Amul, India’s dairy powerhouse, is rapidly expanding its frozen dessert portfolio with innovative flavours, strategic pricing and distribution channels. The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul brand, has established itself as a nearly $11 billion cooperative empire. Having registered a turnover of Rs 65,911 crore (approximately $7.75 billion) for the financial year ending March 2025, the company is now setting its sights even higher with an ambitious target of Rs 80,000 crore for 2025-26.
At the heart of this growth strategy is Amul’s ice cream division, which has been experiencing robust expansion as rising temperatures drive demand across the country.
Changing Consumer Preferences
“Ice Cream has always been an exciting and indulgent food category. The growth in this category is fuelled by factors such as rising disposable incomes, expansion of retail channels and consumer interest in premium and innovative flavours,” notes Jayen Mehta, Managing Director of Amul.
The company’s market research reveals evolving consumer behaviours that are reshaping the industry. “Consumers are evolving with respect to experimenting with new flavours and packaging. Also, with the growing trend towards health-conscious options – low calorie, sugar-free, natural fruits options are being tried out – both by manufacturers and consumers,” Mehta explains. “Consumers are ready to experiment with new flavours while at the same time, Indian flavours with modern ingredients – a blend of cultural tastes with contemporary preferences is on the rise.”
The blend of tradition and innovation is evident in Amul’s expanding product lineup. The company has introduced a range of flavours that combine global influences with distinctly Indian tastes. These include exotic options like Berry Dazzle, Cheese-n-Cherry Sundae, Refreshing Strawberry, Tiramisu, Sky Scooper Cookies Overload, Sky Scooper Dreamy Almond with some flavours for chocolate and coffee lovers like Sandwich Chocolate Brownie and Tricone Coffee alongside traditional favourites such as Matka Kulfi, Kulhad Kulfi, Rabdi Kulfi, Shahi Mewa Khazana and Roll Cut Pista Malai.
Price Sensitive Market
Despite its premium offerings, Amul remains committed to its core philosophy of making quality products accessible to the masses. The company has strategically priced its products to encourage higher consumption across different economic segments.
“While we are delighting the consumers with new innovative flavours catering to different consumer’s taste buds, we are also rooted to our mass consumer base and ensuring to increase per capita consumption of ice cream by giving value for money options to consumers,” Mehta emphasises. Amul has introduced 2-litre value packs of ice cream in eco-friendly paper packaging, offering Vanilla at Rs 199 and Butterscotch at Rs 225, targeting budget-conscious consumers and larger households.
The two-pronged approach allows Amul to capture both the premium and mass market segments, positioning it uniquely in a competitive landscape where most players focus exclusively on one end of the spectrum.
Multi-channel Distribution
Beyond product innovation, Amul is fundamentally changing how ice cream reaches consumers through multi-channel distribution strategies. The traditional retail network remains crucial, but the company has embraced ecommerce and quick commerce platforms to meet evolving consumer demands.
“The market is in the expansion mode not only because of new flavours and packaging but also due to the new channels available to consumers to have delightful ice-creams,” Mehta observes. Traditional retail channels continue to play a key role, but there’s a noticeable surge in ice cream consumption through e-commerce and quick commerce platforms. The convenience of doorstep delivery, whether at home or the office, has made it easier for consumers to satisfy their cravings anytime, be it during scorching afternoons, relaxed evenings or late-night gatherings and binge-watching sessions.
Amul Ice Lounges
Perhaps the most visible manifestation of Amul’s premium positioning is its growing network of Amul Ice Lounges. These upscale ice cream parlours offer exclusive flavours and an immersive brand experience that attracts urban consumers seeking more than just a frozen treat.
“Amul Ice Lounges – premium ice cream parlours with a range of innovative flavours is a concept which is giving new experiences to consumers not only in taste but also the ambience of it. Specific flavours with a country-specific twist are available through Amul Ice Lounges only like French Mango patisserie, Peruvian Toffee, NZ Manuka Honey, Speculoos Belgian Biscoff, Italian Gelato Lemon pie, Italian Gelato orange pie,” Mehta explains.
These lounges serve as brand showcases while allowing Amul to test premium concepts before potentially rolling them out to wider markets.
Infrastructure Investment
The cooperative is backing its ambitious plans with substantial capital investments. The company has invested in manufacturing expansion, distribution networks and storage facilities.
“Amul’s investment in consumer preferences in terms of new flavours, packaging, and reaching consumers through various platforms is yielding results,” Mehta states.
“With more than 1000 crore investments in manufacturing expansion facilities, infrastructure facilities like assets in increasing distribution networks, storage facilities is all that is needed to remain in the lead of this growing industry which is all set to give a robust growth in the coming years ahead also,” he concludes.
