Indian confectionery
28 June 2011 – Confectionery retail value sales in India rose by 7% in constant terms in 2010. Stronger economic growth boosted consumer confidence and led to increased disposable incomes. This benefited the performance of key indulgence categories like chocolate confectionery and functional gum, which command higher unit prices and are particularly sensitive to an improvement in the economic climate.
India is the second most populous country in the world. Its population reached the 1.2 billion mark in 2010, according to Euromonitor International’s Countries & Consumers database. Although mainly an agricultural country in demographic terms, the urban population is set to increase by 46 million over the 2010 – 2015 period, driving demand for processed food items like chocolate products.
Chocolate confectionery sales grew by 13% in constant value terms in 2010, a stronger performance than the 10% recorded in 2009. This stronger growth can be attributed to Indian manufacturers’ efforts to tap into both upper and lower income consumers. Furthermore, giving chocolate as a gift for festive occasions has returned.
India’s improving consumer confidence and increasing disposable income played a positive role in the rising demand for sugar confectionery products, which grew by 1% in constant retail value terms in 2010. This mild but positive growth reversed the 1% decline recorded in 2009.
Gum value sales grew by 4% in 2010. This robust performance was driven by rising consumption of gum in smaller towns and cities. The consumer base for functional gum is still relatively small (functional gum accounted for around only 5% of retail gum volume sales in 2010) because its average retail price remains much higher than that of other gum products. Due to its small base, functional gum remained the best performing gum category in value terms in 2010, growing by some 17%. Manufacturers are actively supporting the education of consumers about the dental benefits of functional gum. Wrigley’s Orbit even bears an official seal of endorsement from the Indian Dental Association.
