India Soan Papdi Market, By Segment (Ghee, Non-Ghee), By Type (Flavor, Classic), By Distribution Channel (Supermarket/ Hypermarket, Tradition retail stores/ Sweet shops, Online, Convenience Stores), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India soan papdi market was valued at USD 141.24 Million in 2025 and is expected to reach USD 252.96 Million by 2031 with a CAGR of 10.2% during the forecast period. The India Soan Papdi market has witnessed steady growth, driven by rising demand for traditional sweets, festive consumption, and innovative product offerings. The market is expanding due to increasing disposable incomes, urbanization, and the popularity of gifting confectionery during festivals like Diwali and Raksha Bandhan. A key trend is the shift toward health-conscious variants, with brands launching sugar-free, organic, and multigrain Soan Papdi to cater to diabetic and fitness-aware consumers. The ghee-based segment remains dominant due to its rich taste and premium perception, while non-ghee variants are gaining traction in price-sensitive markets. Flavor innovations such as chocolate, pista, and mango-infused Soan Papdi are attracting younger demographics, while classic variants retain strong demand in traditional retail channels.

Key Market Drivers

Rising Demand for Traditional and Festive Sweets

The cultural significance of Soan Papdi as a beloved Indian sweet has been a major driver of its market growth. Deeply rooted in festive traditions, it remains a staple during celebrations such as Diwali, Raksha Bandhan, and weddings. The gifting culture in India has further boosted demand, with premium and attractively packaged Soan Papdi emerging as a popular choice for corporate and personal gifting. Additionally, the nostalgic appeal of this flaky, melt-in-the-mouth confectionery ensures consistent demand across generations. Manufacturers are capitalizing on this trend by introducing luxury gift boxes, assorted flavors, and combo packs, catering to both domestic and international markets, particularly the Indian diaspora.

Health-Conscious Innovations and Product Diversification

Changing consumer preferences toward healthier indulgences have pushed brands to innovate within the Soan Papdi segment. With increasing awareness of diabetes and obesity, manufacturers are launching sugar-free, low-calorie, and multigrain variants sweetened with natural substitutes like stevia and jaggery. 42% of urban consumers now prefer sugar-free/healthier sweets, with stevia-based Soan Papdi sales growing 35% annually (Mintel Food Trends Survey, 2025).Additionally, organic and gluten-free options are gaining traction among health-conscious urban consumers. Flavored innovations—such as pista, chocolate, mango, and rose-infused Soan Papdi—are attracting younger buyers, expanding the product’s appeal beyond traditional sweet lovers. This diversification not only retains existing customers but also taps into new demographics, ensuring sustained market expansion.

Expansion of Retail and E-Commerce Distribution Channels

The growing penetration of modern retail (supermarkets/hypermarkets) and e-commerce platforms has significantly contributed to the accessibility and sales of Soan Papdi. Organized retail chains like Reliance Fresh, Big Bazaar, and DMart stock branded and packaged variants, enhancing visibility and consumer trust. Meanwhile, online platforms (Amazon, Flipkart, Swiggy Instamart, and Zepto) have made it easier for consumers to purchase Soan Papdi, especially during festive seasons, with options for bulk orders and doorstep delivery. Online sweet sales surged 45% in 2024, with Amazon/Flipkart contributing 60% of branded Soan Papdi volumes (E-Grocery Report, 2025). Small and medium manufacturers are also leveraging social commerce (WhatsApp, Instagram, Meesho) to reach regional markets. Furthermore, the export market is expanding as Indian brands comply with global food safety standards, using vacuum-sealed and longer shelf-life packaging to cater to international buyers in the Middle East, USA, and UK. This multi-channel distribution strategy ensures wider reach and convenience, driving overall market growth.

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Key Market Challenges

Short Shelf Life and Perishability Concerns

One of the biggest challenges for the Soan Papdi market is its limited shelf life, typically ranging from 15 to 30 days due to its high sugar and ghee content, which attracts moisture and leads to spoilage. Unlike packaged snacks or chocolates, Soan Papdi loses its crispness and freshness quickly, making storage and long-distance distribution difficult. While some manufacturers have introduced vacuum-sealed and nitrogen-flushed packaging to extend shelf life, these solutions increase production costs. Small-scale vendors, who dominate the unorganized market segment, often struggle with these packaging innovations, leading to inconsistent product quality and frequent wastage. This perishability also limits export potential, as maintaining freshness during transit remains a hurdle for international expansion.

