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India’s growing taste for gums and jellies

11 February 2015

Canadean expects the confectionery market in India to grow by 71% in the next four years, as the growing Indian middle-class consumes more gums and jellies and chocolate continues to be high in demand among children.

The Indian middle-class sees gum as a luxury item

The Indian confectionery market was worth close to US$1.3 billion in 2013 and is expected to grow by 71% to reach US$2.2 billion in 2018. Economic growth and development has resulted in rising disposable incomes in India, especially among the middle-class. According to Canadean, this class accounts for 45% of overall confectionery consumption in the country, and more than half of the consumed confectionery is gum. Safwan Kotwal, analyst at Canadean, says: “In India, gum is seen as a luxury item, with branded products predominantly available in urban areas. This is especially true for gum that provides fresh and minty breath, as it portrays a professional and well-groomed image that is becoming more vital to success in the Indian workplace."

Hot climate means Indians prefer gums and jellies to chocolate

Due to the soaring temperatures in India, consumers prefer gums and jellies over chocolate, especially in the summer months. Canadean finds that sugar confectionery and gum will outsell chocolate in volume terms: Gum is expected to see an increase of 64% in volume consumption by 2018, compared to a growth of only 41% in chocolate consumption. Kotwal says: “Weather plays a vital role for sugar confectionery and gum sales. However, when translated into value terms, the chocolate market still dominates and is expected to surpass the US$1 billion mark in 2018.”

Chocolate continues to be firm favourite with children

Although the report shows that gum is becoming more popular among adults in India, sweets and toffees will stay firm favourites with children and continue to be high in demand. Kids 9 years and younger accounted for almost a quarter of sugar confectionery and chocolate consumption in 2013. Kotwal adds: “Consumers in this age group, like in any other country, have a preference for sweet tasting products, which will be further enhanced as they develop their tastes and preferences for certain brands and products.”

 

Gum Chewing

Gum that provides fresh and minty breath is seen as a luxury item in India.

 

NOTES

All numbers used in this text are based on data from the Canadean Intelligence Center.

Please get in contact if you have any questions to this or other Canadean insights. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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