The India ice cream market, valued at approximately USD 3.46 billion in 2023, is set to experience substantial growth, with projections indicating a compound annual growth rate (CAGR) of 15% from 2024 to 2032. This growth trajectory is expected to elevate the market’s value to around USD 12.17 billion by 2032.
Production and Consumption
India’s robust dairy industry, which produced 230.58 million tonnes of milk in 2022-23, forms the backbone of the ice cream sector. This abundant milk supply ensures a steady production of ice cream, catering to the increasing demand.
Industry Investments and Innovations
Major players are making significant investments to expand their operations and enhance their product offerings. For instance, Havmor, owned by Lotte Confectionery, plans to invest Rs 450 crore over five years starting in 2023 to increase its production capacity. Similarly, Hindustan Unilever has reported that Quick Commerce accounted for over 10% of their ice cream business in 2023, indicating a shift towards faster delivery models.
Market Dynamics
Growth Drivers
- Innovative Products: Manufacturers are continuously innovating with diverse toppings, mixings, and unique flavours to appeal to a broader consumer base. The rise in demand for artisanal ice cream reflects a shift towards high-quality, unique desserts crafted with premium ingredients and traditional techniques.
- Rising Disposable Incomes: Increased disposable incomes empower consumers to spend more on luxury items like premium ice creams, driving market growth.
- Health-Conscious Offerings: With a growing emphasis on health and wellness, consumers are seeking healthier ice cream options, including low-sugar, low-fat, dairy-free, and vegan variants. This trend is prompting companies to innovate and offer healthier alternatives.
- Distribution Channels: The accessibility of ice cream through various distribution channels, including supermarkets, convenience stores, and online platforms, has significantly contributed to market growth.
Trends and Developments
- Premium and Exotic Flavours: Indian consumers are moving beyond traditional flavours like vanilla and chocolate, showing a preference for exotic and innovative flavours such as salted caramel, matcha, and tiramisu. This trend drives innovation and premiumization in the market.
- Cold Chain Logistics: Advances in cold chain logistics and temperature-controlled storage are essential for maintaining ice cream quality. Improved distribution networks enable ice cream to reach both urban and rural areas, aiding market expansion.
- Artisanal Ice Cream: The demand for artisanal ice cream, made with high-quality natural ingredients and offering unique flavours, is on the rise. This segment caters to premium consumers and those seeking healthier, organic options.
Key Market Segments
- By Type:
- Impulse Ice Cream
- Take-Home Ice Cream
- Artisanal Ice Cream
- By Flavour:
- Chocolate
- Fruit
- Vanilla
- Others
- By Packaging Type:
- Cup
- Stick
- Cone
- Brick
- Others
- By End Use:
- Retail
- Institutional and HoReCa (Hotel, Restaurant, and Catering)
- By Distribution Channel:
- Ice Cream Parlours
- Supermarkets and Hypermarkets
- Convenience Stores
- Online
- Direct Selling
- By Region:
- North India
- East and Central India
- West India
- South India
Regional Analysis
North India
The northern states, including Delhi, Punjab, Haryana, Uttar Pradesh, and Rajasthan, experience intense summers, leading to increased ice cream consumption. The higher concentration of ice cream parlours and retail outlets in urban areas further boosts sales.
South India
In states like Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Kerala, where the climate is consistently warm, there is a year-round demand for ice cream. Traditional desserts like kulfi remain popular, complementing the market share of regular ice cream products.
West India
Maharashtra and Gujarat are key regions, with cities like Mumbai, Pune, and Ahmedabad being major consumption centres. The urban population’s purchasing power and preference for premium ice cream varieties drive sales.
East and Central India
States such as West Bengal, Odisha, Bihar, and Jharkhand are witnessing increased ice cream consumption due to growing urban populations and rising incomes. However, market size may be smaller due to limited organised retail penetration and lower per capita income.
Market Leaders
The Indian ice cream market is highly competitive, with key players including:
- Gujarat Co-operative Milk Marketing Federation Ltd (Amul): The largest milk cooperative in India, renowned for its dairy products.
- Vadilal Industries Ltd: Specializes in the production of ice cream and frozen desserts.
- Mother Dairy Fruit & Vegetable Pvt Ltd: Offers a wide range of dairy products and frozen desserts.
- Hindustan Unilever Limited: One of India’s largest consumer goods companies, manufacturing a diverse range of household and personal care products.
Other notable players include Devyani Food Industries Ltd, Graviss Foods Pvt Ltd, Dinshaws Dairy Foods Pvt. Ltd, Havmor Ice Cream Pvt Ltd, Ramani Icecream Company Limited, Dairy Classic Ice Creams Pvt. Ltd., and General Mills Inc.
Recent Developments
- April 12, 2024: Havmor launched new flavours to cater to evolving tastes.
- February 17, 2024: NIC Honestly Crafted Ice Creams introduced NIC Waffle Cones.
- January 12, 2024: DFIL unveiled INFINO, a premium ice cream brand in India.
- December 23, 2023: Zimero announced expansion plans with new stores and online delivery services.
The India ice cream market is poised for significant growth, driven by rising disposable incomes, innovative products, and improved distribution channels. As consumer preferences evolve towards premium and healthier options, manufacturers must continue to innovate and adapt to maintain their competitive edge. The market’s expansion reflects the dynamic and diverse tastes of Indian consumers, ensuring a bright and frosty future for the ice cream industry in India.