Urban India’s Sweet Tooth: 74% of urban Indian households surveyed consume biscuits and related items each week: 44% consume ice cream, chocolate, candies, etc. each week

November 20, 2023, New Delhi: Sweets are an integral part of Diwali and all other Indian festivals. Every region, in fact, many cities and towns across the country are known for particular sweets like Agra for petha, Ajmer for milk halwa, Bengal for Rasgulla and Sandesh, etc. No wonder consumers are in a dilemma over what to choose given the range of sweets from traditional to new variations of traditional sweets complete with a modern look and flavour. For those who don’t like it too sweet or have health conditions like diabetes, there are alternatives including sugar-free. Winter months see more varieties as fresh jaggery or gur, whether from sugarcane or palm, becomes available. Combined with sesame, the market is flooded with many delicacies. Red carrots become available for rich halwa. That is not to say chocolates get forgotten as they remain ever popular. In fact, some Indian sweets have chocolates as one of the main ingredients.

An analysis by Frost & Sullivan states India is the top consumer of sweets accounting for 35% of total consumption. Within the country, Delhi leads the list with 9.8% of the total sweet consumption, followed by West Bengal. Indian traditional sweets market is valued at USD 6 billion; of these, packaged foods - dairy based products (khoa, burfi, etc.), pulse (moong dal ladoo, Mysore pak, etc.), cereal, nuts, fruits, vegetables and chocolates – is a growing segment. Product offerings from some of the organised players in the sweet market include tinned Gulab Jamun, Rasgulla, Mithai, and so on, is estimated to be worth USD 4.2 billion. Traditional sweets also dominate the sugar confectionery market in India, contributing 8–10% to the country’s packaged food sector. Traditional sweets, enjoyed across the globe, that have been processed are becoming more popular for a number of reasons including improved quality and safety, long shelf lives, variety, ease of use and appealing packaging. In this market, a number of players have established their positions by utilising one or more of these factors. Not to be overlooked is the unorganised sector, a crucial part of this market, which has the potential to fairly increase the figures.

As India celebrated Diwali, LocalCircles has conducted a national survey to understand how Urban Indians consume sweets. How traditional sweets fare against newer offerings in ice-creams, cold and hot desserts and chocolates. The survey received over 41,000 responses from household consumers located in 222 districts of India. 61% respondents were men while 39% respondents were women. 48% respondents were from tier 1, 32% from tier 2 and 20% respondents were from tier 3 and 4 districts.

41% of urban Indian households surveyed indicated that they consume traditional Indian sweets at least 3 or more times a month

Many Indians normally like to end a meal with something sweet, even if it is only sweet saunf or a bit of jaggery. The first question in the survey asked household consumers, “How many times each month generally do you/ members of your household consume traditional Indian sweets?” The query received 10,735 responses with 41% of urban Indian households surveyed indicating that they consume traditional Indian sweets at least 3 or more times a month. Data shows that 44% of respondents consume traditional Indian sweets 1-2 times a month; 16% do so 3-7 times a month; 12% of households surveyed do so 8-15 times a month; 5% do it 15-30 times a month and 8% do it every day. In addition, 13% of those surveyed shared that the question is “not applicable (don’t consume them); and 2% of respondents gave no clear response indicating “can’t say”.

74% of urban Indian households surveyed indicated that they consume biscuits, cakes, etc., 3 or more times a month

Being easy to buy or store, cakes and biscuits, particularly those that come pre-packaged, have become more of a snack whether at home, in the offices, schools or while travelling. The survey sought to know “how many times each month generally do you/members of your household consume bakery products like cakes, biscuits, etc.?” Out of 10,939 who responded to this query, 74% of urban Indian households surveyed indicated that they consume biscuits, cakes, etc., 3 or more times a month. Survey data shows that 31% of respondents consume bakery products like biscuits, cakes, etc., everyday; 14% of respondents consume them 15-30 times a month; 15% of respondents consume them 8-15 times a month; 14% consume such products 3-7 times a month; and 12% restrict it to 1-2 times a month. In addition, 13% of respondents indicated that the question is “not applicable” to them as they don’t consume bakery products and 1% of the respondents gave no clear response indicating “can’t say”.

44% of urban Indians surveyed indicated that they consume ice cream, chocolate, candies, etc., 3 or more times a month on average

The four major segments of the Indian confectionery industry are chocolate & chocolate products, sugar confectionery, cookies & crackers, and ice cream or cold desserts. This is one of the fastest growing segments of sweets in India, particularly in big cities. The survey next asked respondents, “How many times each month generally do you/ members of your household consume ice cream, chocolate, candies, etc.?” The query received 19,634 responses with 44% of urban Indians surveyed indicating that they consume ice cream, chocolate, candies, etc., 3 or more times a month on average. Survey data for this question shows that 37% of consumers surveyed consume chocolates, candies, ice creams, etc., 1-2 times a month; 20% consume it 3-7 times a month; 9% do it 8-15 times a month; 8% do it 15-30 times a month; and 7% of respondents or their household members do it every day. In addition, 16% of respondents indicated that the question is “not applicable” to them as they don’t consume these products, while 3% of respondents indicated “can’t say”.

In summary, it is interesting that while 41% of urban Indian households surveyed indicated that they consume traditional Indian sweets at least 3 or more times a month; 74% of those surveyed indicated that they consume biscuits, cakes, etc., 3 or more times a month and 44% of urban Indians surveyed indicated that they consume ice cream, chocolate, candies, etc., 3 or more times a month on average, there are many who consume these products on a daily basis. In the case of traditional Indian sweets, 8% of those surveyed indicated that they do it every day; 7% of those surveyed consume ice cream, chocolate, candies, etc., everyday; and 31% of those surveyed indicate that they consume bakery products like biscuits, cakes, etc., every day. Indians by and large are known to have a sweet tooth. While it is completely fine to have most of these sweets once in a while and in moderation as many of them come under the ultra-processed or high sugar foods category, use ingredients like palm oil as well as preservatives and food colours. More traditional sweet manufacturers as well as food brands need to come forward and develop healthier alternatives that are naturally sweet using dates, figs, etc. Given the love for sweets amongst Indians, anything that is delicious and healthy is bound to be hugely successful in the times to come.