South America Ice Cream Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

South America Ice Cream Market Trends and Insights

Rising urbanization shifts lifestyles toward convenience snacking

Urban population density in Brazil's southeastern corridor has reached a critical level, reducing household meal preparation time and increasing demand for grab-and-go frozen desserts. This demographic shift has led to a significant rise in impulse ice cream sales through convenience stores and gas stations, as commuters and students prioritize portability over traditional sit-down consumption. A similar trend is observed in Argentina, where economic instability has increased snacking frequency, with consumers choosing affordable indulgences as substitutes for full meals. In response, manufacturers have adapted by offering smaller pack sizes and introducing resealable multi-serve tubs to accommodate urban apartment living and limited freezer space. This urbanization-driven growth is not limited to major metropolitan areas; secondary cities such as Curitiba and Medellín are also experiencing modern retail expansion. Improved cold-chain infrastructure in these areas is further driving volume growth in previously underserved markets.

Demand for premium artisanal flavors like tropical fruits

Fruit and tropical flavors are increasingly appealing to consumers by drawing on regional biodiversity and evoking nostalgia for native ingredients. Açaí-based ice creams, which were once limited to Brazil's northern states, have now reached premium supermarket shelves in São Paulo and Buenos Aires, commanding significant price premiums compared to vanilla varieties. Similarly, maracuyá (passion fruit) and guanábana (soursop) flavors are gaining popularity in Chile, where artisanal parlors report these variants achieving notably higher gross margins than chocolate or strawberry. The strategic insight is that brands forming direct sourcing relationships with Amazonian cooperatives or Andean smallholders can stand out through authenticity while reducing exposure to fluctuations in commodity prices. Unilever's Kibon division introduced a limited-edition cupuaçu line in the second quarter of 2024, highlighting that multinational companies are recognizing the competitive advantage of local artisans, who control provenance narratives and can adapt flavor offerings more quickly than global research and development cycles allow.

Growth in e-commerce and food delivery platforms

In 2024, online retail penetration for ice cream in Brazil accounted for 11% of off-trade sales, increasing from 6% in 2022. This growth was driven by platforms such as iFood and Rappi, which enhanced their logistics networks by using insulated packaging and offering delivery windows of less than 30 minutes. This change in sales channels has particularly supported the premium and non-dairy segments, as consumers in these categories are more inclined to pay delivery fees and are less sensitive to price compared to mass-market buyers. In contrast, Argentina's e-commerce development is approximately 18 months behind Brazil, primarily due to issues with payment infrastructure and currency instability. However, Mercado Libre, a leading e-commerce platform, has been expanding its frozen-goods fulfillment centers in Córdoba and Rosario, indicating that this gap is gradually closing. A key strategic risk in this evolving market is margin erosion, as delivery commissions ranging from 20% to 25% significantly affect profitability for mid-tier brands that lack the scale to negotiate better rates. This challenge may accelerate market consolidation, with smaller players either exiting the market or being acquired by larger, better-funded competitors.

Health trends boost low-sugar and functional ice creams

Functional ice cream formulations containing protein isolates, probiotics, or fiber made up a small but growing portion of South America's market in 2024, with a strong presence in Chile and Brazil's affluent urban areas, where fitness culture and preventive health spending are prominent. Nestlé introduced a high-protein, reduced-sugar product line under its regional brand portfolio in Santiago during the third quarter of 2024, targeting gym enthusiasts and diabetic consumers. These formulations replaced sucrose with allulose and monk fruit extract. Initial sales data from Chilean supermarkets show that these products achieved significantly higher basket penetration among households earning above USD 3,000 per month, highlighting the segment's long-term growth potential. Regulatory developments are also supporting this trend. In 2024, Brazil's National Health Surveillance Agency (ANVISA) revised front-of-pack labeling regulations to require warning symbols for high sugar content ^{[1]Source: Agência Nacional de Vigilância Sanitária, “Labeling Standards,” ANVISA, gov.br}. This change has created shelf differentiation for reformulated products and is pressuring traditional brands to invest in research and development to retain health-conscious consumers, who may otherwise shift to agile startups.

