Why regional ice cream brands are winning big in South India

India's ice cream industry has largely remained unchanged over the years, dominated by national giants like Amul, Mother Dairy, Kwality Walls, Vadilal, Havmor and more. The category is highly seasonal, with brands ramping up advertising primarily during summers and festive periods, with marketing strategies that have remained fairly consistent. According to Technopak data, the market is witnessing steady growth of 12–15% annually and is expected to expand from $3.4 billion in FY23 to over $5 billion by 2025.

 On the ad spends front, the ice cream category sees total annual advertising of ?52–54 crore, as per Dipankar Sanyal, CEO at Platinum Communications, with the top five national brands capturing around 66% of this total.

Yet, behind this apparent stability, smaller towns, especially in South India, are telling a very different story. National brands focus heavily on metros, with Delhi accounting for 26% of ad spends, followed by Mumbai (12%), Bengaluru (8%), and Ahmedabad (7%). In smaller markets, however, homegrown and regional brands such as Arun, Ideal, Hangyo, Dairy Day, and Ullas have carved out strong local dominance. For that matter, Nandini, which dominates Karnataka, enjoys a stronger presence in several southern markets than any other national players.

Several reports have also highlighted this trend. For instance, Mangalore-based Ideal Ice Cream commands around 80% market share in Mangalore, reflecting its deep local connect. Similarly, in Kerala, local and regional brands account for about 80% of ice cream sales, proving that proximity to the consumer, through both distribution and marketing, can outweigh national reach.

Another example is Hangyo Ice Cream, one of South India’s most renowned brands, which has not only expanded rapidly across coastal Karnataka and other southern states but also secured India’s largest venture funding for an ice cream brand. The company surpassed ?300 crore in revenue in FY24 while maintaining its strong regional focus.

Notably, experts point out that in South India, the Arun ice cream brand alone accounts for 52% of the advertising spend, underscoring the intensity and focus of regional marketing efforts.

Clearly, homegrown and regional brands are seeing a resurgence across the ice cream category. As per Dairy Day brand, there’s a significant increase in the number of regional brands vying for a share of the market, along with a clear rise in on-ground competitive intensity. Across distribution channels, these brands are going the extra mile to meet consumer needs, demonstrating a sharp understanding of local flavour preferences and value perceptions. The brand itself has built a deep-seated relationship with consumers over more than two decades, and continues to retain their South Indian identity even as they expand beyond their home states.

These observations have prompted a closer look to understand what is driving this regional strength in South India, and to explore whether national brands may indeed be missing out.

The Homegrown Edge

 In South India alone, the ice cream market accounted for 23.5% of India’s total market share in 2024, highlighting the region’s significant contribution to the category. While national players dominate metros, regional and homegrown brands are rapidly gaining ground, thanks to a deep understanding of local tastes and consumer behaviour.

Some of these brands are well-established, while others are entirely homegrown. What gives them their edge is a strong connection with local consumers, built over years of organic growth within their regions. By emphasising freshness, quality, and flavours that resonate with regional palates, these brands have built loyal followings. Their focus on tier-2 and tier-3 towns allows them to capture market share efficiently, as these markets are easier to serve and often more profitable relative to their scale.

 What further strengthens this advantage is their marketing and distribution strategy. As Sanyal explained, “Regional players rely heavily on large-format outdoor advertising, which accounts for roughly 70% of their spends, and complement it with seasonal bursts, summer campaigns, and festival promotions. While the broad strategies are similar across brands, being closer to the market makes them far more responsive to changing consumer demand.”

Arvind Ramachandran, Vice President, Marketing at Dairy Day Ice Creams, added, “Our deep penetration across South Indian markets, coupled with a strong understanding of local tastes, languages, and consumer sentiment, gives us an edge that national brands often struggle to replicate. From fruit sorbets with a masala twist to Paal Ice in Tamil Nadu, we tailor products and campaigns to regional preferences. This agility allows us to respond quickly to changing trends, maintain freshness, and build strong emotional connections with consumers.”

Industry observers note that regional brands’ reach and infrastructure advantages help them outpace national players. Ice cream distribution requires cold chain management and extensive supply networks, which are expensive. Only a handful of national brands have a pan-India presence, whereas smaller brands focus on regions where they are already popular, allowing them to operate nimbly, respond to local tastes, and maintain product freshness.

To maintain year-round visibility, these brands leverage hyperlocal campaigns, outdoor formats, and community driven engagement. Instead of relying on costly national TV or metro-centric campaigns, they use billboards, shop signage, mobile carts, auto-rickshaw ads, and participate in local festivals and events, building strong brand recall.

“Regional players are far more agile,” said Fabian Cowan, Director at Connect Network. “They adapt to local tastes quickly, integrate into daily routines, and build loyalty through consistent presence rather than big bursts of national advertising. In smaller cities, brands have a lower barrier to awareness and local mindshare. Being part of the neighbourhood and daily life generates instant word-of-mouth and better recognition compared to national players.”

Typically, local brands use available billboard inventory—albeit limited in smaller towns—shop signage, bus and auto-rickshaw ads, posters at vantage points, mobile ice-cream carts, and participation or sponsorship of local events, fairs, and school activities. Temporary stalls or kiosks in busy public areas during summer or holiday weekends are also key elements of their marketing strategy.

Vaibhav Choudhari, VP- West, Carat Global Media added, “Isolated markets, like Andhra Pradesh, Tamil Nadu, or Karnataka, can be effectively served with state-level distribution, ATL and BTL marketing, and customised consumer preferences, such as coconut or chocolate flavors. This approach is easier to execute on smaller budgets compared to national players.”

 According to Praveen Kumar Vadhera, IOAA, these regional or homegrown brands enjoy a strong presence in certain towns because they focus on areas where they are most popular. They generally lack the infrastructure to expand nationwide, as setting up retail points and maintaining refrigeration units is costly and resourceintensive. Not all regional players have access to such infrastructure, so they concentrate on regions where they can build a strong foothold and engage consumers effectively.

National giants’ city-centric strategy

As per industry experts, while national giants continue to dominate India’s ice cream landscape, their presence has largely been metro-centric. Reportedly, Amul leads with a 40% market share in the organised sector, followed by Mother Dairy.

 With pan-India distribution and larger budgets, all these national brands prioritise economies of scale and high consumption markets, focussing on metros and mini-metros where volumes justify heavier investments. While most of these players have a presence across India, their on-ground visibility in tier-2 and tier-3 markets remains limited, according to experts, due to the significant costs of establishing and maintaining cold chain infrastructure and retail points.

e4m reached out to top national players, however, no inputs were received at the time of the story.

National players often reach smaller towns indirectly through television and digital campaigns. However, this approach leaves a gap in local engagement, allowing regional brands to capitalise on hyperlocal, year-round visibility, which fosters stronger consumer recall. Vadhera mentioned, “National brands are present outside metros, but their focus is mainly on high-volume markets. They cover smaller towns through television because the cost of creating retail points and maintaining cold chain infrastructure is significant.”

Another factor is seasonality. National campaigns tend to be concentrated around summer and festive periods, with limited marketing activity during the rest of the year. This leaves room for regional brands to dominate local mindshare.

While national players have the muscle and scale, they risk losing regional relevance if campaigns remain metro-focused and standardised. Choudhri pointed out, “For national players, it’s about economies of scale by catering to a larger geography, assuming they have a larger distribution network and a broader bouquet of flavours to cater to different types of consumers.”

 According to Cowan, national brands often have a “one size fits all” flavour portfolio. Focussing on regional tastes and flavour variants, combined with hyperlocal and lean marketing strategies, could strengthen emotional connections with consumers. Small-scale OOH advertising, local festivals, micro-influencers, and community events, rather than just large national ad spends, can be highly effective. Seasonal campaigns should be localized, with flavor launches, promotions, and activities aligned to local festivals and climate. Associations with local cultural programs, sports events, and celebrations further deepen emotional engagement.

In effect, regional ice cream brands in South India win visibility and mindshare in smaller cities by being closer— closer in supply chain, culture, flavour, pricing, and presence. He added, they often become a part of daily life and local identity. National brands, while powerful, often lack the agility and local relevance required in these markets. To compete or expand, national brands need to invest in the local ethos, encompassing cultural, flavour, experiential, and marketing strategies connected to place, along with on-the-ground retail presence and building emotional connections, not just mass awareness.

Beyond the dominance of national manufacturers, South India exhibits strong local consumption trends and significant growth potential, as per Expert Market Research. While Maharashtra leads the ice cream market nationally, Karnataka, Tamil Nadu, and Gujarat remain key markets.

While there might be certain challenges for both national and small brands, experts suggest that incorporating regional tastes, hyperlocal campaigns, and community-driven engagement could help bridge this gap, ensuring national brands remain competitive even in smaller markets.