The document summarizes the Indian confectionary market. It notes that the global market is valued at $150 billion and growing at 16%, while the Indian market is smaller at $450 million. It also discusses market trends such as leading brands, product categories, consumer preferences, and growth opportunities in the Indian market. The key drivers are taste, quality, innovation, and effective marketing.

1. Confectionery Market Scan

2.  Global confectionary market fastest growing
 Market 150 billion dollars, growing at 16%
 Indian confectionary market small
 Moved from commodity to brand
 Market valued in India at 450 million dollar and
estimated at 138,000 T in volume
 Market price sensitive. Starting price point 50p

3.  Unorganized market contribute 50%
 Category contribution: Sugar candies 50%,
Chocolates 16% and Bubble gum 10%
 Chocolates, Hard boiled candies, éclairs and
toffees, Chewing and bubble gum, lollipops, mints
and lozenges constitutes the confectionery market
 Market skewed towards 73% urban and 27% rural

4.  Major players: Cadbury , Nestle, Lotte India,
Nutrine, Candico ,Perfetti, Parle , Wrigely ,GCMMF
,ITC, Lotus Chocolates, Campco
 Some leading brands: Chewing gums :Centre
fresh, Big Babool, Centrefurit , Centreshock,
Happydent,Chiclets.
 Hard boiled Sweets : Alpehenlibe ,Mentos,, Chattar
Patttar, Chlromint, Cofitos and Kismee bar,
mangobite, melody, orange candy, poppins, roll-a-
cola ,toffees, classic mint, gol gappa Eclairs, Gems,
Trident, Dentyne and Halls

5.  Urban market is brand conscious , rural is more
price sensitive
 In urban market the consumer associates brand
with quality, rural market higher price associated
with quality
 Purchased predominantly from small shops,
Kiranas or mom &pop stores
 Hyper market, Super market , Convenience stores
now stock these confectionary products.

6.  Rising Inflation, raw material prices, growing crude
prices will impact the industry
 Packaging costs increase due to instable petroleum
prices
 Changing government regulations on tax & subsidy
issues.
 Constant product innovation from new and foreign
players
 Low priced products from the unorganized market

7.  Market expected to grow at CAGR 8%
 Heavy investments made in this industry
 Product innovations will rule the market ( For e.g.
added vitamin and mineral supplements added to
the product )
 Taste and quality will be the key drivers as people
are exposed to western brands
 Consumption shifting from kids and to younger
people

8.  Get a distinct positioning in a crowded market
 Induce more trials and make the brand familiar
 Good distribution, easy availability
 Deep pockets to get share of mind
 Need key product differentiation to stand out.

9.  Tiffany
 Ferrero Rocher
 Snickers
 Mars

10.  Kids prefer chocolate candies over any other
confectionery products. Cream filled biscuits
emerged as a preferred choice. Chewing Gum last
choice
 Chocolate consumption 3 times a day. In school,
late evening snacks or after dinner at home
 Most mothers buy chocolates for their kids. Few
even receive pocket money but no kids admitted to
buying chocolates in secret
 Softness of chocolate with liquid filled in is relished
 5 Star & Poppins are not liked as it sticks to their
teeth

11.  Advertisement is a key motivator for them to try a
new chocolate followed by the attractive packaging
 Friends and word of mouth helps in trying out
 Toys are a driver but it would only motivate them
to try the chocolate a few times till they have the
toys
 They easily connect with ads of their favorite
chocolates. Ads are primary motivator before
buying a chocolate
 The ad has to be funny, humorous & make them
laugh”
 Nickelodeon, XZ Sonic, Pogo, CN & Hungama are
their favorite TV channels

12.  Parents reiterated that kids prefer eating
chocolates over other confectioneries
 Popular confectionery liked are wafer-chocolates
like Perk, Munch & choco-filled biscuits like Dark
Fantasy & Pure Magic. One chocolate spread which
they really enjoy is Nutella
 Prefer smaller chocolates like Éclairs over larger
chocolates like Dairy Milk. Better frequency of
giving them helps and can control the consumption
 Price band of Re1 to 5 is also a added advantage to
keep the costs low
 Brands that are TOM, Eclairs, Falero, Dairy Choco
shots and Mango Bite

13.  Most important factor for them to buy a new
chocolate for their kids is brand reputation
 Key drivers for kids are quite different. Kids insist
on buying chocolates which come in attractively
packaged and in interesting shapes, has colorful
images, promoted by some branded cartoon
character or a FREE toy offer promotion.
 Health based chocolates not well received
 They fail to satiate the chocolate or candy desire
of kids and is hence not accepted
 Reputed company, nutritional value and something
new and novel will make then try

14.  Éclairs: Get lost, Kho Jao
 Centerfresh: Zubaan pe rakhe lagaam - Keeps your
mouth shut
 Centerfruit: Kaise jeebh lapalapaayi - The tongue
wags and how
 Chloromint: Dobaara mat poochna – Don’t ask
again!
 Mentos: Dimaag ki batti jala de - Lights up the
bulbs of mind
 Alpenliiebe: Laalach aaha laplap - Tongue wags of
greed

15.  Communication revolve around attitude, taste
and fun.
 Humor forms a key component
 Good and noticeable ads generate consumers
and induces trials
 Buying is a combination of impulse and
decision based on price and taste
 Mothers control a lot