indian ice cream industry: overview, outlook and opportunities
DESCRIPTION
The ice cream industry in India has witnessed double digit value growth in the last five years. Various trends that aid the growth includes- indulgence, rising disposable income, young adult population. The seasonality associated with ice cream is also starting to fade in India. Many international brands are entering the market and regional player are expanding their presence to teir2 and tier 3 cities. However in a mammoth country like India, there are many challenges related to power supply, infrastructure and cold chain availability. Expansion in the country involves high investment. On the positive side, given that the per capita volume consumption of ice cream in India is one of the lowest in the world, there is still a lot of room for growth. The presentation aims to provide an overview of the ice cream industry in India highlighting key trends in the industry that have aided the growth so far. It will provide a summary of various strategies used by manufacturers to capture market share. In conclusion, we will discuss the opportunities for growth giving recommendations to manufacturers on ways to maximise sales.TRANSCRIPT
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
19TH SEPTEMBER 2014
JANAKI PADMANABHAN
RESEARCH MANAGER
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About Euromonitor International
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
INDIA VS WORLD - A COMPARISON
IMPULSE VS TAKE-HOME ICE CREAM
COMPETITIVE LANDSCAPE - TRENDS
THE FUTURE
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0
3
6
9
12
Lit
res
pe
r ca
pit
a
Retail Volume :Litres of Ice Cream Per Capita 2013
Big potential – one scoop or two?
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
INDIA VS WORLD - A COMPARISON
IMPULSE VS TAKE-HOME ICE CREAM
COMPETITIVE LANDSCAPE - TRENDS
THE FUTURE
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62%
38%
Retail value sales % split, 2013
Impulse Ice Cream Take-Home Ice Cream
Impulse ice cream continues to be the biggest chunk
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
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Impulse Ice Cream
Seasonality
Rural
v
Urban
Retail format
Competitive pricing
Low competition
from substitutes
Impulse Ice Cream: Various growth drivers
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
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26
86
97 99
0
20
40
60
80
100
India China Brazil Russia
% o
f h
ou
seh
old
s
Possession of Refrigerator,2013
Domestic freezer ownership remains low
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
INDIA VS WORLD - A COMPARISON
IMPULSE VS TAKE-HOME ICE CREAM
COMPETITIVE LANDSCAPE - TRENDS
THE FUTURE
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Baskin-Robbins & Häagen-
Dazs
HUL GCMMF
Premium ice creams makes way into Indian households
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
HUL- Hindustan Unilever Ltd
GCMMF –Gujarat Co-Operative Milk Marketing Federation Ltd
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Regional players expanding into ice cream fast food
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
Vadilal Industries
GCMMF
Hastsun Agro
Karnataka Milk Federation
GCMMF –Gujarat Co-Operative Milk Marketing Federation Ltd
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Mövenpick
Gelato Vinto
MiniMelts
International Players Domestic Players
Competition is Intensifying
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
Natural
Havmore
Fresh & Naturelle's
Many regional players as well !
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• Value for money • Expansion to other
regions
• NPD focussed on Children
• Expansion into North India
• Premiumised Ice Cream • Celebrity endorsement
• Pan India presence • Plans to triple production
GCMMF HUL
Mother Dairy
Vadilal Industries
Diverse strategies to remain competitive
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
HUL- Hindustan Unilever Ltd
GCMMF –Gujarat Co-Operative Milk Marketing Federation Ltd
INDIA VS WORLD - A COMPARISON
IMPULSE VS TAKE-HOME ICE CREAM
COMPETITIVE LANDSCAPE - TRENDS
THE FUTURE
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Future Demographics is the key
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
Young adult Middle aged, high income group
Older population for H&W ice cream
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6%
21%
1%
9%
0%
4%
8%
12%
16%
20%
24%
India - Outlets India- Retail Sales
Number of retail outlets, Growth 2013-2018
Modern Grocery Retailers Traditional Grocery Retailers
Modern retail supports demand
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
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Shortage of cold storage
Power shortage
Infrastructure
Challenges continue to set roadblocks
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
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Ice
Cre
am
in
In
dia
Rural India
Infrastructure
Distribution
Volume
Urban India
Awareness
Affordable Luxury
Value
Modify strategy to facilitate growth
INDIAN ICE CREAM INDUSTRY: OVERVIEW, OUTLOOK AND OPPORTUNITIES
THANK YOU FOR LISTENING Janaki Padmanabhan | Research Manager
All data are sourced by Euromonitor International unless otherwise stated. All value and volume figures are for retail sales, unless otherwise stated. All market size data are in current value terms and USD data in fixed 2013 exchange rates, unless otherwise stated.