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“Combinations offer delightful twist to ice cream experience”
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Monday, 29 April, 2024, 08 : 00 AM [IST]
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 The Indian ice cream industry is experiencing robust compound annual growth of 13.49 per cent, in the current year. The industry is witnessing major revolution in regards to automated machineries and equipment. Sudhir Shah, president of the Indian Ice Cream Manufacturers Association (IICMA), and managing director, Sri Srinivasa Dairy Products Pvt Ltd, in an email interview with Harcha Bhaskar states, how cold chain transport is important for maintaining freshness of the product and how collaboration with Government of India is vital for driving growth, innovation, and sustainability in the ice cream sector. Excerpts:
How big is the ice cream market in India, how much growth is expected in the current fiscal?
The ice cream market in India has witnessed substantial growth in recent years, with the market size surpassing US$3 billion in 2023. This robust growth trajectory is expected to continue, with projections indicating a compound annual growth rate (CAGR) of 13.49% during the period of 2024-2030.
This significant expansion is driven by various factors, including evolving consumer preferences, increasing disposable incomes, and the introduction of innovative flavours and product offerings. Moreover, the market has seen a rising demand for premium and artisanal ice creams, reflecting a growing inclination towards indulgent and high-quality dessert experiences among consumers.
Despite challenges posed by economic uncertainties and the ongoing Covid-19 pandemic, the Indian ice cream market remains resilient. Factors such as rising temperatures, festive occasions, and strategic marketing initiatives are anticipated to fuel further consumption growth in the current fiscal year.
Additionally, the market's growth is bolstered by factors such as urbanisation, expanding retail infrastructure, and heightened awareness about frozen desserts. These factors, combined with the projected CAGR, underscore a promising outlook for the Indian ice cream industry, positioning it as a lucrative opportunity for both established players and new entrants alike.
What is the difference between artisanal ice cream and regular ice cream; do you see artisanal ice cream as competition?
Artisanal ice cream stands out for its premium quality, handcrafted production, and emphasis on natural ingredients, offering unique flavours and textures. In contrast, regular ice cream, mass-produced by large manufacturers, may contain more artificial additives and offer a more limited flavour range.
Artisanal ice cream competes with traditional brands by appealing to consumers seeking authenticity and indulgence. However, traditional brands leverage their wide distribution and affordability. Despite competition, artisanal ice cream fosters innovation and diversification within the industry, benefiting consumers with more options.
How has modern machinery and equipment brought about a transition in the ice cream industry?
Modern machinery and equipment have revolutionised the ice cream industry in India and globally by enhancing production efficiency, quality control, and product innovation. Previously, the Indian ice cream industry lacked technological advancements, particularly in cup filling and cone filling machines. Small-scale manufacturers often resorted to manual filling methods, leading to quality and food safety issues.
However, the landscape has transformed with the advent of modern machinery. Advanced equipment allows for automated filling processes, ensuring precision and consistency in product packaging. This not only improves the quality of the final product but also enhances food safety standards by minimising human error and contamination risks.
Moreover, the yearly ice cream exhibition organised by the IICMA in different Indian cities has played a pivotal role in the industry's evolution. This exhibition serves as a platform for easy interaction between buyers and sellers from across the globe. It facilitates knowledge exchange, technology transfer, and business networking opportunities, driving innovation and growth in the ice cream sector.
In conclusion, the integration of modern machinery and equipment, coupled with platforms like the IICMA ice cream exhibition, has brought about a significant transition in the Indian ice cream industry. These developments have not only addressed previous technological limitations but also fostered a culture of continuous improvement, positioning India as a competitive player in the global ice cream market.
How is freshness of products retained with good refrigeration logistic and supply chain?
As the president of IICMA, I can attest to the critical role that refrigeration logistics and supply chain management play in preserving the freshness of our ice cream products.
Effective refrigeration logistics begin from the moment ice cream is manufactured. It's essential to maintain optimal storage conditions at production facilities, ensuring that the products are immediately chilled to the recommended temperature to preserve their quality.
Once produced, ice cream products are transported to distribution centres and then to retail outlets. During this journey, it's crucial to utilise refrigerated trucks and containers to maintain a consistent temperature. Any fluctuations in temperature can compromise the texture and taste of the ice cream.
Moreover, close collaboration between manufacturers, logistics providers, and retailers is vital. Clear communication ensures that everyone in the supply chain understands and adheres to the required storage and handling protocols to prevent any deterioration in product freshness.
Investing in technology, such as temperature monitoring devices and GPS tracking systems, can further enhance the efficiency of refrigeration logistics. Real-time monitoring allows for proactive management of the cold chain, enabling quick responses to any issues that may arise.
In summary, by implementing robust refrigeration logistics and supply chain management practices, the IICMA ensures that consumers enjoy ice cream products that are consistently fresh and of the highest quality. Our commitment to maintaining the integrity of the cold chain underscores our dedication to delivering delightful ice cream experiences to customers across India.
How much revenue growth does the ice cream industry expects this summer as compared to last summer?
The compounded average growth of the Indian ice cream industry is estimated at around 13-14%. However, this year's revenue growth is anticipated to be even better compared to previous years.
Which of the innovative ice cream flavours are trending this summer?
Indulge in the sweetness of summer with our delectable array of innovative ice cream flavours! From traditional favourites like Gulab Jamun and Soan Papdi to refreshing options such as Tender Coconut, Sitaphal, Chikoo, and Litchi, we've curated a menu that celebrates the rich diversity of flavours found in India.
But that's not all – we've also embraced global trends with tantalising creations like Biscoff and Chocolate Pretzel. These unique combinations offer a delightful twist to your ice cream experience, perfect for satisfying your cravings on a hot summer day.
What are factors influencing growth of the ice cream industry in India?
