Market Forecast By Type (Sugar, Chocolate, Fine Bakery Wares, Others), By Distribution Channel (Supermarket/Hypermarket, Specialist Retailers, Online Retail Stores, Convenience Stores, Other Distribution Channels) And Competitive Landscape
Product Code: ETC018164 | Publication Date: Aug 2023 | Updated Date: May 2024 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
India Confectionery market currently, in 2023, has witnessed an HHI of 1074, Which has increased slightly as compared to the HHI of 935 in 2017. The market is moving towards highly competitive. Herfindahl index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means fewer numbers of players or countries exporting in the market.
India Confectionery Market report thoroughly covers the market by types and by distribution channels. The market outlook report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
India Confectionery Market is witnessing several latest developments over the years. For instance, the confectionery market in India is experiencing a shift towards healthier options as consumers are becoming more conscious of their dietary choices, leading to increased demand for confectionery products with reduced sugar content and functional ingredients. Moreover, confectionery manufacturers are continuously introducing innovative flavours and formats to cater to diverse consumer preferences. International confectionery brands are increasingly entering the Indian market, either through direct imports or through partnerships with local manufacturers. This helped introduce a wider range of options to consumers and contributed to the diversification of the market. Further, consumers generally favoured products that aligned with their cultural preferences. Traditional sweets and snacks continued to have a strong market presence alongside newer, imported confectionery options
India Confectionery Market is growing primarily due to the factors such as rising disposable income, changing lifestyles, and surging demand for healthy snacks by consumers. Additionally, the introduction of new product categories has also helped in boosting the India Confectionery Market Growth. The India confectionery market consists of products like chocolates, hard-boiled candies or lozenges, sugar confectioneries and others.
According to 6Wresearch, the India confectionery market is anticipated to grow at a CAGR of 7.3% during the period 2024-2030. The market is growing and it is influenced by changing consumer preferences as the India confectionery industry is being evolved with a growing demand for innovative and unique flavours. Additionally, growing disposable income is allowing consumers to spend more on indulgent treats like confectionery products. Thus, propelling the market development to a great extent. Moreover, the rise of urban centres and modern retail formats has expanded the accessibility of confectionery products to a wider audience. Manufacturers are introducing new and innovative confectionery products to cater to health-conscious consumer segments.
There is a growing demand for healthier confectionery options, that incorporate functional benefits to cater to health-conscious consumers. This factor creates ample opportunities for the market. Moreover, the emergence of a premium confectionery market presents opportunities for manufacturers to create high-quality and gourmet confectionery products. Furthermore, the rise of e-commerce platforms allows confectionery brands to reach vast audiences beyond their traditional geographic reach. Furthermore, the demand for functional foods is increasing as manufacturers can explore incorporating health-enhancing ingredients into their confectionery products.
One of the major challenges faced by manufacturers is the presence of unorganized players who dominate most segments within this industry making it difficult for larger companies operating under the organized sector given their limited ability to compete against lower pricing models offered by these players resulting in lost revenue opportunities for many brand owners even though they offer higher quality goods. Rising health consciousness among consumers has led to concerns about the high sugar and calorie content in traditional confectionery products. Moreover, the confectionery industry faces regulations related to labelling and advertising which impact product formulation and marketing strategies. Fluctuations in raw material costs, coupled with price sensitivity among consumers also pose challenges in maintaining competitive pricing while ensuring profitability.
With growing awareness of health and wellness, consumers are seeking healthier confectionery options. This has led to an upsurge in demand for sugar-free, and natural ingredient-based products. Confectionery companies are responding by introducing products with reduced sugar content and incorporating functional ingredients. Consumers are willing to indulge in premium and gourmet confectionery products for special occasions or as gifts. This trend has led to the emergence of artisanal and high-quality confections that focus on unique flavours. Manufacturers are experimenting with novel flavours, combining traditional tastes with modern twists to attract consumers' attention. Additionally, unconventional formats and combinations, such as savoury-sweet blends, are gaining popularity, catering to adventurous palates.
