War-hit supply chains melt margins as ice cream, chocolate prices set to rise this summer

That indulgent scoop of ice cream or artisanal chocolate bar may cost more this summer, as the West Asia conflict disrupts supply chains and pushes up input costs for companies, the Times of India reported.

The US-Iran conflict has begun to ripple through the industry, driving up prices of key ingredients such as dry fruits and nuts—essential for flavouring a wide range of ice creams and chocolates. According to an industry executive, the cost of these inputs has risen by about 15–22% compared with pre-war levels, squeezing company margins at a time when demand is at its seasonal peak.

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Many firms are, for now, holding back on passing on the full impact to consumers. But rising logistics and packaging costs are compounding the pressure, leaving little room to absorb the shocks.

“Certain inputs like dry fruits and cocoa are seeing tightness (of supply) and longer lead times. Many such categories are dependent on imports and sea-route supply chains, including regions impacted by geopolitical situation,” said Siddhant Kamath, director at Naturals Ice Cream, which has already taken a 10% price hike on an average across its portfolio to cope with high overall input costs.

Mother Dairy, too, has made selective price increases in its ice cream range. Managing director Jayatheertha Chary said these were driven by global commodity movements and elevated logistics expenses.

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The timing of the conflict has made adjustments harder. With the war coinciding with the onset of summer, companies had limited flexibility to tweak recipes or sourcing strategies. Cutting back on premium ingredients such as dry fruits and nuts is not a viable option, as it would compromise product quality.

“The primary impact is being felt on margins. As a result, there may be no alternative but to increase the MRPs of products,” said Zervin Rana, director of Dinshaw's Dairy Foods.

For now, firms are trying to balance price hikes with demand sensitivity. But as supply disruptions persist, the cost of sweet indulgences looks increasingly set to rise.