Introduction Canada’s Ice Cream Industry 4.0
This article is focused on Pestle analysis Ice cream industry Canada with conceptual overview of industry 4.0. Industry 4.0 is the concept that is changing how the organisations compete in gaining their desired market share. The competitive nature of todays world is driving the Ice cream industry to become competitive. The technology use within the industry is most primarily targeted towards the concept of reducing the energy usage. It is a great challenge for the organisations to reduce the amount of energy utilised in production.
The lean concepts also guide organisations to reduce waste, in order to truly become an industry 4.0 Ice cream industry has to significantly reduce the waste and answer lies in application of technology. Ice-cream production requires a lot of energy as ideal temperatures are to be effectively maintained.The article will explore technological factors that are impacting the industry and converting industry towards achieving truly 4.0 standards. The article is more focused on Canadian Industry however, can be generalised worldwide. To further authenticate the analysis the article will also present brief overview of other critical factors that shape the industry by conducting PESTLE Analysis.
Ice-cream Industry Canada: PESTLE Analysis
The industry has produced total revenue of $790 million according to industry statistics posted by IBIS world. The number of businesses operating in Canadian Ice cream Industry are 160 with an annual growth rate of 1.3%. Furthermore, the industry in Canada is employing 2503 individuals with a sharply growing trend in employment. The key industry dynamics are changing technology and impacts of transitioning industry 4.0. The biggest challenge faced by the industry is minimising the use of energy and optimising the cost to battle the changing preferences of consumers.
Consumer Behaviour Ice Cream Industry Canada
You can’t buy wishes, but you can buy ice cream. Something delightful that came into this world and stayed here forever. Of course, all of us love the richness of ice creams which have made us delve into the flavour. Food! So diversely blessing the people and each day on is earth spinning into delicious revolutions. Ice cream is so common all over the world and so is in the United Kingdom. Canadians who are full of insight are helpless to resist the goodness of ice cream. The ice cream industry is also flourishing there like everywhere. For strong strategic planning and intense stability of the industry, we analysed the ice cream industry of Canada. This was done to evaluate the external factors which could or which would influence any business. Let’s have a look at how the given factors alter the performance of the ice cream industry of Canada where the sun is shining brighter and the weather is becoming warmer.
PESTLE Analysis Ice Cream Industry Canada
Political Factors: Pestle Analysis Ice Cream Industry Canada
The ice cream industry though existing for decades was quite vivid in the previous era but from the last five years, it has greatly improved in Canada. Initially, there wasn’t enough awareness about good health but now it is the only focus of the food industry. Public health policies are continuously being devised in the UK creating a better awareness in people. Recently, Health Menu Choices Act came up with a demand from food makers to mention the caloric content of food items in their menu. When people would get to know about their caloric intake they would probably refrain from excessive calories.
This could affect the purchase of food products and so for the ice cream. The Canadian ice cream industry is asked to open up, which might attract criticism if people find something unlikely to their wishes. The political environment can affect the industry. There may be a change in the previously made policies by giving a jerk of taxation or inflation. The ice cream industry of Canada needs strategic planning along with some funds to deal with taxation and inflation.
Moreover, import and export policies of the country will influence the ice cream industry. Canada is focused to capitalise on emerging opportunities abroad and is engaged in trade. This marks the significance of the best quality products that are of export quality. There is a need for recognition of enforcing industry 4.0 standards within Canadian Ice cream industry.
The businesses are pursuing the cause to reduce the cost and negative consequences on the society however, more serious business case needs to created on the political front to support the efforts of businesses when they make an effort towards obtaining industry 4.0 standards. The political support can come out in specific way to guide businesses to invest in a conscious manner. The laws must be made to ensure incentivising the transition towards industry 4.0 within ice cream industry.
Economic Factors: Pestle Analysis Ice Cream Industry Canada
The Canadian economy is growing but at a slow rate. This year the increase would only be 1.4%. Apart from this, the highest number of people will be engaged in jobs and wage growth will occur. The business is not being seen so progressing which inflicts a pessimistic approach to the ice cream industry. Employment rates will increase which requires greater input from the ice cream industry. Inflation is the target yet in Canada and to overcome its adversity global development is idealised. This would make business investments weaker.
So the ice cream industry of Canada has to see ways to avail profit from the business. But this is a good time to do it. Yet the market is strong because the purchase of ice cream has improved. The annual growth rate of the ice cream industry is about 3.5%. The ice cream production of Canada constitutes not only hard and soft ice cream but frozen yogurt, sherbet, and frozen ice.
