As temperatures soar above 50 degrees Celsius in North India, ice cream sales are booming, transforming the sweet treat into a highly competitive industry. The Indian ice cream market, valued at over $3 billion in 2023, is expected to experience significant growth. Industry reports forecast a robust Compound Annual Growth Rate (CAGR) of 13.49% from 2024 to 2030, with the market projected to reach Rs 956.0 billion by 2032, up from Rs 228.6 billion in 2023 according to IMARC Group.
Key drivers for this growth include rising disposable incomes, increased indulgence, product innovation, expanded distribution, and the surge of e-commerce and quick commerce (q-commerce). The COVID-19 pandemic accelerated e-commerce adoption for ice cream, with brands like Amul overcoming early misconceptions and eventually capturing larger market shares.
The sweltering heat has significantly boosted ice cream consumption, with sales estimates climbing between 10-50% during peak seasons. Brands capitalize on this by launching summer-specific marketing campaigns, new flavours, promotions, and increased advertising.
Major Brands Seizing Summer Opportunities
Leading brands are employing strategic measures to dominate the market. Jayen Mehta, Managing Director of Amul, emphasized the importance of scaling up production, introducing new flavours, and investing in advertising to maintain brand loyalty. Similarly, Manish Bandlish, Managing Director of Mother Dairy, highlighted the critical role of new products in driving sales during the summer, which accounts for over 40% of their annual sales.
Baskin Robbins and Scuzo Ice ‘O’ Magic are also innovating with snack-sized products and health-conscious options. Mohit Khattar, CEO of Graviss Foods, Baskin Robbins, introduced bite-sized “Ice Cream Rocks” and multi-layered “doublet bars.” Meanwhile, Gagan Anand, founder of Scuzo Ice ‘O’ Magic, focuses on healthier gelatos and sorbets.
Brands are leveraging technology and social media for their marketing campaigns. Mother Dairy’s #MotherPromise campaign and Baskin Robbins’ influencer collaborations are examples of successful digital engagement strategies. Scuzo Ice ‘O’ Magic uses interactive contests to boost sales and customer loyalty, while Coppetto Artisan Gelato creates social media buzz with attractive posts and videos.
Despite the rise of boutique brands, the ice cream industry remains highly fragmented. Large brands like Amul continue to dominate, expanding their manufacturing capacity to meet demand. Amul’s investment of Rs 1,000 crore in six new plants demonstrates their commitment to maintaining a competitive edge.
Ice cream brands also face competition from cold beverages. To diversify, many are introducing beverage segments. Amul expects 40-45% growth in its beverage sector this summer, while Baskin Robbins and Scuzo Ice ‘O’ Magic have launched new mocktails and iced tea options to attract consumers.
By embracing innovative flavours, sustainability, personalization, and leveraging technology, ice cream brands are well-positioned to stay competitive and profitable. As these trends evolve, ice cream will continue to be a beloved summer staple, reinvented to delight consumers worldwide.