SIC 2024 Ice Cream and Frozen Desserts
SIC 2024
This industry classification encompasses establishments primarily engaged in manufacturing ice cream and other frozen desserts, including frozen yogurt, ice milk, ices and sherbets, frozen custard, mellorine, frozen tofu, and pops (frozen desserts on sticks).
311520
Ice Cream and Frozen Dessert Manufacturing
The ice cream and frozen desserts industry is an important sector of the U.S. dairy industry. Market saturation for ice cream and related frozen desserts was estimated to be greater than 90 percent of all households. In the United States, ice cream was a $21.6 billion industry in 2005, while worldwide consumption of frozen desserts began rising steadily beginning in the 1990s, except for a brief plateau in 2002, with expected growth at 2.5 percent annually through 2010, as reported by Euromonitor. The United States remained the world leader in ice cream production with approximately 1.54 billion gallons in 2005.
According to the U.S. Census Bureau, approximately 378 establishments operated in this category for part or all of 2004. Industry-wide employment totaled approximately 20,999 workers receiving a payroll of more than $759 million. Companies in this industry tended to be smaller in size with nearly 63 percent employing less than 20 workers while only 17 percent have greater than 500 employees. The Annual Survey of Manufactures reported that the industry was valued at nearly $9.0 billion in 2005, an increase from the 2004 total of nearly $8.0 billion. Additionally, for the overall industry a total of 15,092 employees worked in production in 2005, putting in more than 29 million hours to earn wages of more than $531 million. The U.S. Department of Labor's Bureau of Labor Statistics showed moderate losses in expected employment for the dairy product manufacturing industry as a whole by 2014 after some losses were experienced from 1994 to 2004; a small increase is anticipated in output between 2004 to 2014 after a minimal decrease occurred between 1994 and 2004.
Dun & Bradstreet reported in 2006 that the industry's estimated 1,259 establishments posted annual sales of about $5.9 billion with about 24,988 employees. California was the dominant leader with more than $2.72 billion in sales followed by Iowa with nearly $894 million in sales and Pennsylvania in third with nearly $621 million in sales. Comprised of 18 different specialties, the primary segment was ice cream and frozen desserts (more than $3.1 billion in sales) with packaged ice cream (molded on sticks, etc.) posting sales of more than $1.1 billion.
The production of ice cream begins with milk produced by America's dairy farmers, many of whom belong to large dairy cooperatives that market their milk to processors or, in some cases, operate their own processing facilities for the manufacture of ice cream and other dairy products. In 2006, America's 9.13 million dairy cows produced nearly 182 billion pounds of milk. Approximately 8 percent of this milk was used to make frozen dairy products.
Traditionally a highly regionalized industry, the frozen desserts and ice cream segment began to consolidate as distribution became more advanced and national firms were formed. Still, many top producers' brand names were known only in the geographical areas in which they were distributed. Distribution to sales outlets was vital to the success of the frozen desserts, and competition for distributors remained keen.
Whether ice cream originated in China or Rome is a matter of debate, but there is little question that ice cream and other frozen desserts regained their position as one of America's favorite treats. Ice cream as we know it—smooth and creamy—was introduced in the United States early in the twentieth century as a result of two technological advances: homogenization, which reduced the fat particle size in milk, and a continuous freezing process that enabled a consistent ice crystal structure. Production and manufacturing advances implemented since then centered primarily on formulation refinements...
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