Ice cream maker RDFP Milkberry expects scorching sales this summer

In India, ice cream consumption has grown several times. Ice cream and frozen desserts are now readily available almost at every grocery store, supermarket, restaurant, café, ice cream parlour, hotels, banquets, schools, amusement parks, pushcarts, and other locations. As a result, customers have become accustomed to eating ice cream on a regular basis, resulting in a rise in per capita ice cream consumption significantly. Rising disposable incomes have enabled consumers to afford premium-quality ice creams, which has prompted several international ice cream brands to expand their businesses in India. Speaking to Bizz Buzz exclusively, Siddhartha Sankar Ghosh, Managing Director, RDFP Milkberry (formerly, Rainbow Dairy Food Products), makers of Milkberry and Zios Deli Ice Creams and Milkberry cakes, delves at length on the Indian ice cream industry, its future and also outlines his company’s future plans

How big is the ice cream market in India? At what rate it is growing?

The overall ice cream market in India is estimated to have crossed a value of Rs 165.2 billion last year. Looking forward, it is expected that the market will reach Rs 436.2 billion by 2027. The ice cream market in India is projected to exhibit a CAGR of 17.69 per cent during 2022-2027. Indian ice cream industry is one of the fastest growing segments of the dairy or food processing industry. Thanks to the prevailing hot and humid climate in the region, as well as the shift in customer food tastes, dessert sales are constantly increasing throughout the region.

What about the global ice cream market?

I do not have the most recent data, but two years ago, the worldwide ice cream market was worth $69.79 billion. The market is expected to grow at a CAGR of 4.58 per cent between 2021 and 2028, from $71.52 billion in 2021 to $97.85 billion in 2028.

With yet another summer slowly setting in, what would be the hopes and expectations of the ice cream makers in India?

After two years of wallowing in shutdown troubles and their ramifications, ice cream companies had reasons to rejoice the last summer. As customers were seeking comfort from the searing heat, consumer firms reported a surge in demand for ice cream. For some companies, sales of the milk-based ice creams and dairy-based beverages increased by more than 50 per cent, thanks to early summers and subsequent rise in temperatures, an increased number of distribution assets coupled with the opening of restaurants, offices, educational institutions, and so on. This summer also, we are extremely optimistic and bullish about the prospects of the ice cream market in the country. We anticipate at least 15–25 per cent increase in demand. Mind you that people are spending the money they saved during the lockdown.

What is the per capita consumption of ice cream in India?

Although ice-cream consumption per capita is lower than in other large markets, it is expanding at a CAGR of about 10-15 per cent. This increase is, and will continue to be, a driving force, particularly in the branded and new/innovative categories. With the growing consumer base, increasing disposable income, and greater trend toward eating-out, the market is poised to incorporate bigger players. In terms of per capita consumption, as compared to the US or other European countries, India is a very beneficial country for consumption, and the trend is fast-growing. India will soon be a very competitive nation in ice cream consumption because, at present, an average Indian’s per capita consumption is roughly 450-500 ml, which is considered to be a good sign of increasing every year. Having a surplus of SMP has greatly aided ice cream manufacturers in meeting rising demand without any inconsistencies or pricing increases, not only for ice cream but for the entire dairy industry.

In India, both consumers and manufacturers have started talking about gelato. What are the main differences between ice cream and gelato?

Ice cream and gelato are both popular frozen desserts. However, ice cream is airier and has a higher fat content, while gelato is softer and packed with flavor. Both contain a lot of sugar, but gelato is traditionally made with much less fat. It can either be part of a healthy diet when consumed occasionally and in moderation. However, as with any food that’s high in sugar and rich in calories, it’s best to limit your intake for optimal health. Gelato typically offers fewer calories, less sugar and lower fat content per serving than ice cream. The typical 3.5 oz. serving of vanilla gelato contains 90 calories and 3 grams of fat, compared to 125 calories and 7 grams of fat in the average vanilla ice cream.

How do you see the future of the ice cream market in India and if you could outline the reasons for that?

There is no doubt whatsoever that there will be significant growth in the food and beverage sector, and the presence of a thriving dairy industry represent the key factors creating a positive outlook for the ice cream market in India. Moreover, the improvements in cold chain infrastructure, including temperature-controlled storage spaces, procurement of trained operational and servicing personnel, and application of efficient management procedures, are fuelling the market growth. Moreover, rising disposable incomes have enabled consumers to afford premium-quality ice creams, which has prompted several international ice cream brands to expand their businesses in India. This, in turn, is acting as a major growth-inducing factor. The rising health consciousness and lactose intolerance amongst the population has prompted manufacturers to introduce preservative-free, genetically modified organism (GMO)-free, dairy-free, fat-free and organic product variants, which is contributing to the market growth further across the country. We are also gearing up for all these.

You yourself had plans to bring in some Italian gelato brand to India. Where does it stand now?

It is still on. We are in talks with some serious players. These things take time. They are also studying the Indian market. Meanwhile, we are also preparing ourselves for that. We will clinch the deal at an appropriate time and announce it. Meanwhile, currently, we are focusing on our recently launched range of cakes (fruit cakes, slice cakes and party cakes) and premium range ice creams under the brand name- Zios Deli. We have lined up plans to roll out some other dairy products as well and we are also exploring the option of foraying into the parlour business.