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Forecast Period
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2026-2030
|
|
Market Size (2024)
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USD 2.06 Billion
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CAGR (2025-2030)
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14.06%
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Fastest Growing Segment
|
Online
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Largest Market
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North
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Market Size (2030)
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USD 4.01 Billion
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Market Overview
India Candy Market was valued at USD 2.06 Billion in 2024 and is expected to
reach USD 4.01 Billion by 2030 with a CAGR of 14.06% during the forecast period.
The India Candy market is witnessing robust growth, by a combination of
changing consumer preferences, rising disposable incomes, and the growing
popularity of confectionery products across all age groups. As urbanization
increases, there is a greater demand for affordable and convenient snacking
options, with candy being a popular choice among children, teenagers, and
adults alike. Also, rising disposable incomes allow consumers to indulge in
premium or novel candy offerings, including sugar-free, organic, and
health-conscious variants. The expanding presence of modern retail channels,
including supermarkets, hypermarkets, and online platforms, further boosts the
market by providing wider access to diverse candy products. Also, the growing
influence of social media, celebrity endorsements, and seasonal promotions
continues to fuel the demand for both traditional and innovative candy
varieties, making it a rapidly expanding segment in India's snack market.
Key Market Drivers
Product
Upgradation by Major Players
Product upgradation by major players is a significant
driver of the India candy market. As consumer preferences evolve, candy
manufacturers are increasingly focusing on enhancing their product offerings to
meet growing demand for novelty, quality, and health-conscious alternatives. As
a part of this, as September 2024, ITC Candyman launched Candyman Sourzzz,
marking its entry into the exciting market of sour candies. Candyman Sourzzz is
a tangy jelly that will tantalize the taste buds with its powerful flavor
profile. These sour candies are intended to evoke the brand Candyman's spirit
of playfulness and mischief. The deal is sure to bring out the wicked side in
candy lovers of all ages, particularly the younger generation. Major
players are upgrading their candy portfolios by introducing new flavors,
shapes, and textures, making the candy experience more exciting for consumers.
This includes a wide range of innovative products, such as sugar-free, organic,
and functional candies that appeal to the health-conscious segment of the
market. Manufacturers are also investing in improving the nutritional profile
of their candies, with options that cater to specific dietary requirements such
as gluten-free, vegan, and low-calorie products. Also, product packaging is
being upgraded to appeal to consumers seeking convenience, eco-friendly
materials, and attractive designs that enhance the overall experience. To
further strengthen their market presence, companies are leveraging
technological advancements in production, ensuring that their candy products
are of higher quality while maintaining cost-effectiveness. The launch of
limited-edition or seasonal products is another strategy employed by key
players to maintain consumer interest and drive sales. These product upgradations
help candy brands stay competitive in a rapidly evolving market, meeting the
preferences of a diverse consumer base.
Growing
Urbanization
Growing urbanization is a significant driver of the
India candy market. As India continues to experience rapid urbanization, more
people are moving to cities in search of better job opportunities and improved
lifestyles. As a part of this, according to World Bank Group, as of January
2024, India is increasingly urbanizing. By 2036, its towns and cities will house
600 million people, or 40% of the population, up from 31% in 2011, with urban
regions generating over 70% of GDP. This demographic shift has led to
changes in consumer behaviour, with an increasing demand for convenient,
on-the-go snack options, including candy. Urban consumers, particularly working
professionals, students, and young adults are increasingly drawn to candies as
a quick and affordable indulgence in their busy daily routines. Also, urban
areas offer better access to modern retail outlets, supermarkets, hypermarkets,
and online platforms, which makes candy products more widely available and
accessible to consumers. The presence of a variety of candy brands and product
types, ranging from traditional to premium and health-conscious options, has
catered to the evolving tastes of urban consumers. Urbanization also leads to a
greater exposure to global food trends, influencing taste preferences and
driving demand for international candy flavors and innovations. Also, the
rising disposable incomes in cities enable consumers to spend more on indulgent
products, including premium or novelty candy varieties. As urbanization
continues to rise, the candy market is expected to experience sustained growth,
with manufacturers focusing on offering convenient, innovative, and diverse
candy options for urban consumers.
