The entry of large players such as Reliance could further accelerate market growth by bringing investments into cold-chain infrastructure, distribution, deep freezers and retail reach
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India’s ice cream market is undergoing a two-fold shift — consumers are increasingly moving away from vegetable-fat-based frozen desserts towards dairy-based ice cream, while the category itself is shedding its traditional image of a summer-only indulgence. This changing consumption pattern, aided by longer summers, greater retail penetration and evolving consumer preferences, comes as the industry prepares to showcase its latest products, technologies and innovations at the 14th Indian Ice Cream Expo (IICE) 2026 in Chennai from September 10-12.Dairy-based ice cream has increased its share by volume from around 35 per cent in 2021 to approximately 45 per cent in 2025-26, while during the same period, vegetable-fat-based frozen desserts have declined from around 65 per cent to 55 per cent, according to Sudhir Shah, President of the Indian Ice Cream Manufacturers’ Association (IICMA). The shift comes as consumers become more conscious of ingredients and quality, even as the industry continues to cater to a wide range of price points and markets. “The gap between ice cream and frozen dessert has been gradually narrowing, with ice cream gaining share as consumer awareness, premiumisation and demand for dairy-based products increase. However, frozen dessert continues to have a strong presence, particularly in value-conscious segments,” he told the businessline. Consumer awareness is also increasing, with consumers becoming more conscious about ingredients, nutrition, quality and value. However, the choice between ice cream and frozen dessert ultimately depends on individual consumer preferences, perception and price. Both categories have their own consumer base and market opportunities, Shah said.The shift in preference is unfolding alongside a broader growth story, as longer summers and changing consumption habits push ice cream beyond its traditional seasonal boundaries. “The growth in ice-cream sales this year is not standalone growth as the last two year witnessed single digit or marginal growth due to erratic and unfavourable weather conditions in several regions. In contrast, the current year experienced more favourable climatic conditions and extended summer from 90 days to 120 days, resulting in significantly stronger sales compared to the previous years, however it accounts for 15 per cent CAGR when compared to three years growth,” the IICMA President said.“The industry needs to rethink the traditional perception of ice cream as a highly seasonal product. Longer summers, rising temperatures, and more frequent heatwaves are extending the consumption season. With the growth of quick-commerce, food delivery, modern retail and changing lifestyles, consumers are increasingly enjoying ice cream throughout the year. While seasonality will remain, demand is becoming more evenly spread, creating strong opportunities for long-term industry growth,” he added. Shah also attributed the strong demand partly to the government’s decision to cut GST on ice cream from 18 per cent to 5 per cent, which he said improved affordability and supported the wider dairy ecosystem. However, the industry believes the underlying opportunity goes beyond a favourable summer.The entry of large players such as Reliance could further accelerate market growth by bringing investments into cold-chain infrastructure, distribution, deep freezers and retail reach. With India’s per-capita ice cream consumption at only around 1.6 litres a year, the industry sees significant headroom for expansion. The 14th edition of IICE is expected to attract more than 30,000 visitors and 350-plus exhibitors from over 25 countries, making it a key industry gathering as manufacturers look to tap the next phase of growth in the Indian market.Published on September 7, 2026
