Quick Commerce Revolutionizes India’s Ice Cream Market

Quick Commerce Fuels Ice Cream Revolution in India

The Indian ice cream market is undergoing a significant transformation, driven by the rapid rise of quick commerce (QCom). Once a category defined by destination purchases at parlours or planned additions during supermarket trips, ice cream is now shifting towards impulse buys, facilitated by rapid delivery services. Brands are consequently rethinking their strategies, from product packaging and formats to distribution networks and consumer engagement, to capitalize on this evolving landscape.

This shift is exemplified by Dairy Day’s launch of Ob & Gob, an ice cream brand specifically designed for quick commerce platforms like Blinkit, Zepto, and Swiggy Instamart. Unlike traditional ice cream products intended for retail freezers, Ob & Gob’s offerings are optimized for rapid delivery and immediate consumption, signaling a broader trend where quick commerce is reshaping even the most logistically challenging consumer categories.

For years, the ice cream industry in India faced structural hurdles. The necessity of maintaining an unbroken cold chain, coupled with high risks of last-mile spoilage and a reliance on prominent in-store freezer visibility, made distribution capital-intensive. Scaling required substantial investment in refrigeration, extensive dealer networks, and strong retail relationships. Quick commerce has effectively disrupted this established model.

Dark Stores and the Impulse Buy Phenomenon

The emergence of dark stores, small, localized warehouses, has created micro-distribution hubs that enable brands to bypass traditional retail channels and deliver directly to consumers within minutes. This has accelerated the transition of ice cream from a planned purchase to an impulse-driven indulgence. Consumers are now ordering ice cream alongside other immediate needs like snacks, beverages, or late-night meals. This trend is reflected in market data, with impulse ice cream accounting for nearly 60% of the Indian market in 2025.

Saurabh Kasat, Director & CFO at Dairy Day, highlighted this shift, stating, “Spontaneity is the new driver. Consumers want indulgence on demand.” This sentiment underscores the core change in consumer behavior that quick commerce has unlocked for the ice cream category.

The Rise of QCom-First Ice Cream Brands

Ob & Gob represents a growing segment of brands being meticulously developed for the quick commerce channel. These brands are distinct from legacy products merely adapted for delivery; they are conceived with the specific constraints and opportunities of quick commerce in mind. This includes packaging designed for transit, formats optimized for single-serve consumption, and visual appeal tailored for smartphone screens rather than retail shelves.

This digital-first approach has already proven successful in categories such as beverages and snacks, where online-only brands have scaled rapidly by leveraging platforms like Flipkart Minutes and Amazon Now, circumventing traditional distribution infrastructure. The ice cream sector is now experiencing a similar, well-funded surge. Indian ice cream startups secured a record $26.5 million in funding in 2024, representing 74% of the sector’s total funding over the preceding five years. Prominent brands leading this wave include Go Zero, a sugar-free brand deriving 70% of its revenue from quick commerce, and NOTO, a low-calorie brand whose revenue surged from Rs 8 crore in FY22 to Rs 55 crore in FY24, according to Tracxn data.

Even established industry giants like Havmor Ice Cream and Kwality Wall’s are expanding their presence on quick commerce platforms. They are experimenting with smaller product SKUs and launching exclusive products tailored for these channels. Kwality Wall’s, for instance, recently introduced ‘The Dairy Factory,’ a premium slow-churned tub range designed specifically for at-home indulgence through quick commerce and modern retail.

Innovative Packaging for Digital Discovery

The distinctive “ice cream in a can” format of Ob & Gob exemplifies a crucial emerging trend: designing products for optimal discovery in the digital realm. While traditional products compete for limited freezer space in physical stores, brands on quick commerce apps vie for attention as thumbnails on a screen.

Transparent cans, showcasing layered sundaes, ice cream, cake, and toppings, are engineered to convey indulgence instantly on a small screen, a feat challenging for conventional tubs. This approach is a prime example of “channel-first thinking,” where product design, branding, and even portion sizing are meticulously aligned with how consumers interact with the product online. Arvind Ramachandran, Dairy Day’s VP of Marketing, emphasized this point: “It’s not just about taste anymore. It’s about how the product travels, how it looks on the app, and how quickly it converts.”

A Structural Shift in the Ice Cream Industry

The implications of quick commerce for the broader ice cream industry are profound. The model significantly reduces reliance on traditional distributors and retailers, lowers the barrier to entry for new brands, and dramatically shortens the feedback loop between product launches and consumer reception. This allows for rapid testing, iteration, or withdrawal of new flavors within weeks, rather than waiting for seasonal cycles.

Furthermore, quick commerce is actively reshaping demand patterns. Late-night orders, a preference for smaller pack sizes, and a growing appetite for premium indulgence formats are experiencing disproportionate growth. By mid-2025, quick commerce platforms anticipate approximately 33 million monthly transacting users across over 150 cities, extending the trend beyond major metropolitan areas into Tier II and Tier III cities. Brands like Hocco are leveraging QCom networks to expand their reach into regions like Rajasthan, Maharashtra, and Delhi-NCR, bypassing traditional, ground-up physical distribution efforts.

For Dairy Day, which recently surpassed Rs 1,000 crore in revenue, quick commerce already contributes around 7% of its sales, a figure projected to double in the coming years. The company reported that its QCom business has more than doubled in the past year. Hindustan Unilever, operating at a much larger scale, noted that quick commerce now accounts for over 10% of its ice cream business.

Navigating the Challenges of the New Economy

Despite its transformative potential, the quick commerce model for ice cream is not without its challenges. Margins can be tighter due to platform commissions and the necessity for aggressive promotional activities. Brands also face dependency on platform algorithms for visibility, akin to sellers on e-commerce marketplaces. As more brands compete for limited digital shelf space, differentiation becomes increasingly difficult and costly.

Moreover, the long-term geographical viability of the QCom model beyond top-tier cities remains a subject of scrutiny. Lower order density and smaller average order values in smaller cities could strain unit economics at scale. However, for many players, the strategic advantages outweigh these potential drawbacks.

Before the advent of quick commerce, scaling an ice cream brand nationally could take years of building extensive cold-chain infrastructure. Today, startups can achieve multi-metro reach within months by integrating with existing QCom networks. This accelerated scaling is a critical factor driving new investment and innovation in the sector.

The Evolving Ice Cream Economy

The Indian ice cream market, valued at approximately Rs 31,000 crore in 2025, is projected to experience substantial growth, nearly quadrupling to Rs 1.19 lakh crore by 2034. While quick commerce may not be the sole driver of this trajectory, it is undeniably acting as a significant accelerant, reshaping consumer habits and brand strategies.

Ice cream is transitioning from a seasonal staple or a traditional family dessert to an on-demand, digitally discovered, single-serve indulgence. It is now ordered with the same casualness as a soft drink. This evolution offers consumers greater choice and immediate gratification, while compelling brands to fundamentally rethink product development, packaging, marketing, and delivery strategies.

For companies like Dairy Day, the message is clear: in the dynamic era of quick commerce, even a century-old category like ice cream can be reinvented, with each successful delivery contributing to a new market paradigm.