Food giants reformulate for health: milk-based ice cream, sugar cuts and clean labels

Kwality Wall's, Dabur and Nestlé India are overhauling recipes for health-conscious buyers—shifting to milk-based ice cream, cutting sugar 5%+ and driving clean labelling. Moves ride FSSAI rules, GST 2.0's 5% packaged-food rate and 20%+ growth in premium health foods through 2026-27.

— Filed Wed, 15 Jul, 2026, 12:50 IST · Source ET Small Business · Updated

Indian food giants Kwality Wall's, Dabur and Nestlé are reformulating products for health-conscious consumers—shifting to milk-based ice cream, cutting sugar, and clean labelling—amid FSSAI rules, GST 2.0 tax cuts, and fast-growing premium health-food demand.

Why this matters

Reinforces Kwality Wall's pivot to fully dairy: it is exiting frozen desserts and dropping vegetable fats across India by 2027, while parent Magnum opened a Bengaluru RDI centre to back reformulation.

Retail-brand signals accelerating, up 304200% QoQ.