Kwality Wall’s is undergoing a major transformation in India’s frozen treats market as it moves away from palm oil-based frozen desserts and transitions its entire portfolio toward milk-based ice cream. The shift, expected to be largely completed by 2027, marks a structural change in how one of India’s biggest ice cream brands defines its products.
For years, Kwality Wall’s operated mainly in the frozen dessert category, where vegetable fats such as palm oil were used instead of dairy fat. These products were widely consumed and often casually referred to as ice cream, even though regulations clearly distinguish between the two categories.
Now, the company is repositioning itself as a fully dairy-based ice cream brand under its global parent Magnum Ice Cream Company. Its leadership has framed the shift as a deliberate strategic reset for the India business.
Speaking about the transition, Magnum Ice Cream Company global CEO Peter ter Kulve said, “The company took a principled decision to become a full dairy business even without a formal business case. About half of the portfolio will be dairy-based this year, with most of the transition completed next year.” He further added, “We are not a frozen dessert company anywhere in the world; we are an ice cream company. In India, we changed everything, everything.”
Understanding The Difference: Ice Cream vs Frozen Dessert
The core of this transition lies in the technical difference between ice cream and frozen desserts. Ice cream is made using milk fat derived from cream and other dairy sources, which gives it a richer and creamier texture. In India, products labelled as ice cream must meet specific dairy-fat standards under food regulations.
Frozen desserts use vegetable fats such as palm oil instead of milk fat. While they may appear similar in taste and appearance, they are a separate category under food laws. These products gained popularity due to lower production costs and greater price stability.
Frozen yogurt is another category altogether, made using cultured milk and yogurt cultures, giving it a tangier taste and different nutritional profile.
Why Brands Used Palm Oil
Palm oil became widely used in frozen desserts because it offers clear commercial advantages. It is cheaper than milk fat, has a longer shelf life, and performs better in India’s uneven cold-chain conditions. It also helps maintain stable pricing in a market sensitive to cost changes.
However, the growing preference for dairy-based products has shifted consumer perception, with many associating milk-based ice cream with higher quality and better taste experience, even though both categories can be high in sugar and calories.
A Strategic Reset For The Business
The shift is part of a wider overhaul of the ice cream business following its separation from Unilever’s core structure. The company is investing heavily in factories, cold-chain infrastructure, and localisation of products, including Indian flavours such as kulfi and kesar-based variants.
Peter ter Kulve described the scale of restructuring, saying, “We should have built eight factories. There is no way you can have good cost, quality and service when Cornetto needs to come out of Nashik for the whole country.” He also outlined long-term infrastructure ambitions, noting, “In Turkey we have one cabinet for every 350 people. Ultimately I will need a million cabinets in India.”
These comments highlight the company’s focus not just on ingredients, but also on supply chain expansion and deeper retail penetration across India.
Competition and Market Pressure
The shift also brings Kwality Wall’s closer to strong dairy-focused competitors such as Amul, which has consistently marketed its products as “real ice cream” made from milk fat. The debate between ice cream and frozen dessert has been a long-standing one in India, including past legal disputes over advertising claims.
By moving fully into dairy ice cream, Kwality Wall’s is entering a more direct competition with such players, particularly in the premium segment where texture, richness and brand perception matter significantly.
What This Means for Consumers
For consumers, the transition is expected to bring richer texture and creamier taste in products, but potentially at higher prices due to increased dairy costs. At the same time, frozen desserts are likely to remain in the market as a more affordable alternative for price-sensitive buyers.
Peter ter Kulve also acknowledged competition in the Indian market, saying, “Amul has very good dairy ice cream, which they do for a good price.”
Ultimately, the shift reflects a broader change in India’s frozen dessert industry, where ingredient transparency, consumer awareness, and premiumisation are increasingly shaping what people choose to buy.
Editor’s Note: This article is part of The Logical Take, a commentary section of The Logical Indian. The views expressed are based on research, constitutional values, and the author’s analysis of publicly reported events. They are intended to encourage informed public discourse and do not seek to target or malign any community, institution, or individual.
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