The confectionery industry of India

The confectionery industry of India

which was ranked 25th in the world in 2009 , has now emerged as one of the largest and well-developed food processing sectors of the country. The credit goes to liberalization along with growing Indian economy, which have led several multinational companies to invest in India’s confectionery market, further changing the face of this industry.

According to our new research report “Indian Confectionery Market Analysis”, the Indian confectionery market is going through rapid changes in terms of trends and consumer behaviour pattern. The industry is being benefited from the country’s economic boom, and growth in consumer spending. This higher consumer spending is also driven by the new found mall culture and changing lifestyle.

Besides, the entry of various multinational companies in the Indian confectionery market has not only increased the competition but also the per-capita consumption, by launching new products at affordable prices, and creating awareness among the buyers through advertisements and promotional campaigns. During the research, we found that emerging trend of gifting confectionery products and untapped rural market are among the key factors that are expected to fuel growth in Indian confectionery market in the near future. Backed by these factors, the Indian confectionery market is expected to grow at a CAGR of more than 18% during 2012-2015.

The confectionery market of India is divided into three segments: chocolate, sugar confectionery and gum market, which is further divided into sub-segments. Our team of domain experts studied the confectionery market overall, segment wise and sub-segment wise, and provided market forecast (in terms of volume and value both) till 2015. Among all the sub-segments of Indian confectionery market, chewing gum market is expected to grow at the fastest rate, by value, in the coming years.

It has been observed that various domestic and multinational companies are gearing up for gaining profit from the growing confectionery industry of India. Our report provides market share of the major companies in chocolate and gum market, and competitive landscape of the Indian confectionery industry, which includes business overview, product portfolio and recent company activities.

The report, which has been designed to understand the Indian confectionery market comprehensively, also analysed the major industry drivers, along with the challenges hindering the growth of this industry. This way, the report provides inclusive and in-depth analysis of Indian confectionery market which will prove decisive for the clients, and help them take sound investment decisions.

1. Analyst View

2. Research Methodology

3. Confectionery Market Overview
3.1 Sales by Volume
3.2 Sales by Value

4. Chocolate Market Analysis
4.1 Market Overview
4.2 Segmental Analysis
4.2.1 Tablets
4.2.2 Countlines
4.2.3 Bagged Selflines/Softlines
4.2.4 Boxed Assortments
4.3 Major Players

5. Sugar Confectionery Market Analysis
5.1 Market Overview
5.2 Segmental Analysis
5.2.1 Mints
5.2.2 Boiled Sweets
5.2.3 Toffees, Caramels and Nougats
5.2.4 Medicated Confectionery
5.2.5 Lollipops
5.3 Major Players

6. Gum Market Analysis
6.1 Market Overview
6.2 Segmental Analysis
6.2.1 Chewing Gum
6.2.2 Bubble Gum
6.3 Major Players

7. Market Drivers
7.1 Increasing Young Population
7.2 Rising Income and Affordability
7.3 Emerging Trend of Gifting Confectionery Items
7.4 Untapped Rural Market

8. Industry Roadblocks

9. Key Players
9.1 Cadbury India Ltd.
9.1.1 Business Description
9.1.2 Product Portfolio
9.1.3 Industry Activities
9.2 Nestle India Ltd.
9.2.1 Business Description
9.2.2 Product Portfolio
9.2.3 Industry Activities
9.3 Perfetti Van Melle India Private Limited
9.3.1 Business Description
9.3.2 Product Portfolio
9.3.3 Industry Activities
9.4 Parle Products Pvt. Ltd.
9.4.1 Business Description
9.4.2 Product Portfolio
9.4.3 Industry Activities
9.5 Godrej Hershey Limited
9.5.1 Business Description
9.5.2 Product Portfolio
9.5.3 Industry Activities
9.6 Candico India Limited
9.6.1 Business Description
9.6.2 Product Portfolio
9.7 Lotte India Corporation Ltd.
9.7.1 Business Description
9.7.2 Product Portfolio
9.8 Wrigley India Pvt. Ltd.
9.8.1 Business Description
9.8.2 Product Portfolio

Cookies Market In India 

Cookies and cream biscuits cornering market share from Glucose
Glucose biscuits, once the biggest segment in the market, is now witnessing cream biscuits and cookies cornering more market share from glucose segment as consumers are going for premium range of products.

Parle G, the iconic glucose biscuit brand (in fact, the “G” stood for glucose), and Britannia are the top players in the Rs 6,500 crore glucose biscuit market. But over time,the market dynamics have changed and the glucose biscuits market has witnessed premiumisation of products and companies are launching more products in cream and cookies segment. ITC's Sunfeast has got a strong foothold in the cream biscuits segment.

The perfunctory presence was at the behest of retailers in the market, who used to press for a carrier brand and glucose was the category to be in. According to data from trade sources, during April-September last year, the glucose category accounted for a 19.3% share in the biscuit market, in terms of value, while cookies had a 26.2% share and cream 22.2%. The figures for the first half of 2010-11, however, show that glucose was at 26.5% with cookies and cream at 23.8% and 16.6%.

Recently, ITC Food's CEO, Chitranjan Dar had told this paper that the glucose segment is now loss making and it has shirnked. “The glucose segment is loss making. Its success or failure depends on the prices of sugar, wheat flour etc. There was a time when this segment was profitable and the old companies capitalized on this, and made it what it is. They had also spent a lot on the segment. By the time we came into the business, we realized there is nothing to it, but as starters one can’t be arrogant and say that I don’t want to do this. So we still did it,” Dar had told Business Standard.

Analysts too indicated the as Kaustubh Pawaskar, research analyst at Sharekhan, said,” The biscuit market is already witnessing a shift towards premium products and high margins in the cream and cookie segment is luring biggies to offer more variants in these segments. The non-glucose segment earns at least 10% higher margins,” said

Even Parle-G, has introduced several cream and cookie brands. Other players, such as Cadbury, has brought Kraft Food’s Oreo to the country, and GSK, which has extended its Horlicks brand into cookies, too have added

to the growth of the premium category. The UK’s United Biscuits is another player with a significant presence in the high-value segment.