How ice cream brands are vying for market dominance amid enhanced competition

As temperatures breach the 50-degree mark across North India, every device and food & beverage that can keep people cool are seeing a surge in sales. Today, ice-creams have become more than just a cold, sweet indulgence; it’s a booming industry with fierce competition and innovative strategies.

The Indian ice cream market is a scoop of good news, valued at over $3 billion in 2023 and projected for significant growth, as per industry reports. Analysts predict a healthy Compound Annual Growth Rate (CAGR) of 13.49% between 2024 and 2030. Moreover, according to IMARC Group, the Ice Cream Market in India reached Rs 228.6 billion in 2023 and is expected to grow to Rs 956.0 billion by 2032, exhibiting a CAGR of 17.4% from 2024 to 2032.

Here’s why India’s ice cream industry is reaching new heights:

• Rising disposable incomes: As pockets get deeper, consumers are indulging in more treats, including ice cream.
• Indulgence on the rise: Ice cream is increasingly seen as a way to pamper oneself, driving demand for premium and innovative flavors.
• A wave of new products: Leading brands are constantly launching exciting new flavours and formats, keeping customers engaged.
• Wider reach, happier streets: Distribution channels are expanding, bringing ice cream to more people in both cities and rural areas.
• E-commerce scoops up new customers: The booming e-commerce sector, coupled with the rapid rise of quick commerce (q-commerce), is making ice cream delivery faster and more convenient than ever.
• Q-commerce: Instant gratification: With q-commerce, customers can satisfy their ice cream cravings with a tap, thanks to speedy delivery options.

Pandemic’s silver lining

The COVID-19 pandemic, while disruptive, actually accelerated the adoption of e-commerce for ice cream purchases. Lockdown restrictions led people to explore online channels when physical stores were unavailable.

Jayen Mehta, Managing Director of Amul, shared his insights, stating, “During the pandemic, especially the initial phase, we faced significant issues due to misconceptions from the Ayush Ministry’s recommendation against eating ice cream. We addressed these concerns with them, and later on, distribution resumed. However, due to the quality of our ice cream, extensive distribution network, and strong brand image, we managed to capture a larger market share during and after the pandemic. The pandemic made consumers more quality, hygiene, and brand-conscious, which worked to our advantage. As a result, we saw a 5% increase in our market share. Post-pandemic, there was a trend of ‘revenge eating’ observed during the peak summer of 2022, further boosting per capita consumption.”

Rising heat driving demand

It’s a no-brainer – people crave for refreshing treats to beat the heat, leading to a surge in ice cream purchases. This results in significant growth compared to other times of the year, with estimates ranging from 10-15% to as high as 45-50%.  Ice cream brands understand this trend and launch summer-specific marketing campaigns to boost sales. This can include new flavour launches, promotions, and increased advertising.

Major brands capitalizing on the summers

As the temperatures rise, so does the demand for ice cream. Leading brands are scooping up new strategies to capitalize on the seasonal surge.

Dominating the Market:

“Ice cream is a seasonal category,” pointed out Jayen Mehta, adding, “We double our manufacturing capacities, buffer stocks and launch new flavors to meet the summer rush.” Amul also invests heavily in advertising and promotions to maintain brand loyalty. He added, “These initiatives would help us to improve our market dominance this season.”

Innovation is Key:

Mother Dairy, another major player, echoed this sentiment. Manish Bandlish, Managing Director, Mother Dairy, said, “Summer is the most anticipated season for a category like ice creams – over 40% of the annual sales happen during the first quarter of the fiscal.” He further highlighted the importance of “new products to keep consumers excited”. The brand focuses on production capacity, distribution, and consistent marketing efforts.

Reimagining ice Cream:

Speaking on Baskin Robbins’ unique approach to marketing, Mohit Khattar, CEO, Graviss Foods, Baskin Robbins, said, “We’re reimagining ice cream as the ultimate snack for any occasion.” Baskin Robbins is introducing bite-sized “Ice Cream Rocks” and multi-layered “doublet bars” for portion control or indulgence. They’re even offering fruit-based “Fruitinis” as a refreshing snack option.

