Indian
Confectionery
Market
1
Table of Contents
List of Figures ........................................................................................................3
List of Tables .........................................................................................................3
Market Overview.....................................................................................................4
Segmental Analysis .................................................................................................5
Major Players in the Indian Confectionery Industry ...............................................6
Market Drivers........................................................................................................7
Key Trends..............................................................................................................8
2
List of Figures
Figure 1: Global Comparison- Revenue (USD Mn) ..................................................4
Figure 2: Segmental Revenue (2013-23) ....................................................................5
Figure 3: Segmental Volume (2013-23) .....................................................................6
Figure 4: Share of Major Players in the Indian Market ...........................................6
List of Tables
Table 1: Top Exporters of Jaggery & Confectioneries State-Wise (2018-19) ............ 4
3
Market Overview
Current Scenario
Figure 1: Global Comparison- Revenue (USD Mn)
• 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 average volume per person in the Confectionery
segment amounts to 2.3 kg in 2019.
• India ranks in the top 10 countries of the world in terms of
revenue generation in this industry.
• According to Euromonitor, chocolate confectionery is
projected to see a 4% retail value CAGR at constant 2017
prices and expected to reach INR 148 billion in 2022.
• 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.
Source 1: Statista, September 2019
• 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.
Top Exporters of Jaggery & Confectioneries in 2018-19 (State-Wise)
Table 1: Top Exporters of Jaggery & Confectioneries State-Wise (2018-19)
State In USD Million
Maharashtra 119.45
Gujarat 37.9
Tamil Nadu 16.24
Uttar Pradesh 12.98
Andhra Pradesh 10.37
Source: APEDA
4
Major Export Destinations for India’s Confectionery Market (2018-19): Sri Lanka,
Nepal, Benin, USA, and Indonesia.
Segmental Analysis
Segment’s Turnover Value for the Indian Confectionery Industry (USD Million)
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).
Figure 2: Segmental Revenue (2013-23)
16000
14000
12000
In Million USD
10000
8000
6000
4000
2000
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Ice Cream 171.1 232.5 304.7 383 465.7 553.4 637.2 714.2 790.1 830.7 873.6
Cookies & Crackers 2733.4 3308.5 3866.4 4438.8 5012.9 5678.8 6320.5 6800.1 7418.9 7732.7 8097.7
Sugar Confectionery 1092.6 1285.7 1521.4 1798.3 2116.5 2476.3 2837.8 3166.4 3476.6 3624.8 3783.5
Chocolate Confectionery 882.1 1006.6 1135.4 1269.9 1416.6 1590.7 1771.5 1925.7 2096.2 2176.1 2264
Source 2: Statista, September 2019
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Segment’s Volume for the Indian Confectionery Industry (In Million Kg)
With increasing economic development in the country, the standard of living of consumers is improving
significantly, which is driving up the demand for confectionery products across the cities. The volume of
production is expected to reach 3496.1 mKg by 2023.
Figure 3: Segmental Volume (2013-23)
4000
3500
3000
In Million Kg
2500
2000
1500
1000
500
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Ice Cream 92.55 119.46 148.71 178.17 205.9 232.21 253.9 270.52 284.35 295.08 304
Cookies & Crackers 1103.16 1268.39 1408.2 1540.55 1653.89 1778.1 1879.04 1921.95 1992.06 2049.42 2102.47
Sugar Confectionery 353.76 395.45 444.54 500.72 560.2 622.04 676.84 717.98 748.91 770.73 788.09
Chocolate Confectionery 182.64 197.98 212.15 226.11 239.77 255.52 270.19 279.22 288.76 295.88 301.57
Source 3: Statista, September 2019
Major Players in the Indian Confectionery Industry
Figure 4: Share of Major Players in the Indian Market
Multinational players such as
Mondelez India Food Ltd.
Mondelez, Nestle, Ferrero,
Ferrero India Pvt. Ltd.
Mars India & Lotte as well as
large domestic players such as 24% Perfetti Van Melle India
Pvt. Ltd.
Amul, Parle, ITC & Candico 38% Nestle India Pvt. Ltd.
have a well-entrenched
11% Parle Product Pvt. Ltd.
presence in the Indian
ITC Foods Ltd.
confectionery market. 2%4% 9%
5% 7%
Wrigley India Pvt. Ltd.
Others
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Investment Trends1
• 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.
Market Drivers
• 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
Consumers 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.
1
Euromonitor International
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• Untapped Rural Market
Rural India is coming up as a major provider of growth opportunities for packaged food and beverages.
Almost 65 per cent of the Indian population lives in rural regions. The rural population benefits from
investment in infrastructure and rising wages, which has improved drastically in recent years. A boom
in e-commerce is propelling higher sales and enabling global confectioners to tap the small yet rapidly
expanding rural market.
Key Trends
• Wellness Trends in Confectionery Industry
Manufacturers of chocolate and non-chocolate confectioneries are keeping a close eye on the growing
consumer affinity for health and wellness lifestyle aspects. In that respect, companies are shifting
toward recipes that have more natural and organic ingredients which tend to eliminate GMOs, artificial
additives, and high fructose corn syrup in the product. Apart from this, candy companies are expected
to incorporate more nutritious add-ins like nuts, seeds, and fruits to appeal to the health-conscious
demographic.
Companies have started adopting new packing strategies with convenient packs such as a smaller size
of candies as calorie packs or multipacks or flexible packs. The small healthier size of candies, with
reduced calories, have gained preference among consumers.
• Increased focus on Innovation
For the confectionery sector, manufacturers are expected to experiment with more flavorful products
to catch the consumers’ eyes. Hence, novel experiences will serve as a propellent for growth in this
industry. Also, companies are bringing innovative marketing strategies by focusing on the promotion
of stories behind their products like a bean to bar, farm to table, 70% cocoa and cereal in breakfast
(bar).
• Sustainability Initiatives to court Eco-Conscious consumers
Eco-conscious consumers are increasingly looking for improved transparency and sustainability in the
food production and supply chain. A few notable examples are-
o Mars: Mars announced plans to invest $1 billion over the next few years to fight climate change,
including investment in wind and solar energy, renewable food sourcing, and renewable farming
practices.
o Hershey: Hershey is planning to invest $500 million through 2030 to expand its Cocoa for Good
program, which is focused on improving sustainable practices in cocoa production.
o Mondelēz: Mondelēz operates the Cocoa Life sustainability program, which is intended to improve
sustainability and profitability for cocoa-growing farmers in Ghana, Côte d’Ivoire, Indonesia, India,
the Dominican Republic, and Brazil.
