NAICS Code 424430-13 - Ice Cream & Frozen Desserts-Distr (Wholesale)

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NAICS Code 424430-13 Description (8-Digit)

The Ice Cream & Frozen Desserts-Distr (Wholesale) industry involves the distribution of ice cream and frozen desserts to various retailers and food service establishments. This includes a wide range of products such as ice cream, sorbet, gelato, frozen yogurt, and other frozen desserts. The industry is responsible for providing these products to grocery stores, convenience stores, restaurants, and other food service establishments.

Hierarchy Navigation for NAICS Code 424430-13

Tools

Tools commonly used in the Ice Cream & Frozen Desserts-Distr (Wholesale) industry for day-to-day tasks and operations.

  • Ice cream scoops
  • Ice cream spades
  • Ice cream dipping cabinets
  • Ice cream storage containers
  • Ice cream cartons
  • Ice cream cone dispensers
  • Ice cream topping dispensers
  • Ice cream mixers
  • Ice cream freezers
  • Ice cream trucks

Industry Examples of Ice Cream & Frozen Desserts-Distr (Wholesale)

Common products and services typical of NAICS Code 424430-13, illustrating the main business activities and contributions to the market.

  • Ice cream parlors
  • Frozen yogurt shops
  • Grocery stores
  • Convenience stores
  • Restaurants
  • Cafes
  • Food trucks
  • Catering companies
  • Movie theaters
  • Amusement parks

Certifications, Compliance and Licenses for NAICS Code 424430-13 - Ice Cream & Frozen Desserts-Distr (Wholesale)

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

  • Food Safety Modernization Act (FSMA): The FSMA is a set of regulations that aim to ensure the safety of the US food supply. It requires food facilities to have a food safety plan in place, including hazard analysis and risk-based preventive controls. The FDA provides guidance and oversight for compliance.
  • Safe Quality Food (SQF) Certification: SQF is a food safety management system that is recognized by the Global Food Safety Initiative (GFSI). It is a rigorous certification that requires facilities to have a comprehensive food safety plan in place, including hazard analysis and risk-based preventive controls. The SQF Institute provides certification and oversight.
  • Hazard Analysis and Critical Control Points (HACCP) Certification: HACCP is a food safety management system that is recognized by the FDA and USDA. It requires facilities to have a comprehensive food safety plan in place, including hazard analysis and risk-based preventive controls. The International HACCP Alliance provides certification and oversight.
  • Good Manufacturing Practices (GMP) Certification: GMP is a set of guidelines that ensure that food products are consistently produced and controlled according to quality standards. It covers all aspects of production, from raw materials to finished products. The NSF International provides certification and oversight.
  • Organic Certification: Organic certification ensures that food products are produced without the use of synthetic pesticides, fertilizers, or genetically modified organisms (GMOs). The USDA provides certification and oversight.

History

A concise historical narrative of NAICS Code 424430-13 covering global milestones and recent developments within the United States.

  • The "Ice Cream & Frozen Desserts-Distr (Wholesale)" industry has a long and rich history worldwide. The first recorded instance of ice cream dates back to ancient China, where it was made by mixing snow with fruit juices. In the 16th century, ice cream was introduced to Europe, and by the 18th century, it had become a popular dessert in the United States. The first ice cream factory was established in Baltimore in 1851, and by the early 20th century, ice cream had become a staple of American culture. In recent history, the industry has seen notable advancements in technology, such as the development of new freezing techniques and the use of liquid nitrogen to create unique flavors and textures. In the United States, the "Ice Cream & Frozen Desserts-Distr (Wholesale)" industry has experienced significant growth in recent years.

Future Outlook for Ice Cream & Frozen Desserts-Distr (Wholesale)

The anticipated future trajectory of the NAICS 424430-13 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Growing

    The future outlook for the Ice Cream & Frozen Desserts-Distr (Wholesale) industry in the USA is positive. The industry is expected to grow due to the increasing demand for frozen desserts and the rising popularity of premium ice cream. The industry is also expected to benefit from the growing trend of healthy and organic frozen desserts. The increasing number of health-conscious consumers is driving the demand for low-fat and low-sugar frozen desserts. The industry is also expected to benefit from the growing popularity of online grocery shopping, which is expected to increase the demand for frozen desserts. However, the industry may face challenges due to the increasing competition from private label brands and the rising cost of raw materials. Overall, the industry is expected to grow at a steady pace in the coming years.

Industry Innovations for NAICS Code 424430-13

Recent groundbreaking advancements and milestones in the Ice Cream & Frozen Desserts-Distr (Wholesale) industry, reflecting notable innovations that have reshaped its landscape.

