International Flavors & Fragrances is tapping into both technologies in “one synergistic blend” to reduce milk use in ice cream. Furthermore, reducing the amount of milk reduces the carbon footprint of ingredients used by up to 30% while maintaining the same taste, as consumers “cannot taste or feel any difference” between standard ice cream and the milk-reduced recipe, according to the business.

“This is the core of the value proposition to manufacturers: that they can produce their products at a lower price, with reduced carbon footprint and still give consumers the same experience,” says Stephane Dessart, global product marketing leader at IFF.

The company is launching its Cremodan Greenpro 101 Modulator Enhanced System solution in Europe, the Middle East, Africa, Turkey and India.

Inflationary pressures?
IFF’s solution will allow ice cream manufacturers to reduce milk and fat costs, two key ingredients that can represent over 40% of ice cream production costs.

Dairy commodity prices are down 0.8% from March and 10.7% from a year ago, according to the Food and Agriculture Organization of the UN (FAO). Furthermore, FAO’s skimmed milk and milk powders index are down 58% and 42%, respectively. 

However, in some regions like the EU, milk inflation remains at historically high levels. The average raw milk price in EU nations was up 25% in February from one year earlier, with three countries experiencing over 50% inflation – Spain (60%), Portugal (59%) and Hungary (51%), according to the European Commission. 

EU farmers have been hard hit with higher feed costs due to less availability (war in Ukraine), higher energy costs and also significantly higher costs on fertilizers.

“Our modulator-enhanced system is a direct response to manufacturers who want to continue making high-quality products at a more affordable price,” Dessart explains.

“Milk and fat are key to the indulgent taste and texture that drive ice cream sales,” he continues.

Unmelting demand for dairy ice cream
According to Innova Market Insights, the NPD of dairy-based ice cream and frozen yogurt is in a static trend, with minimal changes during the most recent period analyzed. NPD launches as a percentage of the total desserts and ice cream category being up from 46.4% (2007) to 47.9% (2022), showing that dairy ice cream is not losing terrain against non-dairy. 

The CAGR for ice cream NPD was 3.6% between July 2019 and June 2022.