The ice cream industry in India is witnessing noteworthy expansion, exhibiting a Compound Annual Growth Rate (CAGR) surge of 14% from FY17 to FY22, and an anticipated 17% upswing by FY25. According to a recent study by Wazir Advisors, the Indian ice cream market encompasses both organized and unorganized segments and presently stands at a value of $3.4 billion, projected to soar to $5.4 billion by FY25.
The report points out various growth drivers for the Indian ice cream market, which encompass the rise of global brands such as Cold Stone, Baskin Robbins, and London Dairy, in addition to the expansion of homegrown brands like Amul, Cream Bell, and Vadilal. Moreover, fast food chains such as McDonald’s, Burger King, and KFC are boosting their sales by offering soft serve on their menus. Additionally, India’s cold-chain storage infrastructure has undergone significant improvements in recent years, which has also played a role in the growth of the industry.
The ice cream market in India is projected to experience a Compound Annual Growth Rate (CAGR) of nearly 17% over the next three years, leading to an estimated value of $5.4 billion by FY25, as per a report from Wazir Advisors.
Moreover, major national ice cream brands offering a diverse range of regional flavors are successful in capturing customers from different age groups and backgrounds, resulting in higher wallet sharing among existing consumers. Brands employ two approaches to achieve this: firstly, by reducing prices and employing promotional strategies to increase consumption, and secondly, by focusing on premiumization while targeting urban areas to enhance per capita consumption.
Additionally, there is a trend of targeting semi-urban and rural consumers, which has led to increased market penetration by making ice cream products more affordable and accessible to them.
The report reveals that the ice cream market in India is predominantly inclined towards western flavors, with Vanilla, Chocolate, Strawberry, Butterscotch, and Mango being the most popular ones. As for the value share in FY22, impulse purchases make up 50% of the market, followed by take-home purchases at 39% and artisanal purchases at 11%. When it comes to form, bricks, sticks, and cones are the top three choices, comprising 29%, 25%, and 16% respectively.