The Indian Confectionery market is one of the fastest-growing in the world with a strong revenue of USD 11.56 billion in 2019. The market is expected to grow annually by 6.7% (CAGR 2019-23).
The four major segments of the Indian Confectionery Industry are chocolate & chocolate products, sugar confectionery, cookies & crackers, and Ice cream.
- Chocolate confectionery primarily includes chocolate bars, candy bars and pralines. In 2019, the revenue generated by this segment amounted to USD 1771.5 million.
- The sugar confectionery segment includes chewing gum, toffees, dragees, hard & soft candies and candied fruit. The segment generated a revenue of USD 2838 million in 2019.
- Cookies & crackers primarily refer to sweet baked goods where in the average per capita consumption stands at 1.4 kg in 2019.
- Dairy ice creams, frozen yogurt and sorbets constitute the ice cream segment. The revenue in this segment amounts to USD 637 million in 2019 and is expected to grow annually by 8.2% (CAGR 2019-23).
- Tips to follow when you are about to trade Sugar & Confectionary
As you know, under any importation of goods, necessary import documentation and customs clearance procedures at importing country have to be completed as per foreign trade policy of respective importing countries. For importing Sugars and Sugar Confectionery also, import entry documents along with carriers document (Bill of Lading /Airway bill), commercial invoice, packing list,certificate of origin and other required documents are filed and necessary import procedures are completed to take delivery of imported goods. Nowdays, necessary information is filed online and produce required documents at the time of inspection, assessment or delivery of import of goods at destination customs location.
Major cities in India, such as Delhi/NCR, Mumbai, Hyderabad, Bengaluru, Chandigarh, Chennai, and Kolkata are among the leading demand generators of candies in the country.
As published by All India Sugar Trade Association (AISTA), The trade body’s data shows Malaysia has Imported 324,405 tonnes of sugar from India this year. That compares with India’s exports last year of around 110,000 tonnes and a 2008 record of 313,406 tonnes, according to trade estimates.
- Jaggery is a natural product extracted out of sugarcane. Its main use in the food processing industry is for confectionery items such as toffees, chocolates, chewing gums. It is used a natural sweetener and natural flavor for various confectionery items. India already accounts for more than 60% of world’s jaggery production
- Mondelez International Inc plans to launch more premium range products under its popular mid-priced brand 5 Star. It considers its Indian business to be crucial in achieving its global online sales target by 2020.
- Ferrero India Pvt Ltd is planning to invest INR2,000 crore in India over three years to manufacture products suited to local needs. Due to the hot climate conditions in India, the company is developing innovative chocolate confectionery products with higher melting points.
- Chocolate maker Mars Inc. will bring more of its global products to India. It is also developing more local products for the Indian market.
- Rising Income and Affordability
In the past few years, the rising trend of nuclear families and the surge in the number of working couples is leading to a rise in the disposable income of families. This surge in income has aided the affordability of confectionary products which is further leading to a growing demand for premium chocolates as well as innovation in these chocolates. The availability of premium chocolates remains limited to only a few global brands in retailing despite growing demand.
- Emerging Trend of Gifting Confectionery Items
Consumer’s preference towards gifting premium confectionery items on festive and celebratory occasions has been increasing over the past decade. The festive packs of confectionery products have become quite popular among consumers with many shifting from mithai to chocolates and other confectionery gift hampers. This in turn is providing many companies expansive opportunities in this segment.
- Increasing Young Population
The economic variable that will transform business the most over the next five years is demographic shifts. Companies will need to mold their economic growth plans to fit the demographic trends. The young population in India is contributing to the consumption boom. As a big chunk of the population shifts into the working age group, their increasing disposable income contributes to the population’s propensity to spend, thereby increasing their demand for the confectionary products due to their rising standards of living. Hence, the demographic dividend in India is a cause for the increase in demand of such products.
Local F&B companies in India such as Mother Dairy and Parle Products appear to have come out on top in terms of product healthiness in a new listing – but overall, just 16% of all companies’ products have been recognised as ‘healthy’ items in the country.-