EXECUTIVE SUMMARY FOR BISCUIT INDUSTRY IN INDIA •
Biscuit industry in India in the organized sector produces around 60% of the total production, balance 40% is produced by the unorganized sector (i.e. bakeries). •
Biscuit market in India is around 12,662 crores.
There are around 150 medium to small biscuit factories in India •
Indian biscuit industry is the 3rd largest industry, behind U.S.A and China. PERCENTAGE OF MARKET SHARE BRAND WISE
Priya Gold – 15%
The export of biscuits contributes to 15% of annual production; however imports have not shown any significant growth in the last 2 years. •
IBMA estimates annual growth in the range of 25% and above mainly due to decrease in VAT on biscuits. •
Current penetration levels are
Urban- 75 to 85%
Rural-50 to 65%
AC Nielson studies show that India is the world’s leading market for biscuits ahead of US, China and most European countries •
India showed a volume market share of 22%, the second slot was occupied by the US at 13% •
The top 3 countries- India, US, and Mexico contribute to over 40% of the total biscuits •
The glucose segment has already reached maturity phase of the PLC, no value benefit, Parle being the key player that drives profits through economies of scale .
Per capita consumption of 2.5 kg as compared to 10 kg of mature markets like US and Europe.\ •
Demand from rural markets account for half the biscuit sales in India (rural markets account for 30% revenues for Britannia and Parle and over 50% for regional brands. •
Today biscuits contribute to over 33% of the total production of bakery and above 79% of the biscuits are manufactured in the small scale sector of bakery industry, comprising both factory and non factory units in the country. •
The biscuit industry is estimated to grow at about 15-17% in the next few years.
The export of biscuits is about 17% of the annual production; the export of sweet...
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