Several key factors are influencing the growth of the ice cream industry in India:
- Changing Consumer Preferences: As disposable incomes rise and lifestyles evolve, there is an increasing demand for indulgent and convenient food options like ice cream.
- Innovation in Flavours and Formats: Ice cream manufacturers are continuously introducing new flavours, formats, and packaging to cater to diverse consumer tastes and preferences, driving market growth.
- Expansion of Retail Channels: The proliferation of modern retail formats, including supermarkets, hypermarkets, and convenience stores, has expanded the availability and accessibility of ice cream products across urban and rural areas.
- Growing Foodservice Sector: The expansion of the foodservice industry, including cafes, restaurants, and ice cream parlours, has contributed to the consumption of ice cream as a dessert or snack option, fueling industry growth.
- Rising Health Consciousness: With increasing health awareness, there is a growing demand for healthier and functional ice cream variants, such as low-fat, sugar-free, and dairy-free options, driving innovation and market expansion.
- Favourable Demographics: India's young population, characterised by a large proportion of children and young adults, represents a significant consumer base for ice cream products, driving demand and consumption.
- Technological Advancements: Adoption of modern machinery and equipment has enhanced production efficiency, quality control, and product innovation, enabling manufacturers to meet growing demand and maintain competitiveness.
Overall, these factors collectively contribute to the robust growth of the ice cream industry in India, making it a dynamic and thriving market segment.
How ice cream players ensure use of natural flavours and ingredients, what are various standards and certification they have to adhere to?
Ensuring the use of natural flavours and ingredients is paramount for us at Scoops, Cream Stone, and Froops Ice Cream. We take great pride in crafting our delicious treats with the finest, high-quality ingredients sourced from trusted suppliers.
At the heart of our commitment to quality is our dedicated technical expert team led by Ajay Kumar Dubey. Ajay and his team meticulously oversee every aspect of ingredient selection and product manufacturing, ensuring that only the best ingredients make their way into our ice cream.
To uphold the highest standards of quality and safety, we adhere to a comprehensive set of certifications and standards. These include ISO 9001:2015 for quality management systems, ISO 22000:2018 for food safety management systems, Bureau of Indian Standard certification, NPOP organic certification for organic products, Halal certification for compliance with Islamic dietary laws, and ZED certification for excellence in manufacturing practices.
Each of these certifications represents our unwavering commitment to transparency, integrity, and excellence in every scoop of ice cream we produce. With our rigorous adherence to these standards and certifications, you can trust that every bite of our ice cream is not only delicious but also made with the highest quality natural ingredients.
What are the steps taken by you to meet the demand of rural areas?
Meeting the demand of rural areas is a key focus for us. We recognise the importance of extending our reach beyond urban centres to ensure that everyone can enjoy our delicious ice cream offerings. Here are the steps we have taken to meet the demand in rural areas:
- Market Research: We conduct thorough market research to understand the preferences, purchasing power, and consumption patterns of consumers in rural areas. This helps us tailor our product offerings and marketing strategies to better suit their needs.
- Distribution Expansion: We have invested in expanding our distribution network to reach remote rural areas. This includes establishing partnerships with local distributors, retailers, and small grocery stores to ensure that our products are readily available to consumers in these regions.
- Product Localisation: We adapt our product offerings to cater to the preferences of consumers in rural areas. This may include introducing flavours and packaging sizes that are popular among rural consumers, as well as incorporating locally sourced ingredients when possible.
- Affordable Pricing: We understand the importance of offering our products at affordable prices to make them accessible to consumers in rural areas. We strive to maintain competitive pricing while ensuring the quality and integrity of our products.
- Community Engagement: We actively engage with local communities through promotional events, sponsorships, and partnerships with local organisations. This helps us build brand awareness and trust among consumers in rural areas while also supporting community development initiatives.
By taking these proactive steps, we are committed to meeting the demand for ice cream in rural areas and bringing the joy of our delicious treats to people across Telangana.
What are your views and expectations from the Government of India for the ice cream industry?
As the president of IICMA and MD of Scoops, Cream Stone, and Froops Ice Cream, I had the privilege of leading our recent meeting with President of India Draupadi Murmuji. It was an honour to discuss the challenges and opportunities facing the ice cream industry and share our perspectives.
Our views and expectations from the Government of India for the ice cream industry are centered around several key areas:
- Support for Small and Medium Enterprises (SMEs): We believe that SMEs play a crucial role in the ice cream industry's growth and development. We urge the government to provide support in the form of favourable policies, access to finance, and incentives to help SMEs thrive in a competitive market.
- Infrastructure Development: Improvements in infrastructure, including cold chain logistics and storage facilities, are essential for ensuring the quality and safety of ice cream products, especially in rural and remote areas. We call upon the government to prioritise infrastructure development to support the expansion of the ice cream industry.
- Research and Development: Investment in research and development is critical for fostering innovation and driving product differentiation in the ice cream sector. We encourage the government to allocate resources for R&D initiatives aimed at developing new flavours, formulations, and manufacturing technologies.
- Regulatory Framework: A clear and conducive regulatory framework is necessary to ensure food safety, quality standards, and compliance with international best practices. We seek the government's support in establishing transparent and consistent regulations that promote consumer trust and confidence in ice cream products.
- Promotion of Dairy Farming: Dairy farming is the backbone of the ice cream industry, and sustainable growth in this sector is essential for meeting the increasing demand for dairy ingredients. We advocate for policies that support dairy farmers, including subsidies, training programmes, and access to modern farming techniques.
Overall, we believe that collaboration between the government and the ice cream industry is vital for driving growth, innovation, and sustainability. We look forward to working closely with the Government of India to create an enabling environment that fosters the continued success of the ice cream industry.
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