Growing
Health-Conscious Population
The growing health-conscious population is a
significant driver of the India candy market, as more consumers are becoming
aware of the impact of sugary and unhealthy snacks on their health. Rising
concerns about obesity, diabetes, and other lifestyle diseases are prompting
individuals to seek healthier alternatives. As a result, there is an increasing
demand for candies that are sugar-free, low-calorie, organic, or made with
natural sweeteners. Health-conscious consumers are also looking for products with
fewer artificial additives and preservatives, pushing candy manufacturers to
innovate with clean-label and functional products.
This shift towards healthier candy options is
particularly noticeable among the younger generation, urban populations, and
those with higher disposable incomes, who are willing to pay a premium for
candies that align with their wellness goals. Manufacturers are responding by
launching a variety of health-focused candies, such as fruit-based, vegan,
gluten-free, and fortified with vitamins or minerals. These innovations are not
only appealing to health-conscious individuals but also to those with dietary
restrictions or preferences. As the health and wellness trend continues to grow
in India, the candy market is expected to see sustained growth, with consumers
increasingly turning to healthier, guilt-free indulgences. This trend is
pushing brands to strike a balance between taste and nutrition while meeting
the rising demand for better-for-you candy options.
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Key Market Challenges
Regulatory
Complexities
Regulatory complexities are a significant challenge in
the India candy market. The Indian food and beverage industry is governed by
various regulations set by authorities like the Food Safety and Standards
Authority of India (FSSAI), which imposes strict guidelines on the ingredients,
production processes, and labeling of confectionery products. These regulations
aim to ensure food safety and protect consumer health but can create hurdles
for candy manufacturers, especially when it comes to compliance and adhering to
the evolving standards. For example, the use of food additives, preservatives,
and artificial coloring agents is closely regulated, and companies must ensure
their products meet safety standards. Also, with the increasing demand for
healthier options, manufacturers must comply with new regulations surrounding
sugar content, labeling, and marketing claims, such as "sugar-free"
or "organic." Failure to meet these requirements can result in
product recalls, fines, or restrictions on sales, leading to potential
financial losses and reputational damage. Also, the regulatory landscape in
India is continually evolving, and businesses must stay up to date with the
latest changes to avoid non-compliance. This can be particularly challenging
for smaller manufacturers who may lack the resources to navigate complex
regulations. The ongoing need to align products with government standards adds
an additional layer of cost and operational complexity for candy producers in
India.
Intense
Competition Among Major Players
Intense competition among major players is a
significant challenge in the India candy market. The confectionery sector is
highly fragmented, with numerous local and international brands vying for
market share. Large multinational companies, such as Nestlé, Cadbury, and Mars,
dominate the market with well-established products and significant brand
recognition. These companies often have vast distribution networks, extensive
advertising budgets, and strong consumer loyalty, making it difficult for
smaller players to compete effectively.
At the same time, local manufacturers and regional
players are also increasing their presence by offering innovative,
cost-effective, and culturally relevant candy options. These smaller brands
often leverage regional flavors and traditional ingredients to cater to local
preferences, which adds to the competitive pressure on larger players. The
growing number of brands and products in the market leads to price wars, which
can erode profit margins and create challenges in maintaining product quality.
Also, with the increasing demand for healthier and functional candies,
companies must continuously innovate to stay relevant in the market. The need
for constant product innovation, effective marketing strategies, and efficient
distribution channels increases operational costs, making it a challenge for
businesses to sustain long-term growth while managing intense competition.
