|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD3.20
Billion
|
|
CAGR
(2024-2029)
|
10.5%
|
|
Fastest
Growing Segment
|
Frozen
Ice Cream
|
|
Largest
Market
|
North
|
Market Overview
India Frozen Dessert Market has valued
at USD3.20 billion in 2023 and is anticipated to project robust growth in the
forecast period with a CAGR of 10.5% through 2029. The India frozen dessert
market has witnessed substantial growth and transformation in recent years, as
consumers' tastes and preferences have evolved, and the food industry has
adapted to meet their demands.
Indian consumers have become more
adventurous with their dessert choices, seeking innovative and diverse options
beyond traditional sweets. This shift in preferences has driven the demand for
a wide range of frozen desserts, including ice creams, gelato, sorbets, frozen
yogurts, and more.
The growing middle-class population in
India, accompanied by increased disposable income, has made frozen desserts
more accessible to a larger segment of the population. As a result, consumers
are more willing to indulge in premium frozen dessert offerings.
The proliferation of urban centers and
the expansion of modern retail outlets, such as supermarkets, hypermarkets, and
specialty dessert stores, have made it easier for consumers to access a diverse
array of frozen desserts. This has contributed to the market's growth.
Many consumers are seeking healthier
dessert options, leading to the popularity of frozen yogurts and low-fat or
sugar-free variants. Brands that offer these healthier alternatives have gained
a competitive edge.
Brands have responded to consumer
demands for novelty and variety by introducing innovative flavors, textures,
and formats. These include fusion flavors, artisanal creations, and customized
desserts.
The demand for dairy-free and vegan
frozen desserts is on the rise. Brands are introducing plant-based options made
from ingredients like coconut, almond, and soy milk. Consumers are willing to
pay a premium for high-quality and artisanal frozen desserts, driving the
growth of gourmet and craft ice cream shops. With the growth of e-commerce and
food delivery platforms, consumers can now conveniently order their favorite
frozen desserts online, contributing to the market's expansion. Made-to-order
desserts and personalized toppings have gained popularity, allowing consumers
to create their unique dessert experiences.
The Indian frozen dessert market is
influenced by seasonal variations, with higher consumption during warmer
months. Brands must strategize to maintain sales throughout the year. The
market is highly competitive, with numerous players vying for consumer
attention. Brands must continually innovate and differentiate themselves. While
there is demand for healthier options, consumers remain conscious of the
nutritional content of frozen desserts, posing a challenge for brands to strike
the right balance.
Key Market Drivers
Evolving
Consumer Preferences and Health Consciousness
One of the foremost drivers behind the
robust growth of the India frozen dessert market is the evolving palate and
health-consciousness of consumers. As India undergoes rapid urbanization and
economic development, consumers are becoming increasingly discerning about the
quality and nutritional content of the food they consume. This shift in
preferences is notably evident in the dessert category.
Consumers are now seeking frozen
desserts that align with their dietary choices and wellness goals. This has led
to a surge in demand for healthier and lighter alternatives to traditional ice
creams and sweets. Frozen yogurts, sorbets, and fruit-based frozen desserts
have emerged as popular choices, often perceived as more wholesome and less
calorific options.
Moreover, the trend of mindful
indulgence is driving the demand for desserts that incorporate natural
ingredients, low sugar content, and no artificial additives. Frozen dessert
brands are responding by offering products with cleaner ingredient labels and
transparent nutritional information, catering to the health-conscious consumer
segment.
The rise of dietary preferences such as
vegetarian, vegan, and lactose-free has further propelled the market's
diversification. Manufacturers are developing frozen desserts that cater to
these dietary choices, expanding their consumer base and reinforcing the idea
that frozen desserts can be enjoyed guilt-free.
Expansion
of Urbanization and Modern Retail Infrastructure
Urbanization has played a pivotal role
in the growth of the India frozen dessert market. As more Indians migrate to
urban centers and embrace fast-paced lifestyles, the demand for convenient and
ready-to-eat desserts has surged. Frozen desserts offer the perfect solution
for consumers seeking quick, hassle-free sweet indulgences.
