BISCUITS IN INDIA

Euromonitor International
February 2014

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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 3
Table 1 Sales of Biscuits by Category: Volume 2008-2013 ...................................... 3
Table 2 Sales of Biscuits by Category: Value 2008-2013 ......................................... 3
Table 3 Sales of Biscuits by Category: % Volume Growth 2008-2013 ...................... 4
Table 4 Sales of Biscuits by Category: % Value Growth 2008-2013 ......................... 4
Table 5 NBO Company Shares of Biscuits: % Value 2009-2013 .............................. 4
Table 6 LBN Brand Shares of Biscuits: % Value 2010-2013 ..................................... 5
Table 7 Distribution of Biscuits by Format: % Value 2008-2013................................ 5
Table 8 Forecast Sales of Biscuits by Category: Volume 2012-2017 ........................ 6
Table 9 Forecast Sales of Biscuits by Category: Value 2012-2017 ........................... 6
Table 10 Forecast Sales of Biscuits by Category: % Volume Growth 2012-2017 ....... 6
Table 11 Forecast Sales of Biscuits by Category: % Value Growth 2012-2017 .......... 7


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BISCUITS IN INDIA


HEADLINES
Biscuits is set to register value growth of 19% in 2013 to reach sales of Rs180 billion
Consumer demand for indulgence in biscuits is growing
Cookies with value growth of 34% in 2013 is set to register the fastest growth within biscuits
Unit prices of biscuits are expected to rise by 10% in 2013 due to higher input costs of raw
materials
Britannia Industries with an anticipated retail value share of 35% in 2013 continues to be the
category leader
Constant retail value sales of biscuits are expected to rise by a CAGR of 10% over the
forecast period


TRENDS
The sustained economic growth in the country has led to increased disposable incomes
among Indian consumers. Urban dwellers are becoming increasingly health conscious and
are demanding healthier options. Along with this consumers are also willing to spend more
and experiment. As more women join the work force, convenience and time have become
major factors among urban households. Consumers are increasingly relying on snacks and
baked goods as substitutes to traditional breakfast. With the launch of a series of cookies and
sandwich biscuits offerings, biscuits are now being viewed as a quick breakfast option among
women and children. This has helped drive sales of biscuits, especially cookies and sandwich
biscuits, over 2013.
The anticipated retail value growth of 19% in 2013 will be higher than the CAGR of 17% over
the review period. The primary reason for this growth has been the strong performances of
cookies and sandwich biscuits, which are priced substantially higher than plain biscuits during
2013.
Cookies with a retail value growth of 34% and sandwich biscuits with value growth of 28%
registered the fastest growth rates within biscuits in 2013. With increased disposable
incomes, local consumers were willing to spend and indulge in 2013. Premium biscuits,
cookies and sandwich biscuits witnessed a surge in demand as urbanites showed a
willingness to experiment.
The prevailing high inflation levels in the country led to an increase in input costs of biscuits.
Unit prices of biscuits are set to increase by 10% in 2013 as manufacturers decided to pass
on the additional costs to consumers.
Indian consumers are becoming increasingly health conscious, a trend that has boosted sales
of savoury biscuits and crackers. These products are viewed as healthier options in biscuits,
with many being reduced-sugar and reduced-fat offerings. Manufacturers also capitalised on
this growing demand and launched savoury biscuits in large pack sizes as home sharing and
snacking occasions continued to become more prevalent.


COMPETITIVE LANDSCAPE
The biscuits category is dominated by Britannia Industries, Parle Products and ITC, which
together are set to hold a combined retail value share of 80% in 2013. These are well
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established domestic players and have strong distribution networks across the entire country,
including rural areas.
Britannia Industries gained the maximum value sales in 2013 and was the most successful
player in biscuits. The companys cookies portfolio of Butter Elaichiz and Fruit Dhamaka
performed strongly over 2013 as demand for cookies was on the rise. Even its portfolio of
sandwich biscuits, with offerings, such as Bourbon and Pure Magic, performed strongly over
2013.
Most biscuit manufacturers in 2013 focused on strengthening their position in premium
biscuits. This strategy was followed by all the leading players, such as Parle Products, ITC
and Britannia Industries. Parle Kreams, ITC Sunfeast Delishus, Britannia Good Day and Pure
Magic, were some of the brands to benefit from an increase in distribution, availability and
promotions from their respective manufacturers.
The Indian biscuits category is characterised by domestic players, such as Britannia
Industries, Parle Products, ITC, Surya Food & Agro and Anmol Biscuits, with an anticipated
combined retail value share of 90% in 2013. International players, such as Cadbury and
Unibic Biscuits, although present in the country, have a niche presence with value shares of
less than 2% each in 2013.
ITC launched premium cookies under the brand name Sunfeast Delishus in Nut Biscotti and
Nut and Raisins variants in 2013. This is a continuation of ITCs efforts to achieve a strong
presence in the premium segment of the biscuits category. The company is focused on
launching premium and innovative biscuit variants in order to strengthen its position in the
category.
Britannia Industries launched a new advertisement on TV for its Good Day biscuit brand. The
advertisement was aired from November 2013 on national channels.
The Indian biscuits category continues to be characterised by economy and standard brands
as plain biscuits contribute 57% of all biscuit volume sales in 2013. Premium biscuit brands
are mainly present in cookies and sandwich biscuits and their share of biscuit sales has been
on the rise since 2010. As such the presence of private label biscuit offerings is small due to
lower penetration of modern retail outlets in India.


