Ice Cream Market in India

Market Overview:

The ice cream market in India size reached INR 228.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach INR 956.0 Billion by 2032, exhibiting a growth rate (CAGR) of 17.4% during 2024-2032. The shifting consumer preferences toward premium, indulgent, and innovative ice cream flavors, the rising disposable incomes, and the growth of modern retail formats, such as supermarkets, hypermarkets, and convenience stores are among the key factors driving the market growth.

Ice cream is a frozen dessert that is enjoyed by people of all ages. It typically consists of a mixture of dairy products, sweeteners, flavorings, and sometimes additives like stabilizers or emulsifiers. The ingredients are blended together, chilled, and then frozen to create a creamy and smooth texture. The mixture is then rapidly chilled, often through a process known as continuous freezing, while being stirred to incorporate air and prevent the formation of large ice crystals. This creates the smooth and creamy texture associated with ice cream. Ice cream can be enjoyed in various forms, including scooped into cones or cups, as part of sundaes or parfaits, or as an accompaniment to other desserts. Hence, it has become a popular treat enjoyed around the world, particularly during warm weather or as a dessert option. It provides a refreshing and indulgent experience, offering a wide variety of flavors and options to suit different tastes and preferences.

The market is primarily driven by the expanding food and beverage sector, and the presence of a dairy industry. In addition, the improvements in cold chain infrastructure, including temperature-controlled storage spaces, and application of efficient management procedures, are contributing to the market growth. Besides, ice cream consumption in India is significantly influenced by the climate and seasons. The hot and tropical climate of many regions in India drives the demand for ice cream as a popular refreshing and cooling treat during the summer months. Moreover, the rising number of dining-out options, food delivery services, and dessert parlors has fueled the out-of-home consumption of ice cream. Consumers often indulge in ice cream as a treat or dessert when dining out, attending social events, or visiting ice cream parlors, which contributes to market growth.

India Ice Cream Market Trends/Drivers:

The shifting consumer preferences toward premium and innovative ice cream flavors

Consumers in India are increasingly seeking out premium and high-quality ice cream options. They are willing to pay a premium price for ice creams that offer unique flavors, premium ingredients, and superior taste experiences. This has led to the growth of premium ice cream brands and specialty ice cream parlors that cater to the demand for indulgent and luxurious ice cream products. Moreover, Indian consumers are embracing flavors beyond traditional options like vanilla and chocolate. Unique flavors such as salted caramel, matcha green tea, tiramisu, cookie dough, and exotic fruit flavors have gained popularity. This trend has led to increased product innovation and the introduction of diverse flavor options in the Indian ice cream market. Besides, consumers are looking for ice cream options that offer healthier alternatives, such as low-sugar, low-fat, dairy-free, and vegan options, thus propelling the market growth.

The rising disposable incomes of individuals

Nowadays, with higher disposable income, consumers are more inclined to spend on experiences and indulgences. Ice cream is perceived as a treat or a form of indulgence, and consumers are willing to spend on premium and high-quality ice cream products. Moreover, rising disposable income encourages consumers to upgrade their consumption choices. This has led to an increased demand for premium and upscale ice cream offerings that offer unique flavors, better ingredients, and enhanced taste experiences. Consumers are willing to pay a premium price for these upgraded products, which has influenced the market to focus on high-quality and indulgent ice cream options.

Ice cream Market in India Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the ice cream market in India report, along with forecasts at the country and state levels from 2024-2032. Our report has categorized the market based on type, flavor, format, end-user and distribution channel.

Breakup by Type:

• Impulse Ice Cream
• Take-Home Ice Cream
• Artisanal Ice Cream
   

Take home represents the most preferred type

The report has provided a detailed breakup and analysis of the market based on the type. This includes impulse ice cream, take-home ice cream, and artisanal ice cream. According to the report, take home represented the largest segment.

Take-home ice creams are packaged in containers that are suitable for storage in home freezers. This allows consumers to conveniently purchase larger quantities of ice cream and enjoy it at their convenience, without the need to visit an ice cream parlor or shop each time they desire a serving. Moreover, these ice creams are often available in larger sizes, which typically offer better value for money compared to single servings or smaller portions. Consumers can enjoy a larger quantity of ice cream for a relatively lower cost, making it an economical choice for families and individuals looking for cost-effective options.

Breakup by Flavor:

• Chocolate
• Fruit
• Vanilla
• Others

Vanilla account for the majority of the market share

A detailed breakup and analysis of the market based on the flavor has also been provided in the report. This includes chocolate, fruit, vanilla, and others. According to the report, the institutional segment vanilla for the largest market share.

Vanilla is a versatile flavor that pairs well with a wide range of toppings, sauces, and mix-ins. Its subtle and creamy taste serves as a neutral base that complements various other flavors and ingredients. Consumers can customize their vanilla ice cream with fruits, nuts, chocolates, syrups, and more, adding to its appeal. Moreover, Vanilla is also widely used as an ingredient in homemade desserts and recipes. The familiarity and availability of vanilla as a flavoring ingredient in the Indian culinary culture contribute to its preference and popularity in ice cream.

Breakup by Format:

• Cup
• Stick
• Cone
• Brick
• Others
   

Cups dominate the market

A detailed breakup and analysis of the market based on the format has also been provided in the report. This includes cup, stick, cone, brick, and others. According to the report, the cups accounted for the largest market share.

Cups offer pre-packaged individual servings of ice cream, which allows for better portion control. Consumers can conveniently enjoy a single serving without the need to measure or scoop the ice cream themselves. This is particularly appealing for those who want to manage their portion sizes or prefer a controlled indulgence. Moreover, cups are a convenient option for on-the-go consumption. They come in ready-to-eat packaging, eliminating the need for additional utensils or bowls. This makes cups a popular choice for consumers who want to enjoy ice cream while commuting, during breaks, or while engaging in other activities.

Breakup by End-User:

• Retail
• Institutional
   

Retail holds the largest market share

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes the retail and institutional. According to the report, retail accounted for the largest market share.

Retail channels, such as supermarkets, hypermarkets, convenience stores, and local grocery shops, have an extensive and well-established distribution network across India. These channels reach both urban and rural areas, making ice cream products easily accessible to a large consumer base. Moreover, retail stores offer a wide range of ice cream brands, flavors, formats, and sizes, catering to diverse consumer preferences. Consumers have the flexibility to choose from various options and explore different brands and flavors. The availability of multiple choices within retail stores enhances consumer satisfaction and encourages repeat purchases. 

Breakup by Distribution Channel:

• General Trade
• Supermarkets/Hypermarkets
• Ice cream Parlors
• Convenience Stores
• Online
• Others
   

The majority of the ice creams across the country are distributed through convenience stores

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes general trade, supermarkets/hypermarkets, ice cream parlors, convenience stores, online, and others. According to the report, convenience stores accounted for the largest market share.

Convenience stores are typically located in easily accessible areas, such as residential neighborhoods, commercial centers, and busy streets. Their proximity to consumers' daily routines makes them a convenient option for purchasing ice cream. Consumers can conveniently walk or drive to their local convenience store to satisfy their ice cream cravings without the need for long trips or detours. Moreover, consumers can quickly locate the ice cream section, choose their desired product, and proceed to the checkout counter. The streamlined checkout process minimizes waiting time and ensures a convenient and efficient purchase, allowing consumers to enjoy their ice cream without unnecessary delays.

Breakup by Region:

• Maharashtra
• Uttar Pradesh
• Andhra Pradesh
• Tamil Nadu
• Gujarat
• Rajasthan
• Karnataka
• Madhya Pradesh
• West Bengal
• Bihar
• Delhi
• Kerala
• Punjab
• Odisha
• Haryana

Maharashtra exhibits a clear dominance in the market

A detailed breakup and analysis of the market based on the region has also been provided in the report. This includes the Maharashtra, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Gujarat, Rajasthan, Karnataka, Madhya Pradesh, West Bengal, Bihar, Delhi, Kerala, Punjab, Odisha, and Haryana. According to the report, Maharashtra was the largest market for ice cream in India.

Maharashtra is home to major urban centers and metropolitan cities like Mumbai, Pune, Nagpur, and Nashik. These cities have a high concentration of consumers with higher purchasing power, leading to increased consumption of ice cream products. The urban population's exposure to international food trends and a more cosmopolitan lifestyle further drives the demand for ice cream in Maharashtra. Moreover, the state has been at the forefront of embracing changing consumer preferences and food trends. Consumers in Maharashtra have shown a preference for premium and indulgent ice cream flavors, as well as innovative and unique offerings. Ice cream brands catering to these preferences have gained popularity and dominance in the market.

Competitive Landscape:

The competitive landscape of the ice cream market is characterized by the presence of several national and regional players. Nowadays, ice cream brands are investing in product innovations to cater to evolving consumer preferences and differentiate themselves from competitors. They are introducing new flavors, formats, and combinations to create excitement and attract consumers. Innovation may also involve the development of healthier or specialty ice cream options, such as lactose-free, vegan, or low-sugar varieties. They are also running advertising campaigns, engaging in social media marketing, and sponsor events or partnerships to enhance brand visibility and connect with consumers. Moreover, some ice cream brands are emphasizing sustainability and social responsibility in their operations. They are implementing eco-friendly packaging, source ingredients responsibly, and support community initiatives.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of them include:

• GCMMF (Amul)
• Kwality Walls
• Vadilal Group
• Mother Dairy
• Hatsun
• Cream Bell

India Ice cream Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ice cream market in India market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the ice cream market in India.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ice cream market in India industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.