This summer, the record demand for ice cream has steered to a major supply shortage, compelling companies to increase production by over 30%. The early arrival of summer and an extended period of heat have resulted in sales rising by around 45% in the last three months, as compared to the corresponding period in 2019.
According to R S Sodhi, MD at Gujarat Cooperative Milk Marketing Federation, which sells its products under the Amul brand name, the demand for ice cream and value-added dairy products such as lassi and buttermilk has doubled over last year. Companies, however, have not been stocking up in winter like they used to before the pandemic. This has led to shortages in certain cases. And Manish Bandlish, MD at Mother Dairy Fruit & Vegetable, said this summer has been phenomenal for the dairy giant so far.
The jump in demand in 2022 is expected to help the Rs 9,000-crore ice cream industry inch closer to the Rs 11,000-crore target, according to the Indian Ice Cream Manufacturers Association, a body representing 80 private ice cream makers.
The sale from March to June contributes to 45-50% of the annual turnover of ice cream makers, with Maharashtra, Uttar Pradesh, Delhi-NCR, Gujarat, Andhra Pradesh, Telangana, and Tamil Nadu being the top ice cream consuming states.
“This increase in demand is largely due to early summers and subsequent temperature rises, the increased number of distribution assets, and the opening of restaurants, offices, and educational institutions,” Bandlish explained.”Both our milk-based ice creams and dairy-based beverages have clocked a growth of over 35-40%, respectively, over the pre-Covid period.”
The spike in sales comes two years after the ice cream market was hit hard during the pandemic, when sales halved in 2020, only to revive partially the following year. This year, while the industry witnessed a booming demand for the on-the-go impulse portfolio, with a subsequent rise in temperatures, in-home consumption, too, has picked up pace. Pradeep G. Pai, MD at Karnataka-headquartered Hangyo Ice Creams, said most companies have increased prices by 5–10% due to rising input costs.