INNOVATION BECOMING THE CORNERSTONE IN THE HARD-BOILED CANDY MARKET

The market for sweet candies is growing at a fast pace. It is projected that the sweet candy market will grow at 1.5 times the FMCG industry growth. Even as the sweet candy market is growing at a rate of 14 percent per annum, the hard-boiled candy (HBC) segment is growing 24 percent per annum. The HBC segment is valued at Rs 2,100 crore. 

Growth in the HBC segment has been fast as the entry barriers are low, and players can enter easily. But, innovation is the cornerstone in the market. Players continue to experiment with new formats and flavors. In the given circumstances, the exit of players is quite natural.

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While the market for HBC is growing, the players are not enthused by the market for candies in the premium category like a Chocolate eclair and soft toffee. Éclair and soft toffees have witnessed a single-digit growth. According to the players, the margins are low in the premium category.

The biggest grouse of the players is that the consumers are not ready to pay more than one rupee for the candies. Some competitors are selling candies at 50-paise. As a result, the players have to rely on marketing their candies and innovation to increase their business. 

The flavours which have dominated the market include Mango and kaccha aam. This is closely followed by caramel and orange. Perfetti and Parle are the two leading players in the market. While Perfetti manufactures candies of caramel flavour, Parle dominates with the mango-flavored, Mangobite.

DS Group entered the market with Pulse Candy having Kacha Aam flavour with the center filled with tangy salt. The format has gone down well with the consumers. Even though it is priced at Re 1, it has reached Rs 100 crore in eight months. Consumers have appreciated the innovative nature of the product.