Market Definition
Ice cream is a frozen treat made from milk, cream, sugar, and occasionally other ingredients. In addition to milk or cream, ice cream frequently contains stabilizers such as gluten to help keep the mixture's texture consistent. Since refrigeration has become widespread, this treat has only recently become more widely available. In recent years, frozen custard, frozen yogurt, and even non-dairy ice cream versions have gained popularity as a result of ice cream's surge in popularity. Moreover, the Indian ice cream market is expected to grow rapidly in the coming years due to its increasing popularity.
Market Insights
The India Ice Cream Market is valued above USD 3 Billion in 2023 and is further projected to grow at a CAGR of 13.49% during 2023-28. The market is fueled by factors such as rising average mean temperatures, long summers and heat waves, and western & modern lifestyles. The key reason for the expected increase in ice cream sales in the forecasting period is the heat waves that swept the country during the summer months when consumers resorted to ice cream for relief from the high temperatures. According to the Indian Meteorological Department (IMD), the average monthly temperature in March 2022 was 33.1°C, the highest in the previous 122 years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 13.49% |
| Region Covered | North, South, West, East, North-East |
| Key Companies Profiled | Gujrat Co-operative Milk Marketing Federation Ltd, Hindustan Unilever Ltd, Devyani Food Industries Pvt Ltd, Hatsun Agro Products Ltd, Mother Dairy Fruit & Vegetable Pvt Ltd, Vadilal Industries Ltd, Haymor Food Pvt Ltd, Dairy Classic Ice Cream Pvt Ltd, Punjab State Cooperative Milk Producers Federation Ltd. |
| Unit Denominations | USD Million/Billion |
Along with this, the booming E-commerce, as well as the rapid emergence of Q-commerce in India, has significantly aided the growth of the ice cream market. Customers benefit from efficient q-commerce because they can now buy ice cream at the touch of a button. Besides, the outbreak of the COVID-19 pandemic in 2020 also steadily increased the consumption of ice creams via e-commerce among customers, as the lockdown restrictions imposed by the government had inclined the customers to opt for online sales channels due to the unavailability of offline stores.
Moreover, the easy manufacturing process of simple ice creams has facilitated the unorganized sector to grow in rural & remote areas of India. Furthermore, the unorganized sector has grown in recent years, leading to increased ice cream sales in rural areas due to factors such as taste preferences, ease of manufacturing, and affordability of raw materials. The consumers of rural regions prefer flavors like kulfi & kalakand, which are simple to make with the right amount of milk, sugar, and dry fruits.
Nevertheless, the raw materials, such as milk & sugar, are plentiful & inexpensive to the manufacturers. Ice cream manufacturing is a simple process that does not require heavy machinery or a large production line, making it an ideal choice for a regional business. Furthermore, exotic flavors of ice cream, including tropical fruits, Belgian chocolate, betel leaf, and more, have been introduced by the country's leading ice cream brands, including Giani, Natural's, Keventers, Kwality Wall's, etc., attracting consumers, which in turn has resulted in increased ice cream sales.
Along with this, rising disposable income and a shift in the country's lifestyle have resulted in significant sales of high-priced ice creams, and this is expected to continue in the coming years. As a result of the ice cream manufacturers' ongoing efforts to launch ice creams in a variety of flavors, the diversification of q-commerce in India, and the growth of the unorganized sector, is expected to boost the growth of the India Ice Cream market during the forecast period.
Key Trend in the Market
Veganism is a growing trend in the Indian ice cream market, with various brands promoting the sale of vegan ice creams to encourage veganism. Growing environmental awareness supports the cause of going vegan, as the meat industry is one of the biggest reasons for environmental degradation. Moreover, customers are also going vegan to protect animals.
Consequently, due to the rising demand for vegan foods, many startups, such as WhiteCub, Minus 30, etc., have been established to produce vegan ice creams. Furthermore, renowned brands have also been indulging in the production of vegan ice creams. For instance:
Therefore, the above reasons have led customers to shift towards the consumption of vegan ice creams instead of conventional ice creams.
Market Segmentation
Based on Type:
Amongst all, Impulse Ice Cream grabbed a considerable share of the India Ice Cream market over the historical period. The innovative broad range of impulse ice creams experienced substantial sales due to the preferences and choices of customers to purchase water-based, ready-to-consume frozen treats, such as chocolate-coated ice creams and ice cream tubes, during the summer season. India has always been known for its intensive hot climatic conditions from March to July. However, the country has observed a trend of consuming impulse ice creams throughout the year, which is expected to support impulse ice cream sales in the forecast years as well.
Based on Format:
Of them, the Stick & Cup format of ice cream held the major market share in the past years as they are easily available even in remote places of India. This is due to the reason that their sales are being majorly done via ice carts. Additionally, stick & cup-format ice cream remains a popular choice for customers of all ages, including the under-18 generations.
