India could overtake the United States to become the world’s largest ice cream market within the next two decades, according to Unilever’s demerged ice cream business, which is currently in turnaround mode in the country.
Peter ter Kulve, CEO of The Magnum Ice Cream Company, told investors that while the company holds a strong position in India, the business has struggled over the past two decades. “It lost significant market share, profitability was flat, and last year it was in decline. We are in a turnaround mode,” he said, noting that India is already the world’s largest dairy market.
Unilever, the world’s largest ice cream maker with brands such as Magnum and Ben & Jerry’s, trails dairy major Amul, which dominates India’s roughly $5 billion ice cream category.
The renewed focus on India comes as Hindustan Unilever Limited (HUL) prepares to list its demerged ice cream business, Kwality Wall’s (India), on local stock exchanges. HUL recently secured listing and trading approvals from the BSE and the National Stock Exchange of India, with the stock set to debut on February 16.
Unilever’s chief financial officer Abhijit Bhattacharya said the group has also secured approvals to list its Indian ice cream business locally ahead of schedule and plans to complete the acquisition of the unit in the first half of the year, subject to regulatory clearances.
The global demerger of Unilever’s ice cream division was designed to give the business greater operational autonomy, enabling faster decision-making and sharper local market strategies. India is central to that strategy.
Ter Kulve compared India’s current ice cream landscape to China in the early 1990s or Turkey in the late 1980s — markets characterised by low per capita consumption but strong economic growth. He said rising incomes and urbanisation are driving consumption not only in metro cities but also in secondary and tertiary towns, making India the biggest long-term growth opportunity in the global ice cream industry.
India contributes over 14% of Unilever’s global sales, although the bulk of revenue in the country still comes from soaps, detergents and personal care products. Ice cream, however, operates in a structurally different environment. Unlike developed markets dominated by large supermarket chains, India’s distribution relies heavily on small neighbourhood stores, many of which require freezer infrastructure and dedicated cold-chain investments.
Last year, HUL announced plans to separate its ice cream division into a standalone listed company by the end of FY26, aiming to unlock value and allow the business to compete more aggressively in high-growth markets.
As Kwality Wall’s prepares for its market debut, Unilever’s standalone ice cream arm is positioning India at the centre of its global growth narrative — betting that rising consumption and improving infrastructure will power its comeback in one of the world’s fastest-expanding consumer markets.