Key Market Trends
Rising
Demand for Organic Candy
Rising demand for organic candy is a significant trend
in the India candy market, driven by growing health-consciousness among
consumers. As more individuals become aware of the adverse effects of
artificial ingredients, preservatives, and excessive sugar consumption, there
is a shift towards cleaner, healthier alternatives. Organic candy, which is
made using natural sweeteners, colors, and flavors, is increasingly preferred
by health-conscious consumers who want to indulge without compromising on their
dietary choices. This trend is especially popular among urban populations,
where awareness of the benefits of organic food products is higher. Younger
consumers are seeking healthier indulgences, leading to a rise in demand for
sugar-free, gluten-free, and vegan organic candy options. These products appeal
to a variety of dietary preferences and restrictions, such as vegan, paleo, and
diabetic-friendly options, further expanding their consumer base.Manufacturers
are responding by introducing organic versions of popular candy items,
including chocolate, gummies, and lollipops, often marketed with claims of “no
artificial colors or flavors” and “made with organic ingredients.” As consumer
preferences continue to shift towards organic and clean-label products, this
trend is expected to shape the future of the candy market, with more brands
focusing on product innovation to meet the growing demand for healthier,
organic candy options.
Increased
Consumption of Chocolate Candies Across the Region
Increased consumption of chocolate candies is a
prominent trend in the India candy market. As a part of this, as of 2023,
the retail sales value of chocolate confectionery items in India was 2.43
billion US dollars. This was an increase over the previous year. The sales
value is predicted to exceed USD 4 billion by 2028, expanding at a compound
annual growth rate of 10.2 percent. As the Indian population’s disposable
income rises and urbanization accelerates, consumers are increasingly indulging
in chocolate-based confectioneries, which are perceived as premium, indulgent
treats. Chocolate candies have become a staple in the Indian candy market,
driven by factors like evolving taste preferences, increasing exposure to
international brands, and growing acceptance of chocolate as a mainstream snack
rather than an occasional indulgence. Young consumers are fuelling the growth
of this segment, with chocolate candies being popular among children and young
adults due to their rich flavors and variety. The rise of innovative chocolate
products, such as filled chocolates, premium artisanal chocolates, and
healthier chocolate variants like sugar-free or organic options, is further
boosting the market. Chocolate candies are also becoming a preferred gifting
option during festivals and special occasions, leading to seasonal surges in
demand. Also, chocolate brands are leveraging celebrity endorsements and social
media marketing to appeal to younger consumers, further driving the consumption
of chocolate candies. As consumer preferences shift towards premium indulgence,
the chocolate candy segment is expected to maintain its growth trajectory,
becoming a dominant category in the Indian candy market.
Increased
Focus on Innovative Packaging
Increased focus on innovative packaging is a key trend
in the India candy market. As competition intensifies and consumer expectations
evolve, manufacturers are prioritizing creative and functional packaging
solutions to enhance product appeal and differentiate themselves. Modern
consumers, especially in urban areas, are drawn to packaging that is visually
appealing, easy to use, and environmentally friendly. Many candy brands are
adopting eco-friendly materials, such as recyclable or biodegradable packaging,
to meet growing sustainability concerns. Also, innovative packaging is being
used to extend shelf life, maintain product freshness, and improve convenience.
Resealable packs, smaller portion sizes, and individually wrapped candies are
gaining popularity among consumers who value convenience and hygiene. Packaging
that provides information on nutritional content, ingredient sourcing, and
health benefits is also becoming more common as health-conscious consumers seek
transparency. Limited-edition, festive, and seasonal packaging designs are
further driving consumer interest and increasing sales during special occasions
like festivals and holidays. Overall, packaging innovation is helping candy
brands not only to attract attention on the shelves but also to build stronger
consumer loyalty and align with emerging trends in sustainability and
convenience.
Segmental Insights
Distribution
Channel Insights
Supermarket/Hypermarket dominated the India
Candy market, due to their wide reach and the convenience they offer consumers.
