The India ice cream market has witnessed remarkable growth, reaching a value of approximately USD 3.46 billion in 2023. With a projected CAGR of 15% from 2024 to 2032, the market is expected to soar to around USD 12.17 billion by 2032. This substantial growth reflects the dynamic changes in consumer preferences, increased disposable incomes, and the expansion of retail and distribution channels.
India Ice Cream Market Outlook
The production of 230.58 million tonnes of milk in 2022-23, as reported by the Ministry of Fisheries, Animal Husbandry, and Dairying, underscores India's capacity to support a burgeoning ice cream market. Quick Commerce has notably influenced this sector, with Hindustan Unilever reporting that it accounted for over 10% of their ice cream business in 2023. Additionally, Havmor's investment plans of Rs 450 crore over five years, starting in 2023, signify substantial growth and expansion in the industry.
Growth Drivers
Diverse Toppings and Mixings
Manufacturers are enhancing their offerings with diverse toppings and mixings, aiming for a more upscale appeal. This trend mirrors the consumer shift towards artisanal ice cream, which is crafted with unique flavors, premium components, and traditional techniques.
Rising Disposable Incomes
The rise in disposable incomes allows consumers to indulge more in luxuries like premium ice cream. This trend drives market growth and fosters a preference for artisanal varieties.
Retail and Distribution Channels
Retail channels, including convenience stores, supermarkets, and hypermarkets, dominate ice cream sales in India. Online sales through e-commerce and food delivery services are also on the rise, contributing to market expansion.
Premium and Innovative Flavors
Indian consumers are increasingly attracted to premium ice creams with unique flavors such as salted caramel, matcha, and exotic fruits. This shift is driving innovation within the market.
Health-Conscious Offerings
The growing health awareness among consumers has increased the demand for healthier ice cream options. Low-sugar, low-fat, low-calorie, dairy-free, and vegan ice creams are becoming more popular, prompting companies to develop healthier variants.
Key Trends and Developments
April 12, 2024
Havmor, owned by LOTTE Wellfood Co Ltd, introduced new flavors to cater to evolving tastes, blending classic and innovative options.
February 17, 2024
NIC Honestly Crafted Ice Creams launched NIC Waffle Cones, which complement their ice creams and maintain quality through vacuum packing.
January 12, 2024
DFIL unveiled INFINO, a premium ice cream brand, with a full-scale marketing campaign presenting a variety of international flavors.
December 23, 2023
Zimero expanded its retail presence in Bengaluru and launched online delivery services in Hyderabad and Mumbai.
India Ice Cream Market Segments
By Type
- Impulse Ice Cream
- Take-Home Ice Cream
- Artisanal Ice Cream
By Flavor
- Chocolate
- Fruit
- Vanilla
- Others
By Packaging Type
- Cup
- Stick
- Cone
- Brick
- Others
By End Use
- Retail
- CAGR 2024-2032: 17.2%
- Institutional and HoReCa
By Distribution Channel
- Ice Cream Parlours
- Supermarkets and Hypermarkets
- Convenience Stores
- Online
- CAGR 2024-2032: 17.0%
- Direct Selling
- CAGR 2024-2032: 15.3%
By Region
- North India
- CAGR 2024-2032: 15.9%
- East and Central India
- West India
- CAGR 2024-2032: 15.6%
- South India
- 2023 Market Share: 23.5%
India Ice Cream Market Share
Take-Home Ice Cream
Take-home ice cream is popular for its convenience, allowing consumers to enjoy it anytime without visiting an ice cream parlour. It is particularly appealing to families and individuals preferring at-home consumption. Supermarkets offer a wide variety to meet diverse dietary needs, and the cost-effectiveness of larger packages makes it a practical choice for regular use and group servings.
Artisanal Ice Cream
Artisanal ice creams are crafted with high-quality natural ingredients and unique flavors, attracting premium consumers. The ability to customize these ice creams provides bespoke experiences, and the healthier, organic options appeal to health-conscious buyers. Supporting local artisans also strengthens community ties and boosts local economies.
Chocolate Ice Cream
Chocolate ice cream's versatility as a base for various combinations, such as chocolate fudge or brownie, ensures steady demand and robust sales. Its adaptability allows for numerous enticing variations, often regarded as a high-end offering that bolsters profitability.
Fruit Ice Cream
Fruit ice cream is positioned as a healthier choice, appealing to health-conscious individuals with authentic fruit ingredients and a diverse array of flavors. It aligns with clean eating trends and caters to vegan dietary preferences.
Distribution Channels
Supermarkets and hypermarkets enhance distribution by offering a convenient shopping experience, allowing customers to purchase ice cream along with groceries. They provide an extensive range of ice cream brands and flavors, catering to various tastes and dietary needs. Ice cream parlours offer personalized orders and a distinct atmosphere for enjoying freshly crafted ice cream.
Leading Manufacturers in the India Ice Cream Market
- Gujarat Co-operative Milk Marketing Federation Ltd (Amul)
- Vadilal Industries Ltd
- Mother Dairy Fruit Vegetable Pvt Ltd
- Hindustan Unilever Limited
- 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
- General Mills Inc
- Others
India Ice Cream Market Analysis by Region
North India
The northern states, including Delhi, Punjab, Haryana, Uttar Pradesh, and Rajasthan, experience intense summers, leading to increased demand for ice cream. Urban areas in these regions have a higher concentration of ice cream parlours and retail outlets due to dense populations and higher incomes.
South India
States like Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Kerala have year-round demand for ice cream due to consistently warm climates. However, the popularity of traditional desserts like kulfi may affect the market share of regular ice cream products.
West India
Maharashtra and Gujarat play crucial roles in India's ice cream market, with cities like Mumbai, Pune, and Ahmedabad serving as major consumption centres. The purchasing power of urban areas and the preference for premium ice cream varieties drive market growth.
East and Central India
States such as West Bengal, Odisha, Bihar, and Jharkhand are experiencing increased ice cream consumption due to growing urban populations and rising incomes. However, the market size in these regions may be smaller due to limited organised retail penetration and lower per capita income.
Recent Developments
According to INVEST India, the Pradhan Mantri Kisan Sampada Yojana (PMKSY) focuses on establishing advanced food processing facilities. This initiative aims to develop modern infrastructure and effective supply chain management from the farm gate to retail outlets, enhancing the storage and logistics of ice cream.
The Indian ice cream market is poised for significant growth, driven by rising disposable incomes, innovative flavors, healthier options, and improved distribution and retail strategies. With an expanding market size, the industry is set to reflect the dynamic preferences of Indian consumers, offering numerous opportunities for manufacturers and retailers alike.
