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Indian ice cream market forecast to grow by 17%

Indian ice cream market forecast to grow by 17%

With an expanding middle class population base, rising purchasing power, coupled with changing customer tastes and growing demand for premium ice creams, India will drive an expanding ice cream market through 2021 according to a report recently published by TechSci Research.

“India Ice Cream Market By Type, By Organized Vs Unorganized Sector, By Category, Competition Forecast & Opportunities, 2011-2021”, the ice cream market in India is forecast to exhibit a CAGR of 17.03% during 2016-2021. 

The Ice cream market in India has grown at a moderate pace over the past few years, due to the  increasing number of international ice cream brands entering the market, improving cold storage facilities, coupled with changing consumer taste. 
In addition, India is the largest producer of milk, with the country accounting for over 1/5th of global milk production, thereby offering ice cream in a country with a large volume of raw material for manufacturing of ice cream. GDP per capita of India has increased from USD1390 in 2010 to 1580 in 2015, positively impacting on the ice cream market in India. 
Furthermore, growing inclination towards eating ice cream outside, a growing number of flavours, coupled with rising purchasing power are further expected to drive the Indian ice cream market during the forecast period.

West India dominated the India ice cream market in 2015, and is further anticipated to continue dominate in the coming years, owing to presence of leading players in the ice cream market in India such as Gujarat Cooperative Milk Marketing Federation, National Dairy Development Board, Vadilal, etc.

A growing dairy industry, coupled with high population density in the region, the India ice cream market was dominated by impulse category of ice creams in 2015, and this category is further expected to continue its dominance during the forecast period, owing to growing demand for premium ice creams and changing consumer taste.

“Ice cream were considered a luxury food product, however with changing taste and preference of consumers, which propelled growth in India ice cream market over the past few years. Moreover, growing demand for natural and traditional flavoured ice cream, coupled with increasing penetration of international brands, improvement in cold chain infrastructure and rapid urbanisation to drive India ice cream market during the forecast period.”, said Mr. Karan Chechi, Research Director with TechSci Research.

“India Ice Cream Market By Type, By Organised Vs Unorganised Sector, By Category, Competition Forecast & Opportunities, 2011-2021” has evaluated the future growth potential of India ice cream market and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation.

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Are savoury flavours the next big thing in ice cream?

Are savoury flavours the next big thing in ice cream?

Olive oil, sea salt and even black pepper could become popular ingredients in ice cream. 

Olive oil and ice cream emerged as a flavour sold by retailers in 2015, gaining ground in foodservice and online bloggers for a few years. Adding olive oil in the recipe is said to provide texture benefits to ice cream, as it adds a additional creamy – yet not oily – texture, while the flavour is said to add subtle grassy and nutty notes. While you’re more likely to find olive oil flavoured ice creams in Italian restaurants and gelaterias, it has become a highlight dessert at Otto’s Pizzeria in New York City and is also found in other restaurants across the US. Advocates of the combination even point to how olive oil is rich in naturally occurring antioxidants and fat-soluble vitamins such as vitamin E.

Olive oil has been little seen in the retail ice cream market, but over the past 12 months, two artisan producers have introduced olive oil ice creams to supermarkets. In summer 2015, Texas-based Lick introduced Dark Chocolate, Olive Oil & Sea Salt Ice Creams into stores around Texas. The recipe uses locally sourced ingredients, such as extra virgin olive oil from the Texas Olive Ranch and dairy and dark chocolate from Austin–based Great Bean.

Meanwhile in Australia, another olive oil ice cream is available in supermarkets courtesy of local supplier Two Fat Cows. Similar to Lick’s recipe, Two Fat Cows is made with extra virgin olive oil which is sourced locally, as well as dairy from the company’s own herd of Friesian cattle.


Ice cream containing sea salt has tripled between 2013 and 2015.

