Ice Cream Manufacturing Plant

Report Overview: 

IMARC Group’s report, titled “Ice Cream Manufacturing Plant Project Report ​2025​: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue,” provides a complete roadmap for setting up an ice cream manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The ice cream manufacturing plant project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

What is Ice Cream?

Ice cream is a frozen sweet dairy or non-dairy dessert produced by mixing milk, cream, sugar, and flavorings, then freezing while churning to achieve smoothness. Ice cream is a popular food product globally as a treat, presented in forms of scoops, cones, bars, and tubs, in numerous flavors and innovations.

Ice Cream Manufacturing Plant: Key Highlights

• End-use Industries: Consumer eating (at home, restaurants, events), Ingredient in other desserts, Gifting
• Applications: Used as frozen dessert for indulgence, refreshment, and increasingly, nutrition

An ice cream manufacturing plant is a facility intended to make ice cream through controlled freezing and mixing processes. These crops need accurate blending, pasteurization, homogenization, and freezing equipment to provide uniform texture, flavor, and food safety. Major pieces of equipment in the plant include ingredient blending tanks, pasteurizers, homogenizers, continuous freezers, and packaging lines. Hygiene, temperature control, and quality assurance systems are essential, considering the dairy content and necessity to avoid microbial contamination. Ice cream plants cater to a broad base of markets such as retail, foodservice, catering, and specialty dessert markets.

Ice Cream Industry Outlook 2025:

The global demand for ice cream is spurred by its increasing popularity across all age segments and its growing availability in retail, foodservice, and specialty dessert markets. Factors such as rising disposable incomes, increasing urbanization, and the growing trend of indulgence in premium and artisanal ice cream varieties are key contributors to market growth. Additionally, heightened awareness of health and wellness has led to innovations such as low-fat, plant-based, and sugar-free ice cream options, broadening the consumer base. Demand for ice cream production is also bolstered by innovation in production technologies and expanding consumption in developing economies, especially the Asia-Pacific region. For example, according to information from the National Dairy Development Board (NDDB) of India, continuous innovation in dairy processing and cold chain logistics is enabling manufacturers to improve product quality and penetrate more markets more effectively. 

Ice Cream Market Trends and Growth Drivers:

Increasing Demand for Healthier and Functional Ice Creams

One of the significant trends that are transforming the ice cream market is the demand for healthier, functional ice creams such as low-calorie, low-sugar, dairy-free, and high-protein options. Customers are increasingly becoming health-aware and demanding indulgent foods that complement their wellness aspirations, driving formulation and ingredient innovation. This trend is also bolstered by the trend towards plant-based diets. For example, as per a 2024 report from the Plant Based Foods Association (PBFA), the estimates of plant-based ice cream sales were $1.4 billion in 2023, evidencing a strong trend towards dairy substitutes. Producers are countering with new products that use ingredients such as almond milk, oat milk, and pea protein, which assist in broadening the market penetration.

Increasing Premiumization and Artisanal Options

One notable trend is the premiumization of ice cream foods, which means that there has been a stronger emphasis on quality, distinctive flavor profiles, and traditional production processes. Consumers, particularly millennials and Gen-Zers, are increasingly ready to spend extra money for ice creams featuring differentiating flavor profiles, clean labels, and true, small-batch making histories. That change has compelled companies to add products with off-the-beaten-path ingredients, organic labels, and new textures. In October 2024, Magnum has introduced Magnum Pleasure Express, a trio of inventive, mood-inspired tastes to advance its premium portfolio.

Latest Industry Developments:

• January 2025: Unilever unveiled its latest ice cream range, introducing new flavors across Talenti, Breyers, Popsicle, Good Humor, Magnum, and Klondike. Highlights included bakery-inspired gelato, s’mores-themed treats, character-branded novelties, and low-carb options. The lineup featured collaborations, new formats, and premium offerings, catering to diverse tastes and dietary preferences.
• October 2024: Pure Ice Cream has entered a deal to open a new manufacturing plant at Dubai Industrial City for AED 80 million. The plant is anticipated to increase the company's production capacity annually by 300% and rank among the largest ice cream factories in the UAE.
• August 2024: Lotte Wellfood declared that Havmor Ice Cream India and Lotte India, two of its Indian companies, have merged. The move is designed to optimize operations and reach ₹6,000 crore in sales, solidifying its position within the Indian ice cream market.
• July 2024: Wells Enterprises made a major expansion of its Dunkirk, New York, factory. The investment grew from the originally proposed $250 million to $425 million to increase ice cream production and generate 270 new jobs in the area.

Leading Ice Cream Manufacturers:

Leading manufacturers in the global ice cream industry include several multinational chemical companies with extensive production capacities and diverse application portfolios. Key players include

• Unilever PLC.
• Nestlé SA.
• Blue Bell Creameries.
• Inspire Brands, Inc. (Baskin Robbins)
• Cold Stone Creamery.
• Wells Enterprises.
• General Mills, Inc.
• American Dairy Queen Corporation.

all of which operate large-scale facilities and serve end-use sectors such as food and beverages, HoReCa and gifting.

Ice Cream Plant Setup Requirements

Detailed Process Flow:

The manufacturing process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the Ice Cream manufacturing process flow:

• Unit Operations Involved
• Mass Balance and Raw Material Requirements
• Quality Assurance Criteria
• Technical Tests

Key Considerations for Establishing an Ice Cream Manufacturing Plant:

Setting up an ice cream manufacturing plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:

• Site Selection: The location must offer easy access to key raw materials such as dairy, sweeteners, stabilizers, emulsifiers, flavors, colors and water. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
• Equipment Selection: High-quality, corrosion-resistant machinery tailored for ice cream production must be selected. Essential equipment includes mixer, pasteurizer, homogenizer, aging tank, freezer, blast freezer and cold storage. All machinery must comply with industry standards for safety, efficiency, and reliability.​
• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like dairy, sweeteners, stabilizers, emulsifiers, flavors, colors and water to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
• Safety and Environmental Compliance: Safety protocols must be implemented throughout the manufacturing process of ice cream. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating an ice cream manufacturing plant involves various cost components, including:​

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
• Equipment Costs: Equipment costs, such as those for mixer, pasteurizer, homogenizer, aging tank, freezer, blast freezer and cold storage, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
• Raw Material Expenses: Raw materials, including dairy, sweeteners, stabilizers, emulsifiers, flavors, colors and water, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the ice cream manufacturing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

Operational Expenditure Breakdown:

Profitability Analysis:

Report Coverage:

Report Customization

While we have aimed to create an all-encompassing report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
• Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
• Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
• Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
• Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. have played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide.