SUGAR CONFECTIONERY IN INDIA - ANALYSIS

Country Report | Aug 2019

HEADLINES Market Sizes

Current value sales of sugar confectionery increase by 19% in 2019 to reach INR139.0 Sales of Sugar Confectionery
billion, while volume sales increase by 12% to reach 427,900 tonnes Retail Value RSP - INR million - Current - 2005-2024
The reintroduction of previously popular brands in an effort to capture a sense of
nostalgia continues to pay off for certain category players 138,958 Forecast
300,000
Boiled sweets records by far the strongest performance in sugar confectionery in
2019 as value sales rise by 33% in current terms to hit INR23.3 billion
250,000
The average unit price of sugar confectionery increases by 6% in current terms in
2019 to reach INR324.70 per kg
200,000
Parle Products retains its leading position sugar confectionery in 2019 with a value
share of 11%, slightly ahead of strong challenger ITC Ltd with a 10% value share
150,000
A current value CAGR of 16% (11% in constant 2019 terms) is expected to be seen in
sugar confectionery over the forecast period 100,000

PROSPECTS 50,000

Nostalgia-inspired relaunches of discontinued traditional brands

0
remains major trend 2005 2019 2024

2019 saw several of the leading players in sugar confectionery relaunching previously
discontinued brands and product lines. Among the companies most active in this area
was category leader Parle, which relaunched its traditionally popular brands Mazelo Sales Performance of Sugar Confectionery
and Poppins, with the reintroduction of its Rola-Cola brand on the horizon. Traditional % Y-O-Y Retail Value RSP Growth 2005-2024
sugar confectionery brands such as Poppins and Rola-Cola were previously very
successful and this has enabled Parle to establish strong connections with older
consumers through much-hyped relaunches.
18.6% Forecast
25%
These relaunches followed Mondelez’s previous reintroduction of its medicated
confectionery brand Halls, which was also highly successful. The forecast period is
likely to see more relaunches of traditional sugar confectionery brands and this is 20%
because the relaunch of an older brand makes marketing easier for companies and
offers more chance of investment paying off.
15%
Healthier products continue to proliferate
Faced with flagging demand due to increasingly widespread public concerns over the 10%
health risks associated with high sugar consumption, 2019 saw the leading players in
sugar confectionery continue to launch healthier options. The primary aim of these
new launches is to more effectively target a consumers audience comprised largely of 5%
people that are becoming increasingly health conscious, which motivates them to
completely avoid all high-sugar products. After 2018 saw Parle launch sugar free
confectionery in three flavours enriched with vitamin C and ITC launch the Candyman 0%
2005 2019 2024
brand of jellies enriched with vitamin C, zinc and iron, 2019 saw DS group launched
Pulse Zero, a brand of sugar confectionery that contains no sugar or salt.

Innovation remains an important spur on sales growth in sugar

confectionery
One of the major factors spurring sales growth in sugar confectionery in 2019 was the
strong focus on innovation among the category’s leading players. Numerous new
launches were seen during the year and this encouraged consumers to purchase higher
quantities of sugar confectionery, resulting in particularly dynamic sales growth. DS
group for instance launched new variants under its Pulse brand, while Parle relaunched
numerous heritage brands including Rola-Cola in an effort to tap into feelings of
nostalgia bout these traditionally popular products. Hershey’s meanwhile launched
Jolly Rancher Hotties and Mars launched its iconic Skittles brand of fruit flavoured sugar
confectionery.

