Ice cream gets cooler: Why Indians are paying more for less sugar and better ingredients

Unlike other packaged desserts such as chocolate, bakery, or mithai, ice cream is at the centre of this evolution, transitioning toward what Tulsi Joshi, principal analyst, food and drink, India, Mintel, calls “mindful indulgence”.

“Nearly half (48%) of Indian consumers actively seek healthier snack options,” says Joshi, adding how the dessert market in India is being reshaped by three converging forces—social media amplification, the rise of café culture, and sustained health consciousness.

Many Indian brands are over-indexing globally in low/no/reduced sugar and protein claims. Innovations include protein-enriched variants, no-added-sugar lines, and mini multipacks—positioning ice cream as an everyday snacking option rather than purely festive indulgence.

Experts feel that premiumisation is also powering India’s ice cream boom. According to Avinash Chandani, partner, Deloitte India, the overall growth in the category stands at 10.5%, with volume contributing 6.9% CAGR—underscoring that value growth is outpacing mere expansion in kilograms sold. “That divergence is the clearest evidence that consumers are repeatedly paying up for quality, richer inclusions, provenance and cleaner labels, not just more kilograms,” says Chandani.

Take-home formats account for 37.5% of category value and have outgrown impulse consumption between 2019 and 2024. Premium pints and functional lines sit within take-home and on-demand baskets, reinforcing premium as a demand-led shift rather than a short-lived trend.

Channel data or indirect sales partners further validate this trajectory. Globally, dairy-free ice cream is scaling in off-trade and online channels at ~13.44% CAGR. India mirrors this metro behaviour. Deloitte estimates India’s dairy-free segment will grow ~29% between 2024 and 2026 to reach ~Rs 766 crore. In the same period, gourmet is projected to rise ~31%, while guilt-free/ functional ice creams are expected to grow ~32%. “These uplifts do not occur without real, repeatable consumer pull,” Chandani adds.

Cool & conscious

Across brands, both market leaders as well as new-age challengers, the competition is hotting up. Earlier this year, the Netherlands-based The Magnum Ice Cream Company acquired a 61.9% stake in Kwality Wall’s India (KWIL) from Hindustan Unilever (HUL) and launched an open offer to purchase an additional 26%, which would make it the single largest shareholder and new parent entity. 

Last year, Kwality Wall’s launched a new brand, The Dairy Factory, a range of slow-churned 100% real dairy ice cream made with premium ingredients and available in four variants—vanilla, butterscotch, mango, and chocolate. The packs and decadent tubs are available at stores and quick commerce platforms.

Magnum continues to strengthen Kwality Wall’s premium and indulgence portfolio, with innovations like Magnum Caramel Pop, an internationally successful flavour now introduced at a more accessible price point in India. “For Cornetto, we will be actively expanding the portfolio with a diverse mix of flavours and formats ranging from regionally inspired offerings to nationally loved variants such as Blackcurrant and Almond Crunch, our latest launches for 2026. We are strengthening distribution across key markets, particularly in the south,” says Chitrank Goel, Deputy MD, Kwality Wall’s (India).

Market leader Amul has also expanded its portfolio with products such as sugar-free vanilla (86 calories, no added sugar), camel milk ice cream (4.4% lower fat), and its Prolife probiotic range aimed at gut health, besides its protein kulfi.

Ahmedabad-based Havmor also has a fruit-led and zero-added-sugar portfolio with flavours like sitafal, Mahabaleshwar strawberry, anjir and kesar pista. Similarly, Naturals Ice Cream has ‘no added sugar’ and ‘medium fat’ options. Their seasonal fruit flavours, such as tender coconut, mango, and sitaphal are seen as lighter options compared to chocolate-based cream desserts.

Curefoods, which operates brands like Eatfit, HRX, Great Indian Khichdi, Homeplate, Millet Express, Rolls on Wheels, Chaat Street, and Madras Curd Rice Company, is also diversifying its ice cream segment through PapaCream, which is live in over 50 cloud kitchens and is expected to scale to 100-150 locations by the year end, targeting Rs 50 crore run rate next year.

Not to be left behind, startups are also scaling rapidly. Get-A-Way, acquired by Heritage Foods last year, is offering low-calorie, high-protein frozen desserts. The brand’s turnover grew from Rs 7.9 crore in FY23 to Rs 14.8 crore in FY24 and Rs 18.1 crore in FY25. It reports serving over 8,000 daily orders across 35-plus cities.

Mumbai-based The Brooklyn Creamery has also built its growth story on ‘healthy indulgence’, spanning low-calorie, zero-added-sugar cups, tubs, sticks, and mini cones. Started in 2016, the brand is available in nine nations with over 60 SKUs across ice creams, milkshakes, and milk. The brand has served 4 million ice creams.

Flavours & formats

For brands, the strategy is evolving beyond flavour launches. Walko Food Company— that operates brands such as NIC Ice Creams, Grameen Kulfi and Mimo Ice Creams—is expanding its ‘no added sugar’ range while leveraging platforms like Swiggy, Zomato, Instamart, Blinkit and Zepto for nationwide reach. The company is manufacturing and selling ice creams, kulfis, frozen desserts and thick shakes through its brands, reaching consumers through multiple channels.

In extension to its seasonal and festive flavours like thandai, sheer khurma and alphonso mango, this year, the brand is adding kesar pista to the ‘no added sugar’ range of NIC Ice Creams. While its Meemee range offers vegan-based ice cream in the portfolio, the impulse category brand of Mimo Ice Creams is going to see a range extension in bars and sandwiches as well.

Similarly, Hocco Ice Cream is adopting a “calibrated, learn-and-scale” approach by testing launches via quick commerce before broader rollouts. The company is prioritising low-sugar and no-added-sugar innovations, reduced-fat recipes, plant-based alternatives with improved texture, and premium ingredient-led builds featuring single-origin chocolates and nuts. ‘

Ankit Chona, CEO, Hocco Ice Cream, explains the structured diversification: “Over the years, we have consciously built diversity across formats, ingredients, indulgence levels and consumer needs — not just flavours. This year, diversity is less about SKUs and more about meaningful differentiation. Each range is built for a clear consumer job to be done.”

Mumbai-based ice cream brand NOTO is also constantly innovating and adding new formats and products to its guilt-free range. Founded in 2019 by Varun Sheth and Ashni Shah, the brand launched a classic ‘chocobar’ and expanded its ‘duet’ range in mango and raspberry, alongside seasonal fruit mini tubs to tap summer demand for lighter flavours. “Our core expertise of zero sugar and low calorie remains true through all categories. At the same time, we’re also growing our vegan portfolio and working on launching vegan bars. The idea is to keep the range exciting and versatile across dairy and plant-based options,” adds Shah. 

As per Shah, vegan consumers remain a smaller cohort, demonstrating high loyalty. “Once consumers find a vegan product that meets both taste and ingredient expectations, they tend to stay with the brand long term.”

Meanwhile, international brands are also eyeing India’s premium dessert segment. UAE-based Japanese confectionery brand MOISHI has entered the country through a partnership with CK Israni Group. MOISHI specialises in handcrafted mochi ice cream, featuring premium Italian-grade ice cream wrapped in soft, traditional Japanese glutinous rice dough. Blending Japanese, Lebanese, and modern culinary influences, it offers diverse, high-quality flavours, targeting urban, globally exposed consumers. “India’s lifestyle and F&B sector is at an inflection point,” says Chandni Nath Israni, co-Founder, CK Israni Group, adding, “The market is no longer just experimenting with international concepts, it is ready to institutionalise them. This is about recognising a ripe opportunity and moving with conviction.”

While the idea is to balance better-for-you choices with indulgent ones, one factor is non-negotiable: taste. This explains why a brand like Mother Dairy is entering the low-calorie segment under its Go-Low sub-brand—Choco Almond, Shahi Mewa, and Kesar Pista Tilla Kulfi—bringing together taste, health and innovation.

Jayatheertha Chary, deputy managing director, Mother Dairy, says: “Consumers are seeking mindful consumption without compromising on taste. To cater to this growing demand, this summer we are introducing our new range of low-calorie ice creams under the Go-Low sub-brand. The range will bring taste, health, and innovation on a single platform.”

Values & volumes

While there has been a structural shift in India’s ice-cream landscape, the demand dynamics vary across geographies. According to Deloitte estimates, in the northern and western Indian metros (Delhi-NCR, Mumbai-Pune), late-night spikes and quick-commerce baskets are favouring premium singles, bars, and low-calorie cups, formats that encourage trial and drive higher average order values. In west and coastal south, ingredient credibility fuels repeat purchases, especially regional fruit flavours and “real ingredient” recipes, while across metros, there is a demand for dairy-free and vegan options that have moved from niche to mainstream, supported by parlours and dark stores.

“Industry segmentation shows bars as the largest product by revenue, while cones are the fastest growing—formats where Belgian chocolate coatings, nut inclusions, and gelato-style (Italian style premium ice cream) fillings consistently outperform,” says Chandani.

According to him, consumers in metropolitan India are adopting global premium textures (dense/low overrun gelato) as urbanisation and exposure to international food formats rise; this sits within the wider premiumisation signal where value outpaces volume for India ice cream. Availability remains foundational. However, premium and “better-for-you” products are now discoverable and deliverable within minutes via supermarkets and quick-commerce platforms—giving diversity real commercial sustainability heading into 2026, Chandani adds.

Mintel research suggests that packaged dessert consumption declines with age, positioning Gen Z as the category’s primary growth driver. For this cohort, sweetness alone is insufficient. They prioritise novelty, authenticity, visual appeal, and shareability. Affluent Gen Z consumers are willing to pay a premium for craftsmanship, creativity, and storytelling.

Shamika Erande, AGM, marketing, Walko Food Company, points out that exposure to world cuisines has made customers more aware of what they are consuming and there is a much higher demand for premium flavours.

“No-added sugar or vegan-based ice creams contribute 8-10% of overall brand sales. But this year, our focus will be on accelerating growth by expanding product portfolios of NIC Ice Creams and Grameen Kulfi, whereas Mimo Ice Creams and Meemee’s Ice Creams along with product offering will be expanding reaches to the untapped markets of north, east, south and some metros/tier 1 cities, respectively,” says Erande.

NOTO, too, is clocking an annual recurring revenue (ARR) of over Rs 50 crore, driven by focus on creating better-for-you ice creams, especially in the low and no-sugar space. While that remains its core, the brand is going a step further on formulation by using real fruit chunks and prebiotic fibre for a naturally creamy texture without excess sugar or fat. A key point of distinction, according to Shah, is the use of real milk in its original form rather than reconstituted milk derivatives, enhancing flavour and mouthfeel.

So why do these segments sell well? For Chona, premium and indulgent innovation products contribute a disproportionately higher share of revenue compared to their volume share. “Guilt-free and health-focused products show strong repeat rates once consumers adopt them. Average realisation and margins are higher than mass products, even after factoring higher ingredient costs. While they may not yet be the largest volume drivers, they are critical for brand equity, margin expansion, and future growth,” he adds.

According to Chona, rising health awareness without willingness to give up indulgence, higher disposable incomes and premiumisation of everyday treats, quick commerce enabling discovery and trial of premium and niche products and consumers reading labels are a few factors fuelling growth in the segment.

Chandani of Deloitte feels that in India’s ice cream market, premium is now a portfolio, not a flavour. He estimates that the artisanal and natural premium ice cream segment is projected to reach approximately Rs 1,200 crore by 2026. Growth is being driven by urban consumers’ preference for clean-label products and natural ingredients, increasing willingness to pay within take-home formats.

The healthy premium segment, covering low-sugar and high-protein products, is estimated at around Rs 1,400 crore this year. Health-conscious consumption and demand for functional treats are expanding within take-home and online baskets, supported by organised retail and e-commerce.

Meanwhile, vegan and dairy-free premium ice creams are also seeing rising demand, driven by lactose intolerance, ethical consumption, and plant-based diets. Globally, non-dairy ice cream is expected to grow at 13.44% between 2024 and 2029, with off-trade and online channels leading the charge—a pattern increasingly mirrored in Indian metros.