Indian Confectionery Market 2025-2035

Indian Confectionery Market Size, Share & Trends Analysis Report by Type (Sugar Confectionery, Chocolate Confectionery, and Bakers' Confectionery), and by Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, and Online Channel), Forecast Period (2025-2035)

Industry Overview

Indian confectionery market was valued at $4.53 billion in 2024 and is projected to reach $7.13 billion by 2035, growing at a CAGR of 5.2% during the forecast period (2025-2035). The Indian confectionery market is witnessing significant growth due to the developing culture of gifting confectionery during occasions such as festivals, birthdays, anniversaries, and social events. With changing lifestyles, Indian consumers are slowly moving away from traditional Indian sweets and are showing more interest in premium chocolates and gourmet sweets. The influence of Western culture and the exposure to international brands have played a big role in this shift. To meet this demand, confectionery companies are putting more effort into creating attractive packaging that makes their products suitable for gifting.

• In October 2024, Ferrero India introduced the Confetteria Raffaello Classic Edition. This product combines almond, creamy filling, wafer shell, and coconut flakes in elegant, modern packaging, making it ideal for gifting. Raffaello offers modern, gift-worthy packaging like the Ballotin Pack with a cubic shape and elegant design.

Market Dynamics

Flavor Innovation Driving Confectionery Demand

One of the noticeable trends in India's confectionery market is the growing focus on flavor innovation. Brands are increasingly experimenting with dual and fusion flavors to capture consumer interest and create differentiated products. This shift reflects the rising demand among Indian consumers for unique taste experiences that go beyond conventional options.

To build stronger connections with domestic buyers, confectionery players are also drawing inspiration from localized flavors. For Instance, in 2024, DS Group introduced Pulse Golmol Imli Goli, a tamarind-based candy that combines nostalgic flavors of childhood with natural digestive benefits. The product merges tangy and sweet imli notes with a spicy twist, offering both indulgence and wellness. Such launches demonstrate how Indian brands are innovating with flavor while retaining familiarity for consumers.

Rising Demand for Functional Confectionery in India

The health-conscious consumer is influencing the confectionery market, leading to a rise in functional treats with Ayurveda inspirations. Many Indian consumers are now looking for sweets that also offer some health benefits. This has encouraged brands to use ingredients like turmeric, ginger, and traditional herbs, which have long been valued in traditional Ayurvedic practices. Instead of focusing only on indulgence, companies are trying to link confectionery with everyday wellness. A recent example is the entry of functional chocolates into the market. Awsum, which calls itself India's first functional chocolate brand, is aimed at urban working millennials. Its products combine Ayurvedic ideas with chocolate, giving options that are healthier while still tasting familiar.

Market Segmentation

• Based on the type, the market is segmented into sugar confectionery, chocolate confectionery, and baker's confectionery.
• Based on the distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, and the online channel.

Chocolate Dominance in India's Confectionery Market

Chocolate continues to dominate India's confectionery market, supported by rising consumer interest in indulgent treats and the cultural shift toward gifting premium chocolates during festivals and celebrations. Companies are increasingly introducing exotic flavors, health-oriented variants such as dark chocolate with nuts, and innovative packaging to appeal to both seasonal and impulse buyers.

Apart from global players, Indian brands are also responding to this growing trend. Companies like Amul and Haldiram's are introducing premium chocolate and confectionery lines to appeal to urban consumers who are looking for modern yet affordable gifting options. For instance, in 2023, Haldiram's Nagpur introduced Cocobay, a premium chocolate range. The line includes Rochers, Bars, Coins, Hearts, and other formats. Flavors such as Hazelnut, Caramel, Cranberry, and Chili Guava reflect both international and Indian tastes. Cocobay is currently available in Haldiram's outlets across major cities, including Mumbai, Nagpur, Bangalore, Hyderabad, and Chennai.

Conventional Stores: A Key Segment in Market Growth

Convenience stores are emerging as a major sales channel for confectionery products in India. These outlets continue to dominate distribution because they make products easily accessible, keep prices competitive, and frequently run promotions that attract repeat buyers. They have an advantage over contemporary trade and internet channels due to their robust presence in both urban and semi-urban areas.

Recognizing the reach of such stores, international brands like Sweet-Factory are choosing them as a gateway to the Indian market. The UK-based pick-and-mix candy company Sweet-Factory joined with Franchise India to expand into the Indian market in 2024. The brand introduces kiosks and stores in high-traffic locations, offering a mix of products such as jellies, marshmallows, chocolate-coated nuts, and fudge.

Market Players Outlook

The major companies operating in the Indian confectionery market include Amul, DS Group, ITC Limited, Mondelez International, Inc., Nestle India Limited, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

• In August 2024, South Korean confectionery company Lotte Wellfood merged its Indian subsidiaries Lotte India and Havmor Ice Cream to form One India, aiming for Rs 6,000 crore annual sales in 6 years.
• In August 2024, Annapurna Swadisht Limited plans to acquire 100% of Madhur Confectioners Private Limited by December 31, 2024, with an investment of up to Rs. 180 Crores. This move will make MCPL a wholly owned subsidiary, allowing Annapurna to leverage its distribution network for expanding MCPL's operations and capacity.
• Sri Lankan cricketer Muttiah Muralitharan will invest ₹1,400 crore in phases to establish a beverages and confectionery unit in Badanakuppe, Chamarajanagara district. The project, under the brand "Muttiah Beverages and Confectioneries," has been revised from ₹230 crore to ₹1,000 crore initially, with plans to increase to ₹1,400 crore. Manufacturing operations are set to begin in January 2025 on 46 acres of allocated land, with minor issues being addressed.

The Report Covers:

• Market value data analysis of 2024 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the Indian confectionery market. Based on the availability of data, information related to new products and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying 'who-stands-where' in the market.