The India confectionery market size has been significantly impacted by the pandemic. The confectionery sector experienced both short-term disruptions and long-term changes in consumer behaviour. For instance, initial lockdowns and restrictions led to challenges in sourcing raw materials, packaging, and distribution. This resulted in production delays for some confectionery products. The closure of restaurants and other entertainment places during lockdowns meant a significant drop in impulse buying and on-the-go consumption. Apart from this, the pandemic accelerated the adoption of online shopping for groceries and food items. Many confectionery brands and retailers expanded their online presence to cater to this trend. Confectionery brands adapted by introducing new product variants and formats suitable for individual consumption.
Some of the prominent confectionery companies in India include;
According to Ravi Bhandari, Research Head, 6Wresearch, the chocolate segment is accomplishing robust growth, driven by changing consumer preferences and rising disposable incomes. Premium and innovative chocolate offerings are particularly popular among urban consumers. On the other hand, the fine bakery wares segment is also expected to hold the dominant position in the market as consumers are willing to spend on high-quality baked goods for celebrations and special occasions.
Based on Distribution Channel, the online retail channel is dominating the India Confectionery Market Share over the forecast period due to rising digital adoption and the convenience it offers.
The report offers a comprehensive study of the subsequent market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 India Confectionery Market Overview |
3.1 India Confectionery Market Revenues & Volume, 2020-2030F |
3.2 India Confectionery Market - Industry Life Cycle |
3.3 India Confectionery Market - Porter's Five Forces |
3.4 India Confectionery Market Revenues & Volume Share, By Type, 2020 & 2030F |
3.5 India Confectionery Market Revenues & Volume Share, By Distribution Channel, 2020 & 2030F |
4 India Confectionery Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 India Confectionery Market Trends |
6 India Confectionery Market Segmentation |
6.1 India Confectionery Market, By Type |
6.1.1 Overview and Analysis |
6.1.2 India Confectionery Market Revenues & Volume, By Type, 2020-2030F |
6.1.3 India Confectionery Market Revenues & Volume, By Sugar, 2020-2030F |
6.1.4 India Confectionery Market Revenues & Volume, By Chocolate, 2020-2030F |
6.1.5 India Confectionery Market Revenues & Volume, By Fine Bakery Wares, 2020-2030F |
6.1.6 India Confectionery Market Revenues & Volume, By Others, 2020-2030F |
6.2 India Confectionery Market, By Distribution Channel |
6.2.1 Overview and Analysis |
6.2.2 India Confectionery Market Revenues & Volume, By Supermarket/Hypermarket, 2020-2030F |
6.2.3 India Confectionery Market Revenues & Volume, By Specialist Retailers, 2020-2030F |
6.2.4 India Confectionery Market Revenues & Volume, By Online Retail Stores, 2020-2030F |
6.2.5 India Confectionery Market Revenues & Volume, By Convenience Stores, 2020-2030F |
6.2.6 India Confectionery Market Revenues & Volume, By Other Distribution Channels, 2020-2030F |
7 India Confectionery Market Import-Export Trade Statistics |
7.1 India Confectionery Market Export to Major Countries |
7.2 India Confectionery Market Imports from Major Countries |
8 India Confectionery Market Key Performance Indicators |
9 India Confectionery Market - Opportunity Assessment |
9.1 India Confectionery Market Opportunity Assessment, By Type, 2020 & 2030F |
9.2 India Confectionery Market Opportunity Assessment, By Distribution Channel, 2020 & 2030F |
10 India Confectionery Market - Competitive Landscape |
10.1 India Confectionery Market Revenue Share, By Companies, 2020 |
10.2 India Confectionery Market Competitive Benchmarking, By Operating and Technical Parameters |
11 Company Profiles |
12 Recommendations |
13 Disclaimer |