The domestic ice cream industry would grow at the compounded growth rate (CAGR) of about 25 per cent in future with high profit margins ranging between 15 to 20 per cent to reach the projected level since its per capita consumption has gone up at 300 ml against world average of 2.3 litre, said the President of the Chamber Mr. Sharad Jaipuria while quoting findings of its projections.
The projections of the ice cream industry are based on the presentation made to the Chamber at its recent Seminar on Supply Chain titled Quick Review of Ice Cream Industry in which prognosis has been made that the market size of Indian frozen food industry could exceed many fold from its anticipated estimates of Rs.12500 crore by of 2014-15.
The trends responsible for the growth of ice cream industry in India in particular and that of frozen food industry follow large investments in advertising and infrastructure development, diversification of product portfolio targeting specific consumer segments and entry of multinationals into this business.
Other factors that are credited to fuel the growth of ice cream industry consist of partnership and franchises pursued to boost distribution and increasing cost of raw materials offsetting the higher margins, pointed out Mr. Jaipuria.
Referring to challenges of this industry, the PHD Chamber is of the view that though the ice cream industry confronts competition mainly from unorganized sector on price and quality, its consumer is growing quality conscious to fuel and stoke its sales. Another challenge arise from lack of well developed cold chain facilities in the country but in course of time, this challenge would be overcome.
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