Frozen dessert Feb, 09 2016

Scooping out creamy profits

Ice cream industry is witnessing a growth of 35 per cent on a year-on-year basis making Indian marketplace an attractive destination for international brands.

By Yamini S Verma, TFW Bureau
Sr. Sub-editor
Scooping out creamy profits

Ice cream industry is witnessing a growth of 35 per cent on a year-on-year basis making Indian marketplace an attractive destination for international brands. As per the industry report the market for ice cream and gelato is expected that this market would grow at a compound annual growth rate (CAGR) of 17 per cent between 2012 and 2017. Read on to explore more about the opportunities this industry has to offer via the franchise route.

With increasing demand for premium brands in India, traditional ice cream has now been replaced by best quality ice cream and gelato brands. Not only this, it has created a rage and the market base for international brands to launch their premium ice cream brands. Also, the industry has a new segment of frozen yogurt for its new age consumers that love to nurse their sweet tooth with the healthier option. Though the frozen dessert sector including ice cream, gelato, frozen yogurt and sorbet is unorganised but it enjoys a huge share in the F&B industry. Well, that not all, the frozen dessert sector has deeper penetration across the country from metros to tier III cities and semi rural areas.

Frozen opportunities

In the F&B industry, ice cream sector offers a low investment business option to the investors while franchising is the sure shot method to make big in here. Both indigenous as well as international brands have adopted franchise route as their preferred model for business expansion. “Baskin Robbins operates on the franchising model globally. We believe that this has been our recipe for success and has created many entrepreneurs. We do 100 per cent franchising, with each owner holding a stake in the business' success, while product development and merchandising are handled at Baskin Robbins headquarters. This hands-on, small business approach allows franchisees the ability to create a strong presence in local communities all over the world,” says Sanjay Coutinho, CEO, Graviss Foods.

Creamy facts:

• For ice cream players, the North is one of the most important markets, as the region is of the highest-consuming regions in India.
• Uttar Pradesh, Delhi and the National Capital Region (NCR), Uttarakhand, Punjab and Haryana are some of the best markets for ice cream.
• The consumption of ice cream in the north is the second-highest in the country.
• According to a study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), 35 per cent of the ice cream sold in the country is consumed in the western region, followed by 30 per cent in the north, 20 per cent in the south and 15 per cent in eastern and central India.

Leading players of the frozen dessert industry:

Baskin Robbins, Amul, Vadilal, Kwality Walls, Mother Dairy, Naturals Ice Cream, Giani, Cocoberry , Yogurberry, Yogola, Yogoshack, Hagen Daas, etc.

Investment: 

An investment of Rs 5 to 20 lakh would be needed to own a franchise unit of an ice cream or frozen yogurt brand depending upon the outlet format.

Related: Funding formulas in franchising

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