Baskin Robbins, the iconic American ice cream chain, is increasingly shifting focus towards expanding its snacking portfolio in India. With the rising demand for convenient snacks post-COVID and evolving consumer preferences, Baskin Robbins aims to capture a larger share of the market by diversifying its products beyond traditional ice cream offerings.

The Move into Snacking

Historically, snacking has been primarily seen as a reward-driven segment, but Baskin Robbins is changing this perception by positioning its new ice cream offerings as everyday snack options. Ice cream sandwiches and bars are now a part of their diverse range of products, appealing to consumers looking for a quick snack rather than just a dessert. Currently, these snacking products make up about 6-7% of the company's total sales, but CEO Mohit Khattar has expressed confidence that this share will grow significantly. Baskin Robbins is betting on the growing trend of snackable ice cream, which has proven to be popular in the current market.

The demand for snacking items has been surging, especially with the rise of quick commerce platforms in India. With more consumers turning to digital retail for their purchases, Baskin Robbins has noticed that a significant portion of its ice cream sales now comes from these platforms, a shift that reflects the evolving preferences of the modern consumer. Consumers who once visited physical stores for their ice cream now prefer the convenience of ordering online. This shift in shopping behavior is expected to continue growing, and Baskin Robbins is ready to capitalize on this trend.

Snacking Segment Growth As part of its strategy, Baskin Robbins has ambitious plans to see its snacking segment grow substantially in the coming years. The company's goal is for this segment to significantly increase its contribution to total sales. This strategic move is aimed at diversifying revenue streams, particularly as consumer tastes evolve, with more people choosing to snack at various times of the day instead of only indulging after meals.

The rapid growth of Q-commerce (quick commerce) platforms has also played a pivotal role in driving this shift. With consumers increasingly opting for home delivery of packaged goods, Baskin Robbins has aligned its strategy to meet the demand of the online shopper. As Q-commerce platforms continue to dominate, this trend is expected to only intensify, making it crucial for Baskin Robbins to stay ahead in terms of product offerings and consumer engagement.

Expansion in Tier 2 and 3 Cities

While Tier 1 cities like Mumbai and Delhi continue to form the backbone of Baskin Robbins’ customer base, the company has also seen a rise in demand from Tier 2 and Tier 3 cities. These smaller cities are experiencing growing middle-class populations, with increasing disposable incomes and a burgeoning interest in premium products. Baskin Robbins’ growth in these markets is also aided by its deepening presence on online and quick commerce platforms, where accessibility has increased, further driving the reach of the brand.

Khattar highlighted that these regions show relatively lower competition, allowing Baskin Robbins to expand its footprint more easily. With strong demand and less saturation, the company views these markets as ripe for growth. Baskin Robbins is committed to opening 130 new stores each year, and as these smaller cities become key contributors to sales, the company expects to see robust growth in the coming years.

Baskin Robbins’ Evolution in India

Since its entry into India in 1993, Baskin Robbins has consistently innovated to maintain a strong position in the Indian market. Through a joint venture with Graviss Foods Pvt Ltd, the company has expanded its operations, with its first manufacturing plant outside of North America opening in Pune. In 2007, Graviss Foods took over full ownership of Baskin Robbins in the SAARC region, strengthening its control over the brand’s operations.

As the company continues its expansion strategy, its recent achievement of opening its 1,000th store in September 2024 marks a significant milestone in its journey. The company is now focusing on accelerating its presence in smaller cities while adapting to the modern demands of the digital consumer. The ongoing expansion coupled with the growing demand for snacking products makes Baskin Robbins well-positioned to increase its market share.

Looking ahead, Baskin Robbins is not just focusing on expanding its footprint but is also keen on staying ahead of changing consumer behaviors. The focus is clear—be where the consumers are, especially as more people turn to quick commerce platforms for convenience.

This growth trajectory is part of Baskin Robbins’ ongoing effort to cater to the evolving preferences of the Indian market and its commitment to bringing premium ice cream and snacking options to more consumers, whether in large cities or small towns. With its snacking range and strong foothold in the digital space, the company is poised to meet the demands of the future.

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