June 19, 2025 – Dairy Queen, the iconic American soft-serve ice cream chain acquired by Warren Buffett’s Berkshire Hathaway for $585 million in 1997, is set to enter India through a strategic partnership with Devyani International, according to Indian Startup News. This move, announced today, is poised to reshape India’s fast-food landscape and boost dairy demand in one of the world’s largest dairy markets. Tap for more at Indian Startup News.
Dairy Queen’s India Launch: A Strategic Expansion
Dairy Queen’s entry into India, facilitated by Devyani International—operator of KFC and Pizza Hut in the region—marks a significant milestone for the brand’s global ambitions. With over 7,700 locations worldwide and $6.4 billion in global sales in 2024, Dairy Queen is leveraging India’s booming fast-food market to drive its “10 by 30” goal of reaching $10 billion in sales by 2030. The chain’s dessert-focused menu, featuring soft-serve ice cream, Blizzards, and milkshakes, is tailored to appeal to India’s dairy-loving consumers.
Boosting Dairy Consumption in India
India, the world’s largest milk producer, has a deep cultural affinity for dairy, with products such as paneer, yoghurt, and ghee forming staple dietary items. Dairy Queen’s introduction of premium dairy-based desserts is expected to amplify dairy consumption in several ways:
- Premium Dessert Appeal: Soft-serve ice cream and milkshakes will cater to urban consumers seeking indulgent, Western-style treats, driving demand for high-quality milk and cream.
- Value-Added Dairy Growth: The chain’s focus on processed dairy products aligns with India’s shift toward value-added dairy, projected to grow 11-13% in revenue in 2025.
- Cold Chain Expansion: Dairy Queen’s operations will require robust cold chain infrastructure, supporting local dairy farmers and processors by ensuring the freshness of their products.
- Cultural Fit: The brand’s dairy-centric offerings resonate with India’s culinary traditions, ensuring broad appeal across metro and Tier-1 cities.
The Indian Fast-Food Market: A Fertile Ground
Valued at $45 billion, India’s fast-food market is growing rapidly, fueled by urbanization, rising disposable incomes, and a young demographic. Dairy Queen’s entry taps into key trends:
- QSR Boom: Quick-service restaurants like McDonald’s and Domino’s are thriving, with Dairy Queen’s dessert-focused model filling a niche for premium treats.
- Western Dessert Demand: Urban consumers are increasingly drawn to ice cream and milkshakes, creating a ripe market for Dairy Queen’s signature offerings.
- Quick Commerce Synergy: Partnerships with platforms like Zomato and Swiggy will enable rapid delivery, expanding Dairy Queen’s reach.
- Health-Conscious Trends: While indulgence drives sales, growing interest in health-focused dairy products may influence menu innovations, such as high-protein frozen treats.
Impact on India’s Dairy Demand
Dairy Queen’s entry is set to catalyze India’s dairy industry:
- Increased Milk Demand: High-volume sales of dairy-based desserts will boost demand for milk and cream, benefiting local dairy cooperatives.
- Premiumization Push: The brand’s premium offerings will encourage consumers to opt for value-added dairy products, elevating market value.
- Supply Chain Investments: Dairy Queen’s operations will drive investments in dairy processing and cold storage, strengthening India’s dairy ecosystem.
- Job Creation: Franchise expansion will create jobs in retail and supply chain management, indirectly supporting dairy farmers.