The idea of using olive oil to add a difference follows in the footsteps of sea salt’s rise in popularity in gelato and ice cream. Between July 2013 and July 2015, the number of global ice cream launches featuring sea salt as a flavour or ingredient tripled, largely reflecting the rise of sea salt and caramel flavours.

Yet other savoury seasonings can work well in ice cream, such as ground black pepper, offsetting the sweet flavour. Ice cream products with black pepper among the ingredients are all but absent. But among the small parlours, black pepper’s profile is growing. After all, compared with the stringent demands of retail, the out-of-home ice cream channel can afford to be more experimental, and launch more unconventional flavours. For example, Morgenstern’s Finest Ice Cream Parlor in New York City currently sells a Szechuan Peppercorn Chocolate flavour, as well as a Salt & Pepper Pinenut option.

According to Mintel’s Ice Cream and Desserts UK 2015 report, ice creams featuring a measured amount of ground black pepper as a flavour component could be well received by consumers in a number of global markets. For example, 48% of British adults are interested in trying ice cream made with ethnic ingredients, and 39% are interested in hot flavoured ice cream.


Half of Chinese ice cream users who have not tried sweet and savoury mixed ice cream are keen to do so.

Using savoury spices is also seen as a means for ice cream brands in Asia to deliver the exciting flavours more associated with the out-of-home channel. In Northern India for example, guava is sold by street vendors who slit the fruit and insert black rock salt and chaat masala – a combination of savoury spices and Himalayan pink salt. This has evolved from guava fruit to guava ice cream being topped with the spicy mixture. Adding ground black pepper and other spices to retail ice cream in India could been seen to help Western brands appeal to local tastes.

In China, over half of ice cream users have not tried sweet and savoury mixed ice cream, but would be keen to do so, according to Mintel’s research. The Chinese are continuously seeking ice cream products that offer greater variety in texture, flavours and sensations, thanks to rising incomes and an appreciation of gourmet recipes and unique flavours. 

So when you’re next thinking about flavours to offer to stand out from the competition, sprinkle a few crystals of sea salt or ground black pepper on top of a chocolate or caramel mix and get some out for testing with the foodies.

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Brexit: The Dairy Industry Impact

Brexit: The Dairy Industry Impact

Amid the Brexit turmoil since the UK’s unforeseen exit from the European Union on 24th June, small and large business owners have unresolved questions about the impact on their firm’s sustainability, productivity and trade.

An EU exit means restricted access to the Single Market unless the UK, like other countries outside the EU, agrees to accept the free movement of people – an unlikely negotiation since immigration was a core argument of the Leave campaign. That said, certain EU trade regulations seen as burdening British businesses have been lifted, and retained membership of the European Economic Area but not the EU, provides access to the internal market and offers tax reductions of around £150 per person.

The dairy industry is central to the EU debate, with 40% of the EU’s budget spent on agriculture and Europe accounting for 73% of Britain’s agricultural exports. The chief executive of Dairy UK, Dr Judith Bryans, has reaffirmed that the UK’s dairy industry is “adaptable, resilient and determined, with the skills and innovation to rise to the many challenges we encounter”. Dairy UK did not take a side in the EU debate; according to Bryans, this is because trade association and dairy firms will “continue to operate in a global dairy market place and demonstrate [their] unwavering commitment to give the public nothing but the best of UK dairy.”

Arla Foods, a Denmark-based company operating in the UK, has been disappointed by the Brexit outcome, but is focused on minimizing negative impact on business by preserving trade between the UK and Europe.

Meurig Raymond, president of NFU, has stated that Brexit will “inevitably lead to a period of uncertainty in a number of areas that are of vital importance to Britain’s farmers.” According to the NFU, the primary destinations of UK food, beverage and animal feed exports were Ireland (£3.4bn), France (£2.1bn) and the USA (£1.9bn), leaving uncertainty over the post-Brexit influence on dairy exports.

The Leave campaign has been quick to assert, however, that the export market is not going to vanish: the demand for Welsh lamb will still exist in France, and Ireland will continue to sell beef to the UK. Whether it is enough to match the £11bn a year generated through agrifood exports to Europe is still uncertain for farmers and individuals in the dairy industry.