  • Introduction Of New Flavors: Many companies in the Ice Cream & Frozen Desserts-Distr (Wholesale) industry are introducing new and innovative flavors to attract customers. For example, Ben & Jerry's introduced a new flavor called "Netflix & Chill'd" in 2020, which is a combination of peanut butter ice cream, sweet and salty pretzel swirls, and fudge brownies.
  • Healthier Options: Many companies are introducing healthier options in response to the growing demand for low-fat and low-sugar frozen desserts. For example, Halo Top introduced a line of low-calorie, high-protein ice cream in 2017.
  • Plant-Based Options: Many companies are introducing plant-based frozen desserts to cater to the growing demand for vegan and vegetarian options. For example, So Delicious introduced a line of vegan ice cream made with coconut milk in 2019.
  • Packaging Innovations: Many companies are introducing innovative packaging to improve the shelf life of frozen desserts and reduce waste. For example, Yasso introduced a line of frozen Greek yogurt bars with a resealable lid in 2019.
  • Online Ordering and Delivery: Many companies are introducing online ordering and delivery options to cater to the growing demand for convenience. For example, Graeter's Ice Cream introduced online ordering and delivery in 2020.

Required Materials or Services for Ice Cream & Frozen Desserts-Distr (Wholesale)

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Ice Cream & Frozen Desserts-Distr (Wholesale) industry. It highlights the primary inputs that Ice Cream & Frozen Desserts-Distr (Wholesale) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Flavoring Agents: Concentrated extracts and flavorings that enhance the taste of frozen desserts, crucial for creating diverse product offerings that appeal to consumers.

Frozen Dessert Bases: Pre-prepared bases that serve as the foundation for various frozen desserts, allowing for quick production and consistency in flavor and texture.

Nutritional Additives: Vitamins and minerals added to frozen desserts to enhance their nutritional profile, catering to health-conscious consumers and expanding market reach.

Packaging Materials: Containers and wrappers designed to protect frozen desserts during transport and display, while also providing branding opportunities for wholesalers.

Stabilizers and Emulsifiers: Additives that improve the texture and shelf life of frozen desserts, preventing ice crystal formation and ensuring a smooth mouthfeel.

Sweeteners: Various types of sugars and sugar substitutes that are essential for achieving the desired sweetness in frozen desserts, impacting both flavor and texture.

Equipment

Blast Freezers: Specialized freezers that rapidly freeze products to maintain quality and texture, essential for preserving the integrity of frozen desserts during storage.

Cold Storage Units: Refrigerated storage facilities that keep frozen desserts at optimal temperatures, ensuring product safety and quality before distribution.

Service

Logistics and Distribution Services: Services that manage the transportation and delivery of frozen desserts to retailers and food service establishments, ensuring timely and efficient supply chain operations.

Quality Control Services: Services that monitor and ensure the quality and safety of frozen desserts throughout the production and distribution process, vital for maintaining consumer trust.

Products and Services Supplied by NAICS Code 424430-13

Explore a detailed compilation of the unique products and services offered by the Ice Cream & Frozen Desserts-Distr (Wholesale) industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the Ice Cream & Frozen Desserts-Distr (Wholesale) to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Ice Cream & Frozen Desserts-Distr (Wholesale) industry. It highlights the primary inputs that Ice Cream & Frozen Desserts-Distr (Wholesale) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Dairy-Free Ice Cream Alternatives: Made from plant-based ingredients, these alternatives cater to customers with dietary restrictions or preferences. Wholesalers distribute these products to health food stores and vegan restaurants, expanding the market for frozen desserts.

Frozen Custard: Similar to ice cream but made with egg yolks, frozen custard is creamier and richer. It is often distributed to specialty dessert shops and fast-food chains, where it is served in cones or sundaes.

Frozen Dessert Bases: These are pre-mixed bases used for creating various frozen desserts, allowing businesses to streamline their production process. Wholesalers supply these bases to ice cream shops and restaurants, ensuring consistency and quality in their offerings.

Frozen Dessert Toppings: A variety of toppings such as sprinkles, chocolate syrup, and fruit compotes are essential for enhancing the presentation and flavor of frozen desserts. Wholesalers provide these toppings to restaurants and ice cream parlors, allowing customers to customize their desserts.

Frozen Yogurt: This tangy and creamy dessert is a popular alternative to ice cream, often marketed as a healthier option. Wholesalers supply frozen yogurt to self-serve shops and restaurants, where it can be customized with various toppings.

Gelato: Gelato is a denser and creamier frozen dessert compared to traditional ice cream, made with less air and more milk. It is often distributed to specialty shops and restaurants, appealing to customers seeking a rich and flavorful dessert experience.

Ice Cream: This popular frozen dessert is produced in various flavors and styles, including traditional, premium, and soft-serve. Wholesalers distribute ice cream to grocery stores and restaurants, where it is served as a treat or used in desserts.

Ice Cream Mixes: These are concentrated mixtures used to create ice cream, often requiring only the addition of milk or cream. Wholesalers provide these mixes to ice cream shops and restaurants, simplifying the production process while maintaining quality.

Ice Cream Novelties: These are pre-packaged frozen treats, such as ice cream bars, sandwiches, and popsicles, that are convenient for consumers. Wholesalers supply these items to convenience stores and supermarkets, making them easily accessible for on-the-go enjoyment.

Sorbet: A dairy-free frozen dessert made primarily from fruit puree and sugar, sorbet is a refreshing option for those seeking a lighter treat. Wholesalers distribute sorbet to restaurants and cafes, where it is served as a palate cleanser or dessert.