Healthy indulgence:

Scuzo Ice ‘O’ Magic stands out from the crowd. Founder Gagan Anand positions them as a healthier alternative with gelato, a denser, often fruit-flavored frozen treat. Scuzo Ice ‘O’ Magic focuses on “innovation in products and continuous improvement in quality” to keep customers cool and happy. Gagan Anand added, “We have a special focus on an effective supply of raw materials for our frozen desserts to keep the continuous production and distribution going, and ensure the consumer’s satisfaction.”

With these strategies, ice cream brands are ready to make a splash this summer, offering a variety of options to beat the heat and satisfy every craving.

Bold flavours & smart strategies

Vanilla and chocolate? Who needs them when we're living in an age of gastronomic ice cream alchemy? Today’s scene is a kaleidoscope of audacious flavors that tantalize even the most discerning palate. Imagine lavender honey whispering sweetness on your tongue, or avocado chunks nestled amidst a symphony of chocolate. Craving a trip down memory lane? Brands are resurrecting childhood favorites to reignite the joy of simpler times.

Industry leaders are dishing the scoop:

Amul’s Jayen Mehta unveils a world of decadent delights – from Dark Frostik to Aam Ras Kulfi. Their Ice Lounge concept elevates the experience with a fine-dining twist on international flavours. On this, he shared, “Currently, we have started 15 such parlours, another 10 are planned during summers and overall plan 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 emphasized on the adventurous spirit of today’s consumers, eager to explore premium and innovative options.

Manish Bandlish of Mother Dairy also shared this sentiment, introducing 20 new creations that cater to diverse preferences. He said, “Mother Dairy’s portfolio comprises of 100% milk-based ice creams and this year’s line-up includes the beloved tila kulfis in classic flavours of Kesar Pista, Thandai, Mango, and Rabdi Malai. We are constantly looking for ways to connect with our consumers through product-focused campaigns, social media initiatives, and strategic partnerships.”

Baskin Robbins, the king of innovation, isn’t letting the grass grow under their feet. Mohit Khattar unveiled a wave of snack-sized delights like Ice Cream Rocks, perfect for the on-the-go lifestyle. He said, “Another new introduction are our multi layered doublet bars in two flavours – Choco Fudge and Raspberry Vanilla. Then there are all day Mocktails called Fruitinis, which are made with real fruit, milk and a bit of ice cream. There are also new ice cream sandwiches and a whole lot more.”

Scuzo Ice ‘O’ Magic’s Gagan Anand brings health to the forefront. Their famous live popsicles made with fresh fruits are a refreshing option, while their seasonal gelatos and sorbets offer a burst of flavor without the guilt. He shared, “The latest addition to our menu is the seasonal gelatos, sorbets and live popsicles like; raspberry sorbet, mango sorbet, kiwi sorbet, berry popsicles and popping boba ice tea in four different flavours, which will be the star of this summer menu.”

For the vegan connoisseur, Nikhil Jain, Founder, Coppetto Artisan Gelato, offers a symphony of sorbets in classic flavours like mango and raspberry. He said, “These flavours not only provide a delicious way to cool down, but also cater to the growing trend of health-conscious consumers looking for lighter, fruit-based treats. Our Vegan Extra Noir proves that indulgence and health-consciousness can go hand-in-hand.”

Hot marketing campaigns for the season

As temperatures rise, ice cream brands are rolling out innovative marketing campaigns to capture consumer attention and drive sales. Leveraging the power of technology and social media, these campaigns aim to create immersive and engaging experiences that resonate with consumers.

Mother Dairy: Digital Engagement and Brand Trust

Mother Dairy has successfully implemented campaigns that resonate with consumers’ sentiments and communicate core values. Manish Bandlish highlighted the #MotherPromise campaign, built on the concept of a “Mother’s promise”, which aligns Mother Dairy with qualities like purity and integrity. “This campaign successfully strengthened brand trust by aligning Mother Dairy with qualities like purity, integrity, and delicious taste – values that resonate deeply with our consumer base,’ says Bandlish. Another notable campaign, #KhushiyonKiParampara, aimed to promote family bonding through the joy of indulging in ice cream together.

Baskin Robbins: Interactive marketing and Influencer collaborations

Baskin Robbins has focused on a dual campaign strategy. According to Mohit Khattar, the brand’s approach involves showcasing new products and building brand equity. “Our campaign itself is in two parts – (a) Product-centric campaign showcasing new products and (b) Brand campaign building equity and affinity.” Collaborations with influencers and digital media campaigns have amplified their initiatives. Baskin Robbins also plans to integrate AI into future marketing efforts to enhance consumer engagement.

