Cooling Products See Mixed Demand in June Qtr; AC Sales Slump, Beverages, Ice Cream Stay Resilient

Demand for summer-centric products remained uneven during the June quarter, as weather-related disruptions and higher prices weighed on the air-conditioner market, while categories linked to refreshment, hydration and impulse consumption continued to benefit from seasonal demand.

According to industry experts, air-conditioner sales slowed in June amid unseasonal weather and inflationary pressures, while beverages, ice cream and dairy products continued to register healthy growth, driven by immediate consumption and affordability.

Godrej Enterprises Group Business Head and EVP (Appliances Business) Kamal Nandi said demand across cooling categories has been mixed. "Refrigerator is doing very well, and demand is high both for mass and premium segments. Washing machine demand is also picking up as we are entering the monsoon season," Nandi told PTI.

However, Nandi said the air-conditioner industry has seen a significant decline in demand. "June across the country, including north India, AC sales have gone down. At an industry level, sales have declined," he said.

According to him, unseasonal weather patterns, including thunderstorms and lower evening temperatures in many regions, have reduced the need for cooling appliances. Moreover, consumers are postponing discretionary purchases amid inflationary pressures, he said.

"Consumers are also down-trading to air coolers and fans because ACs have become quite expensive," Nandi said, adding that air-conditioner prices have risen by 18-20 per cent over the last few years following multiple rounds of price hikes.

Another executive of a leading room air-conditioner brand, requesting anonymity, said the summer season was weaker than expected. "The season was not so good, especially in June. However, on a year-to-date basis, the industry has still reported value growth of around 35 per cent, aided by higher prices and premiumisation," the executive said.

In contrast, beverage makers reported robust summer demand.

Coca-Cola India and South West Asia Vice President, Customer Development, Abhishek Gupta, said the company continues to witness strong summer demand. "We continue to see solid summer demand, driven by immediate consumption, smaller pack formats, quick commerce, and on-the-go occasions," Gupta said.

Gupta added that Coca-Cola, along with its bottling partners, is expanding the availability of chilled beverages by investing in cooling infrastructure and broader distribution.

The strong performance in beverages was also reflected in the dairy segment.

Mother Dairy Managing Director Jayatheertha Chary said the company has recorded more than 30 per cent volume growth in its fresh dairy and ice cream portfolio during the June quarter compared to the year-ago period.

The growth was driven by strong demand for ice creams, curd and dairy beverages, along with increasing consumer preference for value-added dairy products, he added.

Havmor Ice Cream Managing Director Debabrata Mukherjee said impulse categories such as cones, sticks and single-serve cups have continued to drive growth during the quarter.

"Categories such as cones, sticks, and single-serve cups are seeing accelerated off-take, especially driven by quick commerce and immediate consumption occasions," he said.

DS Group Business Head (Spices) Sandeep Ghosh said products such as raita masala, chhaachh masala, jal jeera, and black salt saw higher consumption during the summer months, reflecting consumers' preference for traditional hydration and digestive products.

"This revival of hyper-local, time-tested flavours is particularly striking as it cuts across both rural markets and urban households, proving that traditional Indian products remain favourable during the summer months," he said.