Comprehensive PESTLE Analysis for Ice Cream & Frozen Desserts-Distr (Wholesale)

A thorough examination of the Ice Cream & Frozen Desserts-Distr (Wholesale) industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

  • Food Safety Regulations

    Description: Food safety regulations are critical in the wholesale distribution of ice cream and frozen desserts, ensuring that products meet health standards. Recent updates to the Food Safety Modernization Act have increased compliance requirements for distributors, impacting operational practices and supply chain management.

    Impact: Strict adherence to food safety regulations is essential for maintaining consumer trust and avoiding legal repercussions. Non-compliance can lead to product recalls, financial losses, and damage to brand reputation, making it vital for distributors to prioritize safety measures throughout their operations.

    Trend Analysis: The trend towards stricter food safety regulations has been increasing, with a high level of certainty regarding their impact on the industry. This trend is driven by heightened public health concerns and increased scrutiny following foodborne illness outbreaks, necessitating proactive compliance strategies from distributors.

    Trend: Increasing
    Relevance: High
  • Trade Policies

    Description: Trade policies significantly influence the wholesale distribution of ice cream and frozen desserts, particularly regarding tariffs and import/export regulations. Recent shifts in trade agreements and tariffs have affected the availability and pricing of imported frozen desserts in the U.S. market.

    Impact: Changes in trade policies can lead to increased costs for imported products, affecting pricing strategies and profit margins for wholesalers. Additionally, domestic distributors may face increased competition from imports, which can pressure local prices and market share, impacting overall industry dynamics.

    Trend Analysis: Historically, trade policies have fluctuated based on political administrations and international relations. Currently, there is a trend towards more protectionist policies, which may continue to shape the industry landscape. Future predictions suggest ongoing negotiations and geopolitical tensions will keep trade policies in flux, with a medium level of certainty regarding their impact on the industry.

    Trend: Increasing
    Relevance: High

Economic Factors

  • Consumer Demand for Frozen Desserts

    Description: There is a growing consumer demand for a variety of frozen desserts, driven by trends in health consciousness and indulgence. This includes a rise in popularity for premium and artisanal ice cream products, as well as healthier alternatives like sorbet and frozen yogurt.

    Impact: The increasing demand for diverse frozen dessert options presents significant growth opportunities for wholesalers. Companies that can effectively source and distribute trending products stand to gain market share. However, failure to adapt to changing consumer preferences may result in lost sales and reduced competitiveness.

    Trend Analysis: Over the past few years, the demand for frozen desserts has steadily increased, with projections indicating continued growth as consumers seek variety and quality. This trend is supported by a high level of certainty, driven by demographic shifts and evolving consumer tastes.

    Trend: Increasing
    Relevance: High
  • Economic Conditions and Consumer Spending

    Description: Economic conditions, including inflation rates and consumer spending power, directly impact the wholesale distribution of ice cream and frozen desserts. Economic downturns can lead to reduced discretionary spending, affecting sales of premium products.

    Impact: Economic fluctuations can create volatility in demand, impacting revenue and profitability for wholesalers. Companies may need to adjust pricing strategies and product offerings to maintain sales during downturns, which can lead to operational challenges and increased competition in the market.

    Trend Analysis: Economic conditions have shown variability, with recent inflationary pressures affecting consumer behavior. The trend is currently unstable, with predictions of potential recessionary impacts in the near future, leading to cautious consumer spending. The level of certainty regarding these predictions is medium, influenced by broader economic indicators.

    Trend: Decreasing
    Relevance: Medium

Social Factors

  • Health Trends and Dietary Preferences

    Description: The increasing health consciousness among consumers has led to a surge in demand for healthier frozen dessert options. This shift is particularly evident in younger demographics who prioritize low-calorie, low-sugar, and dairy-free alternatives in their purchasing decisions.

    Impact: This factor positively influences the wholesale distribution of frozen desserts, as companies that align their offerings with health trends can capture a larger market share. However, those that fail to adapt may struggle to maintain relevance in a competitive market, potentially losing customers to more health-focused brands.

    Trend Analysis: Health trends have been on the rise for several years, with a strong trajectory expected to continue. The certainty of this trend is high, driven by ongoing public health campaigns and increasing access to information about nutrition and wellness.

    Trend: Increasing
    Relevance: High
  • Sustainability and Ethical Sourcing

    Description: Consumers are increasingly concerned about sustainability and the ethical sourcing of ingredients, influencing their purchasing decisions in the frozen dessert market. This trend is prompting wholesalers to adopt more sustainable practices in sourcing and distribution.

    Impact: Adopting sustainable practices can enhance brand loyalty and attract environmentally conscious consumers. However, transitioning to sustainable sourcing may involve significant upfront costs and operational changes, which can be challenging for some distributors in the industry.

    Trend Analysis: The trend towards sustainability has been steadily increasing, with a high level of certainty regarding its future trajectory. This shift is supported by consumer preferences and regulatory pressures for more sustainable food production methods, making it essential for wholesalers to adapt accordingly.

    Trend: Increasing
    Relevance: High

Technological Factors

  • Advancements in Cold Chain Logistics

    Description: Technological advancements in cold chain logistics are crucial for the wholesale distribution of ice cream and frozen desserts. Innovations in refrigeration technology and transportation methods ensure product quality and safety during distribution.

