Ice Cream and Frozen Desserts in India

PROSPECTS

Soaring temperatures across India drive ice cream

The average temperature in India is 31° C and it is constantly rising. This hot weather encourages people to consume more frozen snacks, desserts and cold beverages amongst others.

Improvement in cold chain facilities supports ice cream sales in India

Ice cream and frozen desserts used to be sold only at ice cream parlours and local bakeries, but due to the rise in demand for ice cream, sales via other retail channels increased. Due to advancements in technology, government support to provide electricity all-year round, and the affordability of compact freezers and chillers, many independent small grocers and other retailing channels started to sell ice cream at their stores.

Premium ice cream is flourishing in India

A series of premium ice cream launches were seen in 2017 as demand for the products is increasing, especially in upper middle class and affluent consumers. These premium ice creams not only offer rich quality, extravagant flavours and exotic ingredients, but also focus on health conscious consumers.

COMPETITIVE LANDSCAPE

Lotte buys Havmor and enters ice cream in India

Lotte Corporation India Ltd acquired Havmor Foods Ltd for INR102 million in November 2017 and entered ice cream in India. Havmor had a network of 30,000 ice cream outlets across eight states and is the seventh largest player in ice cream and frozen desserts.

Ice cream continues to be dominated by domestic companies

Domestic companies dominate retail value sales of ice cream and frozen desserts in India, led by Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). GCMMF is the country’s largest dairy cooperative and sells many varieties of ice cream under its brand name Amul.

Regional dairy cooperative penetrates rural areas

Every state in India has its own regional dairy cooperative, which try to establish sales of its respective ice cream brands. Product promotion, higher penetration and other activities are frequently carried out by these dairy cooperatives to increase awareness of their products.

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