Scuzo Ice ‘O’ Magic: Interactive and fun campaigns

Gagan Anand of Scuzo Ice ‘O’ Magic emphasized on the importance of consumer interaction and participation. “Special discount offers and interactive contests have helped improve our sales and consumer loyalty,” he elaborated. Scuzo Ice ‘O’ Magic Magic’s upcoming campaign targets young consumers with interactive quiz sessions revolving around fruits and live popsicles, promising a memorable summer experience for kids and parents alike.

Coppetto Artisan Gelato: Social Media Buzz

Coppetto Artisan Gelato’s Nikhil Jain underscored the power of social media in creating excitement around new products. “We created attractive posts and fun videos to show how refreshing and delicious the Cold Chocolate drink is,” said Jain. By encouraging customers to share their own photos and experiences, Coppetto has successfully generated buzz and boosted sales during the hot summer months.

Across the board, ice cream brands are leveraging digital platforms and social media to engage with their audience and create excitement around their products. Interactive polls, quizzes, and influencer collaborations are just some of the ways brands are fostering a two-way dialogue with consumers, making the most of the hot season to drive engagement and sales.

Will Boutique Ice-Cream brands upset the ice cream cart?

In recent years, boutique ice-cream brands have gained popularity, presenting themselves as potential competitors to established brands. However, the ice-cream industry remains highly fragmented with a mix of national, regional, and local players co-existing. Brands that stand out are those that offer quality, value for money, and innovation. While boutique brands may appear attractive to consumers, the industry is capital-intensive, requiring significant investment and a longer payback period.

COVID-19 pandemic further highlighted this dynamic. Larger brands have managed to increase their market share, while many smaller and newer brands have struggled to sustain themselves.

Amul, a major player in the ice-cream market, is capitalizing on this shift by expanding its manufacturing capacity. As shared by Jayen Mehta, “The company is set to double its capacity within two years, strategically locating new plants near major consumption markets. Amul has invested around Rs 1,000 crore in this expansion, which includes the establishment of six new ice-cream plants, bringing the total number of its ice-cream manufacturing locations to 25. Additionally, the Surat Union has invested Rs 50 crore in a facility dedicated to producing waffle cones, with a capacity of 10 crore cones per annum, as part of its backward integration strategy.”

This significant expansion demonstrates Amul’s commitment to maintaining its competitive edge and meeting the growing demand in the ice-cream market.

Competing with Cold Beverages

During the summer months, ice cream brands face heightened competition not only from within the ice cream segment, but also from a wide array of cold beverages. These beverages include soft drinks, smoothies, iced teas, and energy drinks, which all vie for the consumer’s parched throats and share of the wallet. Understanding the dynamics of this competition is crucial for strategic planning and execution.

In response to this competitive landscape, many ice cream brands have diversified their offerings to include a beverage segment. Mehta of Amul explained, “Both ice cream and beverages are summer products that peak during the season due to their seasonality. We are expecting to achieve 40-45% growth this summer in beverages, and post-summer, growth would be on a pro-rata basis.”

Khattar elaborated on their new product launches, stating, “We have launched our all-day mocktails called Fruitinis, which are made with real fruit, milk, and a bit of ice cream. Needless to say, these are fruity, refreshing, and a whole new way to snack from mid-mornings onwards.”

Gagan Anand also highlighted their new additions, “We have introduced various drinks to our menu such as iced tea, cold brews, and mocktails infused with mint, lemon, berries, and cucumbers. The latest addition to our menu is seasonal gelatos, sorbets, and live popsicles, including raspberry sorbet, mango sorbet, kiwi sorbet, berry popsicles, and popping boba ice tea in four different flavors, which will be the stars of this summer menu.”

This strategic diversification into beverages allows ice cream brands to capitalize on the summer demand for cold refreshments, ensuring they remain competitive in a market saturated with alternative cool treats.

By embracing new flavors, sustainability, personalization, technology, and unique customer experiences, ice cream brands are ensuring they stay cool and profitable during the hot summer months. As these trends continue to evolve, one thing remains certain: ice cream will always be a beloved summer staple, continuously reinvented to delight taste buds worldwide.