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Strengthening distribution network to boost the Ice Cream Market in India, finds Netscribes

04-05-2012 03:27 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Netscribes India

Netscribes (India) Pvt. Ltd. launches a report on the Ice Cream Market in India 2012 as part of Netscribes’ Food & Beverage Industry Report Series.

Mumbai, India – April 02, 2012 – Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of its report Ice Cream Market in India 2012. Indian ice cream sector has been growing steadily. The per capita consumption is still low compared to the global average creating opportunity for players. Manufacturers look to invest in increasing their presence by expanding their distribution channels. Additionally, health consciousness has led to product expansion which led to the development of the probiotic and sugar free variants. Further, as international players make a beeline towards making a foundation in India, consumers’ interest in experimentation only catapults the overall sector towards further growth. Furthermore, constant development in the cold chain infrastructure and innovation will lead to further growth.

The report begins with an overview of the dairy industry in India providing the market size and growth as well as information regarding its consumption pattern and market structure. This is followed by a primary segmentation of the industry wherein a product mix is highlighted. An overview of the ice cream market provides an introduction to the sector and covers the market size and growth in India along with a representation of the market share of key players in the sector. The manufacturing process as well as a description of the key processes has been covered. An analysis of the value chain has been included which is followed by a snapshot of the various distribution channels players opt for in the ice cream market. An EXIM trend over a period of four years is included which precedes a Porter’s Five Forces analysis that concludes the section. The next section highlights the segmentation in the ice cream market and all three primary segments namely impulse segment, take home segment and artisanal segment have been discussed.

An analysis of the drivers explains the factors for growth of the market and includes lucrative nature of business, rise of buyers in impulse segment, strengthening of distribution network, increase of disposable income and low per capita consumption of ice creams. Ice creams contain air in a substantial amount sometimes even up to 50% which makes the business a very profitable venture wherein profits margins are extremely high at certain times. The lucrative nature of this business has created strong opportunities in the market Ice creams can be ramified into impulse, take home and artisanal segments. Of these, impulse segment entails highest sales volumes as featured products are small in size, relatively cheaper and can be consumed at a go. Availability of impulse products has increased as push carts are present across cities and towns and affordability has contributed to further growth in such buyers. Rise in buyers of impulse products gets translated into higher sales of such products thereby accounting for growth of the total market. Another chief stimulant in this sector is the strengthening of distribution network. As players worked towards bolstering distribution system across the country, availability and coverage has increased. As products came within the reach of consumers and players targeted enhanced coverage, sales inadvertently received a boost. Coverage, availability or even affordability has been complemented by the rising purchasing power among consumers. Ice creams are at times referred to as luxury products and purchases of such products would be affected with the rise disposable income. Further, per capita consumption of ice creams in India is low compared to other countries across the globe. This poses as a latent opportunity for the sector as there is potential for further growth. However, the sector is also facing certain challenges. Factors such as rise in input costs, erratic power supply across the country and rise in local manufacturers pose as impediments for this sector.

Government participation in this sector covers Prevention of Food Adulteration Act 1954, Food and Safety Standards Act 2006 and certain government policies. The major trends identified include rise in frozen yoghurt, creation of exclusive stores, entry of eatery players, establishment of the Indian Ice Cream Manufacturers’ Association, promotional offers flooding the sector, mini meal concept, alternative products and introduction of new variants.

The competition section offers a competitive landscape of the players by providing their financials and key financial ratios. It also provides basic information regarding the organizations. Key financial parameters constitute the financial performances of the players which are followed by business highlights. Strategic recommendations followed by appendix on key ratios comprise the concluding section of the report.

About Netscribes (India) Pvt. Ltd.

Netscribes (www.netscribes.com) is a pioneering knowledge consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, publishing services and customized knowledge database creation. At its core lies a true value proposition that draws upon a vast knowledge base.

For more information please write to info@netscribes.com

Gaurav Kumar
Podar Center, 85 Parel Post Office Lane
Off Dr. Ambedkar Road, Parel (East)
Mumbai 400 012
Maharashtra, India.
Email: sales@netscribes.com

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