Intense Competition from Modern Snacks and Substitute Products

The traditional sweets market, including Soan Papdi, faces stiff competition from Western confectionery, protein bars, and healthier snack alternatives. Younger consumers, especially in urban areas, are shifting toward convenient, on-the-go snacks like chocolates, biscuits, and granola bars, perceiving them as less messy and more shelf-stable. Additionally, the rise of sugar-free and keto-friendly desserts has diverted demand away from traditional sweets. Even within the Indian sweets segment, alternatives like laddoos, barfis, and dry fruit-based mithais are gaining preference due to their longer shelf life and premium positioning. To remain competitive, Soan Papdi manufacturers must invest in innovative flavors, healthier formulations, and attractive packaging, which can be cost-prohibitive for small and local producers.

Price Volatility of Raw Materials and Operational Costs

Soan Papdi production relies heavily on key ingredients like sugar, ghee, flour, and cardamom, all of which are subject to price fluctuations due to supply chain disruptions, seasonal variations, and government policies. For instance, rising sugar prices or ghee costs directly impact profit margins, forcing manufacturers to either increase retail prices (risking customer pushback) or absorb losses. Additionally, labor-intensive production processes make scaling operations difficult, as automation in traditional sweet-making remains limited. Compliance with FSSAI regulations and quality standards further adds to operational costs, particularly for small businesses that lack the resources for advanced food safety certifications. These financial pressures make it challenging for local vendors to compete with established brands, leading to market consolidation and reduced diversity in product offerings.

Key Market Trends

Premiumization and Gourmet Positioning

The Soan Papdi market is witnessing a shift toward premium and gourmet offerings, driven by evolving consumer preferences for high-quality, artisanal sweets. Established brands and niche players are introducing luxury variants infused with premium ingredients such as saffron, dry fruits, and single-origin ghee, catering to affluent urban consumers. These gourmet versions often come in elegant, reusable packaging, making them popular for corporate gifting and festive hampers. Additionally, celebrity endorsements and chef-curated Soan Papdi are gaining traction, adding an element of exclusivity. This trend is particularly prominent in metro cities, where consumers are willing to pay a premium for superior taste and presentation. The rise of specialty sweet shops and online gourmet stores has further amplified this trend, creating a niche segment within the traditional sweets market.

Fusion Flavors and Experimental Variants

To attract younger consumers and differentiate their products, manufacturers are experimenting with fusion flavors and unconventional ingredients. Traditional Soan Papdi is being reinvented with chocolate drizzle, salted caramel, matcha, and even spicy tangy twists, appealing to millennials and Gen Z who seek novelty in their snacks. Regional variations, such as kaju (cashew)-based Soan Papdi in the South or rose-flavored variants in the North, are also gaining popularity. Limited-edition seasonal flavors, like mango in summer or elaichi (cardamom) during winters, are being launched to capitalize on festive and weather-specific demand. This trend not only revitalizes the product’s image but also expands its consumption occasions beyond traditional festivals to casual snacking and dessert pairings.

Sustainability and Eco-Friendly Packaging Initiatives

With increasing environmental awareness, brands are adopting sustainable practices in Soan Papdi production and packaging. Biodegradable and compostable packaging materials, such as plant-based films and paper boxes, are replacing plastic wrappers to reduce environmental impact. Some artisanal brands are promoting zero-waste initiatives by using reusable tins or encouraging customers to return packaging for discounts. Additionally, there is a growing emphasis on ethical sourcing of ingredients, such as organic sugar and desi ghee from small farmers, to appeal to eco-conscious consumers. This trend aligns with global sustainability goals and enhances brand loyalty among environmentally aware buyers, particularly in urban markets where green consumerism is on the rise.