Health concerns over high sugar and calories

Public health campaigns addressing childhood obesity have brought frozen desserts under increased scrutiny, particularly in Chile, where per-capita ice cream consumption exceeds five liters annually. The Chilean Ministry of Health's dietary guidelines for the year 2024 recommend limiting frozen dessert consumption to once a week, creating challenges for impulse formats sold near schools ^{[2]Source: Chilean Ministry of Health, “Dietary Guidelines 2024,” MINSAL, minsal.cl}. In Brazil, the Ministry of Health reported in early 2025 that nearly twenty-two percent of adults actively avoid high-sugar snacks, an increase from sixteen percent in 2022, indicating growing awareness of metabolic syndrome risks. This shift in behavior is reducing purchase frequency rather than eliminating the category entirely. Consumers are opting for smaller portion sizes or substituting with frozen yogurt and sorbet alternatives that have lower caloric content. Manufacturers face a reformulation challenge, as reducing sugar often necessitates adjustments to fat or stabilizers, which can alter the product's mouthfeel and risk consumer rejection if sensory profiles deviate significantly from established expectations.

Supply chain disruptions in cold chain logistics

Cold-chain reliability continues to face challenges outside the coastal urban areas of South America, particularly in rural regions where infrastructure limitations and elevated energy costs pose significant barriers. In Brazil's Amazon region, similar difficulties arise due to the considerable distance between Manaus and São Paulo, which requires the use of multiple transportation modes, including river barges and refrigerated trucks. This logistical complexity significantly increases costs and limits the variety of stock-keeping units (SKUs) available in remote municipalities. These challenges often result in natural monopolies for local producers who manage smaller-scale cold storage facilities. However, they also restrict the potential market size and require national brands to compromise on distribution intensity to ensure the quality and integrity of their products.

Segment Analysis

By Flavor: Tropical Variants Reshape Taste Hierarchies

Vanilla accounted for 33.54% of South American ice cream sales in 2024, driven by its versatility as a base for mix-ins and its widespread appeal across various age groups and income levels. Chocolate ranked as the second-largest flavor, supported by cocoa's cultural significance in the region and its adaptability to both impulse stick formats and premium pint packaging. However, the most notable growth is observed in fruit and tropical flavors, which are projected to expand at a Compound Annual Growth Rate (CAGR) of 5.84% through 2030. Manufacturers are leveraging the region's biodiversity to differentiate their offerings, with flavors such as açaí, maracuyá, and lúcuma transitioning from artisanal parlors to supermarket freezers. This shift is facilitated by advancements in freeze-drying techniques that retain volatile aromatics and vibrant pigments without relying on synthetic additives.

The "Others" category, which includes nut-based, coffee, and novelty flavors, is growing steadily but remains fragmented, with no single Stock Keeping Unit (SKU) achieving significant scale to rival the top three flavors. Unilever's launch of a dulce de leche-coconut hybrid in Argentina in late 2024 exemplifies how global companies are integrating regional taste preferences with tropical ingredients to meet premiumization demand while optimizing manufacturing efficiencies across multiple markets.

Note: Segment shares of all individual segments available upon report purchase

By Product Type: Artisanal Formats Gain Momentum

Take-home ice cream accounted for 46.32% of the market share in 2024, driven by the popularity of family-sized tubs and multi-serve formats that cater to in-home consumption and bulk-purchase preferences. Impulse ice cream, typically sold as single-serve sticks or cones through kiosks and convenience stores, holds a significant but smaller share, supported by spontaneous purchasing behavior and seasonal demand during hot weather.

Artisanal ice cream, while representing a smaller portion of the market, is growing at a Compound Annual Growth Rate (CAGR) of 5.83% through 2030, as consumers increasingly value experiential eating and unique, craft-focused offerings over mass-market convenience. This growth is primarily concentrated in affluent neighborhoods of Chile and Brazil, where independent parlors charge USD 4 to 6 per scoop, approximately double the price of supermarket alternatives. These parlors justify the premium pricing through live churning demonstrations, the use of exotic ingredients such as Peruvian pink salt or Colombian coffee nibs, and visually appealing, Instagram-friendly presentations.

By Category: Non-Dairy Alternatives Accelerate

Dairy ice cream accounted for 80.43% of the South American market volume in 2024, supported by well-established taste preferences, lower production costs, and the widespread availability of fresh milk in countries such as Argentina, Brazil, and Uruguay. Traditional recipes that use whole milk and cream provide the rich texture and clean flavor that consumers associate with indulgence, making dairy the default choice for mass-market and mid-tier segments.

