Although summer hasn’t officially arrived, the craving for a summertime favorite has already taken hold. Ice cream brands are experiencing a surge in sales this month, well before temperatures start to rise. February alone saw a remarkable 15% increase in sales across Gujarat.
Leading ice cream manufacturers in Gujarat anticipate that sales figures from March to June this year will surpass all previous records. This growth is fueled by both in-house and out-of-home consumption, as well as demand from the hotels, restaurants, and catering (HoReCa) segment.
Amul, India’s largest FMCG brand, is investing INR 1,000 crore to bolster its manufacturing capacity by establishing new plants and enhancing its current facilities. This investment serves as a clear indication of the anticipated demand for this summer.
“We have started new plants at six locations including Kutch, Surendranagar, Taloja, Pune, Ujjain and Varanasi, increasing our total ice cream plant locations to 25 from 19 last season,” stated Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), the marketing arm of Amul.
Continue Exploring: Havmor unveils new ‘Havefunn’ ice cream parlour in Nadiad, Gujarat, adding sweet bliss to the state’s taste buds
“We are growing at 25-30 % and are expecting that 2024-25 too would be a year of bumper growth as last summer season was disrupted due to unseasonal weather,” said Mehta.
A senior official from another leading ice cream brand said, “Feb sales were encouraging, and the Gujarat market has seen around 12-15% growth during the month compared to Feb 2023. We believe this summer, the market will expand by around 12-15%,” he said.
Industry analysts also note that rural demand has been steadily rising each year, primarily attributed to increased electrification and higher farmer incomes.
“There will be volume growth this year because there is no possibility of retail price increase. Milk prices have increased from last year, but milk powder prices have remained almost stable. Two years ago, the industry saw a significant price hike due to increased cost of packaging and other raw materials,” said Bhupat Bhuva, chairman of Gujarat Ice Cream Association.
Continue Exploring: Walko Food’s NIC raises $20 Million in funding round led by Jungle Ventures