These retail formats provide easy access to a diverse range of candy products,
from traditional favorites to premium and health-conscious options. With
spacious aisles and well-organized shelves, supermarkets and hypermarkets allow
consumers to explore various brands and make informed choices. Also, the
presence of attractive promotions, discounts, and bundled offers further
enhances the appeal of these retail outlets. The growth of organized retail and
increasing disposable incomes among urban consumers continue to bolster the
dominance of supermarkets and hypermarkets in the candy market. As a part of
this, as of September 2024, the retail market in India was predicted to grow to
1.7 trillion US dollars by 2026, up from 883 billion in 2020.
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Regional Insights
The North region dominated the India Candy market, driven
by high urbanization, rising disposable incomes, and a large consumer base in
cities like Delhi, Chandigarh, and Jaipur. Urban centers in the North have seen
a surge in demand for both traditional and premium candy products, fuelled by
changing consumer preferences, increased health awareness, and a growing
appetite for indulgent treats. The presence of modern retail outlets,
supermarkets, hypermarkets, and e-commerce platforms in the region further
supports candy availability. Also, festivals and celebrations in the North lead
to a seasonal increase in candy consumption, further strengthening the region's
dominant position in the market.
Recent Developments
- In January 2023, Fazer, one of Finland's
oldest confectionery firms, partnered with Aberdeen Group to introduce its
diverse chocolate and confectionery brands to the Indian market. The company's
popular products, including the legendary Karl Fazer Milk Chocolate 'Fazer
Blue' and Geisha pralines, will be available to Indian chocolate enthusiasts
through Aberdeen Group's distribution network, which includes major retail
outlets, airport stores, and e-commerce platforms.
- In April 2024, Hershey India Pvt. Ltd.,
a subsidiary of The Hershey Company, a leading worldwide snack and
confectionery company and North America's largest maker of quality chocolates,
launched Hershey's Choco Delights, a melt-in-your-mouth milk chocolate bar
with crunchies. Hershey's Choco Delights expands Hershey's chocolate portfolio
in India and marks the company's entry into the Value Molded Chocolate
Sub-Segment, which is one of the largest in the chocolates category in India.
- In September 2024, Smoor, a well-known
luxury candy firm in India, and Hangyo Ice Creams partnered to combine Smoor's
outstanding chocolate expertise with Hangyo's ice cream production abilities.
This alliance will provide a variety of premium ice cream flavors, upgrading
the Indian dessert sector. Customers may expect to savor flavors like Vanilla
Bean, Dry Fruits, Salted Caramel, Roasted Almond with Coffee, and Black Gold
Chocolate.
- In September 2023, Swiss luxury
chocolate company Laderach, in exclusive partnership with DS Group, has set its
sights on India's fast developing luxury market, hoping to capitalize on the
country's booming economy. Laderach just opened its first chocolate boutique in
New Delhi's luxury mall, DLF Emporio, making its formal debut in the Indian
market.
Key Market Players
- ITC Limited
- Nestlé India Limited
- Hershey India Private Limited
- Mondelēz International, Inc
- DS Group
- Mars, Incorporated
- Perfetti Van Melle India Private Limited
- Lotte India
- Dhiman Foods Pvt. Ltd
- Ambic Food Products
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By Type
|
By Flavor
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By Sugar Content
|
By Nature
|
By Sales Channel
|
By Region
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- Chocolate Candy
- Non-Chocolate Candy
|
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- Sugar-Free
- With-Added Sugar
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- Supermarket/Hypermarket
- Convenience Stores
- Specialty Stores
- Online
- Others
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|
Report Scope:
In this report, the India Candy Market has been segmented
into the following categories, in addition to the industry trends which have
also been detailed below:
- India Candy Market, By Type:
o Chocolate Candy
o Non-Chocolate Candy
- India Candy Market, By
Flavor:
o Sweet
o Sour
o Mixed Flavor
- India Candy Market, By Sugar
Content:
o Sugar-Free
o With-Added Sugar
- India Candy Market, By
Nature:
o Organic
o Regular
- India Candy Market, By Sales
Channel:
o Supermarket/Hypermarket
o Convenience Stores
o Specialty Stores
o Online
o Others
- India Candy Market, By
Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Candy Market.
Available Customizations:
India Candy Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Candy Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]