Non-dairy alternatives, however, are expected to grow at a compound annual growth rate (CAGR) of 5.94% through 2030. This growth is driven by increasing awareness of lactose intolerance, the rising adoption of plant-based diets, and advancements in ingredient innovation that reduce the sensory differences between dairy and non-dairy bases. Coconut milk, almond milk, and oat milk are the leading alternatives, with oat-based formulations gaining popularity in Chile due to their neutral flavor and improved freeze-thaw stability compared to earlier soy-based products.

By Distribution Channel: Off-Trade Dominance Solidifies

In 2024, off-trade channels accounted for 66.21% of South American ice cream sales and are projected to grow at a compound annual growth rate (CAGR) of 6.03% through 2030. This growth is driven by the expansion of supermarkets and hypermarkets into secondary cities, making ice cream more accessible to a broader consumer base, along with the increasing availability of online retail platforms offering frozen goods delivery within 30 minutes. Supermarkets and hypermarkets remain dominant in the off-trade segment by implementing strategies such as promotional calendars, introducing private-label products, and optimizing freezer-aisle space to boost sales volumes and attract customers. Brazil, in particular, is experiencing rapid growth in e-commerce demand, with the sector expected to generate USD 36.3 billion in revenue by 2025, as Brazilian consumers increasingly embrace the convenience and special promotions offered by online retailers ^{[3]Source: International Trade Admistration, "Brazil Country Commercial Guide" trade.gov}.

Specialist retailers, including gourmet food stores and organic markets, address niche consumer demands for artisanal and functional ice creams. However, their contribution to total off-trade sales remains relatively small. Convenience stores are increasingly popular in urban areas, where high foot traffic and impulse buying behaviors drive demand for single-serve ice cream formats. Meanwhile, online retail stores recorded the fastest growth within the off-trade segment in 2024. This growth, although from a minimal base, was facilitated by advancements in logistics, particularly the resolution of last-mile cold-chain delivery challenges, enabling efficient and timely delivery of frozen products to consumers.

Geography Analysis

Brazil is set to lead the regional market in 2024, contributing 52.45% of revenue. This dominance is attributed to its large population of 215 million consumers and a robust retail infrastructure that supports cold-chain distribution even in remote areas. While São Paulo and Rio de Janeiro remain the primary demand centers, growth is increasingly driven by the northeast and central-west regions, where rising incomes and expanding supermarket networks are unlocking new consumption opportunities. Despite this progress, Brazil's per-capita ice cream consumption remains below 4 liters annually, highlighting significant room for growth as urbanization and freezer ownership continue to rise. The regulatory framework, overseen by the National Health Surveillance Agency (ANVISA), enforces strict microbiological standards for frozen desserts. This creates compliance costs that favor larger manufacturers with advanced quality-control systems, while also ensuring product safety and fostering consumer trust.

Chile is projected to be the fastest-growing market in South America, with a compound annual growth rate (CAGR) of 6.13% through 2030. This growth is supported by a GDP per capita exceeding USD 16,000 and a consumer preference for premium quality and health-oriented products. Santiago's artisanal ice cream parlors have become innovation hubs, introducing exotic flavors and functional formulations that often scale to supermarket distribution. The market's sophistication is evident in the increasing popularity of low-sugar and high-protein variants, which accounted for 6% of volume in 2024 compared to 3% regionally. While Chile's geographic isolation and strict import controls have historically protected domestic producers, recent trade agreements are reducing tariffs on Argentine and Uruguayan dairy imports. This heightened competition is encouraging local brands to focus on innovation rather than price differentiation.

The rest of South America, including Argentina, Colombia, Peru, Ecuador, and smaller markets, presents a mix of challaenges and opportunities. Argentina's market share in 2024 has been affected by macroeconomic instability, currency devaluation, and inflation, which have reduced real household incomes. However, the country maintains one of the highest per-capita ice cream consumption rates in the region, supported by a strong cultural affinity for helado and a dense network of artisanal heladerías that serve as community hubs. The fragmented market offers opportunities for consolidation, with examples like Heladeria Grido achieving national scale through a franchise model that standardizes production and leverages bulk purchasing. Meanwhile, other South American markets are characterized by lower per-capita consumption, underdeveloped cold-chain infrastructure, and significant growth potential. As middle-class populations expand and retail modernization progresses, these markets are expected to experience notable growth over the forecast period.