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Indian yoghurt market forecast to show exponential growth

Indian yoghurt market forecast to show exponential growth

International dairy companies can tap in to a growing demand for yogurt in India, according to a recently-published report by TechSci Research.

The yogurt market in India grew at a CAGR of 28.9% between 2011 and 2015 says the report and is projected to grow at an even faster pace over next five years and touch $1bn by 2021.

Easy availability of products, and rising emphasis on low calorie and low fat content of food products is driving yogurt consumption in India. Yogurts are gradually eating away the share of traditional dairy products in urban and semi urban cities, due to increasing health awareness, better quality of packaged yogurt and increasing yogurt flavors.

Yoghurt demand
With growing yogurt demand and only a handful of organized players offering yogurt, the prices of these products are anticipated to grow through 2021, the report says.

Currently, around 80% of India’s dairy production comes from small enterprises, with an average herd size of only one or two cows. The larger, organized, Indian companies and cooperatives have been attempting to combine small localized production to ‘demand centers’ across the country.


Shift to organised dairy companies

Laltu Sinha, research manager with TechSci Research, told DairyReporter that the industry is changing.

The Indian dairy products market is expected to witness a shift from unorganized to organized sector,” Sinha said.

The rise in the organized sector in India dairy products market can be attributed to rising demand for high quality packaged products, especially in urban areas. However, in rural areas, acceptance of packaged dairy products is slowly gaining momentum.

However, the dairy market is highly fragmented with the top ten players occupying less than 60% of the market share.

See the full story here

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Looking to the future for flavours in dairy

Looking to the future for flavours in dairy

Feel the flavour
Flavours of the future won’t just be tasted but will be felt. The food market is really pushing the boundaries with development of new flavours and their delivery for example, Prosecco crisps with a prosecco flavour but also a fizzing in mouth experience. 
But also expect to see more flavours that give kokumi, or ‘mouthfullness’.

‘Umami’ and mouthfeel or fullness has become a lot understood over recent years, as a result we are seeing more seaweed being used. However, it also delivers rich salty notes and is a healthy ingredient. Kokumi is only just starting to be understood and we will see more of this in the future.

Far-flung and exotic flavours 

Opportunities to travel to increasingly far-flung and exotic destinations is still fuelling consumer desire to try new and unusual tastes.
There are lots of exciting trends inspired by tastes from all over the world and finding their way into restaurants and the wider food industry in Europe.
Food trend inspiration will continue to be found in South America thanks to this summer’s Olympic Games.

But we also have our eyes on Middle Eastern and African cuisines. Their popularity is being driven particularly by celebrity chefs (on the television and in the press) and growing numbers of restaurants specialising in flavours from these regions. Moroccan and Persian-inspired cuisines are also receiving a lot of attention, with a particular focus on Lebanese and Turkish flavours.

Adventurous Millennials
Young Millennials continue to be the key consumer group to target for testing out new flavours and are a highly attractive target group for many food and beverage manufacturers as they are open to try new flavours, be it for curiosity or for positioning themselves ‘in the know’ of new trends.

Products that work well in this group will allow for flavour experimentation and ‘excitement in the mouth,’ such as flavours that change during chewing or when combined with each other, she added. 

Adult-only flavours will emerge

Dairy is now opening its options more to being infused with alcohol, addressing the consumers need for more indulgent, premium offerings especially in yoghurts, cream sauces and ice cream.

We can expect to see a lot of ‘adult only’ flavours – less sweet and with alcohol – being launched, but there is no one category which is used to specifically test out new flavour innovations. One flavour can act very differently in different ‘end uses’. For instance you can’t necessarily use the same vanilla in an indulgent ice cream and in a vodka and expect them to taste the same. So producers are actively developing solutions to meet needs across various consumer desires, such as health, indulgence, energy or purity, across many different product forms.

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