Summers have set in early and with “higher-than-normal temperatures” predicted this season, the ice-cream industry in India is gearing up to cash in through both the fast-selling, low-cost ice-creams, and also through the premium, health-conscious and plant-based variants this year.
Sudhir Shah, President of Indian Ice Cream Manufacturer’s Association (IICMA) says that ice-cream manufacturers in the country estimate a 30 percent growth in sales this year, most of which will be driven by rapidly expanding mass market selling ice-creams priced between ₹10-50.
How is the summer of 2025 expected to shape up for ice cream manufacturers in India?
The summer of 2025 is expected to be a positive season for ice cream manufacturers in India, with potential sales matching or exceeding the 30 percent growth observed in 2024.
The India Meteorological Department (IMD) has predicted higher-than-normal summer temperatures, which typically boost ice cream consumption.
Secondly, key raw materials like milk solids and packaging materials have seen price stabilization, helping manufacturers maintain competitive pricing and profitability.
Brands are introducing premium, health-conscious, and innovative flavours, including plant-based and low-sugar variants, catering to evolving consumer preferences. Overall, the industry is poised for strong growth in 2025, leveraging favourable climatic conditions, cost efficiencies, and evolving consumer demand trends.
Which segments of the ice cream market will drive this growth?
The premium segment will account for 20 percent of the growth-pie, while 80 percent of the market will continue to consist of low-cost ice-creams that usually sell between ₹10-50 per unit.
This is because the premium ice creams — often priced above Rs 100 per unit — are more popular in urban markets, where disposable incomes and exposure to global trends are higher.
At the same time, the growth of the industry will continue to be driven by conventional, low-priced products that cater to the mass market. Companies are aggressively expanding their rural distribution networks, further strengthening the growth of this conventional segment.
What are the new flavours this season?
This summer, vegan ice creams, low-fat, low-calorie, no-sugar, and fresh fruit-based ice creams are the key trends. Fruit sorbets are also gaining popularity as a refreshing, dairy-free option. Amul, Mother Dairy, Havmor are introducing 13-15 new variants.
Cream Stone in Hyderabad is coming up with exotic new flavours like Raspberry Panna Cotta and Popcorn Ice Cream. Brands are focusing on health-conscious and innovative flavours while catering to mass consumers with affordable pricing.
Consumer’s desire for novel and adventurous flavours has led to the creation of unique ice cream offerings, such as those incorporating savory elements or unconventional ingredients.
For example, some producers have introduced flavours like brie cheese or mustard, appealing to consumers seeking new taste experiences. Additionally, the trend of “snackification” has increased the popularity of impulse ice creams, including bars, cups, sticks, cones, and sandwiches, catering to on-the-go consumption habits.
These segments’ growth is fueled by consumers’ evolving preferences for quality, healthfulness, and novelty in their ice cream choices.
Which states are seeing new ice cream manufacturing capacities being installed? What are the reasons for this growth in capacities?
Several Indian states have recently seen the establishment of new ice cream manufacturing facilities, reflecting the industry’s robust growth.
Notable developments include that of Havmor ice-cream brand where Lotte Confectionery in January 2023 announced an investment of ₹4.5 billion (approximately $55.1 million) in its Indian subsidiary, Havmor Ice Cream will construct a new greenfield plant at MIDC Talegaon in Pune, Maharashtra, over the next five years.
Similarly, Amul has invested in an ice cream manufacturing facility spanning eleven acres within Khed City, an industrial park near Pune, Maharashtra.
Several factors are driving the expansion of ice cream manufacturing capacities across states. Rising disposable incomes, urbanization, and evolving consumer preferences have led to higher demand for ice cream products, especially in tier-1 and tier-2 cities.
Secondly, longer summers, heat waves, and rising average temperatures have boosted ice cream consumption as consumers seek cold refreshments.
State governments are offering incentives to attract investments in the food processing sector, including subsidies, tax benefits, and infrastructure support, making it favourable for companies to set up new manufacturing units.