    Impact: Investing in advanced cold chain logistics can lead to improved product quality and operational efficiency, allowing wholesalers to differentiate themselves in a competitive market. However, the initial investment can be substantial, posing a barrier for smaller operators who may struggle to maintain compliance with temperature control standards.

    Trend Analysis: The trend towards adopting new cold chain technologies has been growing, with many companies investing in modernization to stay competitive. The certainty of this trend is high, driven by consumer demand for higher quality and longer-lasting frozen products.

    Trend: Increasing
    Relevance: High
  • E-commerce and Online Distribution Channels

    Description: The rise of e-commerce has transformed how consumers purchase frozen desserts, with online sales channels becoming increasingly important. This shift has been accelerated by the COVID-19 pandemic, which changed shopping behaviors significantly.

    Impact: E-commerce presents both opportunities and challenges for the industry. Wholesalers that effectively leverage online platforms can reach a broader audience and increase sales. However, they must also navigate logistics and supply chain complexities associated with online sales, which can impact operational efficiency.

    Trend Analysis: The growth of e-commerce has shown a consistent upward trajectory, with predictions indicating continued expansion as more consumers prefer online shopping. The level of certainty regarding this trend is high, influenced by technological advancements and changing consumer habits.

    Trend: Increasing
    Relevance: High

Legal Factors

  • Labeling and Marketing Regulations

    Description: Labeling and marketing regulations govern how frozen desserts can be advertised and sold, ensuring that consumers receive accurate information about ingredients and nutritional content. Recent updates to these regulations have increased scrutiny on product claims and labeling accuracy.

    Impact: Compliance with labeling regulations is critical for maintaining consumer trust and avoiding legal repercussions. Non-compliance can lead to fines, product recalls, and damage to brand reputation, making it essential for wholesalers to ensure that their products meet all legal requirements.

    Trend Analysis: The trend towards stricter labeling and marketing regulations has been increasing, with a high level of certainty regarding their impact on the industry. This trend is driven by consumer advocacy for transparency and accountability in food marketing, necessitating careful compliance management from distributors.

    Trend: Increasing
    Relevance: High
  • Labor Laws and Workforce Regulations

    Description: Labor laws, including minimum wage regulations and worker safety requirements, significantly impact operational costs in the wholesale distribution of frozen desserts. Recent changes in labor laws in various states have raised compliance costs for distributors.

    Impact: Changes in labor laws can lead to increased operational costs, affecting profitability and pricing strategies. Companies may need to invest in workforce training and compliance measures to avoid legal issues, impacting overall operational efficiency and competitiveness.

    Trend Analysis: Labor laws have seen gradual changes, with a trend towards more stringent regulations expected to continue. The level of certainty regarding this trend is medium, influenced by political and social movements advocating for worker rights and fair labor practices.

    Trend: Increasing
    Relevance: Medium

Economical Factors

  • Climate Change and Its Impact on Ingredients

    Description: Climate change poses significant risks to the availability and quality of ingredients used in frozen desserts. Changes in temperature and precipitation patterns can affect the supply of dairy and fruit products, which are essential for many frozen dessert formulations.

    Impact: The effects of climate change can lead to reduced supply and increased costs for key ingredients, affecting pricing and availability of frozen desserts. Companies may need to invest in adaptive strategies and alternative sourcing to mitigate these risks, impacting long-term sustainability and operational planning.

    Trend Analysis: The trend of climate change impacts is increasing, with a high level of certainty regarding its effects on agriculture and food production. This trend is driven by scientific consensus and observable changes in weather patterns, necessitating proactive measures from industry stakeholders to ensure supply chain resilience.

    Trend: Increasing
    Relevance: High
  • Sustainable Packaging Initiatives

    Description: There is a growing emphasis on sustainable packaging within the frozen dessert industry, driven by consumer demand for environmentally friendly products. This includes the use of biodegradable and recyclable materials in packaging solutions.

    Impact: Adopting sustainable packaging practices can enhance product appeal and align with consumer values, potentially leading to increased sales. However, transitioning to sustainable packaging may require significant investment and changes in operational procedures, which can be challenging for some distributors.

    Trend Analysis: The trend towards sustainable packaging has been steadily increasing, with a high level of certainty regarding its future trajectory. This shift is supported by consumer preferences and regulatory pressures for more sustainable practices in the food industry, making it essential for wholesalers to adapt accordingly.

    Trend: Increasing
    Relevance: High

Value Chain Analysis for NAICS 424430-13

An in-depth look at the Ice Cream & Frozen Desserts-Distr (Wholesale) industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.

Value Chain Position

Category: Distributor
Value Stage: Final
Description: The industry operates as a distributor in the food supply chain, focusing on the wholesale distribution of ice cream and frozen desserts to various retail and food service establishments. This role is crucial for ensuring that these products reach consumers in optimal condition.

