cream into households, especially during festive seasons and hot weather. The combination of organized retail penetration and digital commerce has become a crucial enabler of sales growth in the South American ice cream industry.

Growing Health and Wellness Orientation Among Consumers

Health and wellness consciousness is reshaping consumer preferences in South America, with a rising demand for ice cream options that align with healthier lifestyles. Increasing concerns over obesity, diabetes, and general fitness are driving interest in low-calorie, sugar-free, lactose-free, and plant-based ice creams. Brazil is becoming a frontrunner in Latin America’s plant-based food sector, with annual sales expanding at a rate exceeding 30%. Manufacturers are responding by launching innovative product lines made with natural ingredients, functional additives like probiotics, and dairy alternatives such as almond, oat, and coconut milk. Younger consumers and millennials, in particular, are actively seeking indulgent treats that do not compromise their health goals, and this trend is pushing brands to reformulate offerings without sacrificing taste or texture. The rise of veganism and flexitarian diets across urban South America is also contributing to the growth of dairy-free frozen desserts. Additionally, growing awareness about sustainability and clean-label products is pushing demand for ice creams made with organic, locally sourced ingredients. This health-driven trend not only broadens the consumer base but also allows brands to differentiate themselves in a competitive market by aligning indulgence with wellness.

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Key Market Challenges

High Seasonality in Consumption

One of the biggest challenges for the South America ice cream market is its strong dependence on seasonal demand, with consumption peaking during the hot summer months and dropping significantly in colder or rainy seasons. This seasonal fluctuation creates challenges for manufacturers and retailers in maintaining steady sales volumes and managing inventory throughout the year. Companies often face difficulties in optimizing production capacity and logistics, as demand is not uniform across seasons. Although efforts to promote ice cream as an “all-year indulgence” are underway, consumer behavior in several countries remains strongly tied to weather patterns. This seasonality limits growth potential and adds pressure on producers to create innovative campaigns and product formats that encourage off-season purchases.

Intense Competition and Price Sensitivity

The South American ice cream market is highly competitive, with a mix of multinational corporations, regional players, and local artisanal producers vying for market share. While international brands bring premium positioning and strong marketing power, local companies often attract consumers with competitive pricing and flavors tailored to regional tastes. This fragmented landscape results in price wars, making it challenging for companies to maintain profitability, especially in price-sensitive markets like Brazil and Argentina where inflation and economic instability often affect consumer spending. To stay competitive, companies must balance affordability with innovation and quality, which can strain margins. This intense competition also limits the ability of smaller brands to scale effectively in a crowded marketplace.

Supply Chain and Economic Instability

Economic volatility and supply chain disruptions present another significant challenge for the South American ice cream industry. Countries like Argentina and Venezuela frequently experience currency fluctuations, inflation, and import restrictions, which increase the costs of raw materials, packaging, and production. Additionally, logistical inefficiencies in transportation and cold chain infrastructure create hurdles in distributing frozen products across vast geographies, especially in rural areas. These challenges not only elevate operational costs but also impact product availability and shelf life. Global supply shocks, such as rising dairy or sugar prices, further strain profitability. As a result, manufacturers face difficulty in ensuring consistent product quality and affordability in unstable economic environments.

Key Market Trends

Growing Popularity of Plant-Based and Dairy-Free Alternatives

A key trend transforming the South America ice cream market is the surge in demand for plant-based and dairy-free alternatives, largely fueled by the rise of veganism, lactose intolerance awareness, and the broader shift toward plant-based diets. Countries like Brazil and Chile are witnessing a strong adoption of vegan and flexitarian lifestyles, particularly among urban millennials and Gen Z consumers, who seek indulgent yet guilt-free options. Manufacturers are innovating with bases such as almond milk, coconut milk, oat milk, and soy to replicate the creamy texture of traditional dairy ice cream while appealing to environmentally conscious buyers. This trend is further supported by the growing discourse around sustainability and animal welfare, which encourages consumers to opt for ethical food choices. Brands that highlight clean-label, natural, and allergen-free claims on packaging are gaining traction, as consumers demand transparency and healthier formulations. The rise of specialty vegan ice cream parlors and the inclusion of dairy-free options in mainstream supermarkets are further accelerating this trend. With plant-based foods now a global movement, South America is catching up quickly, making dairy alternatives a central growth avenue for the region’s ice cream industry.

Personalization and Experiential Consumption

Another emerging trend in the South America ice cream market is the emphasis on personalization and experiential consumption, where consumers value unique and interactive experiences as much as the product itself. Artisanal ice cream shops and boutique parlors are increasingly offering customizable toppings, mix-ins, and flavor combinations, allowing customers to design their own creations. Millennials and Gen Z, in particular, view food as a form of self-expression and seek Instagram-worthy moments when purchasing desserts. This trend has led to a rise in experiential retail concepts, such as live ice cream-making with liquid nitrogen, rolled ice creams, and limited-edition seasonal flavors inspired by cultural festivals. Experiential offerings are also tied to premium positioning, as consumers are willing to pay more for memorable indulgences. Large brands are catching on by launching limited-time collaborations with popular restaurants, chocolatiers, and beverage brands to create exclusive co-branded flavors. The personalization trend extends to packaging as well, with companies introducing smaller, on-the-go servings or family-sized packs to cater to different occasions. By blending creativity, interactivity, and cultural resonance, personalization is redefining the way ice cream is consumed in South America, moving it beyond a simple product to an engaging lifestyle experience.