The proliferation of modern retail
infrastructure, including supermarkets, hypermarkets, and convenience stores,
has significantly enhanced the accessibility of frozen desserts. These retail
outlets provide a diverse range of frozen dessert options, from popular
international brands to local artisanal producers. The convenience of picking
up a frozen dessert during routine grocery shopping has become commonplace,
driving impulse purchases and overall market growth.
Additionally, the expansion of
e-commerce and online grocery platforms has further extended the reach of
frozen dessert brands. Consumers can now conveniently order their favorite
frozen treats online, contributing to the market's expansion and
convenience-driven growth.
Innovation
and Product Diversification
Innovation and product diversification
have been key drivers propelling the India frozen dessert market to new
heights. Manufacturers are continuously experimenting with flavors, textures,
and ingredients to cater to the diverse tastes of consumers.
One notable trend in the market is the
fusion of traditional Indian flavors with frozen desserts. Brands are
introducing frozen desserts infused with regional spices, fruits, nuts, and
herbs, creating a unique and appealing flavor profile that resonates with
Indian consumers. For instance, saffron-infused ice creams, cardamom-flavored
frozen yogurts, and mango sorbets are gaining popularity.
Furthermore, the market has witnessed
the emergence of artisanal and craft frozen dessert brands. These small-scale
producers focus on handcrafted, premium-quality frozen desserts, often using
locally sourced and natural ingredients. Artisanal ice creams, gelatos, and
sorbets offer consumers a distinctive and indulgent experience, fostering a
sense of exclusivity and luxury.
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Key Market Challenges
Intense
Competition and Market Saturation
One of the most significant challenges
in the Indian frozen dessert market is the intense competition and market
saturation. The sector has witnessed a surge in the number of players, both
domestic and international, offering a wide array of frozen dessert products,
including ice creams, frozen yogurts, gelato, sorbets, and more. This
proliferation has led to market saturation, making it increasingly difficult
for new entrants to establish a foothold.
A few major players like Amul, Vadilal,
Mother Dairy, and Kwality Walls have dominated the market for decades. Their
extensive distribution networks, brand recognition, and wide product portfolios
make it challenging for newcomers to compete effectively.
Alongside the national giants, numerous
regional and local brands have established loyal customer bases, particularly
in their respective territories. They often have deep-rooted connections with
local consumers, making it challenging for larger brands to penetrate these
markets.
Consumer loyalty to established brands
is another hurdle. Many consumers have grown up with certain ice cream or
frozen dessert brands and are hesitant to switch to new or unfamiliar options.
India's diverse population translates
into varied preferences for flavors and types of frozen desserts. This
diversity necessitates a broad product range, making it challenging for smaller
players to cater to a wide spectrum of tastes.
Price sensitivity among Indian consumers
remains a key consideration. While premium frozen dessert brands have a niche
market, the majority of consumers seek affordable options. Price wars can be
detrimental to smaller players with limited resources.
To address this challenge, emerging
brands must focus on product innovation, differentiation, and targeted
marketing strategies. Building a strong brand identity, offering unique flavors
and experiences, and engaging with consumers through digital marketing can help
newcomers carve a niche in the competitive landscape.
Seasonal
Nature of Demand and Climate Sensitivity
Another challenge in the Indian frozen
dessert market is the seasonal nature of demand and climate sensitivity.
India's climate is characterized by significant temperature variations, with
scorching summers and relatively mild winters in most regions. As a result, the
demand for frozen desserts experiences pronounced seasonality, with peak
consumption during the summer months.
During the off-peak winter months,
frozen dessert sales tend to drop significantly. This can pose challenges in
terms of managing inventory, sustaining revenue, and retaining consumer
interest.
India's diverse geography means that the
onset of summer and the intensity of heat can vary from region to region.
Brands must be agile in responding to local climate patterns and adapting their
marketing and distribution strategies accordingly.
Maintaining the quality of frozen
desserts during transportation and storage can be a logistical challenge,
especially in regions with extreme temperatures.
To counter seasonality, brands must
continually innovate, introducing new products and flavors to keep consumers
engaged throughout the year.
To address these challenges, brands can
explore opportunities to extend their product lines beyond traditional ice
creams and into frozen yogurt, gelato, or even warm dessert options for the
winter months. Additionally, investing in robust supply chain management, cold
storage facilities, and effective demand forecasting can help mitigate the
impact of seasonality.
Quality
and Ingredient Concerns
Quality
and ingredient concerns pose another significant challenge in the Indian frozen
dessert market. Consumers are becoming increasingly health-conscious and
mindful of the ingredients used in their food choices. This trend has led to a
demand for frozen desserts that are perceived as healthier and made from
high-quality ingredients.
Consumers
are seeking transparency regarding the ingredients used in frozen desserts.
Brands must clearly communicate their ingredient lists and nutritional
information to build trust.
Clean
labeling, which involves using natural and easily recognizable ingredients, is
gaining importance. Brands using artificial additives, colors, or preservatives
may face consumer resistance.
There
is a growing demand for frozen desserts with reduced sugar content, lower fat
levels, and options catering to specific dietary preferences, such as
dairy-free or vegan.
Maintaining
consistent product quality and ensuring that frozen desserts remain free from
contaminants and spoilage is critical to consumer trust.
Compliance
with food safety and labeling regulations is essential to avoid legal and
reputational risks.
Key Market Trends
Health-Conscious
Indulgence
In an era marked by heightened health awareness,
one of the most prominent trends in the Indian frozen dessert market is the
demand for healthier yet indulgent options. Consumers are increasingly mindful
of their dietary choices, and this consciousness extends to their dessert
preferences. They seek frozen desserts that strike a balance between the desire
for a sweet treat and the need for healthier ingredients.
A key aspect of this trend is the rise
of plant-based frozen desserts. Veganism and dairy-free diets have gained
traction in India, driven by health and environmental concerns. Plant-based
frozen desserts, such as almond milk ice creams and soy-based frozen yogurt,
cater to this growing segment of consumers. These alternatives offer the creamy
texture and indulgent flavors of traditional dairy desserts without
compromising on taste.
Consumers are also looking for frozen
desserts with reduced sugar content and lower calorie counts. Brands are
responding by developing products that use natural sweeteners like stevia or
erythritol, and by incorporating ingredients like fruits and nuts for added
flavor without the need for excessive sugar. These options provide guilt-free
indulgence for health-conscious consumers.
Artisanal
and Premium Offerings
Another significant trend in the Indian
frozen dessert market is the growing popularity of artisanal and premium frozen
desserts. Consumers are willing to pay a premium for high-quality, handcrafted,
and unique frozen desserts that offer a superior taste experience. This trend
is a reflection of consumers' desire for authentic and innovative flavors.
Artisanal brands are crafting unique
flavors that reflect regional and global influences. From exotic Indian spices
like cardamom and saffron to international favorites like Belgian chocolate or
Italian gelato-inspired creations, the frozen dessert market is witnessing a
flavor renaissance. Consumers are eager to explore new taste sensations beyond
the conventional.
Premium frozen desserts are also known
for their innovative textures and inclusions. This includes the incorporation
of chunks of premium chocolates, nuts, and fruits to elevate the dessert's
overall experience. The texture-play in these desserts provides an added layer
of indulgence and complexity that consumers appreciate.
E-Commerce
and Delivery Services
The convenience of e-commerce and home
delivery services has become a significant trend in the Indian frozen dessert
market. Consumers are increasingly turning to online platforms to order their
favorite frozen desserts, enjoying the convenience of having these treats
delivered to their doorstep.
Direct-to-consumer (DTC) brands are
emerging as a powerful force in the market. These brands focus on delivering
high-quality frozen desserts directly to consumers, cutting out intermediaries
and ensuring product freshness. They often offer a diverse range of flavors and
customization options.
Subscription-based models for frozen
desserts are gaining traction. Consumers can subscribe to receive regular
deliveries of their favorite frozen treats, ensuring a constant supply of
indulgence without the need for frequent store visits. These subscriptions may
also include exclusive flavors or discounts, incentivizing customer loyalty.