Since the past few decades, it’s been observed that domestic production and consumption of ice cream has been declined. But the devoted engagements of industrialists are aiding to pacify the ice cream industry for the last five years. A little bit expensive ice creams are available in the market but still, they are attracting customers because the quality of ingredients is justified and in this way, the price is compensated.
Social Factors Canada is a country with large land. Some of its regions are sparsely populated while densely populated areas are Toronto, Vancouver, Montreal, Calgary, Ottawa, and Edmonton.
The population increase in Canada has been observed several times. The main reason for such an increase includes migration. The north of Canada is not arable so the Southern part is well inhabited. According to a recent analysis of the Canadian population, about 16% reside in the age group of 0-14 years. 67% are 15-64 years while the rest is above. Canada has a diverse population with unique characteristics. There are people with enriched cultures. Proper health care is being given to the people in Canada, most probably known as medicare where everyone is issued a card. The population is shifting towards more retirees so the costs are increasing.
So for the ice cream industry of Canada, it is necessary to have economic options to deal with the increased costs. However, increased market demand and customer circle will be seen as the people their yet mostly belong to age less than 64, and ice cream is a pacifying part of life when the individual is from this particular age group. People now have more awareness related to health issues and are showing an increased concern.
Moreover, they have ideas of innovation, new trends, new flavours, and new ingredients churned together which will help them eat more ice cream. To reduce the caloric intake keto diet has become a trend where calories are kept a minimum. Sugar is replaced with other sweetening agents. Altered recipes need more expertise and costs which should be keenly observed by the ice cream industry.
Technological Factors: Pestle Analysis Ice Cream Industry Canada
Canadian ice cream industry has shown impressive improvement and the credit goes to the advanced technology used now. Improved technology helps to confront the competition. Improved technological processing helps to attain better internal processes. New process technologies include low-temperature extrusions, ultra high-pressure homogenization, use of cryogenics, and pre-aeration technologies which are abundantly being used in the ice cream industry of Canada. This is really helpful for the industry to deliver the best quality ice cream with a perfectly smooth texture and suitable stiffness. The ice cream industry should come up with the aim of improved product properties. This is the best thing any industry could opt for if it wants to attract a wide range of customers along with their satisfaction. The problem which an ice cream industry might face is the high costs of this electronic equipment. Their maintenance also demands some additional charges which should be settled. Qualified workers will help to avoid any such issues. By the use of technology better sealing and packaging can be done. This matters a lot especially when you are dealing with a food product. So in an ice cream industry, the use of technology inserts ease of processes and improved product qualities along with a customer crowd who are satisfied by the safest quality products delivered.
Environmental Factors: Pestle Analysis Ice Cream Industry Canada
There are some aspects related to the industry which are actually uncontrollable. Environmental factors do impact the industry either positively or negatively but becoming authorized to control them is quite impossible. It means that the favor of environmental factors is just destiny, and if the odds are going against, it’s nothing but fate. In the ice cream industry weather has a great influence on the business. The climate of Canada is varying in different regions.
It faces hot showers of sun and as well as the snow falls whereas the spring is pleasant. The climatic conditions there are known so for the ice cream business it’s quite possible to assess the future. As the winter prevails the ice cream sale is affected so the entrepreneurs must know how to maintain their business goals. If the atmosphere is enjoyable customers can get more value from the cost they pay. The industry can attain customer attraction by offering new ice cream trends.
Vegan and keto diet based ice creams can give a spark. Customers will love to get these best-suited trends. All that is needed is anticipation and wise decisions. For instance, a company can’t control the weather conditions of a region but it can mold its production according to the demands of surroundings. Moreover, ways must be opted to expand the business with minimum damage to natural resources.
Legal Factors: Pestle Analysis Ice Cream Industry Canada
Clean and healthy food is the right of every living being. According to the Safe Food for Canadians Act (SFCA) many food businesses need a license to run their business but there are some exemptions. So an ice cream business must be aware of all laws applied to it. If the business is expanded to other provinces then it should be licensed. If there is a need to import any food additives then there is no need for a license. If an industry is ready to export its products then it must ensure the quality of manufacturing, processes, preservation, packaging, and labelling. All of these must be up to the SFCA standards.
The ice cream industry of Canada should keenly observe the instructions given by SFCA. It must know how to gain a maximum profit with massive customer satisfaction yet delivering the best quality. The Canadian government is concerned with the health of citizens so it continuously guides them through different means. Canada Food Guide Consultation Report (phase-II) was published in 2018 which is to inform the people about the food they should opt for.