The Indian confectionery market has been forecast to increase at a compound annual growth rate (CAGR) of 17.03% over the next five years, increasing from a value of just over NR 60 billion at the start of 2012, to reach a total of approximately NR 140 billion.
The confectionery industry of India, which was ranked 25th in the world in 2009, has now emerged as one of the largest and well-developed food processing sectors of the country.
Backed by factors such as increasing population, rising income levels, changing lifestyle of consumers and increasing consumer spending, the confectionery market is speeding up its growth. Increasing consumerism and growth of organised retailing are among the other factors supporting this market.
The credit goes to liberalisation along with growing Indian economy, which have led several multinational companies to invest in India's confectionery market, further changing the face of this industry.
According to a recent report, 'The Future of the Confectionery Market in India to 2017,' in terms of categories, 'Chocolate' is forecast to continue as the largest sector in the industry, and will be valued at around NR 62 billion by 2017.
Sweet-toothed Indians have increasingly moved towards premium chocolates due to growing preference for better quality chocolates. Consumption of premium chocolates by rural consumers also witnessed a sharp rise in 2012.
Interestingly, small pack sizes experienced a rapid increase in sales across rural areas and tier III cities owing to the affordability attached to it. In line with the preference for small pack sizes, volume sales of mini chocolates launched by Mars also started to emerge in 2012.
Cadbury India continued to enjoy dominance in chocolate confectionery and held a value share of 56%, followed by Nestlé at 22% in 2012. The two leading companies have enjoyed established presence in chocolate confectionery for years.
The second largest category, 'Sugar Confectionary' will be worth around NR 50 billion by 2017. The fastest growing category is suggested to be 'Chocolate', which will grow at a CAGR growth rate of over 20.3% between 2012 and 2017.
For more information on the Indian confectionery market, see the latest research: Confectionery Market Research
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