Segmental Insights
Product Type Insights
Frozen
ice cream unquestionably holds a substantial share in the India frozen dessert
market, dominating the landscape with its deliciously creamy and versatile
offerings. This market dominance can be attributed to a combination of factors,
making ice cream a beloved treat for consumers across the nation.
Consumer
Love for Ice Cream: Ice cream enjoys universal appeal in India, transcending
age, region, and occasion. Whether it's a scorching summer day or a joyous
celebration, ice cream is often the go-to dessert for millions of Indians. This
enduring love for ice cream has cemented its position as the undisputed leader
in the frozen dessert market.
Wide
Variety of Flavors: Ice cream brands in India have innovated relentlessly to
create a diverse array of flavors that cater to a broad spectrum of tastes.
From traditional flavors like vanilla, chocolate, and strawberry to more exotic
options like mango, butterscotch, and paan, the variety is staggering. This
flavor diversity ensures that there's an ice cream for every palate.
Seasonal
Versatility: India's diverse climate allows for year-round consumption of ice
cream. While it provides much-needed relief during the scorching summers, ice
cream also adds joy to the monsoon and winter months, thanks to its comforting
and celebratory appeal.
Premium
and Artisanal Offerings: The premiumization of ice cream in India has resonated
with consumers seeking higher-quality desserts. Brands have responded by
offering premium, artisanal, and gourmet ice creams made with high-quality ingredients.
These offerings often command a higher price point and appeal to those looking
for indulgence.
Innovative
Packaging and Formats: Ice cream is available in a range of convenient formats,
including cones, cups, sticks, and family-sized tubs. Brands have also
introduced innovative packaging to enhance consumer convenience and
differentiate their products.
Retail
Penetration: Ice cream enjoys extensive retail penetration, with brands
available in a multitude of outlets, from small mom-and-pop stores to large
supermarket chains. This widespread availability ensures that consumers can
easily access their favorite ice cream brands.
Brands
and Regional Specialties: Both international and domestic ice cream brands have
made their mark in India. Brands like Amul, Kwality Wall's, and Vadilal have
established themselves as household names, while regional specialties like
Kulfi and Gola (shaved ice) continue to thrive.
Special
Occasions and Celebrations: Ice cream is an integral part of celebrations and
special occasions in India, be it birthdays, weddings, or festivals. The demand
for ice cream surges during these festive periods, contributing significantly
to its market share.
Sales Channel Insights
The
online sales channel has emerged as a significant player in the India frozen
dessert market, transforming the way consumers access and enjoy these
delectable treats. This shift in consumer behavior and the rise of e-commerce
have reshaped the landscape of the frozen dessert industry, contributing to its
substantial growth.
E-Commerce
Boom: India has witnessed a remarkable surge in e-commerce platforms and online
shopping, driven by increasing internet penetration, smartphone usage, and
digital literacy. This has created a fertile ground for the online sales
channel to flourish, including the frozen dessert segment.
Convenience
and Accessibility: Online platforms offer consumers the convenience of ordering
frozen desserts from the comfort of their homes or workplaces. This convenience
factor is particularly attractive for busy urban dwellers who seek hassle-free
ways to indulge in frozen treats.
Diverse
Product Range: Online retailers and dessert brands have leveraged the digital
space to showcase a diverse range of frozen dessert products. From ice creams
and gelato to sorbets, frozen yogurts, and innovative dessert novelties,
consumers have access to a wide variety of options online.
Customization
and Personalization: Online platforms often provide options for customization
and personalization, allowing consumers to select flavors, toppings, and
portion sizes according to their preferences. This level of customization
enhances the overall online shopping experience.
Doorstep
Delivery: One of the most compelling aspects of online frozen dessert shopping
is doorstep delivery. Consumers can order their favorite frozen treats and have
them delivered right to their homes, eliminating the need for a trip to a
physical store.
Seasonal
and Festive Promotions: Online platforms are adept at running seasonal and
festive promotions, enticing consumers with special offers and discounts during
occasions like summer, festivals, and holidays. This marketing strategy boosts
sales and consumer engagement.
Reviews
and Ratings: Online shoppers benefit from the transparency of customer reviews
and ratings. They can make informed choices by considering the experiences and
feedback of other buyers, building trust in the online purchase process.
