Indian economy has seen major changes in past few years. Government’s policies have played a crucial role in setting trends in the business world. Demonetisation was a very big decision for the country and industries are experiencing its effects now. Indian candy market is a very profitable industry which has many trusted local names as well as multinational companies that are trying to capture Indian customers. A global research company – Neilsen has revealed a data about the candy market in India after note ban and the results are very surprising.
Candy market in India
According to the report, local Indian brands such as ITC, Parle and DS Foods have seen a great growth in last few months. Global companies like Nestle, Perfetti Van Melle and Mondelez are experiencing loss due to the growth of Indian companies. The confectionary market in India is estimated to be aroud Rs. 7500 crore.
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Market shares of candy brands in 2016 and 2017:
| Brand | 2016 | 2017 |
|---|---|---|
| ITC | 8.96 | 10.23 |
| DS | 4.44 | 4.84 |
| Nestle | 4.13 | 3.81 |
| Parle | 14.74 | 15.90 |
| Mondelez | 3.95 | 3.55 |
Even as small price hack as 50 paise causes a negative impact on the candy buyers. Most of the multinational companies have doubled their prices in past 3-4 years and this is the main reason why Indians are ignoring these brands. Buyers are getting the same quality at fewer rates from local companies, and they are happy to contribute to Indian economy in this way.
Effect of Demonetisation
Coming to the demonetisation, due to this a huge amount of low-value currency notes and coins came back in regular circulation which is leading to the increase in sales of candies. Although, in some regions, the sale has decreased too because now people don’t accept these candies in place of 1 rupee coin.
Same is happening the chocolate market, Indian brands are enjoying the growth while foreign brands are losing their shares in the country.
Indian candy market is on its rise right now, the customer now buys 1 rupee candy without any hesitation giving double-digit growth to the manufacturers. If Indian brands can attract more customers with creative and interacting marketing campaigns it can do wonders for them.