Upstream Industries

  • Dairy Product (except Dried or Canned) Merchant Wholesalers - NAICS 424430
    Importance: Critical
    Description: Distributors rely heavily on dairy product wholesalers for essential inputs such as ice cream mixes and other frozen dessert bases. These inputs are vital for maintaining product variety and quality, directly impacting the distributor's ability to meet customer demands.
  • Sugarcane Farming- NAICS 111930
    Importance: Important
    Description: Sugarcane farmers provide the necessary sugar used in ice cream and frozen desserts. The quality of sugar influences the sweetness and texture of the final products, making this relationship important for maintaining product standards.
  • Fruit and Tree Nut Combination Farming - NAICS 111336
    Importance: Supplementary
    Description: Fruits sourced from growers are often used as flavorings or inclusions in frozen desserts. The availability and quality of these fruits can enhance product offerings, contributing to the distributor's ability to provide diverse options to customers.

Downstream Industries

  • Full-Service Restaurants - NAICS 722511
    Importance: Critical
    Description: Restaurants utilize ice cream and frozen desserts as menu items or ingredients in various dishes. The quality and variety of products supplied directly influence customer satisfaction and dining experiences, making this relationship critical for the distributor.
  • Supermarkets and Other Grocery Retailers (except Convenience Retailers) - NAICS 445110
    Importance: Important
    Description: Supermarkets stock a wide range of ice cream and frozen desserts for retail sale. The distributor's ability to provide consistent supply and quality products is essential for maintaining shelf presence and meeting consumer demand.
  • Institutional Market
    Importance: Important
    Description: Institutions such as schools and hospitals often purchase ice cream and frozen desserts in bulk for their food service operations. The quality and nutritional standards of these products are critical for meeting institutional guidelines and customer expectations.

Primary Activities

Inbound Logistics: Receiving processes involve careful inspection of incoming products to ensure they meet quality standards. Storage practices include maintaining appropriate temperature controls in warehouses to preserve the integrity of frozen products. Quality control measures are implemented to monitor product freshness and compliance with safety regulations, while challenges such as supply chain disruptions are addressed through strategic inventory management.

Operations: Core processes include sorting, repackaging, and labeling products for distribution. Quality management practices involve regular audits and adherence to food safety standards to ensure that all products meet regulatory requirements. Industry-standard procedures include maintaining cold chain logistics to prevent thawing and spoilage during handling.

Outbound Logistics: Distribution methods typically involve refrigerated trucks to maintain product quality during transport. Common practices include route optimization to ensure timely deliveries while minimizing temperature fluctuations, which are crucial for preserving the quality of ice cream and frozen desserts during transit.

Marketing & Sales: Marketing approaches often include promotional campaigns targeting restaurants and grocery retailers, highlighting product quality and variety. Customer relationship practices focus on building long-term partnerships through reliable service and responsiveness to customer needs. Sales processes typically involve direct engagement with clients to understand their inventory needs and preferences.

Support Activities

Infrastructure: Management systems in the industry include inventory management software that tracks stock levels and product turnover. Organizational structures often consist of distribution centers that facilitate efficient logistics and operations. Planning systems are crucial for forecasting demand and managing supply chain activities effectively.

Human Resource Management: Workforce requirements include trained personnel for warehouse operations and logistics management. Development approaches may involve ongoing training in food safety standards and operational efficiency. Industry-specific skills include knowledge of cold chain logistics and inventory management practices.

Technology Development: Key technologies include temperature monitoring systems that ensure compliance with cold chain requirements. Innovation practices focus on adopting new logistics technologies to enhance efficiency and reduce waste. Industry-standard systems often involve automated inventory tracking to streamline operations and improve accuracy.

Procurement: Sourcing strategies involve establishing relationships with reliable suppliers for ice cream and frozen dessert products. Supplier relationship management is crucial for ensuring consistent quality and timely delivery, while purchasing practices often emphasize bulk buying to reduce costs.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through metrics such as order fulfillment rates and inventory turnover. Common efficiency measures include tracking delivery times and minimizing spoilage during storage and transport. Industry benchmarks are established based on best practices in cold chain logistics and distribution efficiency.

Integration Efficiency: Coordination methods involve regular communication between suppliers, distributors, and customers to ensure alignment on product availability and quality expectations. Communication systems often include digital platforms for real-time updates on inventory and order status, enhancing responsiveness.

Resource Utilization: Resource management practices focus on optimizing storage space and minimizing energy consumption in refrigeration. Optimization approaches may involve implementing energy-efficient technologies and practices to reduce operational costs while adhering to industry standards for sustainability.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include high-quality frozen desserts, efficient logistics, and strong relationships with both suppliers and customers. Critical success factors involve maintaining product quality and reliability in supply chains, which are essential for customer satisfaction.

Competitive Position: Sources of competitive advantage include the ability to offer a diverse range of high-quality products and efficient distribution capabilities. Industry positioning is influenced by market demand for frozen desserts and the distributor's ability to respond quickly to changing consumer preferences, impacting overall market dynamics.

Challenges & Opportunities: Current industry challenges include fluctuating ingredient prices, supply chain disruptions, and increasing competition from alternative dessert options. Future trends may involve growing demand for healthier frozen dessert options, presenting opportunities for distributors to expand their product lines and enhance market share.

SWOT Analysis for NAICS 424430-13 - Ice Cream & Frozen Desserts-Distr (Wholesale)

A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the Ice Cream & Frozen Desserts-Distr (Wholesale) industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.