Segmental Insights

Segment Insights

In the India Soan Papdi Market, the ghee-based Soan Papdi segment dominates the Indian market, accounting for the largest revenue share due to its rich, traditional taste and premium perception. Ghee (clarified butter) enhances the flavor and texture of Soan Papdi, making it a preferred choice for festive gifting and special occasions. This segment appeals to consumers seeking authenticity, particularly in North and West India, where ghee-based sweets hold cultural significance. Leading brands like Haldiram’s, Bikanervala, and Bikano focus on high-quality ghee to differentiate their products, often using desi cow ghee as a selling point. Despite higher costs compared to non-ghee variants, demand remains strong due to its association with purity and indulgence. The segment is expected to grow steadily, driven by premiumization trends, though price sensitivity in rural areas may limit expansion.

Distribution Channel Insights

Supermarkets and hypermarkets like Reliance Fresh, Big Bazaar, and D-Mart are critical for branded Soan Papdi sales, offering visibility and convenience. These stores stock both ghee and non-ghee variants, with premium and gift-packed products dominating shelf space. The organized retail channel benefits from impulse purchases during festivals and the trust associated with sealed, hygienic packaging. Brands invest heavily in in-store promotions and discounts to compete in this space. While supermarkets drive volume sales in urban areas, their penetration in rural markets remains limited, where traditional sweet shops still prevail. This channel is expected to grow as modern retail expands into smaller cities.

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Regional Insights

In the India Soan Papdi market, North India dominated the Soan Papdi market, accounting for the highest consumption due to its deep-rooted cultural association with ghee-based sweets. States like Uttar Pradesh, Punjab, and Delhi are major hubs, where Soan Papdi is a staple during festivals like Diwali and Holi. The region's preference for rich, traditional flavors keeps demand for ghee-based and classic variants consistently high. Established brands like Haldiram’s and Bikanervala have strong distribution networks here, while local halwais thrive in cities like Agra and Mathura, known for their artisanal versions. Despite market saturation, North India remains the revenue leader, driven by festive gifting and tourism-related purchases.

West India, particularly Gujarat and Maharashtra, is a key market with a growing appetite for premium and innovative Soan Papdi variants. Urban centers like Mumbai and Ahmedabad show strong demand for gourmet, flavored, and sugar-free versions, aligning with health-conscious trends. The region's thriving corporate gifting culture also boosts sales of luxury packaging. Local brands like Rajbhog and A-One compete with national players by offering region-specific flavors like pista-rose and mango. While not the largest market, West India is evolving rapidly, with e-commerce and modern retail driving accessibility in tier-2 cities like Surat and Pune.

Recent Developments

• In 2024, Haldiram's introduced a diabetic-friendly variant sweetened with stevia, targeting health-conscious consumers. The product is now available in metro cities through modern retail and e-commerce platforms.
• In 2024, Bikano entered UAE and Saudi markets with vacuum-sealed Soan Papdi, complying with international food safety standards, boosting export growth by 25% YoY.
• In 2025, Startup 'Mithai Moments' Raises USD 2 Million for Gourmet Soan Papdi, the Delhi-based D2C brand secured funding to expand its artisanal flavors (saffron-pista, dark chocolate) and scale production.

Key Market Players

• Haldiram's India Pvt Ltd 
• Bikaji Foods International Ltd.
• Bikanervala Foods Pvt. Ltd.
• Nutriana Foods Pvt. Ltd.
• Balaji Wafers Pvt. Ltd.
• Prataap Snacks Ltd.
• ADF Foods Ltd.
• Bajoria Foods Pvt. Ltd.
• Desai Brothers Ltd.
• ITC Limited

Report Scope:

In this report, the India Soan Papdi market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Soan Papdi Market, By Segment:

o   Ghee

o   Non-Ghee

• India Soan Papdi Market, By Type:

o   Flavor

o   Classic

• India Soan Papdi Market, By Distribution Channel:

o   Supermarket/ Hypermarket

o   Tradition retail stores/ Sweet shops

o   Online

o   Convenience Stores

• India Soan Papdi Market, By Region:

o   North

o   East

o   West

o   South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Soan Papdi market.

Available Customizations:

India Soan Papdi 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).

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