New Delhi: The long-running debate between ice cream and frozen desserts has resurfaced after Kwality Wall’s announced plans to convert its entire product portfolio to 100 percent milk-based ice cream by 2027, ending its decades-long reliance on vegetable fats in several popular products.
The decision, unveiled last month, goes beyond a simple ingredient change. It has reignited discussions around consumer perception, product labelling, marketing practices and the future direction of India’s rapidly expanding frozen treats industry.
For most consumers, the distinction between ice cream and frozen dessert may appear insignificant. Both are sweet, frozen products sold through the same retail channels. However, under Indian food regulations, the two belong to separate categories.
According to norms set by the Food Safety and Standards Authority of India (FSSAI), ice cream must contain a minimum of 10 percent milk fat derived from dairy sources. Frozen desserts, on the other hand, use edible vegetable oils such as palm oil or palmolein as the primary fat source, while still containing milk and milk solids.
Kwality Wall’s, owned by The Magnum Ice Cream Company, announced that all its products—including globally recognised brands such as Magnum and Cornetto—will be reformulated using dairy fat. The company currently markets several products in India as frozen desserts.
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“We are not a frozen dessert company anywhere in the world—we are an ice cream company,” said Peter ter Kulve, Global CEO of The Magnum Ice Cream Company, underscoring the strategic shift in the Indian market.
Industry at a Turning Point
The move comes at a time when both ice cream and frozen dessert segments are witnessing strong growth in India. Industry estimates place the country’s ice cream market at approximately Rs 28,000–35,000 crore in 2026, while the frozen dessert segment is valued even higher at Rs 40,000–45,000 crore.
Both categories are growing at an annual rate of 6-8 percent, according to industry representatives.
For years, frozen desserts gained a significant foothold in the market because vegetable fats offered manufacturers a lower-cost alternative to dairy fat, enabling competitive pricing and wider accessibility. However, industry insiders suggest that consumer preferences have gradually shifted toward dairy-based products, prompting several companies to expand their ice cream offerings.
More Than a Milk vs Oil Debate
The industry’s debate extends beyond the choice of fat source. Stakeholders have long argued over whether consumers clearly understand the difference between ice cream and frozen desserts, and whether existing packaging and marketing practices adequately communicate those distinctions.
The issue has periodically sparked disagreements between dairy-based ice cream manufacturers and frozen dessert producers, with both sides defending the quality, affordability and nutritional value of their products.
Supporters of dairy-based ice cream argue that milk fat delivers a richer taste and aligns with traditional consumer expectations of ice cream. Frozen dessert manufacturers, meanwhile, maintain that their products offer innovation, affordability and broader market reach while meeting all regulatory standards.
As one of the country’s most recognisable frozen treat brands moves toward a dairy-only portfolio, the decision could influence broader industry trends and reshape consumer expectations in the years ahead.
Whether the shift signals a larger transformation of the market or remains a brand-specific strategy, one thing is clear: India’s ice cream versus frozen dessert debate is no longer just about milk and vegetable oil. It has become a broader conversation about regulation, branding, consumer trust and the future of a multi-billion-rupee industry.
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