Candy BAZAAR: The sugar confectionary industry

Every child's dream.This category includes all the non-chocolate candies such as Bubble Gums, Chewing Gums, Lozenges, Hard Boiled Candies, Digestive Candies, Éclairs etc......

The estimated annual market for this category is around Rs. 3500 Crores with the organized sector accounting for almost 70% of this market i.e. approximately 2500 Crores. The market growth is pegged at a CAGR of 7% for the next few years with the organized sector growing at a slightly higher pace.

Close to 50% of this category is accounted for by the Hard Boiled Candies (30%) and Cough Lozenges (20%). Interestingly cough lozenges are sold more because of surrogate use. By smokers to suppress breath odor. I am certain that this category is closely linked to the tobacco industry (which I shall analyze separately one day). This may perhaps also be the reason why this category is growing compared to the Hard-boiled candies which are declining. I also feel that the apparent decline of Hard Boiled candies is not actually a decline but a phenomenon of a base category getting split into specialized categories such as gum's and digestive candies.

Perfetti India sales close to R. 700 Crores accounts for 30% of the organized market with some of the most visible brands such as alpenleibe, center fresh etc. In my view the primary reason for the success of this company is, besides its iconic advertising, is its fantastic sales and distribution model and the terms of trade. ITC of course has also become a major player because of its extensive reach of cigarettes.

A little WORD HISTORY: Did you know that the word “Candy” has its roots in the Arabic word “Quandi” which means a Lump Of Sugar which it self traces its roots to the Sanskrit word “Sharkar Kandi” i.e. sweet potato!!! So both the English words “Sugar” & “Candy” have followed the same path from Sanskrit to Arabic to English!!!!!!!!!!

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