People from all over the world love ice cream as a dessert. It comes in a wide range of flavors and variants, including classic flavors like chocolate and vanilla as well as more unusual flavors like avocado and green tea. Ice cream in novelty flavors is among the more distinctive varieties. But what is novelty ice cream exactly?
Any kind of ice cream that isn’t a typical scoop served in a bowl or cone is referred to as novelty ice cream. Ice cream sandwiches, bars, and popsicles fall under this category. These ice creams are made to be consumed on the go and frequently have distinctive flavors and designs. Although they are frequently a hit with kids, they are also a pleasure that adults love.
Is ice cream the ideal rival? No, is the response. The ice cream industry is a good example of monopolistic competition, in which numerous businesses compete with one another but all have some level of market dominance. This enables businesses to distinguish their goods and set their own prices, which is impossible in a market with perfect competition.
In an oligopoly, how can businesses compete with one another? Firms in an oligopoly compete in the ice cream market by differentiating their products, running advertisements, and raising prices. To differentiate themselves from the competition, they frequently create distinctive flavors and packaging. They also spend a lot of money on marketing and advertising to increase brand recognition and loyalty. They compete on prices as well, though this is frequently constrained by consumers’ willingness to spend more for distinctive, high-quality ice cream.
Who controls the ice cream market? Several huge corporations dominate the ice cream market, such as Unilever, which owns the Ben & Jerry’s and Breyers brands, Nestle, which owns the Dreyer’s and Haagen-Dazs brands, and General Mills, which owns the Häagen-Dazs and Totino’s brands. These businesses have a sizable degree of market power, which enables them to set prices and exert some kind of market control.
People also inquire about the size of the ice cream market. The global ice cream market was estimated to be worth $70.8 billion in 2019 and is projected to grow to $97.3 billion by 2024, according to a report by ResearchAndMarkets.com. Increased disposable income, shifting consumer preferences, and the development of fresh and inventive ice cream flavors and forms are some of the causes that are fueling this expansion.
In summary, novelty ice cream is a distinct and entertaining variety of ice cream that is favored by consumers of all ages. The ice cream industry is a prime illustration of monopolistic competition because it is dominated by a small number of powerful multinational corporations. The industry as a whole is anticipated to continue expanding in the upcoming years, and these businesses compete through product differentiation, advertising, and price competition.