Guilt-free scoops: Ozempic era comes for ice cream

As ice cream sales face a potential downside due to appetite-suppressing GLP-1 drugs and the demand for healthier options, manufacturers are adapting to meet consumers' expectations for guilt-free indulgence. U.S. ice cream sales volumes dropped 1.5% year-on-year through June 13, according to NielsenIQ, while GLP-1 users reduced frozen treat consumption by at least 10%, as reported by Boston Consulting Group.

Rather than abandoning ice cream altogether, manufacturers believe customers will continue to enjoy these treats if they come with fewer calories, more protein, and simpler ingredient lists. Lisa Vortsman, U.S. chief marketing and innovation officer at Magnum Ice Cream Company, noted that consumers seek a "halo of a wellness play" when indulging in ice cream.

Companies like Blue Bunny, which is owned by Ferrero, are responding to this trend by reformulating recipes to remove high-fructose corn syrup and artificial colors and flavors. They also offer smaller portions like the 150-calorie Mini Swirls. Andrew Mondzelewski, senior director for brand marketing at Blue Bunny, said consumers are increasingly seeking out ingredients they don't want in their products.

The shift in consumer preferences poses a challenge for the industry, as changing eating habits reshape what shoppers expect from indulgent foods. Magnum Ice Cream Company, which owns brands such as Magnum and Ben & Jerry's, has accelerated its focus on wellness-oriented offerings. Their Yasso brand, a frozen Greek yogurt, has delivered around 20% average annual growth over the past five years, while other brands like Breyers CarbSmart and Popsicle Sugar-Free are popular among GLP-1 consumers.

Consumers are looking for products that combine indulgence with attributes such as higher protein, lower calories, and controlled portions. Magnum's brands currently make up a 26% share of the $2.2 billion U.S. wellness and functional ice cream segment. The number of Americans taking GLP-1 medicines is estimated at 16 million, with this number expected to grow significantly by the end of the decade.

Food companies are reformulating products to cater to consumers seeking more protein, fiber, and nutritional benefits. However, the challenge for ice cream makers is preserving the indulgence appeal while adapting to shoppers who weigh nutritional value alongside taste. Ferrero's Halo Top brand has delivered double-digit percentage sales growth over the last two years, with customers preferring craveable flavors combined with a good source of protein and fewer calories than traditional ice cream.

NielsenIQ's Vice President of Food Thought Leadership, Chris Costagli, emphasized that the wellness trend extends beyond the United States, raising questions about how ice cream brands remain relevant as global eating habits evolve. Glacier, a leading private-label producer in Europe, reports growing demand for smaller portions, premium products, and lower-calorie ice lollies that align with broader health and wellness goals.