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Market Insights: Confectionery in India

An insight into the Indian confectionery market
Report summary
Examines developments in the Indian confectionery market Provides latest retail data at a category level along with five-year forecasts, highlighting specific growth areas Examines new product launches in the Indian confectionery market, by key categories Identifies the leading players in the market, providing details on brand portfolio and new product launches

Use this report to find out the latest consumer trends driving the category alongside accessing the consumption and usage data

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About this report

Introduction
This report forms a part of Datamonitor's newly introduced product series titled Market Insights. It aims to provide both quantitative and qualitative analysis to clients on the market data and trends across various industry sectors. This report examines new developments in the Indian confectionery market. It provides data at a market level and segmentation by categories. It also analyzes the market through consumer and industry perspectives.

Key findings and highlights

The confectionery market in India was estimated to be worth $1.27bn in 2009, growing at a compound annual growth rate (CAGR) of 10.5% during 2004-09. The market is expected to grow to a value of $2.28bn by 2014 and is estimated to grow at a CAGR of 12.4% during 2009-14e. Increasing health consciousness, a fast evolving indulgence seeking attitude of the Indian consumers along with snacking/eating on-the-go are a few of the key trends shaping the Indian confectionery market. In 2010, new product launches were dominated by sugar confectionery and chocolate category which together accounted for around 80% of the launches.

Reasons to buy
Market understanding: develop a detailed understanding of the confectionery market and identify the key growth categories within it Consumer trends and behavior: find out the latest consumer trends driving the category alongside accessing the consumption and usage data Competitive landscape: obtain information on the key players operating in the market and understand their key strengths in various categories

New product launches are increasingly moving toward a healthier positioning. The health consciousness trend majorly impacts the improving sales of the cereal bars category, which are a healthy snacking option.
Gaurav Marchanda, Datamonitor Analyst and Report Author

Datamonitor Report
Published: Mar 11 | Code: BFCM0406

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Market Insights: Confectionery in India

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Sample slides
New Product Launches New Product Launches
Product prices in the confectionery market seem to be on the rise, which suggests a premiumization trend in most of the categories within the market
Price point analysis, 2010
The high-volume, low-price Indian confectionery market consists mainly of products that fall in the lower price band. In 2010, 24% of new launches were in the less than INR25 price range (compared to

over 50%

in 2009). A large number of low priced confectionery products

were targeted at children. Prices are on the rise due to changing input costs and a larger range of premium products available in the market.

Cereal bars

71% of launches were in the price range of more than INR100. This is due to a larger number of launches of multipack cereal bar products. No launches in the less than INR25 price range indicates the relative premium positioning of products within this category as compared to other categories. 33% of new product launches were in the less than INR25 price range. This is owing to a number of launches in small pack sizes in line with the prevalent snacking trend. Most of the product launches in the greater than INR50 price range were international brands. 44% of the product launches were in the INR2550 price range, which is high for the gum category. There has been a heavy influx of international brands and innovative product concepts and flavors, which is driving up prices.
New launches are distributed equally between the less than INR25 and INR100150 price brackets. There has been a large number of launches of multiple unit packs of international brands.

Chocolate

Gum

Sugar confectionery

33

Confectionery in India

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Competitive Landscape Competitive Landscape

Perfetti Van Melle is a key player in the sugar confectionery and gum categories. Well-established brands in these categories is the manufacturers key strength
Cadbury (Kraft)

Perfetti Van Melle

Nestl S.A

Parle

Key brands
Brands like Alpenliebe and Big Babol have a strong brand presence and recall. A vast network of distributors spread across over 2,000 Indian towns. Aggressive and innovative advertising campaigns adapted to target and appeal to Indian consumers. Constant product innovation and re-inventing brands like Chlormint, Mentos, Fruittella, Cofitos, Happydent, and Marbles, to keep the companys product offerings fresh.

Strengths

Strategy

Focus its product range on the sugar confectionery and gum categories.

Future prospects

The manufacturers focus on the slower growing sugar confectionery and gum categories means that it is losing market share to Cadbury and Nestl.

Van Melle has adopted an aggressive sales strategy to retain the number one position in the confectionery industry in India, backed by a wide network of carry and forwarding agents.
Perfetti Van Melle India company website 38 Confectionery in India

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Higher sugar prices directly impact input costs of the low value sugar confectionery products, which in India tend to have lower price elasticity.
Gaurav Marchanda, Datamonitor Analyst and Report Author

Datamonitor Report
Published: Mar 11 | Code: BFCM0406

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Market Insights: Confectionery in India

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Interested in this topic?

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Datamonitor Report
Published: Mar 11 | Code: BFCM0406

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