Question

Identify the reason for low per capita consumption of ice-cream in India​

Answer 1

Answer:

The Indian ice cream industry is one of the fastest growing segments of the dairy or food processing industry. India has a low per capita ice cream consumption of ice cream at 400 ml as compared with per capita consumption of ice cream of 22,000 ml in the United States and 3,000 ml in China. With the improving cold chain infrastructure in the country coupled with increasing disposable income and the changing lifestyle, the sector has great potential for growth.

The ice cream industry in India generated revenue of more than USD 1.5 billion in 2016 and is projected to generate revenue of approximately USD 3.4 billion by 2021. Lately, frozen desserts which are made out of vegetable oils have been eating into the market share of ice cream. Key players offering frozen desserts in India are Kwality Walls, Vadilal, and Cream Bell.

In India, the ice cream industry is mostly regional and there is a multitude of brands focusing on only one or two districts or in some case only one state. There are very few national brands and the major reason behind slow growth of the smaller players is the high perishability of ice cream products.

Explanation: