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Indian dessert, frozen yoghurt market set for intense competition
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Wednesday, 02 September, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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India’s dessert and frozen yoghurt market is expected to become increasingly competitive over the next few years, with established players and new entrants across gelato, protein-focused and health-oriented formats looking to tap growing consumer interest, according to Sangeeta Nagar, Director, smöoy India.
Nagar said consumers are becoming more conscious of what they eat, including when it comes to desserts, with greater attention being paid to attributes such as protein, probiotics, sugar and fat content. However, she noted that taste continues to be the strongest driver of repeat purchases, with consumers seeking a balance between indulgence and better-for-you choices.
“There is a clear shift towards what we would describe as healthier indulgence,” Nagar said. She added that smöoy’s portfolio is responding to this trend through products that are low in fat, high in fibre and gluten-free, along with its +protein yoghurt range. The brand’s approach, she said, is not to position dessert as health food but to offer consumers more considered choices while retaining taste and indulgence.
The growing popularity of food delivery and quick commerce is also reshaping the frozen dessert category. According to Nagar, these channels have increased the importance of convenience and accessibility while giving brands an additional route to reach consumers beyond physical stores. This has placed greater emphasis on formats that travel well, appropriate portion sizes and product presentation.
“Digital channels are also becoming useful for understanding what consumers are discovering, ordering and responding to, particularly as premium and functional desserts gain attention,” she said.
Nagar sees significant growth potential for organised frozen dessert brands beyond India’s major metropolitan centres. Tier-2 and tier-3 cities are becoming increasingly attractive as consumers become more familiar with premium and better-for-you dessert concepts and cold-chain and quick-commerce infrastructure develops.
However, she said expansion into smaller markets would require brands to adapt their formats and pricing to local conditions. Regional flavours could also help make frozen yoghurt more relevant to consumers across different markets.
For smöoy India, Delhi was the starting point, but the brand plans to expand its presence across the country. Nagar said cities where consumers are already familiar with premium food concepts and open to new formats offer promising opportunities.
The company is also evaluating different formats, including larger stores, kiosks and mobile units, depending on the requirements of individual markets and consumer occasions.
Franchising is expected to play an important role in the brand’s expansion, with smöoy placing emphasis on selecting operating partners capable of maintaining product standards and customer experience.
Nagar said potential franchise partners need to understand the importance of product quality, customer service and consistent execution. The company supports its partners through training, recipes, equipment and controlled sourcing to help deliver a consistent experience across locations.
Maintaining quality and the cold chain will remain a key operational priority as the network expands. Nagar noted that temperature control is critical for frozen yoghurt, as it can directly influence the texture and quality of the product. Supplier checks, proper storage, employee training, appropriate equipment and standardised recipes are therefore important to ensuring consistency.
Smöoy is also looking at local preferences as it develops its India offering. Nagar said Indian consumers are often interested in new experiences while continuing to gravitate towards familiar flavours. This creates opportunities to introduce recognised tastes and combinations through a contemporary frozen-yoghurt format.
Customisation is another important part of the proposition, allowing consumers to choose toppings and create combinations according to their preferences. According to Nagar, this flexibility can help the brand respond to regional tastes while retaining its international identity.
India’s climate also offers a natural advantage for frozen desserts, with warm weather across much of the year supporting demand beyond a short seasonal window. Regional preferences and changing consumer tastes will continue to influence menu development, she added.
Smöoy India is exploring multiple formats as part of its expansion strategy. Its wider portfolio includes smöoy Yoghurt, smöoy Cream, smöoy Rubik and smöoy Road, giving the brand options beyond the conventional store model.
On the product side, the company’s focus remains on functional frozen yoghurt, its +protein yoghurt range and customisable desserts. These are complemented by freshly prepared waffles, crêpes and other dessert offerings.
Nagar said the immediate priority is to strengthen the India business by building a robust supply chain and operational foundation before accelerating expansion. The company will continue to monitor consumer interest in functional frozen yoghurt, protein-led products and customisation while selecting formats suited to individual markets.
Technology is also supporting product development, manufacturing and quality control, with smöoy’s R&D&I and Quality teams working on improvements to the portfolio. Consumer preferences around flavours, toppings and functional offerings are also being considered as the brand evolves its proposition.
Looking ahead, Nagar said smöoy’s long-term ambition is to make frozen yoghurt a more familiar choice within India’s premium dessert market.
She believes consumers increasingly want products that combine enjoyment with nutritional attributes such as lower fat, fibre and protein. By bringing together functional nutrition, quality and personalisation, smöoy aims to establish a differentiated position in the country’s evolving premium and healthier dessert segment.
As competition intensifies, Nagar expects product quality, distinctive flavours, customisation and the overall consumer experience to become increasingly important in determining brand preference and repeat visits.
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