KIT: Ice-Cream Market in India

Strategic tools for the practising manager

The ice-cream and frozen dessert market in India is estimated at approximately $450 million in 2009-10. Growing at approximately 12-15 per cent, it is expected to cross $900 million by 2014-15. The branded market is estimated at approximately $200 million and is growing at 20-25 per cent.

North and west are the highest consumption centres accounting for close to 70 per cent of the market.

Increasing incomes, a burgeoning middle class, buoyant economy and widening of outlook contributes in making ice-cream more affordable and acceptable among Indian masses.

The key trends are:  

 

Increasing presence of international brands driving consumption in metros and mini-metros. 
 

Availability of multiple options to consumers — from ice-creams to traditional kulfis to new forms such as gelatos and flavoured yoghurts. 
 

Growing trend of going out to eat ice-cream. 
 

With increasing health consciousness especially among young urban population, higher focus on fat free, low sugar and pro-biotic variants. 
 

Reducing impact of seasonality on consumption. 
 

Many players ready to increase presence with aggressive expansion plans. 
 

Growing focus on smaller and profitable formats.

With a per capita consumption of only 0.30 litres in a year, ice cream in India has currently not realised its full potential.