PROSPECTS
The biscuits category is expected to grow by a CAGR of 10% in constant value terms over the
forecast period. Sustained economic growth has led to an increase in disposable incomes
among Indian consumers. Indian consumers are now willing to spend more and indulge
themselves. As a result there has been a shift in eating habits with consumers willing to
experiment. Consumers are moving towards premium biscuits offerings and are increasing
their consumption of cookies and sandwich biscuits. This trend is expected to continue over
the forecast period. Premium biscuit offerings, such as cookies and sandwich biscuits, are
expected to witness strong growth over the forecast period. Manufacturers are also likely to
launch a number of premium biscuits over the forecast period in order to tap into this demand.
Demand for cookies and sandwich biscuits continued to grow in 2013. The retail value share
of cookies which stood at 12% in 2005 increased to 33% in 2013, whilst the share of
sandwich biscuits increased from 13% to 20% in the same period. Cookies is expected to
witness the strongest retail constant value CAGR of 16% in biscuits, followed by sandwich
biscuits with a CAGR of 14% over the forecast period.
The average unit prices of biscuits are expected to increase by a CAGR of 2% in constant
value terms over the forecast period. Premium biscuit offerings are making their mark in the
Indian biscuits category and a greater number of premium biscuit offerings are being
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launched by the leading players, such as Britannia Industries, Parle Products, and ITC. This
trend is expected to continue over the forecast period resulting in an increase in the average
unit prices of biscuits. The prices of biscuits are also expected to increase over the forecast
period to account for rising input costs, due to prevailing inflation in the country.
Independent small grocers, which is set to account for 82% of all biscuit sales in 2013, will
continue to dominate sales over the forecast period. The share of modern retail outlets of
biscuits sales increased steadily over the review period, rising from 6% in 2008 increased to
7% in 2013. This trend is expected to continue over the forecast period and manufacturers
are likely to launch their premium variants targeting these stores.
Cookies and sandwich biscuits sales have picked up substantially since 2009. These
premium biscuit variants are expected to perform strongly over the forecast period. The
Sunfeast Delishus cookies launched in Nut Biscotti and Nut and Raisins variants by ITC
during 2013 are expected to perform well over the forecast period due to the companys wide
distribution network and its ongoing promotions.


CATEGORY DATA

Table 1 Sales of Biscuits by Category: Volume 2008-2013

'000 tonnes
2008 2009 2010 2011 2012 2013

Savoury Biscuits and 92.6 104.2 117.9 134.1 153.1 174.1
Crackers
Sweet Biscuits 986.6 1,074.1 1,170.9 1,271.7 1,375.4 1,488.8
- Chocolate Coated - - - - - -
Biscuits
- Cookies 125.0 154.1 195.0 244.0 298.4 360.5
- Filled Biscuits 2.9 3.1 3.4 4.2 4.7 5.3
- Plain Biscuits 767.2 811.9 851.1 882.5 908.0 930.7
- Sandwich Biscuits 91.5 105.0 121.3 141.0 164.3 192.2
Biscuits 1,079.2 1,178.3 1,288.8 1,405.8 1,528.5 1,662.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 2 Sales of Biscuits by Category: Value 2008-2013