In addition, several key players, including Amul, Kwality Wall's, and others, have launched new flavored ice cream products in stick & cup formats at competitive prices, acknowledging that urban consumers are seeking innovative tastes as well as convenience. Thus, growing customer preferences for hybrid flavored ice creams in stick & cone format are expected to drive the India Ice Cream market during the forecast period.
Based on Sales Channel:
Here, Ice Cream Carts dominated the India Ice Cream market during the past period, owing to the factors such as convenience & easy availability, even in the remote sectors of India. The majority of ice cream demand is impulsive, which is met by access to ice cream carts. As a result of their ability to meet the demand for impulse ice creams, ice cream carts are projected to hold a substantial market share.
Meanwhile, supermarkets & hypermarkets, which have recently gained a significant market share, cater to the bulk needs of the urban population, who buy ice cream in tubs & bricks. In addition, hypermarkets & supermarkets have begun to offer other types of ice cream in recent years. Supermarkets & hypermarkets are expected to gain a sizable market share in the coming years as a result of changing lifestyles and rapid urbanization.
Regional Landscape
Geographically, the India Ice Cream market expands across:
In recent years, the India Ice Cream market has been evenly distributed across the country. Despite this, the western region of India has a slightly higher market share than the rest of the regions due to a favorable combination of several factors such as population, climate, per capita income, logistics, and ongoing urbanization in states such as Gujarat & Maharashtra.
Recent Developments by Leading Companies
Market Dynamics:
Key Driver: Growing Developments in Quick Commerce & E-commerce to Drive the Ice Cream Market
Quick commerce and e-commerce have evolved in recent years, allowing customers to consume ice cream in the comfort of their own homes with just a few taps on their smartphones. This ease of use increased ice cream consumption at home. Furthermore, the pandemic influenced customers' consumption of comfort foods such as candy and ice cream. Due to limited mobility and the closure of out-of-home channels, the pandemic also increased ice cream sales via e-commerce. Even after the lockdown was lifted, the habit persisted due to the ease of access and the wide variety of products available online.
The growth of e-commerce is primarily driven by quick commerce, mainly due to the perishable nature of this product. There is huge potential for ice creams, as the per capita consumption of the same is low compared with other countries like the US & UK. Quick commerce opens up the opportunity to push the at-home consumption of ice cream.
Furthermore, established brands in India have partnered with quick commerce service providers such as Swiggy, Zomato, Dunzo, and Blinkit. While out-of-home consumption has seen an uptick due to the increase in mobility as restrictions ease, the improving quick commerce provides an avenue for manufacturers to also increase at-home consumption.
Possible Restraint: High Capital Requirement for Cold-chain & Transportation Structure
Ice cream is served cold, which poses challenges for brands during ice cream sales. Ice cream requires a temperature range of -18° to -20° to maintain its form, taste, solidity, and texture. Efficient cold-chain management is still lacking in the country, causing branded ice cream companies to lose sales opportunities in areas far from their production center. Furthermore, the problem worsens during the monsoon season, when India's roads & traffic conditions deteriorate, causing accidents & delays in the shipping & delivery of ice creams. Therefore, the lack of efficient cold-chain infrastructure presents a hurdle for ice cream brands.
Growth Opportunity: Nutrition-rich Ice Cream Sales to Raise in the Upcoming Years
Customers are becoming more aware of health issues, leading to a trend toward healthier ice creams, which gives ice cream makers the opportunity to boost the production of products with health benefits, such as protein-rich ice creams, vitamin-rich ice creams, etc. For instance:
Moreover, the diversifying portfolio of sugar-free ice creams is catering to the demand for ice creams among diabetic customers. According to International Diabetes Federation, in 2021, India homed around 77 million diabetics. Therefore, sugar-free ice creams have a noteworthy market in India. For instance:
Consequently, with the ongoing nutritious developments in ice creams, the ice cream industry would be able to fulfill the demand of a large segment of Indian Customers.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The growth rate or CAGR of the India Ice Cream Market during 2023-28 is 13.49%..
A. Impulse Ice Cream is the leading type of ice cream in the India Ice Cream Market during 2023-28.
A. The growing developments in quick commerce and e-commerce is expected to drive the India Ice Cream market during 2023-28.
A. The top players in the India Ice Cream Market in 2022 were Gujrat Co-operative Milk Marketing Federation Ltd, Hindustan Unilever Ltd, Devyani Food Industries Pvt Ltd, Hatsun Agro Products Ltd, Mother Dairy Fruit & Vegetable Pvt Ltd, Vadilal Industries Ltd, Lotte India Corporation Limited, Dairy Classic Ice Creams Pvt Ltd, Baskin Robbins, Dinshaw’s, Giani, Haagen- Dazs, Natural’s, Nirula’s, Top’N Town, and Treat Ice Cream.
A. The rise in demand for vegan ice creams has spurred the market of ice cream in the Indian market.
A. The high capital requirement for an efficient cold chain & transportation structure hampers the growth of ice cream brands.
