FNB News – Reduced sugar & calories to fuel market expansion

The Indian frozen dessert market is indeed experiencing steady growth, with a market size of Rs 286.6 billion in 2023 and a projected reach of Rs 587.9 billion by 2032. The market is projected to grow from US$97.80 billion in 2024 to US$119.85 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 4.15% during 2024-2029. Rising disposable incomes, a booming food service industry, and innovative product introductions are fuelling this growth. 

Recent years have seen a surge in innovative offerings within the frozen bakery and desserts sector, spurred by consumer focus on health and wellness. This trend has led to the introduction of inventive flavours and low-fat, gluten-free options. Increasing demand for desserts with reduced sugar and calories is anticipated to fuel market expansion. Product, flavour, and packaging innovations play pivotal roles in driving growth. Ice creams and frozen yoghurts are gaining traction due to their convenience. Additionally, there’s a growing demand for gluten-free, clean-label products, particularly in the United States, Europe, and other developing nations, driven by health benefits and allergy concerns. Key factors influencing market growth include flavour variety, fat content, sweetness levels, and texture. The shift in consumer preferences has led to demand for ice creams, gelato, sorbets and frozen yoghurts. Yoghurts with low fat or low sugar are also being sought after by customers. 

India’s frozen dessert market is booming thanks to a growing, wealthier middle class and a shift towards convenient, on-the-go treats. Younger generations and urbanisation are fuelling this trend, along with a growing taste for premium and innovative products. More restaurants, cafes, and online options are making these treats even more accessible. To meet health-conscious needs, the market is also offering new varieties like low-sugar and dairy-free options. 

Frozen desserts offer a delightful symphony of flavours and textures, captivating palates year-round. Served chilled or frozen, these treats provide a refreshing escape from the heat or a satisfying end to a meal. The variety within this category is extensive, catering to diverse preferences. Undoubtedly the most popular frozen dessert, ice cream boasts a rich and creamy texture. Crafted with a base of milk, cream, sugar, and captivating flavours like vanilla, chocolate, or fruit, ice cream offers a classic indulgence. For those seeking a lighter option, frozen yoghurt presents a compelling alternative. Made with yoghurt as its base, it generally contains less fat and calories than ice cream. Additionally, frozen yoghurt provides a blank canvas for customisation, allowing for a delightful array of toppings to complement its taste.

The ever-evolving frozen dessert market continues to innovate, offering options tailored to dietary restrictions and health-conscious desires. Plant-based frozen desserts, for instance, cater to vegan and lactose-intolerant consumers, while sugar-free options allow those with dietary limitations to participate in the frozen dessert experience. Sorbets, for example, offer a lighter and fruitier alternative to ice cream, perfect for those seeking a refreshing burst of flavour. Gelato, with its denser texture and intense flavours, presents a unique experience for those who appreciate a richer frozen treat.

India’s ice cream market is set to achieve 18% growth with a focus on fresh, local ingredients. The dessert and ice cream (D&IC) industry in India is experiencing significant growth with new markets and distribution channels emerging, creating opportunities for D&IC brands. Changing consumer preferences towards healthier and locally sourced ice cream is also driving growth. However, operating in this market comes with challenges such as seasonal fluctuations in demand, geographic variations, and temperature sensitivity. Brands must navigate these challenges to maintain consistent quality and profitability. By adopting effective supply chain management strategies, brands can capitalise on opportunities and succeed in this lucrative market. An efficient SCM system can reduce time-to-market and facilitate a flexible and responsive approach to product development.

By adopting advanced decision support systems, brands can gather real-time data on consumer behaviour and preferences, helping them create and bring innovative products to the market at a faster pace. Today’s consumers are increasingly looking for unique taste experiences that align with their cultural preferences. Collaboration and innovation are key for ice cream brands to succeed in the growing industry.

There is a fusion of modern and traditional flavours in Indian desserts. Soaring demand for desserts has led to small-scale businesses and budding entrepreneurs venturing into this business. New product development must be aligned with consumer’s dietary preferences, occasions, and even moods. Customers can choose their toppings and flavours and design personalised packaging. Health-conscious customers are opting for vegan cakes and ice creams made from milk and natural ingredients. Start-ups are leveraging on the sensory side of dessert consumption.

The demand for dairy-free and vegan frozen desserts is on the rise. Plant-based options made from coconut, soy milk and almonds are being introduced. Gourmet and craft ice cream shops are becoming popular. The phenomenal growth of e-commerce, particularly, food delivery platforms and e-grocery platforms has made innovative dessert options easily accessible. Consumers can choose their toppings and enjoy unique experiences. The introduction of frozen desserts with regional spices, fruits, nuts and herbs is another interesting development. Saffron ice creams and cardamom-flavoured frozen yoghurts are now appealing to the sensory preferences of new-age audiences. 

Non-dairy alternatives such as ice creams are rich in lipids, vitamins, albumin, carbohydrates, and casein, offering notable health advantages. Evolving preferences towards veganism driven by heightened health awareness and social dynamics are boosting the sector, prompting a shift towards low-fat options among consumers. The considerable per capita consumption of ice cream, notably in the United States and Europe, is amplifying product demand. Increasing occurrences of lactose intolerance and milk-related allergies are fostering the need for such products. Moreover, India is experiencing rapid growth in its frozen industry due to inventive offerings. Local flavours like gulab jamun, basundi, and rose are being innovatively incorporated into ice creams, heightening demand within Indian households. Additionally, there’s a rising preference for natural ingredients, prompting market players to meet consumer demands. As disposable incomes rise and the food service industry flourishes, the popularity of frozen desserts is projected to continue its upward trajectory. With its constant innovation and diverse offerings, the world of frozen desserts guarantees a delightful and refreshing experience for all.

(The author is doctoral research scholar at
Presidency University, Bengaluru)