Rs million
2008 2009 2010 2011 2012 2013

Savoury Biscuits and 9,080.9 10,795.7 13,028.9 15,823.0 19,321.2 23,697.8
Crackers
Sweet Biscuits 72,800.2 82,631.3 95,960.4 111,754.2 131,514.8 156,416.9
- Chocolate Coated - - - - - -
Biscuits
- Cookies 12,558.2 16,938.0 24,026.0 33,077.1 44,797.8 59,815.1
- Filled Biscuits 794.6 903.2 1,025.1 1,288.1 1,543.4 1,853.4
- Plain Biscuits 47,635.1 50,506.0 53,220.5 55,271.4 57,185.6 58,943.7
- Sandwich Biscuits 11,812.3 14,284.2 17,688.8 22,117.6 27,988.0 35,804.7
Biscuits 81,881.1 93,427.1 108,989.3 127,577.2 150,836.0 180,114.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 3 Sales of Biscuits by Category: % Volume Growth 2008-2013

% volume growth
2012/13 2008-13 CAGR 2008/13 Total

Savoury Biscuits and Crackers 13.8 13.5 88.1
Sweet Biscuits 8.2 8.6 50.9
- Chocolate Coated Biscuits - - -
- Cookies 20.8 23.6 188.5
- Filled Biscuits 12.3 13.2 85.6
- Plain Biscuits 2.5 3.9 21.3
- Sandwich Biscuits 17.0 16.0 110.0
Biscuits 8.8 9.0 54.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 4 Sales of Biscuits by Category: % Value Growth 2008-2013

% current value growth
2012/13 2008-13 CAGR 2008/13 Total

Savoury Biscuits and Crackers 22.7 21.1 161.0
Sweet Biscuits 18.9 16.5 114.9
- Chocolate Coated Biscuits - - -
- Cookies 33.5 36.6 376.3
- Filled Biscuits 20.1 18.5 133.3
- Plain Biscuits 3.1 4.4 23.7
- Sandwich Biscuits 27.9 24.8 203.1
Biscuits 19.4 17.1 120.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 5 NBO Company Shares of Biscuits: % Value 2009-2013

% retail value rsp
Company 2009 2010 2011 2012 2013

Britannia Industries Ltd 34.2 35.4 34.6 34.6 35.1
Parle Products Pvt Ltd 34.3 33.4 32.5 31.3 30.0
ITC Ltd 12.4 13.6 13.8 14.4 14.8
Surya Food & Agro Pvt Ltd 5.2 4.9 5.0 5.2 5.5
Anmol Biscuits (P) Ltd 3.5 3.0 2.7 2.6 2.4
Cadbury India Ltd 0.5 0.5 1.7 2.0 2.2
Unibic Biscuits India 0.5 0.6 0.7 0.9 1.1
Pvt Ltd
Saj Industries Pvt Ltd 0.8 0.7 0.8 0.8 0.9
GlaxoSmithKline 0.8 0.7 0.6 0.5 0.4
Consumer Healthcare Ltd
Frito-Lay India - 0.2 0.3 0.3 0.2
Pantaloon Retail India 0.1 0.1 0.1 0.1 0.1
Ltd
Ravi Foods Pvt Ltd 0.1 0.1 0.1 0.1 0.1
Jayelbee Food Products 0.1 0.1 0.1 0.0 0.0
Ltd
Others 7.4 6.6 7.0 7.1 7.1
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Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 6 LBN Brand Shares of Biscuits: % Value 2010-2013

% retail value rsp
Brand Company 2010 2011 2012 2013

Britannia Britannia Industries Ltd 35.4 34.6 34.6 35.1
Parle Parle Products Pvt Ltd 31.2 30.5 29.4 28.2
Sunfeast ITC Ltd 13.6 13.7 14.2 14.6
Priyagold Surya Food & Agro Pvt Ltd 2.6 2.8 3.1 3.5
Anmol Anmol Biscuits (P) Ltd 3.0 2.7 2.6 2.4
Oreo Cadbury India Ltd - 1.2 1.6 1.7
Unibic Unibic Biscuits India 0.6 0.7 0.9 1.1
Pvt Ltd
Bisk Farm Saj Industries Pvt Ltd 0.7 0.8 0.8 0.9
Bytes Cadbury India Ltd 0.5 0.5 0.5 0.5
Other Private Label 0.5 0.5 0.5 0.4
Horlicks GlaxoSmithKline 0.7 0.6 0.5 0.4
Consumer Healthcare Ltd
Aliva Frito-Lay India 0.2 0.3 0.3 0.2
Sunfeast Dark ITC Ltd - 0.1 0.2 0.2
Fantasy Choco Fills
Tasty Treat Pantaloon Retail India Ltd 0.1 0.1 0.1 0.1
Duke Wafers Ravi Foods Pvt Ltd 0.1 0.1 0.1 0.1
Gourmet's Delite Jayelbee Food Products 0.1 0.1 0.0 0.0
Wafers Ltd
Others 10.5 10.7 10.7 10.4
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 7 Distribution of Biscuits by Format: % Value 2008-2013