Strengths

Industry Infrastructure and Resources: The industry benefits from a robust infrastructure that includes specialized distribution centers, refrigerated transport fleets, and established logistics networks. This strong infrastructure supports efficient operations and ensures timely delivery of products to retailers and food service establishments, which is crucial for maintaining product quality and customer satisfaction.

Technological Capabilities: Technological advancements in refrigeration, inventory management, and order processing provide significant advantages. The industry is characterized by a moderate level of innovation, with companies adopting advanced software systems for tracking inventory and optimizing delivery routes, which enhances operational efficiency and responsiveness to market demands.

Market Position: The industry holds a strong position within the broader food distribution sector, with a significant market share in the frozen desserts category. Brand recognition and established relationships with major retailers contribute to its competitive strength, although there is ongoing pressure from alternative dessert options and private label products.

Financial Health: Financial performance across the industry is generally strong, with many companies reporting stable revenue growth and healthy profit margins. The financial health is supported by consistent demand for frozen desserts, although fluctuations in raw material prices and transportation costs can impact profitability.

Supply Chain Advantages: The industry enjoys well-established supply chain networks that facilitate efficient procurement of frozen desserts from manufacturers. Strong relationships with suppliers and distributors enhance operational efficiency, allowing for timely delivery of products to market and reducing costs associated with spoilage and inventory management.

Workforce Expertise: The labor force in this industry is skilled and knowledgeable, with many workers having specialized training in logistics and food safety. This expertise contributes to high operational standards and compliance with health regulations, although there is a need for ongoing training to keep pace with technological advancements.

Weaknesses

Structural Inefficiencies: Some companies face structural inefficiencies due to outdated logistics systems or inadequate warehouse layouts, leading to increased operational costs. These inefficiencies can hinder competitiveness, particularly when compared to more modernized operations that leverage technology for better efficiency.

Cost Structures: The industry grapples with rising costs associated with transportation, labor, and compliance with food safety regulations. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies to maintain profitability.

Technology Gaps: While some companies are technologically advanced, others lag in adopting new logistics and inventory management technologies. This gap can result in lower productivity and higher operational costs, impacting overall competitiveness in the market.

Resource Limitations: The industry is vulnerable to fluctuations in the availability of raw materials, particularly dairy and other ingredients essential for frozen desserts. These resource limitations can disrupt production schedules and impact product availability, leading to potential revenue losses.

Regulatory Compliance Issues: Navigating the complex landscape of food safety regulations poses challenges for many companies. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage, affecting long-term viability.

Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Companies may face difficulties in gaining distribution agreements or meeting local regulatory requirements, limiting growth opportunities in new regions.

Opportunities

Market Growth Potential: There is significant potential for market growth driven by increasing consumer demand for premium and artisanal frozen desserts. The trend towards healthier options, such as low-sugar and dairy-free products, presents opportunities for companies to expand their offerings and capture new market segments.

Emerging Technologies: Advancements in freezing and packaging technologies offer opportunities for enhancing product quality and extending shelf life. These technologies can lead to increased efficiency and reduced waste, allowing companies to better meet consumer demands.

Economic Trends: Favorable economic conditions, including rising disposable incomes and a growing trend towards indulgent treats, support growth in the frozen desserts market. As consumers prioritize quality and unique flavors, demand for innovative frozen dessert options is expected to rise.

Regulatory Changes: Potential regulatory changes aimed at promoting healthier eating and reducing sugar consumption could benefit the industry. Companies that adapt to these changes by offering lower-sugar or fortified products may gain a competitive edge in the market.

Consumer Behavior Shifts: Shifts in consumer preferences towards natural and organic products create opportunities for growth. Companies that align their product offerings with these trends can attract a broader customer base and enhance brand loyalty.

Threats

Competitive Pressures: Intense competition from both domestic and international players poses a significant threat to market share. Companies must continuously innovate and differentiate their products to maintain a competitive edge in a crowded marketplace.

Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for frozen desserts. Companies must remain agile to adapt to these uncertainties and mitigate potential impacts on sales.

Regulatory Challenges: The potential for stricter regulations regarding food safety and labeling can pose challenges for the industry. Companies must invest in compliance measures to avoid penalties and ensure product safety, which can strain financial resources.

Technological Disruption: Emerging technologies in alternative desserts and plant-based products could disrupt the market for traditional frozen desserts. Companies need to monitor these trends closely and innovate to stay relevant in a rapidly changing landscape.

Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Companies must adopt sustainable practices to meet consumer expectations and regulatory requirements, which may require significant investment.

SWOT Summary

Strategic Position: The industry currently enjoys a strong market position, bolstered by robust consumer demand for frozen desserts. However, challenges such as rising costs and competitive pressures necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and product lines, provided that companies can navigate the complexities of regulatory compliance and supply chain management.

