As temperatures soar across India, the demand for ice cream is reaching unprecedented levels, with manufacturers and industry associations anticipating a remarkable 30% increase in sales for the current financial year. RS Sodhi, President of the Indian Dairy Association (IDA), notes, “Typically, the ice cream market in India experiences annual growth of 12-15%. However, this year’s surge is exceptional.” With temperatures soaring in many regions, major ice cream brands are expected to witness a surge in sales by 20-30%.
The summer months from April to June contribute significantly to ice cream sales, constituting 50% of the annual revenue for most manufacturers. Last year’s unseasonal rains dampened sales, but this year, favorable weather conditions are propelling the industry forward.
Hocco Ice Creams, a newcomer from Gujarat, is ramping up production to meet the soaring demand. Managing Director Ankit Chona reveals, “Since our inception in October 2023, we’ve been selling over 50,000 liters of ice cream daily. We’re expanding our presence to Bengaluru and Hyderabad, in addition to Gujarat, Mumbai, and Delhi.” The company plans to quadruple its production capacity by the next year.
The Indian ice cream market, valued at approximately ₹16,000 crore, sees a significant contribution from the organized sector, led by brands like Amul. Despite the dominance of national brands, smaller players are gaining traction, particularly in rural and tier-III markets.
Moreover, stable input costs have allowed ice cream brands to maintain prices, with no increases reported this year. Chona emphasizes that apart from cocoa, input prices have remained steady, providing ample room for increased advertising expenditure.
Amul is expanding its operations with the commissioning of six new ice cream plants, aiming for over 30% growth in the business. Similarly, Vadilal Enterprises is operating its plants at full capacity, witnessing a 15% growth in sales this summer.
While ice cream enjoys nationwide popularity, states in the West, North, and South contribute significantly to overall sales. Additionally, traditional treats like kulfis are gaining popularity, with record sales reported by some brands, reflecting the diverse preferences of Indian consumers.
