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Staff Correspondent
A healthy competition between the existing ice cream companies of the country during last few years has ushered in an astonishing 15 percent annual growth of the market.
Industry insiders said if the current pace of growth continues the sector would experience a 25 percent annual growth within next five years.
They said due to this steady growth the local ice cream industry’s contribution to the national GDP has already exceeded the global average.
According to Euromonitor, worldwide ice cream industry’s contribution to global GDP is 0.53 percent while in Bangladesh the contribution of the sector to country’s GDP is 0.64 percent.
Industry insiders said the top ice cream companies are increasing their investment year by year to maintain and increase market share.
At present, the total volume of the country’s brand ice cream companies share is Tk 1,200 crore. In addition, the market of imported ice cream used in different posh hotels and restaurants is worth Tk 800 crore, making the total market size of ice cream Tk 2,000 crore.
For a long time, ice cream business in the country was dominated by two old companies Igloo, established in 1964, and Polar, established in 1986. However, the market expanded hugely during the last two decades with one after another new ice cream brands joining the market: Savoy in 1995, Quality 1999, Bloop in 2013, Zanzee and Belicimo 2014, and Lovello 1n 2016.
Among the brands, Abdul Monem Limited’s Igloo is still holding the biggest but declining market share. Only a decade ago, Igloo had around 70 percent market shares, but due to the increasing competition, it came down to 36 percent in 2016. But the company managed to halt the declining trend during last three years, increasing the percentage to 47 at present.
Igloo’s chief executive officer GM Kamrul Hossain said, “The industry is growing by 15 percent every year. At present fridges have become an unavoidable part of everyday lives in rural places also since electricity has reached the remotest places of the country. The situation helped a lot in the expansion of the ice cream market.”
“Besides, people can now think of spending on other demands after meeting the basic ones after their incomes increased,” he added.
Terming the increased number of competitors in ice cream sector a positive thing, he said, “Competition is a must for the expansion of market. It supplies the competitors with the challenge of upholding their position.”
Dhaka Ice Cream Industry is in the second position in Market with a 37 percent market share while the third position is secured by Quality with 9 percent market share.