Key Interactions

  • The strong market position interacts with emerging technologies, as companies that leverage new freezing and packaging techniques can enhance product quality and competitiveness. This interaction is critical for maintaining market share and driving growth.
  • Financial health and cost structures are interconnected, as improved financial performance can enable investments in technology that reduce operational costs. This relationship is vital for long-term sustainability.
  • Consumer behavior shifts towards premium and healthier products create opportunities for market growth, influencing companies to innovate and diversify their product offerings. This interaction is high in strategic importance as it drives industry evolution.
  • Regulatory compliance issues can impact financial health, as non-compliance can lead to penalties that affect profitability. Companies must prioritize compliance to safeguard their financial stability.
  • Competitive pressures and market access barriers are interconnected, as strong competition can make it more challenging for new entrants to gain market share. This interaction highlights the need for strategic positioning and differentiation.
  • Supply chain advantages can mitigate resource limitations, as strong relationships with suppliers can ensure a steady flow of raw materials. This relationship is critical for maintaining operational efficiency.
  • Technological gaps can hinder market position, as companies that fail to innovate may lose competitive ground. Addressing these gaps is essential for sustaining industry relevance.

Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for premium and innovative frozen desserts. Key growth drivers include the rising popularity of healthier options, advancements in freezing technologies, and favorable economic conditions. Market expansion opportunities exist in both domestic and international markets, particularly as consumers seek out unique flavors and experiences. However, challenges such as resource limitations and regulatory compliance must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.

Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and supply chain vulnerabilities. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and regulatory landscapes. Effective risk management strategies, including diversification of suppliers and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.

Strategic Recommendations

  • Prioritize investment in advanced freezing and packaging technologies to enhance efficiency and product quality. This recommendation is critical due to the potential for significant cost savings and improved market competitiveness. Implementation complexity is moderate, requiring capital investment and training. A timeline of 1-2 years is suggested for initial investments, with ongoing evaluations for further advancements.
  • Develop a comprehensive sustainability strategy to address environmental concerns and meet consumer expectations. This initiative is of high priority as it can enhance brand reputation and compliance with regulations. Implementation complexity is high, necessitating collaboration across the supply chain. A timeline of 2-3 years is recommended for full integration.
  • Expand product lines to include healthier and innovative frozen dessert options in response to shifting consumer preferences. This recommendation is important for capturing new market segments and driving growth. Implementation complexity is moderate, involving market research and product development. A timeline of 1-2 years is suggested for initial product launches.
  • Enhance regulatory compliance measures to mitigate risks associated with non-compliance. This recommendation is crucial for maintaining financial health and avoiding penalties. Implementation complexity is manageable, requiring staff training and process adjustments. A timeline of 6-12 months is recommended for initial compliance audits.
  • Strengthen supply chain relationships to ensure stability in raw material availability. This recommendation is vital for mitigating risks related to resource limitations. Implementation complexity is low, focusing on communication and collaboration with suppliers. A timeline of 1 year is suggested for establishing stronger partnerships.

Geographic and Site Features Analysis for NAICS 424430-13

An exploration of how geographic and site-specific factors impact the operations of the Ice Cream & Frozen Desserts-Distr (Wholesale) industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.

Location: The operations thrive in regions with high population density and strong demand for frozen desserts, such as urban areas in California, New York, and Florida. These locations benefit from proximity to major retailers and food service establishments, facilitating efficient distribution. Regions with a robust cold chain logistics infrastructure, including access to refrigerated transport, enhance operational efficiency and product freshness, while also reducing delivery times to customers.

Topography: Flat and accessible terrains are ideal for distribution centers, allowing for the efficient movement of large trucks and minimizing transportation delays. Areas with easy access to highways and major roads, such as those found in the Midwest, support quick delivery routes to retailers. Conversely, mountainous regions may pose challenges for logistics due to difficult driving conditions and longer travel times, impacting the overall efficiency of operations.

Climate: The industry must adapt to varying climate conditions, as warmer regions can lead to increased demand for frozen desserts during hot seasons. However, high temperatures also necessitate robust refrigeration systems to maintain product quality during storage and transport. Seasonal fluctuations in demand require careful inventory management to ensure product availability while minimizing spoilage, particularly in areas with extreme weather patterns that can disrupt supply chains.

Vegetation: Vegetation management is crucial for maintaining operational efficiency, particularly in areas where natural vegetation may impact loading docks or storage facilities. Compliance with local environmental regulations regarding vegetation around distribution centers is essential to minimize contamination risks. Facilities often implement landscaping that supports local ecosystems while ensuring that operational areas remain clear of obstructions that could hinder logistics activities.

Zoning and Land Use: Operations typically require zoning classifications that permit wholesale distribution and food storage, with specific regulations governing the handling of perishable goods. Local land use regulations may dictate the proximity of distribution centers to residential areas, influencing site selection. Permits for food handling and storage are essential, and facilities must comply with health and safety standards that vary by region, impacting operational flexibility.

Infrastructure: Critical infrastructure includes access to reliable transportation networks, such as highways and railroads, which facilitate the movement of goods to various markets. Adequate refrigeration facilities are necessary to maintain product quality during storage and distribution. Additionally, utilities such as electricity and water must meet the demands of large-scale operations, while communication systems are essential for coordinating logistics and inventory management effectively.

Cultural and Historical: The acceptance of wholesale distribution operations often hinges on community perceptions of food safety and environmental impact. Historical ties to local agriculture can enhance community support for these operations, particularly in regions known for dairy production. However, as urban areas expand, there may be increased scrutiny regarding noise and traffic generated by distribution activities, necessitating proactive community engagement and transparency in operations.

