India’s ice cream market booms with US$26.5M in 2024 funding, drawing investor interest

INDIA – India’s ice cream industry is experiencing a sweet surge, drawing significant attention from investors as startups and established brands alike scoop up opportunities in a rapidly growing market. 

In 2024, the sector attracted a record US$26.5 million in funding, with companies like Go Zero, Hocco, and Hangyo IceCreams Pvt. Ltd. leading the charge. 

Reported by industry sources, Mangalore-based Hangyo secured an impressive US$25 million, signaling strong investor confidence in the frozen dessert space. 

This influx of capital highlights a trend reshaping India’s ice cream landscape, fueled by innovative delivery systems and shifting consumer tastes.

The growth is largely driven by the rise of quick commerce platforms like Blinkit and Zepto, which have transformed ice cream from a seasonal treat into a year-round indulgence.

These platforms ensure rapid delivery, meeting consumer demand for instant gratification. 

A report by MarkNtel Advisors values India’s ice cream market at US$3 billion in 2023, projecting a robust growth rate of 13.49% annually through 2030. 

Despite this, per capita consumption remains low at 1.4 liters per year, far below New Zealand’s 28.4 liters, indicating vast untapped potential for expansion.

Rising temperatures and extended summers are also boosting demand, particularly in urban centers like Maharashtra, where higher purchasing power drives consumption. 

Consumers are increasingly seeking vegan and exotic flavors such as matcha and salted caramel, reflecting evolving preferences. 

“People want variety and healthier options,” said a spokesperson from Go Zero, a startup focusing on sugar-free and high-protein ice creams. 

This shift is opening doors for both new entrants and established players to innovate and capture market share.

Speaking of players, India’s ice cream giants are delivering strong financial performances. Vadilal Industries Limited boasts a market cap of US$3,718 million, with 90% of its revenue tied to ice cream. 

Hatsun Agro Product Ltd, known for Arun Ice Creams, stands at US$21,228 million, while Amul India, with a commanding 40% market share, is valued at US$8,233 million. 

Varun Beverages, behind Cream Bell, leads with a staggering US$181,938 million market cap, and Hindustan Unilever, home to Kwality Walls, tops the list at US$527,906 million. 

However, market cap alone doesn’t tell the full story, Vadilal and Hatsun remain heavily focused on ice cream, generating US$1,020 million and US$1,692 million in revenue, respectively, while larger conglomerates diversify across portfolios.

For investors, the key takeaway is clear: Amul dominates with 40% market share, followed by Vadilal at 16% and Cream Bell at 3%. 

Yet, emerging startups like Hangyo, backed by fresh funding, are poised to challenge the status quo with innovative offerings. 

Quick commerce and health-conscious trends, such as vegan and sugar-free options, are expected to propel the sector forward.

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