Summer ice cream demand drives cream demand higher
As peak ice cream season begins, rising production and strong consumer demand are boosting cream and butterfat usage—offering potential price support for dairy producers
29 June 2026
2 minute read
By: With summer underway, America’s favorite frozen treat is once again taking center stage. That’s especially true in Le Mars, Iowa, known as the "Ice Cream Capital of the World". The city produces more ice cream by a single company—Wells Enterprises (makers of Blue Bunny)—than any other city in the world From classic chocolate scoops to creative new flavors featuring brownies, churros and even trendy Dubai chocolate, ice cream remains a beloved staple for millions of consumers — and an important driver of the US dairy economy.
According to recent dairy production data, US regular ice cream production reached 176.7 million gallons during the first quarter of 2026, up 1.6 percent from the same period a year earlier. Low-fat ice cream production, however, slipped 1.7 percent to 49.4 million gallons, signaling that many consumers continue to favor richer, more indulgent products.
The enduring popularity of ice cream was reinforced in the 2026 National Ice Cream Survey conducted by the International Dairy Foods Association and Morning Consult. The survey found that 97 percent of Americans either like or love ice cream. Chocolate ranked as the nation’s favorite flavor this year, followed by butter pecan and vanilla, while hot fudge claimed the title of favorite topping among 31 percent of respondents. Flavor remained the top reason consumers choose one ice cream product over another, even ahead of price.
The industry continues to evolve as manufacturers compete for attention in grocery store freezers. Soft-serve ice cream sold in tubs for home use is gaining popularity, while ice cream makers are increasingly incorporating baked goods such as pound cake, brownies and churros into frozen desserts. Health-conscious consumers are also driving demand for higher-protein and lower-fat options.
Ice cream’s influence extends far beyond the dessert aisle. Because ice cream relies heavily on cream and butterfat, strong summer demand can significantly impact dairy markets nationwide. Ice cream typically contains 10-16 percent butterfat, requiring manufacturers to purchase large amounts of cream during peak production months.
That seasonal demand often pushes cream prices higher, especially during the summer when milk production from dairy cows can decline due to heat stress. The resulting supply squeeze can raise costs not only for ice cream producers, but also for butter makers, bakeries and other food manufacturers that rely on cream.
The connection between ice cream and dairy pricing is also reflected in federal milk pricing formulas. Under the US Federal Milk Marketing Order system, milk used for butter and ice cream falls into the same pricing category, meaning stronger ice cream demand can help boost milk values across the dairy supply chain.
Even so, dairy farmers receive only a modest share of the retail price consumers pay for premium frozen desserts. According to USDA farm-share estimates, farmers received about 19 percent of the retail price of ice cream in 2024, compared to roughly 57 percent for butter. The difference reflects the additional costs associated with processing, flavoring, packaging, marketing and distributing ice cream products.
Meanwhile, global dairy demand is also showing renewed strength. At the latest Global Dairy Trade auction, milk powder prices increased again, helping lift the overall index by 0.6 percent for the second consecutive gain. Combined with strong summer ice cream demand, those trends could help support cream and butter markets heading into late summer.
For consumers, that means the innovative flavors and frozen treats to enjoy this summer may come at a higher cost — remember that every scoop also plays a role in supporting America’s dairy industry.
