Date : February 26, 2018
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India Organized biscuit market to grow at a CAGR of 6.70% with revenue exceeding INR 55,000 Crores by 2027-28: Bonafide Research

India Organized biscuit market to grow at a CAGR of 6.70% with revenue exceeding INR 55,000 Crores by 2027-28: Bonafide Research

In the past, brands innovated around health needs that affected the major share of their customers. Today Indian consumers’ needs have become more fragmented and more complex through greater exposure to information on health. When customers get a product that more closely meets their unique needs, their degree of loyalty and the premium they are willing to pay will both raise. A deeper understanding of customers’ emerging health needs and a close watch on changing consumption habits reveal a number of gaps in the Indian healthy biscuit market that offer significant opportunity for product innovation. Superficial product innovation will quickly lose credibility as new entrants enter into the market with more authentic products. Therefore adding new and interesting, healthy flavours like fruit or yogurt, and using real ingredients rather than just flavourings will help brands stand out from the competition. Sticking to strict notions of a biscuit’s format limits the ability to deliver the convenient products customers now demand. A willingness to blur format boundaries and create new categories will give companies a winning edge. Young, active, healthy consumers are looking for high energy protein products to fuel their energetic lifestyle. Other consumers see products that are free from artificial preservatives or additives. Simply meeting the minimum legal requirements in product labelling is insufficient to build trust with customers. Consumers are getting sharper at seeing through advertised claims and are increasingly scrutinising the real benefits they care about. India is one of the largest producers of biscuits in the world market.

According to recently published report of Bonafide Research "India Biscuit Market Overview, 2027-28", the organized biscuit market accounts for 75% of value share in the overall Indian biscuit market. Organized market comprises of all the major players of biscuits which serves both in rural and urban area. The distribution network of players like Parle and Britannia are widely spread in the rural areas. It is very easy to find a 5 Rs. Parle biscuit in any traditional general shop in those areas. Organized market consists of different product categories of biscuits such as cream, cookies, glucose, Marie, cracker, milk, etc. Organized players like Parle, Britannia, Mrs. Bectors, Surya Food and Agro Limited manufacture all types of biscuits mentioned above. Rural consumption of biscuits has shown a better growth in past few years.

Along with the major biscuit players of India, many regional players are also into the production of biscuits. These players have similar production facilities like the renowned one. Their biscuits are well- labelled and packaged yet healthy to eat and available at a low price which makes it affordable for the low income consumers. To increase its sales and product value, companies have started to launch premium biscuits in small packets so as to increase the demand of their products in both rural and urban places. Urban localities include distribution channels such as hypermarket, supermarket, general stores and growing one "e-retailing". E-retailing is in trend nowadays. E-retailing allows consumers to select their kind of products and also offers discount at times like in festive seasons. It is convenient to shop from here as one can easily purchase anything by sitting at home. Amazon, Flipkart, Snapdeal are some of the e-retailers in
India which keep biscuits from both national and international brands.

Major Companies
Major companies operating in the biscuit market of India are ITC Limited, Britannia Industries Limited, Parle Biscuits Private Limited, Surya Food & Agro Limited and Unibic Foods India Private Limited.

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India Organized biscuit market to grow at a CAGR of 6.70% with revenue exceeding INR 55,000 Crores by 2027-28: Bonafide Research

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