A recent report from the market research firm said the country’s confectionery sector is set to outdo the global average growth rate and the rate in other BRICs, with a 17.4% compound annual growth rate (CAGR) in the next five years.
The $156bn global confectionery market is expected to register a CAGR of 4.5% between 2015 and 2020, while the BRIC markets are set for an average CAGR of 7.2%.
Indian export advantage
“India’s economic prosperity is boosting the growth of the confectionery consumption, as consumers feel more secure and inclined to purchase indulgence products,” said MarketLine’s report.
India is however still half the size of Brazil and Russia's confectionery sectors by value sales and only a fifth the size of China’s confectionery market.
“Whilst much smaller than the other two big drivers of growth in Asia-Pacific, Japan and China, India manufactures a big share of the raw sugar that is consumed by the industry and this may be advantageous for Indian produced confectionery in the export markets in coming years,” said MarketLine.
Mexico and South Africa: Outside BRICs
Collectively, the BRIC markets account for around 22% of value sales in the global confectionery industry.
Brazil’s confectionery market is expected to grow in line with the industry global average CAGR of 4.5% up to 2020.
Russia and China’s confectionery markets are forecast to increase value sales slightly above the global average CAGR, but still in single digits.
MarketLine has pinpointed India, China and Brazil as three of its top five emerging countries for confectionery sales. But there is no place for Russia as Mexico and South Africa take the remaining slots.
MarketLine report, published October 2016
‘Confectionery: BRIC (Brazil, Russia, India, China) Industry Guide 2016’