Digitalization and Direct-to-Consumer Strategies

The rapid growth of digital platforms and direct-to-consumer (D2C) strategies has become a defining trend in the South American ice cream industry. Online grocery platforms, mobile apps, and delivery services such as Rappi, iFood, and Uber Eats are not just distribution channels but also vital tools for brand engagement and customer insights. Consumers are increasingly purchasing ice cream online, often influenced by targeted promotions, subscription models, and limited-time digital exclusives. Brands are leveraging social media campaigns, influencer collaborations, and interactive content to build stronger connections with younger audiences, who expect immediacy and convenience in their shopping habits. Additionally, direct-to-consumer models allow ice cream companies to collect valuable data on flavor preferences, purchase frequency, and customer feedback, enabling more agile innovation and personalized marketing. Smaller artisanal brands, in particular, have benefited from this trend by bypassing traditional retail and building niche loyal communities online. This shift toward digital ecosystems is reshaping consumer behavior in South America, where convenience and engagement are as critical as taste and quality in influencing purchase decisions.

Focus on Sustainability and Ethical Sourcing

Sustainability and ethical sourcing are becoming central themes in the South America ice cream market, as consumers become more conscious about the environmental and social impact of their purchases. Ice cream producers are increasingly adopting eco-friendly packaging, such as biodegradable tubs, recyclable materials, and reduced plastic usage, to align with consumer expectations and regulatory pressures. Moreover, there is growing emphasis on sourcing ingredients ethically, particularly cocoa, coffee, and dairy, which are integral to many ice cream formulations. Certifications such as Fair Trade, Rainforest Alliance, and organic labels are gaining visibility on packaging, signaling a brand’s commitment to responsible practices. Beyond packaging and sourcing, sustainability efforts extend to production processes, with companies investing in energy-efficient cold chain logistics and waste reduction strategies. Younger consumers, especially in urban centers, are actively supporting brands that demonstrate environmental stewardship and community engagement, creating reputational advantages for early adopters. This trend also ties into the global movement toward climate-friendly consumption, where brands that connect indulgence with responsibility gain stronger loyalty. In South America, where biodiversity and natural resources are abundant, ice cream companies have an opportunity to highlight local, responsibly sourced ingredients, reinforcing both cultural authenticity and environmental responsibility.

Segmental Insights

Product Type Insights

In the South America ice cream market, the stick segment dominated due to its affordability, portability, and widespread availability across both urban and rural areas. Consumers favor stick ice creams as convenient, portion-sized treats that are ideal for on-the-go consumption, making them a top choice for children, youth, and families alike. The segment benefits from strong presence in supermarkets, kiosks, and street vendors, ensuring easy access across income groups. Its competitive pricing compared to tubs or cones makes it especially attractive in price-sensitive markets like Brazil and Argentina. As a result, sticks remain the most consumed and leading segment region-wide.

Distribution Channel Insights

In the South America ice cream market, the online segment is the fastest growing as consumers increasingly embrace digital convenience through e-commerce platforms and food delivery apps such as Rappi, iFood, and Uber Eats. Rising internet penetration, smartphone adoption, and the popularity of quick home deliveries have transformed how ice cream is purchased and consumed. Online channels offer access to a wider variety of brands, premium products, and limited-time flavors, often supported by targeted promotions and discounts. This convenience, combined with the trend of impulse buying and the desire for doorstep indulgence, is fueling rapid expansion of online ice cream sales.

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Country Insights

Brazil dominated the South America ice cream market, driven by its large population, hot climate, and strong culture of frozen dessert consumption. The country’s expanding middle class, rising disposable incomes, and urbanization have fueled demand for both affordable stick formats and premium artisanal offerings. Brazil also benefits from a well-developed retail infrastructure, with supermarkets, hypermarkets, and convenience stores providing extensive product availability. Additionally, the rapid growth of online food delivery platforms has boosted accessibility to diverse ice cream options. With international brands and local players actively innovating flavors tailored to Brazilian tastes, the country remains the region’s largest and most influential market.

Recent Developments

• ​Specialitá (Duas Rodas) launched Chocolat Chocolate with Marshmallow Paste at Fispal Sorvetes 2024 in São Paulo, featuring rich chocolate blended with marshmallow chunks, marking a pioneering innovation in Brazil’s ice cream ingredient market.
• In 2024, AFADHYA introduced the “Dulce Scaloneta” flavor to honor Argentina’s national soccer team, blending rich dulce de leche with crunchy white chocolate pieces, served in waffle or cone formats across over 300 artisanal parlors nationwide.
• In 2024, El Flamingo in Buenos Aires launched the Dulce de Leche Alfajor Viral flavor, featuring creamy dulce de leche ice cream mixed with sea-salted alfajor pieces, drawing over 2 million visitors and gaining widespread social media buzz.
• In 2024, Duas Rodas’ Mix brand expanded its portfolio by launching a new homemade ice cream line in Brazil. This line includes versatile flavoring powders—such as Chocolate, Condensed Milk, and Strawberry—for crafting artisanal, at-home frozen desserts.

Key Market Players

• Unilever
• Nestle
• Arcor
• Heladeria Grido
• Frutos do Brasil
• Danone
• Haagen-Dazs
• Ben & Jerry's
• Gelato & Co.
• La Fama

Report Scope:

In this report, the South America Ice Cream Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·          South America Ice Cream Market, By Product Type:

o   Brick

o   Tub

o   Cup

o   Cone

o   Stick

o   Others

·         South America Ice Cream Market, By Distribution Channel:

o   Supermarkets/Hypermarkets

o   Multi-Branded Stores

o   Online

o   Others

·         South America Ice Cream Market, By Country:

o   Brazil

o   Argentina

o   Colombia

o   Rest of South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the South America Ice Cream Market.

Available Customizations:

The South America Ice Cream Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

·         Detailed analysis and profiling of additional market players (up to five).

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