Summer or Monsoon, the Ice cream market is hot and soaring. Unlike the ever-changing weather conditions, the Ice cream industry is constantly witnessing growth. The market witnessed a 14 percent growth in its CAGR in FY 22 in comparison to FY 17, moreover, this is said to increase by almost 17 percent in the next three years, FY 25.
According to a report by Wazir Advisors, the ice cream market comprising both organized and unorganized forms currently stands at $ 3.4 billion and is expected to reach $ 5.4 billion by FY 25.
The report determines the multiple variables that are driving the growth of the Indian Ice-cream market, which include:
- The growing penetration of International Brands: With brands such as Cold Stone, Baskin Robbins, London Dairy, etc. entering the Indian market major growth has been witnessed in the industry.
- The expansion of Domestic Brands: Home-Grown brands including Amul, Cream Bell, Vadilal, etc, has been expanding their product portfolios luring in more customers.
- Restaurants adding soft serve to their portfolio: Lately, Mcdonald's, Burger King, KFC, and other leading food chains have been adding soft serve to their menus allowing their customers to indulge in the same while increasing the overall sales.
- Improving cold-chain storage infrastructure: Over the years India has worked on its technology and innovations and has cold chain storage infrastructure which is much improved and upgraded in comparison to its earlier versions.
Moreover, the large national brands come with numerous regional flavors allowing customers from every field of life and every age group has an option to select from the menus available.
This allows the brands to capture higher wallet sharing of the existing consumers. The same is usually done by 2 methods, one by lowering and leveraging promotional strategies to increase consumption. And second, by targeting metros to increase per capita consumption along with premiumization.
Another trend that can be noticed is that the big bands target semi-urban and rural consumers, thus increasing the penetration; usually done by making products more widely available and lowering their price points.
The report further provides insights into the flavor selection, with Vanilla, chocolate, strawberry, butterscotch, and mango topping the charts, it is indicated that western flavors dominate the market.
In terms of value share in FY 22 on the basis of type, it can be noted that 50 percent is impulse, 39 percent take home, and the rest 11 percent artisanal. Similarly, on the basis of form bricks, sticks and cones take up the top 3 positions with 29 percent, 25 percent, and 16 percent respectively.