India Ice Cream Market Overview and Growth Highlights during 2018-2027
Ice cream is a dairy or non-dairy based frozen dessert that is flavored with a sweetener, which generally consists of sugar or an alternative flavoring ingredient such as citrus, berries and with any spice, such as cocoa or vanilla. The ice cream market in India is vibrantly increasing on the back of growing desire for indulgence treats, improvements in the cold storage facilities of the country accompanied with a rapid rise in middle-class population with higher disposable incomes. In 2017, India was the 8th largest economy in the world based on the purchasing power parity. The country has been consistently growing economically and has driven itself into the upper middle-income status in the past few years.
The market for ice cream in India is anticipated to grow by a significantly high CAGR of 13.22% over the forecast period, i.e., 2020-2027. The market is further estimated to reach a market value of USD 2,401.68 million by the end of this period.
India Ice Cream Market Segmentation Synopsis
By Product
On the basis of product, the market is segmented into impulse ice cream, take-home ice cream and artisanal ice cream, out of which, the segment for take-home ice creams is anticipated to hold the leading share in the market during the forecast period. This can be attributed to the high popularity of this type of ice creams in India. Take-home ice-creams are available in the form of ice-cream bricks and large tubs across the Indian market. Increasing awareness regarding the use of ice-cream for soothing sore throats, comforting mental troubles as well as for small social gatherings and functions at home is boosting the take-home ice cream market in India. Furthermore, easy availability across all the regions of India and shelf-life longevity of take-home ice-creams is anticipated to drive the market growth progressively over the forecast period. The segment for artisanal ice creams is projected to observe the highest CAGR of 14.10% over the forecast period. Growing number of food bloggers and health enthusiasts are boosting the artisanal ice-creams market considerably. Increasing use of non-traditional ice-cream bases such as, chickpeas, tahini and oat milk, to cater the population suffering with food allergies or are extremely health conscious; is contributing positively towards the Indian ice-cream market expansion.
By Flavors
Based on flavors, ice cream market in India is segmented into chocolate, vanilla, mango, orange, strawberry, butterscotch, blueberry and others. Out of these, the segment for vanilla flavored ice cream is anticipated to hold the largest market share with a market value of USD 708.97 million by the end of 2027. Growing geriatric population across the country accompanied with their love for traditional and subtle ice-creams flavors is anticipated to propel the vanilla flavored ice-cream market growth. Moreover, increasing consumption of vanilla flavored ice-cream by the lower middle-income population of India is projected to lead to a steady growth over the upcoming years. On the other hand, the segment for chocolate flavored ice cream is predicted to grow at the highest rate over the forecast period. Being one of most popular flavors, ice creams with chocolate flavor are always in a high demand in the region. Additionally, increasing customization with the flavors of chocolate ice-cream, such as chocolate fudge brownie, chocolate peppermint crunch, Belgian chocolate sundae and Oreo Cookies & Cream Ice Cream among others is further anticipated to result in the growth of chocolate flavor segment.
By Distribution Channel
On the basis of distribution channel, the India ice cream market is segmented into online and offline, out of which, the offline segment held the largest share in market in 2019 with a market value of USD 818.59 million in the same year and is anticipated to further grow during the next few years. Online distribution channel is anticipated to grow at a slightly higher rate on the back of easy accessibility of ice creams through online platforms which pushes the demand for ice creams through online distribution portals.
India Ice Cream Market Drivers and Challenges
Growth Indicators
The changing lifestyle patterns along with increasing household income in India play major roles in the growth of ice cream market in the country. The rise in standard of living among the Indian middle-income population tends to increase the demand for ice creams. Moreover, improvement in storage conditions of frozen products is estimated to become a major factor for growing consumption of ice cream in India. Rapid urbanization and development in logistics and production process have enabled ice-cream manufacturers to offer ice creams at restaurants, departmental stores, hypermarkets, supermarkets and convenience stores, which is contributing to a further increase in revenue of ice cream businesses. Apart from this, the availability of various flavors of ice creams and rising product innovations in the market is another major growth factor. Ice cream manufacturers are focusing on product innovation by including functional ingredients, flavors, innovative packaging, and adding texture in product formulations to meet the changing consumers’ demands. Moreover, rising demand of health-conscious consumers for low-calorie and low-fat ice creams is projected to offer new growth opportunities.
Barriers
Health concerns associated with excessive sugar intake through ice creams is predicted to be a major restricting factor for the growth of ice creams market in India. Consumers in the country are increasingly becoming aware of the high fat and high sugar content in ice creams and are gradually inclining towards ‘low fat’ health claim products. Smaller market players are expected to face issues in coping with the changing market trends, which is estimated to slow down the market growth.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the India ice cream market are Hindustan Unilever Limited, AMUL, Vadilal Group, Mother Dairy, Creambell, Havmor, Baskin-Robbins, HAP, Sheetal Icecreams and General Mills.
