Canadean expects the confectionery market in India to grow by 71% in the next four years, as the growing Indian middle-class consumes more gums and jellies and chocolate continues to be high in demand among children.
The Indian confectionery market was worth close to US$1.3 billion in 2013 and is expected to grow by 71% to reach US$2.2 billion in 2018.
Economic growth and development has resulted in rising disposable incomes in India, especially among the middle-class.
The market research company says this class accounts for 45% of overall confectionery consumption in the country, and more than half of the consumed confectionery is gum.
“In India, gum is seen as a luxury item, with branded products predominantly available in urban areas,” says analyst Safwan Kotwal.
“This is especially true for gum that provides fresh and minty breath, as it portrays a professional and well-groomed image that is becoming more vital to success in the Indian workplace.”
Hot climate shows Indians’ preference for gums, jellies
Due to the soaring temperatures in India, consumers prefer gums and jellies over chocolate, especially in the summer months.
Canadean finds that sugar confectionery and gum will outsell chocolate in volume terms.
Gum is expected to see an increase of 64% in volume consumption by 2018, compared to a growth of only 41% in chocolate consumption.
“Weather plays a vital role for sugar confectionery and gum sales. However, when translated into value terms, the chocolate market still dominates and is expected to surpass the US$1 billion mark in 2018,” says Kotwal.
Children like chocolate
Although the report shows that gum is becoming more popular among adults in India, sweets and toffees will stay firm favorites with children and continue to be high in demand.
Children nine years and younger accounted for almost a quarter of sugar confectionery and chocolate consumption in 2013.
“Consumers in this age group, like in any other country, have a preference for sweet tasting products, which will be further enhanced as they develop their tastes and preferences for certain brands and products,” says Kotwal.