COMPETITIVE LANDSCAPE

Parle registers further value share declines, with ITC now breathing
down its neck

© Euromonitor Interna onal 2019 Page 1 of 3

Parle Products Pvt Ltd only just managed to hang on to its leading position in sugar
Sales of Sugar Confectionery by Category
confectionery in 2019 as the company lost further value share to leave it only very
Retail Value RSP - INR million - Current - 2019 Growth Performance
marginally ahead of its closest rival ITC Ltd. Parle struggled towards the end of the
review period as years of increasingly intense price competition finally started to wear
Boiled Sweets
the company down. It responded to price competition by phasing out products with 23,280.0
thin margins and introducing newer versions or formats of its existing brands at the
Liquorice
higher price point of INR1.00, rather than INR0.50, which became the new base price in -
the sugar confectionery price war earlier in the review period. The company is also in
Lollipops
the process of re-launching various of its more popular products from the past that had 1,744.6
previously been discontinued.
Medicated Confectionery
7,534.3
Price competition continues to define the competitive landscape Mints
9,726.5
Price competition has been very cutthroat in sugar confectionery for some years now,
Pastilles, Gums, Jellies and Che...
with players engaged in a race to the bottom in terms of the pricing of their products. 11,372.1
The majority of products in this category are priced between at between INR0.50 and
Toffees, Caramels and Nougat
INR1.00, although it is now becoming the category norm to charge INR1.00 per item, 85,300.7
price competition remains particularly intense. Thijs has left most companies in the
Other Sugar Confectionery
category with wafer-thin margins, a situation which is not seen as sustainable over the -
longer term. Major brand owners such as Parle, Mondelez and Perfetti Van Melle have
0% 20% 40%
adjusted their pricing strategies and made changes to their product ranges to counter
the corrosive effects of the extended price war on their operations. SUGAR CONFECTIONERY 138,958.2 CURRENT % CAGR % CAGR
YEAR % 2014-2019 2019-2024
GROWTH
Marketing remains a cornerstone of success in sugar confectionery
With price competition at its most intense in sugar confectionery towards the end of
the review period, the category’s leading players turned to widespread marketing
campaigns to build brand recognition among consumers and help justify the higher Competitive Landscape
prices charged for their well-known brands. DS Group for instance launched a
widespread marketing campaign for its Pulse brand under the slogan “Pran Jaaye Par Company Shares of Sugar Confectionery
Pulse na Jaaye”. ITC meanwhile engaged in various marketing activities for its % Share (NBO) - Retail Value RSP - 2019
Candyman brand and Perfetti Van Melle launched a media advertising campaign for its
new brand Alpenliebe. Compa ny % Sha re
Pa rle Products Pvt Ltd 10.5
ITC Ltd 10.4
Mondelez India Foods Pvt Ltd 6.9
Perfetti Va n Melle India Pvt Ltd 5.9
Nes tlé India Ltd 3.4
DS Group 2.8
Procter & Ga mble Hygiene & Hea lth Ca re Ltd 2.6
Ma pro Foods Pvt Ltd 2.5
Ferrero India Pvt Ltd 1.4
Lotte India Corp Ltd 1.4
Inbis co India Pvt Ltd 1.2
Ra va lga on Suga r Fa rms Ltd 0.6
Ma la 's Fruit Products 0.4
Plethico Pha rma ceutica ls Ltd 0.4
Wrigley India Pvt Ltd 0.3
Da bur India Ltd 0.3
Fa bs Interna tiona l 0.1
Hers hey India Pvt Ltd 0.0
Others 48.8

© Euromonitor Interna onal 2019 Page 2 of 3

 Brand Shares of Sugar Confectionery
% Share (LBN) - Retail Value RSP - 2019

Parle 7.2%
Candyman 7.2%
Cadbury Choclairs 5.2%
Alpenliebe 4.3%
Mint-O 3.2%
Pulse 2.8%
Kismi 2.8%
Vicks 2.6%
Falero 2.5%
Halls 1.7%
Tic Tac 1.4%
Kopiko 1.2%
Milkybar 1.1%
Coffy Bite 0.8%
Mentos 0.7%
Polo 0.6%
Chlor-Mint 0.5%
Londonderry 0.5%
Coffee Break 0.5%
Others 53.3%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2019 Page 3 of 3