In-Depth Marketing Analysis

A detailed overview of the Ice Cream & Frozen Desserts-Distr (Wholesale) industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Large

Description: This industry focuses on the wholesale distribution of ice cream and frozen desserts, including products like gelato, sorbet, and frozen yogurt, to various retail and food service establishments. Operations encompass sourcing, storage, and logistics to ensure timely delivery of frozen goods.

Market Stage: Mature. The industry is characterized by established distribution networks and stable demand patterns, with growth driven by consumer preferences for premium and innovative frozen dessert options.

Geographic Distribution: Regional. Distribution centers are strategically located near major urban areas to facilitate quick delivery to retailers and food service establishments, with significant concentrations in states with high population densities.

Characteristics

  • Temperature-Controlled Logistics: Operations require specialized refrigerated transportation and storage solutions to maintain product integrity, with strict adherence to temperature regulations throughout the supply chain.
  • Diverse Product Range: Distributors handle a wide variety of frozen desserts, necessitating flexible inventory management systems to accommodate seasonal and consumer demand fluctuations.
  • Bulk Distribution Practices: Daily operations involve selling products in bulk to retailers and food service providers, requiring efficient order processing and delivery scheduling to optimize logistics.
  • Supplier Relationships: Strong partnerships with manufacturers are crucial for securing high-quality products and ensuring consistent supply, often involving negotiated contracts and volume commitments.

Market Structure

Market Concentration: Moderately Concentrated. The market features a mix of large distributors with extensive networks and smaller regional players, leading to a competitive landscape where scale and efficiency are key.

Segments

  • Retail Distribution: This segment focuses on supplying grocery stores and convenience shops with packaged frozen desserts, requiring tailored marketing strategies and promotional support to drive sales.
  • Food Service Distribution: Distributors cater to restaurants and cafes, providing bulk products that require specialized handling and packaging to meet food service operational needs.
  • Specialty Product Distribution: This segment includes distributors specializing in premium or niche frozen desserts, often requiring unique sourcing strategies and marketing approaches to reach targeted consumer bases.

Distribution Channels

  • Direct Store Delivery (DSD): Utilizing company-owned refrigerated trucks, DSD ensures timely delivery of products directly to retail locations, enhancing freshness and reducing inventory holding costs.
  • Wholesale Distribution Networks: Partnerships with established wholesale networks facilitate broader market reach, allowing distributors to serve multiple retail and food service clients efficiently.

Success Factors

  • Efficient Cold Chain Management: Maintaining a reliable cold chain is essential for product quality and safety, requiring investment in temperature monitoring systems and trained personnel.
  • Strong Customer Relationships: Building and maintaining relationships with retailers and food service operators is critical for repeat business and understanding market needs.
  • Adaptability to Market Trends: Distributors must quickly respond to changing consumer preferences and seasonal trends, necessitating agile inventory and marketing strategies.

Demand Analysis

  • Buyer Behavior

    Types: Primary buyers include grocery chains, convenience stores, and food service operators, each with distinct ordering patterns and volume requirements that influence distribution strategies.

    Preferences: Buyers prioritize product quality, consistency, and reliable delivery schedules, with an increasing focus on sustainability and sourcing practices.
  • Seasonality

    Level: High
    Sales exhibit significant seasonal variation, with demand peaking in summer months, necessitating strategic planning for inventory and distribution during off-peak periods.

Demand Drivers

  • Consumer Preferences for Premium Products: Increasing demand for high-quality and artisanal frozen desserts drives distributors to source innovative products that align with consumer trends.
  • Seasonal Demand Fluctuations: Sales peak during warmer months, particularly in summer, requiring distributors to manage inventory levels and staffing accordingly to meet heightened demand.
  • Growth of Food Service Sector: The expansion of restaurants and cafes increases demand for bulk frozen desserts, prompting distributors to tailor offerings to the food service industry.

Competitive Landscape

  • Competition

    Level: High
    The industry experiences intense competition among distributors, driven by the need for efficient logistics, product variety, and customer service excellence.

Entry Barriers

  • Capital Investment: New entrants face substantial initial costs for refrigerated storage and transportation infrastructure, which can be a significant barrier to entry.
  • Established Relationships: Existing distributors often have long-standing relationships with retailers and food service providers, making it challenging for newcomers to penetrate the market.
  • Regulatory Compliance: Adhering to food safety regulations and maintaining certifications can be complex and costly for new operators.

Business Models

  • Full-Service Distributor: These operators manage the entire supply chain from sourcing to delivery, providing a comprehensive service to clients that includes marketing support.
  • Niche Distributor: Focusing on specialty or premium products, these distributors cater to specific market segments, often requiring unique sourcing and marketing strategies.

Operating Environment

  • Regulatory

    Level: High
    Distributors must comply with stringent food safety regulations, including regular inspections and certifications, to ensure product safety and quality.
  • Technology

    Level: Moderate
    Utilization of inventory management systems and temperature monitoring technology is essential for maintaining product quality and optimizing logistics.
  • Capital

    Level: Moderate
    While capital requirements are significant, especially for refrigerated logistics, ongoing operational costs are manageable with efficient practices.

NAICS Code 424430-13 - Ice Cream & Frozen Desserts-Distr (Wholesale)

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