India Biscuit Market Outlook to 2028

India Biscuit Market Overview

The India Biscuit Market, valued at USD 4.5 Bn in 2023, is driven by increasing urbanization, rising disposable incomes, and changing consumer preferences toward convenient and packaged foods. Additionally, the increasing penetration of e-commerce platforms has made biscuits more accessible to a broader consumer base, further propelling market growth.

The Indian biscuit market is highly competitive and is dominated by several key players. These include Britannia Industries, Parle Products, ITC Limited, Anmol Industries, and Patanjali Ayurved. These companies have established strong brand identities and extensive distribution networks, which help them maintain a significant market presence.

In 2023 when Britannia Industries announced its plans to invest INR 300 crores to expand its production capacity. This investment is aimed at meeting the growing demand for biscuits in both domestic and international markets. The company plans to set up new manufacturing facilities and upgrade existing ones to increase their output capacity.

India Biscuit Current Market Analysis

The northern region of India, particularly Uttar Pradesh, dominates the biscuit market in 2023. This dominance is attributed to the region's large population, high consumption rates, and presence of numerous manufacturing units. Additionally, strong distribution networks and higher urbanization rates contribute to the region's leading position in the market.

Challenges
faced by the biscuit industry is the rising cost of raw materials. In 2023, the prices of key ingredients such as wheat and sugar increased by 15% and 10%, respectively, due to supply chain disruptions and adverse weather conditions.

In 2023, the Indian government launched the Eat Right India campaign aimed at promoting healthy eating habits among the population. This initiative includes guidelines for reducing sugar, salt, and fat content in packaged foods, including biscuits.

India Biscuit Market Segmentation

The India Biscuit Market can be segmented based on several factors:

By Product Type: India biscuit market segmentation by product type is divided into plain biscuits, cream biscuits, cookies, digestive biscuits and glucose biscuits. In 2023, plain biscuits held a dominant market share due to their widespread popularity and affordability. The simplicity and versatility of plain biscuits make them a staple in Indian households, contributing to their leading position in the market.

By Distribution Channel: In the India Biscuit market segmentation by distribution channel is divided into supermarkets/hypermarkets, convenience stores, online stores and specialty stores. In 2023, Supermarkets and hypermarkets dominate the distribution channel segment. The convenience and variety offered by these retail formats make them the preferred choice for consumers.

By Region: India Biscuit market segmentation by region is divided into north, south, east and west. In 2023, the northern region held the largest market share. The high population density, urbanization, and presence of major manufacturing hubs contribute to this dominance. Additionally, the region's strong distribution networks and consumer preference for packaged foods support the growth of the biscuit market.

India Biscuit Market Competitive Landscape

Company

Establishment Year

Headquarters

Britannia Industries

1892

Kolkata, West Bengal

Parle Products

1929

Mumbai, Maharashtra

ITC Limited

1910

Kolkata, West Bengal

Anmol Industries

1994

Kolkata, West Bengal

Patanjali Ayurved

2006

Haridwar, Uttarakhand

Parle Products' Health-Focused Launch: Parle Products launched a new range of health-focused biscuits, Nutricrunch, in 2023. This product line, enriched with vitamins and minerals, targets health-conscious consumers. The launch resulted in a 20% increase in Parle's market share, generating an additional revenue of 5,000 crore INR. Parle plans to introduce more such products in 2024, aiming to capture a larger share of the health segment.

ITC's Digital Initiatives: ITC Limited leveraged digital platforms to boost sales in 2023, launching an online portal dedicated to its food products, including biscuits. This initiative led to an increase in online sales by 2,000 crore INR. ITC aims to further enhance its digital presence in 2024, with plans to introduce AI-driven personalized marketing strategies to attract more consumers.

Patanjali's Entry into Premium Segment: Patanjali Ayurved entered the premium biscuit segment in 2023 with the launch of Divya Biscuits, which are organic and enriched with Ayurvedic ingredients. This move was aimed at tapping into the growing demand for premium and organic products.

India Biscuit Industry Analysis

India Biscuit Market Growth Drivers:

Health and Wellness Demand: The increasing consumer preference for health and wellness products is significantly driving the biscuit market in India. In 2023, the market for health-oriented biscuits such as high-fiber, low-sugar, and gluten-free variants saw a substantial demand surge. Specifically, the sales of health biscuits reached 7,500 crore INR.

Rural Market Penetration: The expansion of the biscuit market into rural areas has been a significant growth driver. In 2023, the rural market for biscuits contributed 20,000 crore INR to the overall market revenue. The National Sample Survey Office (NSSO) data suggests that rural household consumption of packaged foods, including biscuits, will increase by 5 Mn units in 2024 due to rising rural incomes and better access to products.

E-Commerce Growth: The rise of e-commerce platforms has facilitated easier access to a variety of biscuit brands and products, boosting market growth. In 2023, online sales of biscuits in India generated 10,000 crore INR, highlighting the significant role of digital platforms in market expansion.

India Biscuit Market Challenges:

Regulatory Compliance: Ensuring compliance with stringent food safety and quality regulations remains a challenge for biscuit manufacturers. In 2023, the FSSAI implemented stricter guidelines for additives and labeling, which required significant adjustments in manufacturing processes.

Intense Market Competition: The Indian biscuit market is highly competitive, with numerous domestic and international players vying for market share. In 2023, major brands like Britannia, Parle, and ITC makes it difficult for smaller players to compete. Market dynamics reports suggest that the competition will intensify with new entrants and increased marketing expenditures.

Logistical Challenges: Efficient distribution and logistics remain significant challenges, particularly in reaching remote areas. Delays and inefficiencies in transportation and warehousing impact timely delivery and increase operational costs. With the expected growth in rural demand.

India Biscuit Market Government Initiatives:

Subsidies for Fortified Foods: In 2023, the Indian government introduced subsidies for the production of fortified foods, including biscuits, to address malnutrition. These subsidies reduced production costs for manufacturers producing fortified biscuits, encouraging more companies to invest in the production of nutrient-rich biscuits, thus supporting public health initiatives.

Rural Development Programs: The Pradhan Mantri Gram Sadak Yojana (PMGSY), a government initiative to improve rural infrastructure, has significantly benefited the biscuit market. In 2023, the improved rural roads facilitated better distribution, increasing rural sales. The government plans to extend the reach of this program in 2024, which is expected to enhance market access further and boost sales in rural areas by an additional 2 million units.

Digital India Initiative: The Digital India initiative, aimed at enhancing internet connectivity and digital infrastructure, has positively impacted the e-commerce segment of the biscuit market. In 2023, increased internet penetration led to a 25% rise in online biscuit sales. The initiative is projected to cover 600,000 villages by end of 2024, facilitating greater market penetration and consumer access to a wider range of biscuit products.

India Biscuit Future Market Outlook

The India biscuit market is expected to show significant growth driven by increasing health consciousness among consumers leading to a higher demand for healthy and premium biscuit variants. Innovations in product offerings, including fortified and functional biscuits, are anticipated to cater to evolving consumer preferences.

Future Market Trends

Introduction of Functional Biscuits: The demand for functional biscuits, which offer health benefits beyond basic nutrition, is expected to rise significantly. These products will cater to specific health needs such as boosting immunity, aiding digestion, and providing energy, aligning with the growing consumer trend towards health and wellness.

Expansion of E-Commerce Sales: E-commerce will continue to play a pivotal role in the biscuit market's growth. The Digital India initiative is projected to further enhance this trend, making online shopping more accessible to a broader consumer base across urban and rural areas.
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