Ice Cream Market - India

December 2008

Executive Summary
Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in 2009 North and west account for a% of total sales High profit margins ranging between b-c%

Market

Drivers & Challenges

Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales Challenges: Competition with the unorganised sector on price and quality, and lack of welldeveloped cold chain facilities

Trends

Large investments in advertising Diversification of product portfolio targeting specific consumer segments Partnerships and franchises pursued to boost distribution Falling costs of raw materials offsetting rising milk and sugar prices

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Competition

A brand is the market leader B and C brand are other strong players The premium segment is dominated by U

Market Overview Drivers & Challenges Trends Competition Key Developments

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The industry is growing steadily with the northern and western regions accounting for the largest consumption
Overview
Size and Growth
Worth USD XX mn in 2008 Growing at a% p.a. in 2005-2008 Forecast to increase by b% to reach USD YY mn in 2009

Size and Growth

USD mn
250 200 150 100

a% Z X Y

V U

Characteristics

Northern and western regions together account for c% of total market consumption Profit margins range from u% to v% depending on the product segment w% of ice cream sales occur during the summer months of April-June x% of sales is through street vendors Vanilla is the highest selling flavour and together with strawberry and chocolate it accounts for y% of the market

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2005

2006

2007

2008 e

2009 f

Geographic Distribution
North a%

West d% b% c% South East

Source:

Drivers & Challenges

Challenges
Low quality products and competitive pricing from unorganized sector

Drivers
Lack of cold chain facilities Low consumption levels

Developing institutional channel

ICE CREAM MARKET INDIA.PPT

Key Trends

Large scale advertising

Benefits derived from falling costs

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Trends
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Product diversification to target specific segments

Franchises and strategic partnerships to enhance distribution

X is the market leader with strong competition from U,V and W

Major Players
Fiercely competitive due to attractive economics with profit margins ranging between a-b% Organized sector comprises X, Y, Z and a number of regional brands Amul is the market leader and is at the forefront of targeting the rural market For most national players viz. U, V and W, revenue from ice cream accounts for a small portion of their total revenues Premium segment:
X is the single largest premium ice cream brand New entrants include X,Y and Z

Market share
u% Unorganized

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v%

Organized Company U a%

Company Z f%

b% Company V c% d% Company W Company X

e% Company Y

A well established unorganized sector creates a fiercely competitive environment for A well established unorganized sector creates a fiercely competitive environment for the larger players the larger players
Source:

Thank you for the attention

The Ice Cream Market report is a part of Research on Indias Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com

Gaurav Kumar
Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com

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ICE CREAM MARKET INDIA.PPT