The forecasted heat-wave conditions have ignited a surge in ice cream demand, prompting dairy giants to anticipate robust sales growth for the upcoming summer season in India. The India Meteorological Department’s prediction of above-normal temperatures has set the stage for a significant uptick in ice cream consumption, with leading brands projecting a substantial increase in sales, estimated to range between 15% to 20%.
Manish Bandlish, managing director at Mother Dairy, has observed a noteworthy spike in demand for dairy products, particularly ice creams, over the past 15 days compared to the same period last year. Similarly, Jayen Mehta, managing director at GCMMF, owner of Amul, has reported a considerable rise of 25% to 30% in the ice cream segment for FY24, with expectations of even stronger growth during the summer months.
In response to the heightened demand, dairy giants are strategically preparing to capitalize on this opportunity. They are not only expanding their production capacities but also introducing new product offerings to cater to consumer preferences. Mother Dairy, for instance, is set to unveil over 30 new products to meet the escalating demand. Additionally, there is a concerted effort to enhance distribution networks to ensure widespread availability of these products.
Despite the surge in demand, consumers can take solace in the fact that prices are expected to remain stable. RS Sodhi, president of the Indian Dairy Association, has cited stable milk prices throughout the year, with notable decreases observed in Maharashtra, a significant milk-producing state. This stability in raw material costs, coupled with initiatives aimed at boosting ice cream sales, suggests that dairy product prices will likely remain unchanged this summer.
As the dairy industry braces for a hot summer, proactive measures in production, marketing, and favourable conditions for raw material procurement are positioning the sector for a successful season. The convergence of climatic forecasts and market preparedness underscores a proactive approach to meeting consumer demand, ensuring that despite rising temperatures, the availability and affordability of dairy products remain consistent, offering a refreshing treat for consumers nationwide.