The document provides an overview of the confectionery sector in India. It discusses key topics like the major players and their market shares, the competitive landscape, contribution to the economy, government policies, and a SWOT analysis of three major players - Cadbury, Ferrero, and Nestle. It also outlines the future prospects of growing demand for premium chocolate, new flavors, and functional confectionery products in India.

1. CONFECTIONERY
SECTOR
Apoorva Gupta
Dipti Sangare
Sakshi Kingrani
Vishaka Ramchandani
MBA(PA)-II

2. CONTENT
• Introduction of the Sector
• Contribution and Importance in the economy
• Competitive Scenario
• Major players and their relative share
• Relation to other sectors
• Government policy related to the sector
• SWOT analysis of major 3 players in the sector
• Future prospects

3. INTRODUCTION
• Confectionery ,also called sweets & candy is sweet
food.
• The term varies among English-speaking countries.
• In general, though, confectionery is divided into two
broad and somewhat overlapping categories,baker’s
confections and sugar confections

4. BAKER’S CONFECTIONS
Baker’s confectionery, also called flour confections, includes
principally sweet pastries, cakes and similar baked goods.

5. SUGAR CONFECTIONS
Sugar confectionery includes sweets, candied nuts, chocolates,
chewing-gum, sweetmeats and other confections that are made
primarily of sugar.

6. CONTRIBUTION AND IMPORTANCE IN
THE ECONOMY
The total contribution of the sugar boiled confectionery market in the
organized sector, comprise plain, hard-boiled candies, toffees, éclairs
and gums is around Rs. 20 billion. Add to this the unorganized sector
and the market for all types of confectionery is Rs. 50
billion. However, in terms of value the organized sector commands
60% of the market share. With the exit of MNCs and other
established organized players from very low priced (25paise)
category, the unorganized sector has grown very fast. MNCs and
high-powered advertising support substitute products like chewing
and bubble gums. With Rs. 3,250 million market share, the gum and
mint market is growing at a rate 10 to 15% annually. Fruit and mint
rolls being marketed by companies with sound strategies are going
ahead rapidly.

7. COMPETITIVE SCENARIO
• The Indian confectionery sector is led by the
chocolate category in value terms. It is also
forecast to register the fastest growth in value
terms during 2018-2023
• The Indian confectionery market had total
revenues of $4,314.0m in 2018, representing a
compound annual growth rate (CAGR) of 15.8%
between 2014 and 2018.Market consumption
volume increased with a CAGR of 9.9% between
2014 and 2018, to reach a total of 571.5 million
kilograms in 2018.

8. Major players and their relative share
Cadbury India Ltd is the largest manufacture of chocolate,
confectionery and malted food products.
Nestle India Ltd is a manufacture and marketer of coffee, tea,
malted beverages, instant baby cereals & foods, milk products,
chocolates and confectionery, instant foods and culinary products.
Lotte India Corporation Ltd is primarily a manufacturer and
marketer of sugar boiled confectionery, cocoa and milk based toffees,
candied and mints.
Parle Products Pvt. Ltd. is a manufacturer and marketer of cookies,
sugar boiled confectionery, and cocoa and milk based toffees.

9. Candico India Ltd is a manufacturer and marketer of sugar boiled
confectionery, candies, gums, mints and toffees. They are also the
largest contract manufacturer for various Indian and overseas
confectionery companies.
The CAMPCO Ltd is a leading processor of cocoa and cocoa based
industrial products and has a small presence in the branded chocolate
sector.

10. Relation to other sectors
Food Industry :
• The food industry is a complex, global collective of diverse business that
supplies most of the food consumed by the world’s population.
• Food processing includes the methods and techniques used to transform
raw ingredients into food for human consumption.
• Confectionery sector comes under food industry.

