Why the Heatwave Hurt Ice Cream Sales
Ice cream has always been considered a go-to summer snack. But according to recent statistics, sales of ice cream in Korea dropped by a staggering 35% in the summer of 2024 compared to the previous year. Despite the sweltering heat, why are consumers turning away from this classic cold treat? This post explores the reasons behind this unexpected market downturn.
1. The Paradox: Excessive Heat Makes Ice Cream Less Appealing
It’s common sense that higher temperatures drive up ice cream sales. However, once temperatures exceed 35°C, people tend to choose faster thirst-quenching options like cold drinks or water. Ice cream is a dessert meant to be enjoyed slowly, which becomes unappealing under extreme heat.
2. Rising Production Costs: Coconut Oil, Dairy, and Sugar
Ice cream producers are also dealing with significantly increased ingredient costs. Coconut oil, a key imported ingredient, is subject to volatile global prices. Combined with rising dairy and sugar costs, this has led manufacturers to raise retail prices, increasing the financial burden on consumers.
3. Retail Distribution Challenges: Cold Storage Under Strain
Extended heatwaves have strained refrigeration and cold chain logistics. Some convenience stores and retailers have reduced or even stopped stocking ice cream due to storage limitations, reducing product availability and consumer access.
4. Health-Conscious Consumers and Changing Preferences
Today’s consumers are leaning toward low-sugar, sugar-free, or functional beverages rather than traditional high-sugar ice cream. As a result, healthier alternatives like shaved ice, yogurt-based drinks, and natural fruit coolers are gaining ground as summer staples.
5. Ice Cream Reaches Its ‘Psychological Price Limit’
The average price of a single ice cream now exceeds 2,000 KRW (~$1.50), while premium options range from 4,000 to 5,000 KRW. These prices create a psychological barrier for impulse purchases, especially when cheaper and more refreshing alternatives are available.
6. Lack of Innovation in Brand Strategy
Many ice cream brands have relied on similar product lines for years, and this summer revealed the cracks. Without immediate-refreshing, functional, or portable product innovations, consumers are quickly shifting away. Only brands that adapt to modern lifestyles will survive this shift.
Conclusion: Heatwaves Are Not Always a Sales Opportunity
The assumption that hot weather automatically drives ice cream sales no longer holds true. Consumer behavior, health awareness, price sensitivity, and logistical factors must all align for summer to benefit ice cream. A heatwave can just as easily become a threat as an opportunity. Without smart and flexible strategies, brands risk losing their grip on the seasonal market.
