Sales of ice creams and dairy products are set to see a notable uptick this summer, with a projected 15-20% increase on the horizon owing to expected above-normal temperatures. Consequently, companies are preparing for a potential exponential surge in sales.
Consumers may not need to pay more to enjoy their favorite ice cream and dairy product brands, as milk procurement prices have fallen and dairies have surplus stocks.
The India Meteorological Department (IMD) predicts higher-than-average summer temperatures this year, accompanied by an increase in the number of heat-wave days. This has led to a surge in demand for leading ice-cream brands.
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“Summer is the most anticipated season for our business, especially for categories like ice creams, curd and beverages. We are expecting exponential growth in demand for dairy products in the coming months. Over the last 15 days, ice creams alone have witnessed a significant surge in demand versus the same period last year,” said Manish Bandlish, managing director, Mother Dairy.
‘Amul‘, the renowned dairy product brand under the Gujarat Cooperative Milk Marketing Federation (GCMMF), commanding over 50% of India’s ice cream market, anticipates maintaining its strong sales momentum through the upcoming summer season.
“We have already seen a growth of 25% to 30% in the ice cream segment in the FY24. The growth in ice cream sales in the summer of 2024 is expected to be 30-40% more than last year’s summer season sale,” said Jayen Mehta, managing director, GCMMF.
Businesses have also allocated funds for expanding their capacity and launching new products to cater to the anticipated increase in demand.
“We are fully prepared to match this growing demand and have already augmented our production capacities as well as our distribution infrastructure. As we get into the season, we are all geared up to excite consumers with our delightful offerings of over 30 new products. Overall, we are confident of delivering robust growth in our dairy products portfolio this year,” said Bandlish.
Meanwhile, decreased raw material costs and abundant stocks may enable dairy companies to control production expenses and refrain from hiking product prices. Milk prices have remained consistent over the year, with a decline noted in Maharashtra, one of the leading milk-producing states.
“The dairy companies are offering various schemes to increase ice cream sales. Prices of dairy products are not likely to increase much as milk prices have not increased during this year,” said RS Sodhi, president, Indian Dairy Association.
“The demand is also expected to be more, which can lead to an increase in the overall summer season sale of dairy products by at least 15% to 20% over the previous year,” he said.
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