Scoop In Summer

Come summer, and the Indian ice cream industry gears up for its biggest season of the year. With temperatures rising, consumer cravings for icy indulgences are reaching peak levels, driving innovation, expansion and strategic positioning across the market. 

The ice cream market in India is forecast to witness a CAGR of 14.79 per cent during FY 2024-FY 2031, reaching $9.68 billion by FY 2031, according to Markets & Data report. The frozen dessert market, which grew to Rs 286.6 billion ($3.45 billion) in 2023, is projected to reach Rs 587.9 billion ($7.04 billion) by 2032, exhibiting a CAGR of 8.1 per cent during 2024-2032, according to IMARC Group.

Positioning & Expansion
From product diversification to market expansion, key industry players are leaving no ‘cone’ unturned in their quest for market dominance. The summer season contributes a staggering 50 per cent of the annual sales for most ice cream manufacturers in India, pointing to a sizzling summer of growth and opportunity.
“We are getting excellent growth and expecting that FY 2024-25 would also be year of bumper growth (35-40 per cent),” says Jayen Mehta, Managing Director, Amul. 

Boasting 85 sales offices and presence across 1,500 towns in the country, Amul is currently making heavy investments in manufacturing capacities and taking its total ice cream plant locations to 25. Mehta reveals, “We have made a huge investment in manufacturing capacities -- from new plants and expansion of existing ones -- to the tune of Rs 1,000 crore. Six new ice cream plants have started production at Ujjain, Taloja, Varanasi, Kutch, Surendranagar and Pune.”
“Recently, Surat Union has invested Rs 50 crore in a manufacturing facility for ice cream Waffle Cone with a capacity of 10 crore cones per annum as part of backward integration. We are also working on developing local kulfi from our 95 milk plants which will improve our reach in rural India,” says Mehta.
Tier-2 and Tier-3 cities are emerging as crucial battlegrounds for ice cream brands looking to expand. Once considered untapped territories, they are now emerging as profitable growth opportunities.

Baskin Robbins currently operates in over 900 parlours across 280 cities, encompassing not just all cities with populations exceeding 1 million but also more than 200 Tier-2 and Tier-3 cities.

Mohit Khattar, CEO of Graviss Foods, Baskin Robbins is confident of seizing the summer opportunity. “With just a month and a half of sales so far, our growth has been very robust. Summer makes us confident that we will be able to sustain the solid double digit growth rates that we have been experiencing,” he states.

The Winning Trio
Gone are the days of vanilla and chocolate reigning supreme. Innovation, indulgence and experience has become the name of the game. “Premiumisation is at the core of our product strategy. With our focus on expanding into new markets and introducing enticing product lines like Chokoreeto's (rich coated chocolate bars) and our vegan-friendly fruit sorbets, we expect to see significant growth this season,” says Sumedha Singhal, Director, Nirula’s. 

Additionally, Nirula’s is introducing whey protein ice creams in their healthier brand lineup, allowing consumers to indulge without sacrificing nutrition.
Keeping up with the trend, Amul introduced a range of premium Amul Ice Lounge parlours at prime locations like airports and shopping malls. "Currently, we have started 15 such parlours, another 10 are planned during summers, and the overall plan is to start 100 in current year. We are serving 24 international flavours, namely American Mud Pie, Italian Fudge, English Apple, Belgian Chocolate, French Caramel, Jamaican Toto and many more," Mehta states.
This summer season, Amul is introducing youth-centric and Instagrammable flavours, including coffee-based, dark chocolate-based ice creams and sundaes aimed at appealing to the younger crowd. They are also enhancing their established brands like Tricone, Kulfi, Jumbo Cups and Paper Packs with new innovative flavours tailored to different target segments. Additionally, Amul has launched a fresh fruit-based ice cream range, exclusively available at their scooping parlours.

In a market witnessing changing consumer preferences, ice cream brands are going an extra mile, offering artisanal flavours and indulgent formats with innovative flavours and better quality, upscaling experiences for their customers.

Komal Anand, Managing Director, Havmor, emphasises their focus on blending tradition with innovation asserting, “This summer, we are launching 12 new flavours from Indian traditional flavours to modern twists on classic favourites. Considering the current K–wave among consumers, we are also expanding the Lotte range by adding new Korean-inspired products in the coming months.”

Havmor has introduced a variety of new flavours ranging from flavours like Shahi Kesar and Rajwadi Kulfi to contemporary delights such as Blueberry Cheesecake, Cookie N Cream cone and an ice cream sandwich. Additionally, summer specials include Ratnagiri Hapus, Jaljeera, Kalakhatta, and rose-flavoured ice cream ensuring there's something delicious for every palate.

Anticipating the trends this season, Khattar believes, “Premiumisation, convenience and frequent snacking are three broad trends that are consolidating. One core effort is centred around continuous product innovation that can enhance the brand’s appeal to newer consumers, as well as spread joy amongst existing consumers.”

Baskin Robbins has introduced over 21 new products across parlours and retail channels, featuring both innovative flavours and new formats. Using only the finest dairy cream and premium inclusions like real fruits, pure chocolates and premium nuts, these offerings are inspired by international favourites. New age flavours such as Lotus Biscoff, Brown Biscuit Boba, and Blueberry & White Chocolate are also part of this lineup.

Digital Disruption
In the digital-first world, ice cream brands are adapting their strategies to leverage the power of ecommerce and online media platforms. From online sales and delivery services to targeted marketing campaigns and influencer partnerships, the industry is embracing digital disruption to reach new customer segments and drive growth.

From leveraging digital platforms to reinforce its Real Milk, Real Ice Cream brand positioning to promoting awareness campaigns like Ice Cream Vs Frozen Desert, Amul has been strategically using digital platforms in its marketing goals to maximise engagement with the younger generation.

“We are promoting our entire range through theme-based campaigns, festive campaigns and youth centric campaigns through digital media. We also promoted our digital 30-sec TVCs for youth centric products,” Mehta states.

Presently, Amul Ice Lounge parlours are available in Pune, Ahmedabad, Mumbai, Surat, Nashik, Lucknow and the Statue of Unity, with plans to expand nationwide to build a premium brand image. 

As far as ecommerce and quick commerce is concerned, Mehta says, “We have been getting 3x growth through these platforms. We are further investing a lot in ensuring visibility of our products on these platforms. Our tubs are major drivers for ecomm and qcomm channel provided convenient packaging.”

There is enhanced accessibility with brands leveraging digital platforms, ecommerce channels and partnerships to reach consumers more effectively. 

Baskin Robbins, for instance, has been an early adopter of business on aggregator and ecommerce platforms. “Today, online business has grown to more than a third of our overall business across channels,” says Khattar.

Moreover, collaboration is integral to Baskin Robbins' journey of value creation for its brands. Over the past two years, they've partnered with brands like Kit-Kat, Lotus Biscoff, Hershey’s, Snickers, and Oreo, among others. “Digital and social platforms are relatively easier for brand collaborations. This summer we have collaborated with Ferrero and Nutella for some exciting products,” Khattar informs. 

Embracing influencer partnerships, including with AI influencers, has further bolstered their marketing efforts. Baskin Robbins also collaborated with retail giants like Croma, Myntra and Myglam, amplifying visibility for both parties' initiatives, both online and offline.

Sustainable Packaging
As consumers become increasingly aware of the environmental impact of their choices, ice cream brands are adapting to meet the rising demand for environmentally responsible products and sustainable packaging. 

As Singhal explains, “Packaging plays a dual role in our brand's strategy, serving as both a protective vessel for our products and a powerful tool for communicating our commitment to sustainability and enhancing shelf appeal.”

Nirula's places sustainability on high priority by responsibly sourcing materials, opting for recyclable and biodegradable options and reducing packaging waste. The packaging designs are of premium quality and indulgent appeal and reflects their brand values of creativity and authenticity. 

Amul, too, is mindful of its environmental footprint. It recently revamped packaging for its chocolate-based, coffee-based and fresh fruit-based products, aiming for a vibrant and appealing design that resonates with Gen Z and millennials in sustainable packaging.

“Consumers are reusing our tubs and jumbo cups at home as storage containers and plant pots. We use wooden spoons in all out ice cream products. We also promote such practices through our platform by sharing consumer stories,” says Mehta.

Packaging plays a crucial role in Baskin Robbins' brand strategy, focusing on both sustainability and shelf appeal to meet the rising consumer demand for eco-friendly products.

“We have over the years substantially reduced our carbon footprint by actively cutting down on use of single use plastics in our parlours, in our operations and in our factories and moving towards more sustainable alternative options. We are actively scouting for options to address areas that remain,” concludes Khattar. 

Baskin Robbins extends its efforts to renewable energy adoption such as solar power and treating effluents for reuse in horticulture.

Nonetheless, the industry's growth is fuelled by rising consumer disposable income, thriving food service sector and the ongoing innovations in product offerings.