$113 Billion and Growing- The Rapid Expansion of the Global Ice Cream Market
The ice cream industry is a dynamic sector within the global food and beverage market, characterized by its continuous growth and evolution. This segment offers a variety of products, from traditional flavors to innovative concoctions, catering to diverse consumer preferences worldwide.
Global Market Overview
As of 2023, the global ice cream market was valued at approximately USD 113.40 billion and is projected to grow at a compound annual growth rate (CAGR) of 3.9% from 2024 to 2030.
This growth is driven by increasing demand for innovative flavors and types, particularly impulse ice creams like cones, sandwiches, and pops, especially in developing countries. Health-conscious consumers are also fueling the demand for premium ice creams.
Regional Insights
A few years ago, the idea of ice cream without sugar becoming a household indulgence in India would have seemed far-fetched. But Go Zero , a startup that is redefining how Indians consume desserts, has managed to turn this vision into a profitable reality in just two years. With monthly revenues crossing ?4 crore and annual revenue nearing ?50 crore, Go Zero has become India’s fastest-growing ice cream brand on quick commerce platforms. The brand's meteoric rise signals not only its own disruptive potential but also the larger shifts taking place in India's ice cream industry.
India’s love for ice cream is well-documented. With scorching summers and a deep-rooted sweet tooth, ice creams have always been a popular treat across the country.
Yet, despite this affection, India's per capita ice cream consumption still lags far behind global benchmarks. While Indians currently consume about 400 ml of ice cream per person annually, this figure is a mere fraction compared to China's 2 liters or the United States' staggering 20 liters. However, with rising disposable incomes and a growing appetite for indulgences, the ice cream market in India is on the cusp of explosive growth.
Currently valued at ?20,000 crore, the market is expected to more than double to ?50,000 crore by 2028. This burgeoning demand, combined with shifting consumer preferences, is paving the way for new-age brands like Go Zero to challenge long-established giants like Amul, Mother Dairy, and Vadilal.
Go Zero’s success is not just about tapping into a booming market—it’s about doing so with a sharp understanding of emerging trends. The startup is the brainchild of Kiran Shah, who comes from a legacy of ice cream makers.
His family's business, Apsara Ice Creams, has been serving frozen treats since 1971. But after helping scale Apsara to over 100 stores, Kiran set out to build something entirely new. He saw two powerful currents reshaping the food industry: rising aspirations among Indian consumers and a growing consciousness about health and wellness.
At the heart of Go Zero’s strategy is its bold decision to go all-in on quick commerce. The company generates 70% of its revenue through platforms like Blinkit and Zepto, with the remaining 30% coming from Swiggy and Zomato.
This online-only, asset-light model allowed Go Zero to expand into 16 cities without the burden of setting up expensive distribution networks or retail stores. By leveraging the dark store infrastructure of quick commerce platforms, Go Zero ensures that its products are always just minutes away from consumers experiencing instant sugar cravings.
Quick commerce is particularly well-suited to ice cream, a category driven by impulse purchases. When consumers crave ice cream, they want it immediately—not in 30 or 40 minutes. Go Zero’s bet on 10-minute delivery platforms gave it a crucial edge over brands relying on traditional food delivery services.
The startup further deepened its partnership with Zepto by launching co-branded exclusive ice creams, which are only available on the platform. This strategy not only boosted visibility but also allowed Go Zero to borrow the trust and customer base of Zepto, which sees over 1 crore app opens daily.
Another key differentiator for Go Zero has been its approach to product development. Instead of simply launching new flavors based on internal ideas, the company reverse-engineers its products by identifying white spaces in the quick commerce ecosystem.
One standout example is the Duet ice cream—an old-school mango-vanilla combination reminiscent of childhood treats. After a meeting with Blinkit , Go Zero realized that no such product was available on the platform. The company quickly developed and launched the SKU, which now generates ?75 lakh in monthly revenue. This method of aligning product innovation with channel-specific gaps has been a game-changer for Go Zero.
Go Zero’s ambitions, however, stretch far beyond ice cream. With its zero-sugar, health-first positioning, the brand is laying the groundwork to evolve into a broader health-focused food company. India's health food market is the fastest-growing in the world, projected to reach $30 billion by 2025.
The rise of brands like The Whole Truth Foods and Yoga Bar across categories like protein bars, snacks, and beverages highlights the growing demand for products that combine indulgence with wellness. By establishing trust in one category, Go Zero is creating a launchpad to expand into adjacent segments like frozen desserts, peanut butter, and other healthy indulgences.
Despite its rapid growth, Go Zero has maintained a disciplined pricing strategy. Positioned between ?50 and ?100—slightly above mass-market brands but well below premium artisanal offerings—the brand has found a sweet spot that appeals to health-conscious consumers without alienating price-sensitive buyers. This pricing, combined with its presence in tier 1 cities, has allowed Go Zero to build a loyal customer base. As quick commerce platforms expand into tier 2 and tier 3 cities, Go Zero will be well-positioned to ride the next wave of growth.
Go Zero's journey is a testament to how understanding market dynamics, identifying channel opportunities, and aligning products with evolving consumer preferences can create powerful new brands. By betting on quick commerce, leveraging partnerships, and tapping into India's rising health consciousness, the startup is not just disrupting the ice cream market—it's redefining what indulgence means in the age of mindful consumption. Whether Go Zero will successfully replicate the playbook of brands like The Whole Truth remains to be seen, but one thing is clear: the era of zero-guilt indulgence is just getting started.
Market Trends
The ice cream market has seen steady growth over the past five years, with a 7% increase in sales and a 3% rise in product launches. Innovations in flavors and formats, along with a focus on health-conscious options, are key trends shaping the industry.
Conclusion
The ice cream market continues to grow globally, driven by innovation and changing consumer preferences. With significant growth expected in markets like India, the industry presents ample opportunities for new and existing players to expand and diversify their offerings.