India Confectionery Market (2022-2027)

Rising Youth Population

In the context of the Indian confectionery market, the primary focus revolves around individuals aged 5 to 30 years, as this age group has played a crucial role in driving the market’s growth. The widening of this demographic range, particularly in urban areas, has created a larger potential customer base, leading to increased demand for confectionery products and contributing to the market’s overall expansion. Furthermore, changing demographics and evolving consumer preferences within this diverse population present opportunities for developing new and personalized product offerings and marketing strategies. This underscores the significance of population growth as a key driver for the advancement of the confectionery industry in India. To put this into perspective, the population stood at 87.5 million in 1990 and grew to 139.6 million by 2020. In 1990, the 5–30 years age group represented approximately 50% of the population, which increased to over 55% by 2020.

Rising Increasing Disposable Income

The rise in disposable income in India is significantly influencing the confectionery market. With more money in hand, people are increasingly inclined to purchase confectionery products, primarily for everyday enjoyment or festive celebrations. The total household disposable income witnessed substantial growth, escalating from USD 2.4 trillion in 2018 to USD 2.7 trillion in 2022. Moreover, the per-household disposable income also experienced an upswing, surging from USD 7,700 in 2018 to USD 10,100 in 2022. This substantial increase in household disposable income not only reflects improved financial conditions for individuals but also emphasizes the expanding potential for the confectionery market. As people's economic well-being improves, the willingness to indulge in confectionery products as part of their daily routine or special occasions is expected to further boost the market.

Increasing Urbanization

Urbanization plays a pivotal role in propelling the Indian confectionery market. The migration of more individuals to cities significantly expands the pool of potential customers in urban areas. Urban living often translates to increased disposable income, busy daily routines, and a preference for quick, on-the-go snacks. These factors create an ideal environment for the confectionery market to thrive. With convenience stores, fast-food joints, and modern shops becoming commonplace in urban areas, access to confectionery delights has become more convenient than ever for city dwellers. The urban population saw substantial growth, rising from 465 million in 2018 to 498 million in 2021. In contrast, the rural population increased by just 6 million during the same period. As urbanization continues, the market is poised to witness further expansion, driven by the changing lifestyle and consumption patterns in urban areas.