India is one of the largest snack markets in the world, and right now, is unsurprisingly drowning in sugar and chocolate. As we explain further, the snack market valued at around a billion dollars a couple of years ago is a burgeoning domain spurred by the confectionery industry’s rapid growth. There were 8000 new confectionary products launched in 2016, showing the spectrum of requirements being catered to different people groups and cultures. We’ll dive into why this segment is so exciting, how exports from biscuit manufacturing companies and emerging lifestyles are all contributing to the evolution of the confectionery industry:
India’s Unquenchable Appetite For Chocolates
Indians just can’t have enough of chocolate, or for that matter, sugary confectionery items. The confectionery industry is mainly constituted by chocolate. Euromonitor reports a couple of years ago that the Indian candy market, valued at $664 million, has the chocolate segment contributing around $203 million out of all the other confectionery categories. And the growth story is not going unnoticed. Leading snack food manufacturers in India and across the world and now focusing on this market, which consumed around 228,000 tonnes of chocolate in 2017, leaving the US, UK, and China behind. The segment appeases consumers across ages and geographies and makes it to the top of our trends in this industry. Great marketing and promotional campaigns and smart quantity packaging have contributed to it being readily available and portable for today’s consumer who is on the move.
Convenient & Healthy Confectionary Options Available Today
India’s snack and sweet industry, estimated at $7.6 billion are also in the process of becoming more customer-oriented, like finding ways to fit into smaller wallets, while making its image more fitness-friendly. Convenience is the name of the game. People are traveling longer, spending more time in increasingly urbanized environments, and hence want brands to offer products to have between meals. A study by Mintel shows 42% of all Indian consumers have eaten some form of sugary snacks other than biscuits, in the past three months, thanks to the evolving confectionery industry. There’s another secret behind the growth of the snacking sector, but it doesn’t stop there. Stories from biscuit manufacturing companies in India dipping their hands into the chocolate bowl are not new. But a generation that is focusing on staying fit is leading to a whole class of healthy confectionery products – dry fruits in Cadbury bars, cereals in cakes, and nougat-filled 5 Stars. Healthy consumption is now overhauling the industry.
Spicing Up The Sweets To Appease The Indian Palette
India, the land of vibrant culture comprised of mini-cultures across the 29 odd states, has snacking habits that are sometimes as different as chalk and cheese. But the world loves Indian food, evident from the significant sales of Indian food products. Snack food manufacturers in India and other regions are now researching new ways to add the spices and the condiments we use in our daily dishes, into confectionery. Dabur, one of the leaders in the confectionery industry is known for mixing things up and creating products like Chyawanprash and Hajmola. But now, it is releasing variants of the latter, like Hajmola Chuzkar as well. Perfetti isn’t far behind, with its Alpenliebe Spicey including hints of chili and mango. The candy is the most consumed in India.
Consumer’s Rising Desire For Premium, Gourmet Products
The middle-class is now earning more than ever, with more disposable incomes and a young population at the median age of 29 that makes them more brand conscious with an appetite for exciting experiences. The confectionery industry is now meeting those requirements by releasing premium products that capture an elevated taste that is usually associated with their luxury counterparts. India has posted the highest ever growth rate of 13% for retail chocolate sales, and a significant part of that goes to the premium category. In addition to gourmet confectioneries being consumed here, they are also contributing to Indian food exports. Brands leading the race are Unliver’s Magnum or the German Schogotten, but we will see more emerge soon.
Online Shopping & Festive Gifting
A conversation on food retailing cannot be complete without the essential element of online shopping. The rise of e-retailers has also led to secure access to products from the confectionery industry. Morgan Stanley confirms the steady growth of this sector in the e-commerce share of purchases, and decreasing delivery times are making customers more inclined to purchase. Also, the festive season sees a spike in this segment, usually contributing to almost half of the yearly revenue generated. This is big, and a significant trend which is seen in a country like ours with many major and minor festivals across India. People are buying confectionery items like hard candy or chocolates which can be stored for longer, compared to Indian sweets.
Food is the most extensive category of consumption in India, adding up to a third of an average consumer’s budget. Specialized products from the confectionery industry like gourmet cakes or healthy snack bars are always cherished, which has led to an enormous expansion and recognition in India and across the world. Additionally, as a cost-efficient base of manufacturing, many regions globally benefit from Indian food exports, and we believe this is only expected to grow further.