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Confectionery Highlights

Overview

The Indian confectionery market was estimated at nearly INR 101 bn in 2012 (BMI) and according to research and market
intelligence company Netscribes is expected to grow at a CAGR of 10.8% from 2012 onwards. Demand and consumption are
almost at par in rural and urban India, with rural consumers being more sensitive to price and urban ones to product variety.
Unlike in other countries, mono- and not multi-packs of confectionery are preferred in India. Manufacturers often employ
different promotional and advertising campaigns, as well as different size packaging and flavors, to lure urban and rural
consumers into buying.

Players

Low-priced products are distributed through the unorganized channel, while medium-priced and premium products are mostly
sold by organized retailers. Organized manufacturers mainly comprise the Indian branches of multinational companies, but
domestic players are also present. India’s top confectionery manufacturers include Nestle India Ltd., Cadbury India Ltd., Perfetti
Van Melle India Ltd., Candico Ltd., ITC Ltd. and Wrigley India Pvt. Ltd. Some 30% and 10% of chocolate and chewing gum
manufacturers, respectively, belong to the unorganized sector. The chocolate market in the country is 90% dominated by
multinational companies Cadbury and Nestle. Premium chocolates are mostly imported and some 70% of annual chocolate
sales are made in urban areas.

Imports,
Exports

Some 39.1% of India’s sugar confectionery imports came from Indonesia and China in 2011, Netscribes said in a Nov 2012
report. Some 79.6% of block chocolate imports came from Malaysia and Singapore, and 75.4% of chewing gum imports were
from China and the UAE in 2011. Some 56.6% of India’s chewing gum exports were to the United Arab Emirates and 64.3% of
block chocolate exports were shipped to Bhutan and Uzbekistan in 2011, Netscribes added.

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