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The Dessert and Ice Cream (D&IC) industry in India is primed for explosive growth, with a projected CAGR of 18% and the potential to become a thriving hub for ice cream production. This dynamic market is being driven by health-conscious and discerning consumers who are willing to pay a premium for high-quality, locally sourced ingredients. In addition, the emergence of new markets and innovative distribution channels to reach them is fuelling growth and creating exciting new opportunities for D&IC brands. However, operating in this dynamic and rapidly evolving market is not without its challenges. From seasonal fluctuations in demand to geographic variations and temperature sensitivity to product integrity, brands must navigate a range of obstacles to maintain consistent quality and profitability throughout the year. Despite these challenges, the rewards for brands that can successfully navigate this market are enormous. In this article, we explore the key demand factors driving growth in the D&IC industry in India and offer practical supply chain management strategies that brands can adopt to capitalize on opportunities and achieve success in this exciting and lucrative market.
1. Seasonality in demand as a growth driver
Capitalizing on seasonality demand is crucial for driving growth in the dessert and ice cream (D&IC) industry in India. During summers, the demand for ice cream experiences a significant spike, which presents a unique opportunity for D&IC brands to capitalize on this surge in demand and achieve sustainable growth. However, meeting the increased demand during the peak period can be challenging for brands without an efficient and effective supply chain management (SCM) system in place.
To overcome this challenge, advanced forecasting and planning are critical in anticipating demand spikes and ensuring that necessary capacities are in place to match the demand. Effective inventory management is also essential in ensuring that products are readily available during the peak period. Transportation plays a crucial role in delivering products to the right place at the right time without any temperature abuse. An optimized supply chain management system is the key to successful peak demand management in the D&IC industry. It allows brands to efficiently handle the seasonal spikes in demand, avoid stockouts, and ensure that customers can enjoy their favourite treats throughout the year. By leveraging the opportunities presented by seasonality demand, D&IC brands can scoop up success and achieve long-term growth.
2. Changing consumer preference
The changing consumer preference of ice cream as a healthier and locally sourced indulgence is a game-changer for the D&IC industry in India. By leveraging this changing consumer perception and staying attuned to emerging trends, D&IC brands can tap into the vast potential of the Indian ice cream market. With a focus on healthy and locally sourced ingredients, consumers are looking for options that not only satisfy their sweet tooth but also align with their lifestyle choices.
To capitalize on this changing trend, D&IC brands must be able to capture real-time insights, analyse them, and quickly develop new products that meet consumer demand. This requires an efficient and effective supply chain management system that can reduce time-to-market and facilitate a flexible and responsive approach to product development. Brands that can cater to this demand and provide innovative and exciting product offerings will be best positioned to capture market share and drive growth.
3. Demographic changes
India’s demographic changes have ignited a remarkable transformation in the ice cream market, propelling it towards unprecedented growth. The young population, rising disposable incomes, and a willingness to explore new flavours and products have all contributed to the surging demand for ice cream.
However, to truly capitalize on this potential, brands need to leverage an efficient supply chain management system that can provide the necessary data and insights to develop customized products and distribution strategies, specifically targeting different demographic segments. By adopting advanced decision support systems, brands can gather real-time data on consumer behavior and preferences, helping them create and bring innovative products to the market at a faster pace. By staying ahead of the competition, brands can take advantage of these changing demographic trends to ensure sustainable growth in the D&IC industry.
4. Increasing health-consciousness
The rising trend of health-consciousness among consumers has spurred a significant shift in demand for desserts that are not only delicious but also packed with functional ingredients and devoid of dairy and animal products. To cater to this demand and capitalize on this growing trend, businesses need to ensure that their supply chain management system is not only efficient and effective but also aligned with stringent assurance processes and standards. This will guarantee the sourcing of high-quality ingredients, optimize production processes, and adhere to regulatory requirements, thus ensuring that the final product meets the high expectations of health-conscious consumers.
Furthermore, an agile SCM system can also help identify emerging trends and innovative ingredients, allowing businesses to develop new products that appeal to the ever-growing health-conscious consumer base. In essence, the demand for health-conscious desserts is a game-changer, and a robust SCM system can help businesses scoop up success in this burgeoning market.
5. Rise of innovative and ‘Indianized’ flavours
Today’s consumers are increasingly seeking unique and distinctive taste experiences that resonate with their cultural preferences. As a result, brands that can offer such flavours are well-positioned to gain a competitive edge in the market. However, this requires an efficient and effective supply chain management system that can source the necessary ingredients, manage complex inventory, and ensure timely delivery of products to meet demand.
Furthermore, developing strong relationships with suppliers, vendors, and competitors can provide brands with valuable insights into the latest trends and preferences in the market. This, in turn, can help them innovate and create new and exciting flavours that resonate with the evolving tastes of Indian consumers. By leveraging the power of innovation and collaboration, ice cream brands can capture the attention of consumers and scoop up success in this rapidly growing industry.
The Dessert and Ice Cream industry is poised for tremendous growth, driven by factors such as changing consumer preferences, rising disposable income, and the demand for healthier options. However, to capitalize on these growth drivers, D&IC brands must have the right supply chain capabilities in place. This means partnering with a supply chain management company that can help them navigate the complexities of the industry, from sourcing ingredients to managing logistics and distribution. By working with a trusted partner, D&IC brands can streamline their operations, reduce costs, and ultimately achieve greater success in a highly competitive market.
So, if you’re a D&IC brand looking to scoop up success, now is the time to start exploring your options and find a supply chain management partner that can help take your business to the next level.
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