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Regional Insights
The North
region of India has emerged as a dominant force in the country's frozen dessert
market, securing a significant share and playing a pivotal role in shaping the industry's
growth and dynamics. This ascendancy can be attributed to several factors that
have contributed to the region's prominence in the frozen dessert sector.
Changing
Consumer Preferences: The North region has witnessed a transformation in consumer
preferences when it comes to desserts. While traditional Indian sweets still
hold a special place, there has been a notable shift towards western-style
desserts, including frozen treats like ice creams, gelatos, and frozen yogurts.
The urban population in the North, in particular, has developed a growing
fondness for these frozen delights.
Urbanization
and Rising Middle Class: The rapid urbanization of North India, accompanied by
an expanding middle-class population, has led to increased disposable incomes
and changing lifestyles. Urban consumers are more inclined to indulge in
premium and novel dessert experiences, driving the demand for frozen desserts.
Retail
Revolution: The North boasts a well-developed retail infrastructure, with the
presence of modern supermarkets, hypermarkets, dessert parlors, and online
delivery platforms. These outlets offer a wide variety of frozen dessert
options, making it convenient for consumers to explore and enjoy a diverse
range of flavors and formats.
Seasonal
Variability: The extreme weather conditions in North India, characterized by
scorching summers, have amplified the demand for frozen desserts. Ice creams
and related products are sought after as a refreshing way to beat the heat.
Manufacturers have capitalized on this seasonality by offering a wide array of
flavors and innovations.
Youthful
Demographics: The North region has a substantial youth population that is open
to trying new and exciting dessert offerings. This demographic segment is not
only a key consumer base but also a source of inspiration for innovative
dessert creations and marketing strategies.
Diverse
Culinary Landscape: The North is known for its rich culinary heritage, and this
diversity extends to desserts. Regional specialties like kulfi, rabri, and
falooda have a strong presence, alongside global favorites like sundaes and
sorbets. This culinary diversity fuels the demand for a wide range of frozen
dessert options.
Customization
and Innovation: Frozen dessert brands in the North have responded to consumer
demands for variety and innovation. They introduce innovative flavors that
incorporate local ingredients, spices, and cultural influences, creating unique
and appealing frozen treats.
Recent Developments
- In 2022, India's
largest self-serve froyo chain, Myfroyoland, opened a new branch in Jalandhar,
India. They offer a wide variety of flavors and toppings for customers to
customize their frozen yogurt experience.
- In 2022, The
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the brand
Amul, entered the frozen yogurt market in India. This launch signifies their
expansion into the growing market for frozen yogurt.
- In 2022, Cocoberry,
a popular frozen yogurt brand, opened its second store in Kolkata. Located at
Purna Das Road, this new outlet gives Kolkata residents access to their
delicious frozen yogurt offerings.
Key Market Players
- Creambell (RJ Corp.)
- Gelato Vinto
- Hindustan Unilever Limited
- Keventer Group
- Lazza Ice Cream
- Menchie’s India
- Vadilal Industries Limited
- Cocoberry Restaurants and Distributors Private Limited
- Prestige Ice Creams Pvt. Ltd.
- Team24 Marketing India Pvt. Ltd.
|
By
Product Type
|
By
Category
|
By
Sales Channel
|
By
Region
|
- Frozen
Ice Cream
- Frozen
Yogurt
- Others
|
|
- Supermarkets/Hypermarkets
- Convenience
Stores
- Online
- Others
|
|
Report Scope:
In this report,
the India frozen dessert market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India
Frozen Dessert Market, By
Product Type:
o Frozen Ice Cream
o Frozen Yogurt
o Others
- India
Frozen Dessert Market, By
Category:
o Conventional
o Sugar-free
- India
Frozen Dessert Market, By
Sales Channel:
o Supermarkets/Hypermarkets
o Convenience Stores
o Online
o Others
- India
Frozen Dessert Market, By Region:
o North
o South
o East
o West
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India frozen dessert market.
Available Customizations:
India
Frozen Dessert Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
India Frozen Dessert Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]