% retail value rsp
2008 2009 2010 2011 2012 2013

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0
- Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0
-- Modern Grocery 6.0 5.8 6.0 6.2 6.7 6.9
Retailers
--- Convenience Stores 0.1 0.1 0.1 0.1 0.1 -
--- Discounters - - - - - -
--- Forecourt Retailers 0.1 0.1 0.1 0.1 0.1 0.1
--- Hypermarkets 2.2 2.9 3.3 3.6 3.8 4.0
--- Supermarkets 3.7 2.7 2.6 2.5 2.7 2.9
-- Traditional Grocery 94.0 94.2 94.0 93.8 93.3 93.1
Retailers
--- Food/drink/tobacco 2.8 3.4 3.4 3.5 3.5 3.5
specialists
--- Independent Small 82.4 82.3 82.1 82.1 81.7 81.5
Grocers
--- Other Grocery 8.7 8.5 8.4 8.2 8.1 8.1
Retailers
- Non-Grocery Retailers - - - - - -
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-- Health and Beauty - - - - - -
Retailers
-- Mixed Retailers - - - - - -
-- Other Non-Grocery - - - - - -
Retailers
Non-Store Retailing - - - - - 0.0
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 8 Forecast Sales of Biscuits by Category: Volume 2012-2017

'000 tonnes
2013 2014 2015 2016 2017 2018

Savoury Biscuits and 174.1 195.9 217.3 238.2 259.5 281.1
Crackers
Sweet Biscuits 1,488.8 1,613.5 1,745.7 1,884.3 2,026.7 2,177.2
- Chocolate Coated - - - - - -
Biscuits
- Cookies 360.5 429.8 504.9 585.6 671.3 763.2
- Filled Biscuits 5.3 5.9 6.4 6.9 7.5 8.0
- Plain Biscuits 930.7 954.0 976.3 996.8 1,013.1 1,027.3
- Sandwich Biscuits 192.2 223.9 258.2 295.0 334.9 378.7
Biscuits 1,662.9 1,809.5 1,963.1 2,122.6 2,286.3 2,458.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 9 Forecast Sales of Biscuits by Category: Value 2012-2017

Rs million
2013 2014 2015 2016 2017 2018

Savoury Biscuits and 23,697.8 26,201.9 28,635.5 31,063.6 33,507.1 35,955.6
Crackers
Sweet Biscuits 156,416.9 173,898.3 192,666.2 212,933.0 234,338.6 257,319.4
- Chocolate Coated - - - - - -
Biscuits
- Cookies 59,815.1 71,079.1 83,235.2 96,489.8 110,609.4 125,803.5
- Filled Biscuits 1,853.4 2,020.7 2,185.4 2,358.8 2,532.8 2,716.0
- Plain Biscuits 58,943.7 59,274.0 59,542.3 59,802.3 59,864.7 59,797.6
- Sandwich Biscuits 35,804.7 41,524.6 47,703.3 54,282.1 61,331.7 69,002.4
Biscuits 180,114.7 200,100.3 221,301.7 243,996.6 267,845.7 293,275.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 10 Forecast Sales of Biscuits by Category: % Volume Growth 2012-2017

% volume growth
2017/18 2013-18 CAGR 2013/18 Total

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Savoury Biscuits and Crackers 8.3 10.0 61.4
Sweet Biscuits 7.4 7.9 46.2
- Chocolate Coated Biscuits - - -
- Cookies 13.7 16.2 111.7
- Filled Biscuits 7.5 8.6 51.3
- Plain Biscuits 1.4 2.0 10.4
- Sandwich Biscuits 13.1 14.5 97.0
Biscuits 7.5 8.1 47.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 11 Forecast Sales of Biscuits by Category: % Value Growth 2012-2017

% constant value growth
2013-18 CAGR 2013/18 TOTAL

Savoury Biscuits and Crackers 8.7 51.7
Sweet Biscuits 10.5 64.5
- Chocolate Coated Biscuits - -
- Cookies 16.0 110.3
- Filled Biscuits 7.9 46.5
- Plain Biscuits 0.3 1.4
- Sandwich Biscuits 14.0 92.7
Biscuits 10.2 62.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources