Ice Cream and Market Adjustments

As a result of the pandemic, the consumer habits of Costa Ricans changed, a phenomenon that was evidenced in the forms of consumption of ice cream, which is now more frequently consumed in homes.

Thursday, April 22, 2021

In the new commercial reality, the consumption of individual ice creams was considerably reduced and in the case of multipacks, sales increased. This change is due to the fact that nowadays people spend more time in their homes and prefer to consume this type of products at home.

Andres Chehtman, senior analyst at Euromonitor International, told that "... given the strong growth of ice cream for home consumption, several companies launched ice cream with new brands, including some from other categories such as chocolates and cookies. E-commerce growth was lower for ice cream than for other categories, as in some cases the logistics network was not adapted for frozen products'."

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According to Euromonitor estimates, in 2020 in the Costa Rican market 14.9 million liters of ice cream were sold through the retail channel, a volume that exceeds by 15% what was consumed in 2015. For the years in question, spending on ice cream increased by 29%, going from $107 million to $138 million.

Luis Mastroeni, Corporate Relations Director of Dos Pinos, explained that "... 'ice cream and desserts are impulse purchases, so we have worked a lot on how to generate them, while our customers are at home and at work. They used to come to us, now we will go where they are'."

Companies competing in the Costa Rican market agree that in this new reality they must adjust their operations to get closer to their customers' residences.

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Changes in Lifestyle and the New Commercial Reality

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Within this context of health emergency, the mobility restriction measures decreed by the governments have forced people to change their consumption habits, a situation that forces companies to look for ways to deliver the products to their customers.

In order to adapt to this new economic reality and derived from the outbreak of covid-19 in Central American countries, companies have been forced to rely on marketing channels that until a few weeks ago were not among the most important in their commercial strategy.

Ice Cream Market in Costa Rica

March 2014

In the past five years, retail sales of ice cream have increased by 71%

The franchise model and market segmentation has been the scheme which artisanal ice cream shops have used to maintain their share in a market where 85% belongs to only one competitor, the cooperative Dos Pinos.

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