The Indian ice cream industry is experiencing rapid growth, fuelled by rising disposable incomes, shifting consumer preferences, and an expanding retail footprint. Valued at approximately ₹30,000 crore, the sector is witnessing surging demand for premium, artisanal, and health-conscious options, including low-fat, sugar-free, and plant-based varieties. Established players battle for dominance against agile regional brands and disruptive startups. Meanwhile, advancements in cold chain logistics and e-commerce are accelerating distribution efficiency. Despite seasonal demand fluctuations, innovations in flavours, packaging, and supply chains are transforming ice cream into a year-round indulgence, driving sustained market expansion.
In an exclusive conversation with The Interview World, Sudhir Shah, President of IICMA and Managing Director of Scoop Ice Cream, offers a deep dive into the industry’s evolution. He sheds light on the association’s key initiatives, the sector’s exponential growth, and the cutting-edge technologies revolutionizing production and distribution. He also explores how Indian manufacturers hold their ground against global competitors and reveals the latest trends shaping the future of the industry. Here are the most compelling insights from his discussion.
Q: What key activities and initiatives does the Indian Ice Cream Manufacturer’s Association (IICMA) undertake to support and promote the growth of ice cream manufacturers in India?
A: IICMA serves as a knowledge hub for India’s ice cream manufacturers, equipping them with critical industry insights and resources. We provide comprehensive guidance on new incentives, emerging technologies, and key government policies, including GST regulations and compliance strategies. Our expertise extends to direct and indirect taxation, helping members navigate complex regulatory landscapes with confidence. More than just an advisory body, IICMA fosters a collaborative platform where industry stakeholders exchange ideas, deliberate on pressing issues, and propose solutions that drive the sector’s collective growth and innovation.
Q: How many ice cream manufacturers are currently associated with the IICMA, and what is the estimated market size of the ice cream industry in India?
A: India’s ice cream industry boasts around 80 organized players and a staggering 2,000 to 3,000 brands competing for market share. Valued at approximately ₹30,000 crore, the sector continues to expand, driven by evolving consumer preferences and increasing demand for premium and innovative offerings.
Q: What key technologies are leveraged by the ice cream industry to enhance production, quality, and innovation?
A: Following advancements in China and Italy, ice cream manufacturing technology has evolved significantly. Earlier, manual processing dominated production, requiring extensive labour and time. Today, cutting-edge automation has revolutionized the industry, streamlining operations with fully automated systems. Take the candy line or chocolate bar production, for instance—what once relied on intensive manual labour has now been replaced by high-speed machinery. Modern systems can produce 5,000 pieces in a single batch, drastically improving efficiency and consistency. The industry continues to embrace technological innovation, setting new benchmarks in production and quality.
Q: What is your perspective on the common myth that consuming large amounts of ice cream is unhealthy?
A: The belief that ice cream is unhealthy is a misconception. Excessive consumption of anything—even water—can be harmful. Ice cream, however, is produced in a controlled, contamination-free environment with minimal human intervention, ensuring its purity and safety. It supports gut health and can be enjoyed year-round without adverse effects. The myth that eating ice cream in winter harms the throat stems from preexisting throat infections, not the ice cream itself. In reality, ice cream is a safe, wholesome treat that delivers both nourishment and joy.
Q: How do Indian ice cream manufacturers compare to global players in terms of quality and innovation?
A: Indian ice cream manufacturers stand far ahead of their global counterparts. We have achieved remarkable advancements in both quality and innovation. Even when compared to leading ice cream producers in countries like China or the United States, our industry outshines them. While they offer high-quality products, their range of flavours remains limited. In contrast, India boasts an unparalleled diversity of flavours.
From north to south and east to west, every region contributes its own distinctive tastes, deeply rooted in local traditions. Flavors like kesar (saffron) exemplify this uniqueness—no other country in the world has mastered its use in ice cream as we have. Our expertise extends beyond traditional flavours. Signature offerings such as mango-based varieties and dry fruit-infused creations further set us apart.
Moreover, India is not just innovating with indigenous ingredients; we are also embracing global influences. Imported flavours seamlessly blend with local tastes, expanding our already vast portfolio. With the largest and most diverse selection of ice cream flavours in the world, India is setting new benchmarks—and has much to teach the world.
Q: What are your insights on the growth trajectory of the ice cream industry in India, and what factors are driving its expansion?
A: The industry is expanding at a steady pace, with a compound annual growth rate (CAGR) of 10% to 15%. Market trends follow a cyclical pattern—typically two strong years followed by one weaker year, or sometimes three good years before a downturn. Despite these fluctuations, the sector consistently achieves an average growth rate of 10% to 15%.
Q: What emerging technologies and innovations are ice cream manufacturers introducing to the Indian market?
A: Today, our production lines are fully automated, operating at 100% efficiency. Automation has revolutionized speed, precision, texture, and shelf life, setting new industry benchmarks.
Cutting-edge machinery from Europe, China, and the U.S. has significantly enhanced production capabilities. Take candy manufacturing, for example—where one machine once produced 100 candies per minute, the latest technology now delivers 200. While the exact numbers may vary, the trend is clear: faster production, greater accuracy, richer flavours, superior texture, and extended shelf life. Innovation continues to redefine quality and efficiency at every level.
Q: With the Indian dairy industry expanding and ice cream being a key segment, how do you assess the quality of milk used as its essential ingredient?
A: Yes, technology plays a crucial role, and there are two key approaches. One involves skimming milk, then combining it with cream or butter to enhance its quality. The process ensures the milk is homogenized and pasteurized, resulting in a superior, high-quality product.
To answer your question—yes, we are completely satisfied with our milk quality. Our confidence comes from strong backward integration, whether in milk collection or skim milk powder procurement. This allows us to maintain consistent quality without relying on imports. Our ice creams are crafted using Indian milk, not foreign ingredients. By understanding and leveraging the richness of Indian dairy, we have mastered the art of creating exceptional ice cream.
Q: What new developments or trends can we expect in the ice cream industry in the near future?
A: A major shift in the industry is the rapid expansion of ice cream parlours across India. This segment is growing at an unprecedented pace, transforming ice cream from a seasonal indulgence into a year-round business.
Previously, sales peaked only during summer. Now, demand remains strong throughout the year, driven by weddings, festivals, and seasonal celebrations. As a result, both large and small brands are heavily investing in the parlour business, fuelling industry-wide growth. The surge in new parlours across the country is a promising sign, creating a thriving market and a strong future for the industry.
We are in the right decade to capitalize on this momentum. The efforts made by industry associations over the last 15 years are now delivering tangible benefits. And this growth is only the beginning. Compared to countries like the U.S. and Australia, India’s per capita ice cream consumption remains significantly lower. Currently, it stands at around 500 ml. If it increases to even 600 or 700 ml, the industry could witness a staggering 20%–30% growth annually. The potential is immense.
