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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 projected to grow at a CAGR of around 13.49% during the forecast period,
i.e., 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.
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.
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:
In 2021, Baskin Robbins launched their third vegan ice cream flavor, Raspberry Sorbet, after
receiving a positive response for their earlier launched vegan ice cream flavors, Mississippi Mud
& Alphonso Mango.
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:
Based on Format:
Cup
Stick
Cone
Brick
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.
Grocery Retailers
Hypermarkets/Supermarkets
Online
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
North
South
West
East
North East
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.
2022: Vadilal launched a gourmet natural product line with five flavors: Gulab Jamun, Alphonso
Mango, Kesar Pista, Classic Malai, and Falooda, and two flavors in kulfi: Badam Pista Kesar &
Rajwadi, broadening its range of ice creams flavor offerings.
2022: Amul, introduced ice cream Isabcool which was formed with Isabgol, cashew, and fig
enticing customers looking for new flavors & healthy ice creams.
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:
The introduction of Get-A-Whey ice creams in offline retail stores in 2019 provided healthy ice
cream for the health-conscious customer segment of India.
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:
Habbit Health and Nutrition launched zero-sugar, low-fat, and low-calorie ice creams in 2021 to
cater to the health-conscious customers of India.
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.
1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers,
Segmentation, Shares) of the India Ice Cream Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the
India Ice Cream Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in
the India Ice Cream Market based on the competitive landscape?
5. What are the key results derived from surveys conducted during the India Ice Cream Market
study?
1. Market Segmentation
2. Introduction
2. Product Definition
2. Research Process
2. Assumptions
3. Executive Summary
9. Growth Drivers
9. Challenges
9. Impact Analysis
1. By Type
2. By Flavor
1. Chocolate
2. Mango
3. Vanilla
4. Strawberry
5. Butterscotch
6. Others
3. By Format
1. Cup
2. Stick
3. Cone
4. Brick
4. By Sales Channel
1. Grocery Retailers
2. Hypermarkets/Supermarkets
3. Convenience Stores
7. Online
5. By Region
1. North
2. South
3. West
4. East
5. North-East
6. By Competitors
1. Competition Characteristics
1. By Type
2. By Flavor
1. Chocolate
2. Vanilla
3. Fruits
1. By Type
2. By Flavor
1. Chocolate
2. Vanilla
3. Fruits
1. By Type
2. By Flavor
1. Chocolate
2. Vanilla
3. Fruits
1. By Type
2. By Flavor
1. Chocolate
2. Vanilla
3. Fruits
1. By Type
2. By Flavor
1. Chocolate
2. Vanilla
3. Fruits
17. India Ice Cream Market Key Strategic Imperatives for Success & Growth
2. Target Markets
5. Strategic Alliances
6. Strategic Initiatives
3. Creambell
4. Hatsun Agro Products Ltd
9. Baskin Robbins
10. Dinshaw’s
11. Giani
13. Natural’s
14. Nirula’s
Source:
https://www.marknteladvisors.com/research-library/india-ice-cream-market.html