Household Food Expenditures in Canada: Ice Cream, Ice Cream ...

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Household Food Expenditures in Canada:1 Ice Cream, Ice Cream Desserts and Frozen Yogurt Ice cream, ice milk, ice cream desserts and frozen yogurt are very popular with consumers, especially when temperatures are on the rise. Purchases of these food products are accordingly heavily influenced by weather conditions, especially in the summer. These desserts accounted for 7.8% of total Canadian household expenditures on dairy products, compared with 10.7% in 1996.

Purchasing of Ice Cream and Other Frozen Desserts in Canada % of households making at least one purchase 40

30 (%) 20

10

0

Percentage of Expenditure on Frozen Desserts Out of Total Expenditures on Dairy Products in 2001

Maritimes

Quebec

Ontario 1996

Prairies

B.C.

2001

Figure 2 7.8%

92.2%

Other dairy products

Frozen desserts

Figure 1

The number of households making at least one purchase of ice cream, ice cream dessert or frozen yogurt (over a two-week period) declined in 2001, when 26.7% of households made at least one purchase of frozen dessert, down 12% from 1996. The decline was greatest in Quebec (see Figure 2), with a drop of 17.6% in the number of households making at least one purchase. In the Maritimes, the decline was only 5.6%.

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The average total quantity of frozen desserts purchased by Canadian households in 2001 was 0.39 L per week. This represents a decline of 30.4% from the average quantity purchased in 1996. Ice cream, ice cream desserts and frozen yogurt accounted respectively for 87.4%, 9.7% and 2.9% of the quantities of frozen desserts purchased in 2001. Average expenditures for these products declined by 15.2% between 1996 and 2001, to $0.95/week in 2001. Figures 3 and 4 illustrate average weekly quantities of and expenditures for frozen desserts purchased by households in the various regions of Canada. The food expenditure survey defines three categories of frozen desserts belonging to the dairy product family: ice milk and ice cream; ice cream desserts (cakes, pies, Revels (TM), Fudgesicles (TM), etc.); and frozen yogurt. Among quantities purchased weekly between 1996 and 2001, the only increase was in ice cream desserts (11.8 %). The popularity of these products is highest in the Prairies and Quebec, where consumption averages 0.05 L and 0.04 L weekly.

Analysis based on Statistics Canada data from the Food Expenditure Survey of 1996 (10,294 households) and of 2001 (5,643 households). The analyses are based on household food expenditures in supermarkets, specialty stores, convenience stores and other types of stores. .

Household Food Expenditures: Ice Cream, Ice Cream Desserts and Frozen Yogurt Purchasing of Frozen Desserts in Canada

Purchasing of Frozen Desserts in Canada

Average quantities purchased weekly by households

Weekly average expenditure of households .6

.4

.3 Litre

.4 $

.2 .2 .1

0

0 1996

2001

Ice milk and ice cream Frozen yogurt

Ice cream desserts

1996 Ice milk and ice cream Frozen yogurt

2001 Ice cream desserts

Figure 3

Figure 4 (constant 2001 dollars

Consumption of this type of dessert is lowest in British Columbia households.

enable us to confirm this or whether the result is due to an increase in prices.

During this same period, ice cream and frozen yogurt purchases declined by of 18.4% and 88.9% respectively. Canadian households purchased on average 0.42 L of ice cream per week in 1996, compared with 0.34 L in 2001. Frozen yogurt purchases declined even more dramatically, by a tenfold in 2001 from 1996. Average weekly purchases stood at 0.01 L in 2001.

Frozen yogurt purchases declined sharply in all regions of Canada. While in 1996 Quebec was the second-largest consumer in the country, behind the Prairies, it was the smallest in 2001. Households in the Maritimes were the largest consumers of frozen yogurt in 2001, with average weekly consumption of 0.02 L.

The greatest consumers of ice cream (including ice milk) were households in the Maritimes, with a weekly average of 0.46 L. Consumption of ice cream is lowest in Quebec, averaging 0.27 L per week per household. Despite a decline in quantities purchased across the country, all regions but Quebec increased their average weekly expenditure for this food product. The average weekly figure in 2001 stood at $0.64, compared with $0.58 in 1996. This indicates that while they reduced their consumption, households turned to higher quality products. However, the data does’nt

Household Food Expenditures: Ice Cream, Ice Cream Desserts and Frozen Yogurt Seasonal effects of ice cream purchasing Figure 5 illustrates average weekly quantities of ice cream (including ice milk) purchased, by quarter,1 in 1996 and 2001. The quantities purchased were equivalent in the first quarter for the two years, but were lower in the months following in 2001. Although the summer of 2001 was hotter than that of 1996,2 households still decreased their purchasing of ice cream by 25.5%. Despite the significant decline noted, the second and third quarters continued to be the most popular times for ice cream purchasing.

Purchasing of Ice Cream in Canada Average weekly quantities purchased by households

.5 .45 Litres

.4

.35 .3 .25 1

2

Quarter 1996

3

4

2001

Figure 5

Socio-demographic characteristics influencing the purchase of ice cream, frozen desserts and frozen yogurt Econometric analyses have enabled us to determine the influence of certain socio-demographic characteristics on the decision to purchase these food products. The results were produced on the basis of 2001 data.3

Ø Women are more likely to purchase ice cream than are men4. Ø Households in rural areas are more likely to buy ice cream than those in urban areas. Ø The presence of a person over 65 in a household increases the likelihood of ice cream and frozen dessert purchasing.

Purchasing of Ice Cream in 2001 % of households having made at least one purchase* (urban vs. rural areas) 25 20

15 % 10

5

0

Urban

Rural

*Over a two-week period

Figure 6 1 2

1= Jan-Feb-March; 2= April-May-June; 3= July-Aug-Sept; 4=Oct-Nov-Dec.

See Climate Trends and Variations Bulletin for Canada.

http:\\ www.msc-smc.ec.gc.ca 3

However, the correlation pertaining to education and country of origin was measured using 1996 data, since data on these characteristics were not collected in 2001. 4 Assuming that the reference person for the inquiry is the one making the purchases.

Household Food Expenditures: Ice Cream, Ice Cream Desserts and Frozen Yogurt

Socio-demographic characteristics influencing the purchasing of ice cream, ice cream desserts and frozen yogurt (cont’d.) Ø Singles are less likely to purchase ice cream than other types of households. Ø Canadians born outside Canada are less likely to purchase ice cream and ice cream desserts than Canadians born in Canada5. However, the former do show a preference for frozen yogurt.

Purchasing of Ice cream ,Ice Cream Desserts and Frozen Yogurt % of households having made at least one purchase in 2001* (by type of household) 30

20 % 10

0 Single

Couple Ice cream

Couple with child(ren) Ice cream desserts

*Over a two-week period

Figure 7

For further information, contact Carole Gendron, MSc Dairy Industry Analyst Agriculture and Agri-Food Canada Tel.: (613) 759-6243 Fax: (613) 759-6313 1341 Baseline Road Tower 7, 7th Floor Ottawa, ON K1A 0C5 [email protected]

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Assuming that the reference person for the inquiry is the one making the purchases.