Confectionery manufacturers are gearing up to launch new products for the upcoming Indian festival season, incentivized by the low inflationary pressure on the category. Sales of hard-boiled sweets, one of the largest segments of sugar confectionery, are rising due to their pocket-friendly pricing and diverse consumption occasions. Leading confectionery manufacturers, such as Lotte with its Coffy Bite Rich, are stepping up new product launches to tap the lucrative Indian market for hard-boiled sweets, which is projected to record a value compound annual growth rate (CAGR) of 8% over 2023–27*, according to GlobalData, a leading data and analytics company.
Francis Gabriel Godad, Consumer Business Development Manager, GlobalData India, comments: “The Indian confectionery market recovered rapidly from the COVID-19 impact as the pandemic restrictions were lifted and consumer outdoor mobility increased. Due to the consumer inclination for comfort foods amid stress or uncertainty, the category has remained relatively immune to inflationary pressures. This is corroborated by GlobalData’s Q1 2023 consumer survey, which found that only 15% of Indian respondents consider purchasing low-price/cheap chocolate, confectionery, and desserts as good value for money in comparison to 49% of survey respondents who said the same for high-quality products**.”
Hard-boiled sweets, in particular, are perceived as affordable indulgences even among low-/middle-income households due to their small pack sizes and pocket-friendly pricing. These small, weather-hardy candies also meet consumers’ desire for sweet treats on any occasion, whether it be during commutes, work, studies, exercise, or even after a meal.
Anush Shaw, Consumer Analyst at GlobalData, notes: “Confectionery manufacturers have set their sights on the Indian market, especially as sales of sweets and confectionery products are set to surge during the festive season in the second half of the year. As gifting of sweets is a tradition during festivals, such as Diwali and Dussehra, manufacturers often maximize their revenue growth by rolling out new products and customized gift packs for these occasions. Lotte India is joining the bandwagon with the launch of its Coffy Bite Rich, a hard-boiled candy of the iconic Parry’s Coffy Bite toffee brand, which it acquired in 2013.”
Lotte India retained the much-loved signature coffee flavor of Coffy Bite in the new candy to evoke nostalgia among Indian consumers who have savored the toffee since 1987. The nostalgia factor can play a pivotal role in the product’s performance, given that 61% of Indian respondents in GlobalData’s Q1 2023 consumer survey said that their choice of products/service is often or always influenced by how familiar/trustworthy/risk-free the product/service feels**. The popularity of coffee-flavored confectionery is evident from Coffy Bite being one of the top-three toffee brands by value sales in the Indian market in 2022.
Godad adds: “India is one of the world’s largest and fastest-growing confectionery markets by virtue of its large population, booming economy, and rapid urbanization. Product innovation is a key factor for confectionery brands and labels to stand out on the increasingly crowded retail shelves. Leveraging nostalgic flavors and brands that are a throwback to their simpler childhood days can appeal to Millennial consumers.
Shaw concludes: “A similar sentimental strategy is at play in other food categories, as seen in Reliance Consumer Products’ recent relaunch of the iconic Campa Cola. However, the product format needs to be updated to resonate with the sentiments of modern-day consumers, particularly among key target cohorts, such as school children. Accordingly, Lotte India employed a hard candy format with a swirling design for Coffy Bite Rich. The festive season will be a litmus test for the brand’s success or failure.”
*GlobalData Consumer Intelligence Center—Market Analyzers, accessed in August 2023
**GlobalData Q1 2023 Consumer Survey—India, with 591 respondents, published in May 2023
