Thethreat of product substitutes becomes high when outside industries createproducts at a lower cost with similar benefits. This threat increases theamount of competition within industries. Available substitute products includesodas, yogurts, chocolates and other sweet treats. These substitutes may servethe same purpose to the consumer which is the indulgence and intake of a sugarysubstance. In 2000, theproduction of ice cream declined 3.

5% from the year before compared to the23-25% increase in competing products. Overall, the threat of productsubstitutes is considered to be medium-high in regard to the ice creamindustry. The ability to purchase items at a lower price that essentiallyprovide the same amount of benefits is the reason for higher competition. 

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