India’s dairy and FMCG sectors are witnessing a sharp dip in demand for summer-centric dairy beverages and products like ice creams, flavored milk, and lassi due to unexpected rains and cooler weather in North India. According to the Retailers Association of India (RAI), sales of summer categories—including dairy-based refreshment drinks—have fallen by 15% over the past week.
Retailers and distributors in cities such as Delhi-NCR, Punjab, and Uttar Pradesh report slowed movement of chilled dairy SKUs due to reduced footfalls and lower consumer appetite for cold beverages. This downturn comes at a crucial time when dairy brands typically see a seasonal spike in sales volumes, especially for impulse categories like ice creams and value-added milk products.
Companies like Amul, Mother Dairy, and other regional players had ramped up inventories in anticipation of a hotter summer, launching new variants and pushing IPL-themed campaigns. However, fluctuating weather has disrupted consumption patterns, causing stock build-up at distribution points. Industry executives are now focusing on dynamic supply chain adjustments and selective promotional strategies to prevent losses.
Weather-sensitive inventory management and real-time sales tracking are becoming increasingly critical for dairy players during such seasonal volatility. Meanwhile, rural demand remains relatively stable, cushioning some of the urban sales decline.
Industry Insight:
Dairy entrepreneurs and cooperatives must brace for short-term inventory challenges while leveraging tech-enabled demand forecasting. Weather-linked consumption shifts could prompt brands to revisit their summer marketing and distribution strategies.
Source : Dairynews7x7 May 5th 2025 The Economic Times