FMCG and dairy firms predict that demand for ice cream and cold beverages like Cola will surge because of the onset of early summer, and sales are likely to grow in strong double digits this season. The summer season will also get a tailwind as pandemics spread, leading to increased consumer mobility.
Also, the out-of-home (OOH) segment will rise, where the companies expect a sharp rise in sales after a slump of two years. Companies are ready with new and innovative offerings, anticipating strong demand for their products this season, and have started building inventory.
Mother Dairy is already witnessing a surge in demand with rising temperatures and expects the trend to continue in the coming days, so it has already beefed up its value chain to cater to any surge in demand across channels. “For a category like ice creams, which is a highly infrastructure-led business, we have ramped up our production, cold-chain infrastructure, refer vehicles, and invested in asset deployment at our consumer touch points to ensure shelf strength,” said Mother Dairy Managing Director Manish Bandlish. In addition, Mother Dairy is also geared up to entice consumption with the launch of about 15 new variants and flavours this season and excite consumers to explore more, he said. “We expect our ice cream category to grow by about 25 percent in the upcoming season,” Bandlish added. The organized branded ice cream market is around Rs 8,000 crore per annum.
Indian Dairy Association (IDA) President R. S. Sodhi said that this year the market is expected to grow by 12 percent on a volume basis and by about 22 percent value-wise, as the price has increased by 10 percent.
In anticipation of a good season, companies have also increased their marketing spending on endorsements, brand campaigns, etc. targeting consumers.
Beverage maker PepsiCo said it is “excited” about the early onset of summer and what this could mean for the beverage sector in 2023.