11. Government policy related to the sector
Some of the major initiatives taken by the Government of India to improve
the food processing sector in India are as follows:
• The Government of India aims to boost growth in the food processing
sector by leveraging reforms such as 100 per cent Foreign direct
investment (FDI) in marketing of food products and various incentives at
central and state government level along with a strong focus on supply
chain infrastructure.
• In Union Budget 2017-18, the Government of India has set up a dairy
processing infra fund worth Rs 8,000 crore (US$ 1.2 billion).
• The Government of India has relaxed foreign direct investment (FDI)
norms for the sector, allowing up to 100 per cent FDI in food product e-
commerce through automatic route.

12. • The Food Safety and Standards Authority of India (FSSAI) plans to
invest around Rs. 482 crore. (US$ 72.3 million) to strengthen the
food testing infrastructure in India, by upgrading 59 existing food
testing laboratories and setting up 62 new mobile testing labs
across the country.
• The Indian Council for Fertilizer and Nutrient Research (ICFNR)
will adopt international best practices for research in fertilizer
sector, which will enable farmers to get good quality fertilizers at
affordable rates and thereby achieve food security for the common
man.
• The Ministry of Food Processing Industries announced a scheme
for Human Resource Development (HRD) in the food processing
sector. The HRD scheme is being implemented through State
Governments under the National Mission on Food Processing.

13. SWOT analysis of major 3 players in
the sector
CADBURY
FERRERO
NESTLE

14. CADBURY
STRENGHTS:
•Powerhouse brands and products.
•Brand name, Brand equity and Brand loyalty.
•Positioning as gift.
•Promotions.
•Placement and distribution.
WEAKNESS:
•Its rural distribution considering India has such a
wide rural diaspor which can be covered.
•Quality control.
OPPORTUNITIES:
•Rural markets.
•New tastes.
THREATS:
•Cost and price increase.
•Health consciousness on the rise.
•Decreasing importance of festivals.
•Rising demand of people ,growing purchasing
power.

15. FERRERO
STRENGHTS:
•Offer a quality and luxury product.
•Has captured huge amount of market share in
boxed chocolates.
•Available in different packaging.
•Considered as a ideal product for gifting.
•It gets instant customer recognition due to its
packaging.
WEAKNESS:
•Highly priced.
•Not advertised.
•Not available easily.
OPPORTUNITIES:
•The introduction on new flavors will help in
gaining more market share.
•Increase in the usage of internet.
•Increase in the demand of the three piece
impulsive pack.
THREATS:
 Imitation of Ferrero Rocher.
 Bad economy cycles.
 High competition from other chocolate
brands.
 Increasing trends of Nutri-bars replacing
chocolates.

16. NESTLE
STRENGHTS:
•World renowned brand
•Extensive distribution system
•Large workforce
•Brand equity
WEAKNESS:
•Maggi controversery
•Brand structure
•Legal and consumer issue
OPPORTUNITIES:
•Healthy breakfast
•Expanding market
•Increasing income level
THREATS:
•Competition in the market
•Price of commodity
•A buyers power

17. Future Prospects
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 new found mall culture and changing
lifestyle.
• Growing demand for premium chocolate in India.
• Innovation in chocolate is well received by Indian consumers.
• Mondelez India foods pvt. Ltd. focuses on premium products in chocolate
confectionery.
Growing Demand for New Flavors, Sugar-free, and Functional Confectionery High sugar
content related to obesity is a severe concern among consumers. Consumers are looking
for healthier options, such as low calorie, high cocoa, and functional ingredient-based
confectionery. Functional claim on the confectionery products label is growing rapidly

18. https://www.niir.org/information/content.phtml?content=178
https://www.marketresearch.com/MarketLine-v3883/Confectionery-India-12264211
https://www.prnewswire.com/news-releases/the-indian-confectionery-market-what-
consumers-eat-and-why-231011281.
https://www.marketing91.com/swot-analysis-of-cadbury/
https://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-
analysis.html
https://www.manufacturingglobal.com/lean-manufacturing/top-10-confectionery-
manufacturers-world
REFRENCES