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Packaging trends and branding for Indian confectionary
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Thursday, 15 April, 2021, 15 : 00 PM [IST]
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Norina Fernandes
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Indian confectionery market mirrors its global counterpart with a well entrenched presence of multinational companies, wide portfolio of brands, frequent product launches, intense marketing and advertising campaigns. Confectionery sector in India is well consolidated with top players holding a major share of the market; local subsidiaries of global confectioners are among the leading players in India.
Large players have a significant presence in the chocolate confectionery market while smaller players primarily operate at a regional level and have a sizable base in the sugar-based confectionery market. The growth of the packaging market in India is largely driven by various logistic applications, technological advancements, as well as the development of the packaging sector across the country.
The confectionary market in India has a well entrenched presence of multinational players such as Mondelez (formerly Cadbury India), Nestle, Perfetti Van Melle, Mars India and Lotte as well as large domestic players such as Amul, Parle, ITC, Ravalgaon and Candico. Multinational companies such as Ferrerro, Hersheys and Lindt have a strong presence in the premium chocolate market. In the chocolate confectionery segment, Cadbury holds a market share of around 65-70 per cent, followed by Nestle at around 20 per cent.
Chocolate confectionery has been experimenting with a mix of different ingredients. Connoisseurs of candies and chocolates believe that people’s palette has changed drastically over the past few years and this can be attributed largely to well-connected citizens and flavour innovations in the industry. Apart from fruit flavours such as strawberry and orange peel, new flavours such as coffee, cinnamon and many more are making way into chocolate confectionery. Also, it is now considered as healthy to consume chocolate. Social media, research and dieticians’ suggestions of consuming chocolate for a healthier dessert option also make people choose chocolates over sweets because it has low sugar content.
The Confectionery Packaging in India market research report includes:
1. Analysis of key supply-side and demand trends
2. Detailed segmentation of international and local products
3. Historic volumes in units and filled volumes
4. Five year forecasts of market trends and market growth
5. Robust and transparent market research methodology, conducted in-country
The last couple of years have seen a spate of product innovations, value-additions and new launches in the Indian confectionery market. According to industry experts, with young consumers looking for newer formats and flavours in confectionery, manufacturers were induced to cash in on the demand and expand their product range. Dabur, for instance, extended its popular digestive brand Hajmola, and reinstated its presence in the pure confectionery segment with the launch of the Natkhat Amrud variant and Hajmola Chuzkara.
Growing usage of packaging material in various food service outlets together with increasing demand for packaged beverages and expanding working class population has given impetus to the food and beverage packaging industry in India.
The rising purchasing power, due to the growth in per-capita income of the Indian middle-class, is fueling the Indian packaging market in adopting better packaging methods, materials, and machinery, to ensure quality factors for Indian businesses.
ITC Ltd recorded the largest increase in share to touch 15 per cent of the market share in 2013. The company’s strong retail sales through small cigarette shops located in rural areas and tier II cities, helped the company strengthen its value share. Other leading brands with considerable presence are Ravalgaon Sugar Farms, Wrigley India, and Parle Products. Domestic manufacturer Ravalgaon Sugar Farms continued to invest in combating the hold of the multinationals in India
Innovative and Sustainable Food Packaging
In India, packaged foods are gaining high traction, owing to busy work schedules, rising number of working women, and shift toward on-the-go consumption, which is, in turn, expected to ascend the utilization of innovative and sustainable packaging across the food sector. This is likely to fuel the market's growth over the forecast period.
? With the aim of developing active materials for the use in the design of packages, coatings, and packaging technologies, which helps in maintaining and improving the sensorial and nutritional characteristics and safety of foodstuffs, as well as increase their shelf life, nanofabrication technologies are emerging as innovative solutions across the region.
? With the growing awareness, the requirement for eco-friendly and sustainable packaging is steadily on the rise. The country is focusing more on sustainable solutions, which is increasingly becoming a business imperative.
? Companies like Evirocor in India are providing eco friendly food packaging products to food outlets, restaurants, hotels, hospitals, factories, caterers, and all other users. The rise in usage of eco friendly packaging is expected to drive the growth of the market.
Confectionery falls under the impulse purchase segment, and (generally) does not witness any in-store promotions and offers. Confectionery items are stacked near store check-outs, luring customers, who while billing, tend to add some items to their shopping basket.
Brands do not spend on promoting candies, toffees and chocolates, as it is not viable for them, this segment remains inactive and lacks attention in comparison to other categories. Of course, their display at the check-outs helps, but a lot of time they are overlooked when people don’t want to scan the section near billing counters. Also, not all the brands can get prominent display, so the ones kept at the back or on the last shelf, lose visibility.
Adding on to the challenges are the stringent FSSAI regulations on imported products, so brands are finding it difficult to enter the Indian market, while the existing ones are finding it difficult to sustain their business and even considering exiting the Indian market.
Confectionery manufacturers typically make heavy investments in TV commercials, but are not very considerate towards retailer margins. Retailers actually help in building the brand and influencing consumer choice. If manufacturers would just use 50 per cent of this expenditure for increasing the retailer margins, it would benefit them more
The confectionery market of India is divided into three segments: chocolate, sugar confectionery and gum market, which is further divided into sub-segments. The Indian confectionery market is going through rapid changes in terms of trends and consumer behaviour pattern, and the industry is benefitting from higher consumer spending, which in turn is being driven by the newfound mall culture and changing lifestyle.
The food and beverage packaging industry in India is moderately competitive, owing to the several players competing to improve their market share. Sustainable competitive advantage can be gained through innovation in design, technology, and application. Companies are increasing their market presence by expanding their business footprint across various end-user markets. Some of the key developments in the market are:
The entry of multinational companies in the Indian confectionery space has not only increased competition, but also the per-capita consumption, by launching new products at affordable prices, and creating awareness among buyers through advertisements and promotional campaigns. Hajmola has been a popular digestive in tablet and candy format in Dabur’s portfolio. Market experts feel that the popularity of Dabur Hajmola will benefit Chuzkara as well. Comments Ajay Parihar, Category Head–Digestives at Dabur India,
The Indian confectionery market is one of the fastest-growing in the world with a strong double-digit annual CAGR. Hajmola Chuzkara, with its unique blend of natural ingredients and good taste is liked by consumers across all age groups.
The emerging trend of gifting confectionery products is also driving the category, and there is great potential for further growth in the untapped rural market.
The Indian confectionery market is expected to grow rapidly
(The author is senior quality assurance executive (F&B) at Café Coffee Day Global, Mumbai. She can be contacted at norinafernz1004@gmail.com)
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