Kwality Walls Rejects Palm Oil; All Ice Creams To Be Milk Based Now


Mohul Ghosh

Mohul Ghosh

May 30, 2026


Kwality Wall’s is preparing one of the biggest transformations in its India business by shifting its entire product portfolio to milk-based ice creams by next year. The move marks a significant departure from frozen desserts made using vegetable fats such as palm oil and reflects the company’s attempt to reposition itself in India’s rapidly evolving ice cream market. The announcement was made by Peter ter Kulve, global CEO of The Magnum Ice Cream Company, which now oversees the Kwality Wall’s business after its separation from Unilever’s ice cream division.

Moving Away From Frozen Desserts

For years, many products sold under the Kwality Wall’s brand in India were classified as “frozen desserts” because they used vegetable fats instead of milk fat. While this approach helped keep prices affordable and supported large-scale production, consumer preferences have gradually shifted toward dairy-based products, which are often perceived as more natural, premium, and nutritious.

Peter ter Kulve said nearly half of the company’s Indian portfolio is expected to become dairy-based this year, with most of the remaining products completing the transition by next year. He emphasized that the company sees itself as an ice cream business rather than a frozen dessert manufacturer.

India Becomes A Strategic Priority

The shift is part of a broader turnaround strategy focused on India, which the company views as one of its most important future growth markets. Industry estimates suggest India’s ice cream market still has enormous expansion potential due to relatively low per-capita consumption compared to many global markets.

Executives have acknowledged that Kwality Wall’s lost market share over the years as dairy-focused brands such as Amul and several regional players strengthened their presence. The company now hopes that a stronger dairy identity will help improve consumer perception and competitiveness.

Investments In Products And Distribution

The transformation extends beyond ingredients. Kwality Wall’s is also redesigning products, introducing more local flavours, strengthening cold-chain infrastructure, and expanding freezer cabinet deployment across India. The company recently launched new in-home ice cream ranges with milk positioned as the primary ingredient.

Reports also indicate that prices in some categories could be reduced by up to 30% as the company works to expand its reach and attract a wider consumer base. Local flavours such as kulfi and kesar bhog are expected to play a larger role in future offerings.

Reflecting Changing Consumer Preferences

The decision highlights a larger trend in India’s food and beverage industry, where consumers are increasingly paying attention to ingredients, product labels, and nutritional perceptions. Improvements in cold-chain infrastructure and the growth of quick-commerce platforms have also made premium dairy-based ice creams more accessible than before.

As competition intensifies in the ice cream segment, companies are increasingly focusing on product quality, premiumisation, and local taste preferences rather than competing only on price.

Summary

Kwality Wall’s plans to make its entire product portfolio milk-based by next year, moving away from frozen desserts made with vegetable fats. The shift is part of a broader turnaround strategy aimed at strengthening its position in India’s growing ice cream market. Along with product reformulation, the company is investing in cold-chain infrastructure, local flavours, and distribution expansion as it seeks to compete more effectively with dairy-focused rivals.

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Mohul Ghosh
Mohul Ghosh
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