With there being a fourfold increase in ice cream consumption over the past ten years in India, the industry has been witnessing an enhanced degree of growth. India’s Ice cream sector is projected to reach Rs 45,000 crore in the next three years and more than Rs 90,000 crore in the next eight years, as per the Indian Ice Cream Manufacturing Association (IICMA).
The growth is expected to be driven by increasing disposable incomes, changing consumer preferences and expanding distribution channels. As 27 March was declared as the ‘Ice Cream Day’ by the industry body, India has now joined the global league of nations that recognise and celebrate the ice cream industry’s contributions.
“The Indian ice cream sector has huge potential for creating a healthier a greener future — from adopting sustainable sourcing of raw material and packaging, using energy-efficient technologies and using natural products for flavours,” S P Singh Baghel, Minister of State for Fisheries, Animal Husbandry and Dairying, stated at the inaugural event to mark the occasion.
The Minister highlighted the ice cream industry’s significant contribution to the allied agro-industries, dairy and food processing sectors, employment generation and export potential. The government is actively working to boost domestic consumption, attract investments and enhance the entire supply chain, which includes farmers, suppliers, cold chain providers and retailers, as highlighted in the official statement.
“The government has already rolled out Production Linked Incentive (PLI) schemes, FDI in food processing, and dairy sector subsidies that are boosting investments and modernizing the industry,” the Minister added.
This initiative is aimed at aligning with the government’s objective of creating economic opportunities and empowering the agricultural and food processing sectors. “This day marks the onset of peak summer, school exams are over, birthdays, celebrations and weddings kickstart in a big way. With the Ice Cream Day, we are not just promoting a product, but are also creating an annual tradition that celebrates happiness, togetherness, and economic growth,” highlighted Sudhir Shah, President of IICMA.
Rising Income, Urbanisation Driving Demand
Rising disposable incomes, urbanisation, and evolving consumer preferences are fuelling demand, especially in tier-one and two cities. The association highlighted that the stability of prices for essential ingredients, such as milk solids and packaging materials, has enabled manufacturers to maintain competitive pricing and enhance profitability. Consumers are increasingly attracted to premium, health-oriented, and innovative flavours, leading brands to launch plant-based, low-sugar and high-protein ice creams.
The government is also offering incentives to draw investments into the food processing sector, including subsidies, tax advantages and infrastructure support, as per the official statement. This strategic approach positions India as an attractive destination for both domestic and international investors looking to capitalise on the growing ice cream market.
