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The Biscuit Industry in India

Biscuits come in a variety of flavours, tailored to individual tastes. Learn more about the biscuit industry in India in this article.

History

The Indian biscuit industry flourished in the baking industry in the latter half of the 20th century. The urban community, in particular, has shown interest in food that can be cooked at a reasonable cost. Biscuits were considered food for the sick in earlier days. However, it has become one of the many popular fast-food products, liked by all ages. Biscuits are delicious to eat, low in cholesterol and reasonably priced. Maharashtra and West Bengal have the most advanced biscuit industries.

The Indian Biscuit Industry seems to be the largest among all the food industries and has a limited profit of Rs. 3000 crores. The Indian subcontinent is the second-largest producer of biscuits, the first being the USA. The industry is divided into two categories: formal and informal. Biscuits today stand at a higher price and production level than bread.

India is the third-largest biscuit producer, after the United States and China. The Indian biscuit market is driven by growing consumer revenue, switching to high-end biscuits, setting up additional production facilities, increasing health awareness, the development of biscuits, attractive packaging, etc.

According to the recently published report “India Biscuit Market Overview, 2017-2023”, the planned biscuit market accounts for more than 70% of the overall value of the Indian biscuit market. By 2023, the industry is estimated to generate over INR 400 billion in sales. All of the big biscuit companies that operate in rural and urban areas are a part of the official market. The distribution network for players like Parlé and Britain in rural areas is extensive. It is fairly easy to procure a five rupees packet of Parlé biscuits from any regular store in the rural areas. Cream, cookies, sugar, marie, cracker, milk, and other biscuit items are available in the organised market. Companies like Britannia, Parlé, Surya Food and Agro Limited, etc., manufacture all the types of biscuits mentioned above. The use of biscuits in rural areas has shown better growth over the past few years.

Along with the significant Indian biscuit players, many regional players are also involved in the production of biscuits. These players have the same production facilities as the well-known ones. Their biscuits are well packaged and healthy enough to eat and are available at a lower price, making them affordable for low-income consumers. To increase its sales and product value, companies have launched high-end biscuits in smaller packages. Urban areas include distribution channels such as hypermarkets, supermarkets, general stores and  “e-retailing”. Electronic marketing allows consumers to choose the type of their products and also offers a discount on periods such as the holiday season. It is easy to buy them online from the comfort of your home. Flipkart, Amazon, and Snapdeal are some of the leading electronics retailers in India that store biscuits for national and international brands.

Scope of Indian biscuit industry

According to Blue Weave Consulting, the Indian biscuit market is growing at a CAGR of 12.4% and will touch $5151.2 million by 2020. The market is expected to reach $11,792.3 million by 2027.

India’s biscuit market is projected to grow significantly by 2023. Growth will be driven by factors including changes in consumer tastes and preferences, increased demand for snacks, and increased health awareness among consumers.

Top biscuit manufacturers

The leading players in biscuits marketing are:

1.     Parlé

Since 1929, Parlé has become the world’s best-selling biscuit and continues to spread to India’s remote areas and major cities. It symbolises quality, nutritious food, and high taste. The House of Parlé offers a variety of products that cater to all classes and age groups and is a perfect blend of nutrition and taste. The brand currently owns 27% – 30% of its market share and puts itself in the position of a value-added product with a continuous increase in the paid category.

2.     Britannia

Britannia is one of the most trusted, valuable, and popular products among Indian consumers. This product has been a joy in India since 1918 and has a legacy of more than 100 years. It has been the most respected Indian biscuit product based in Bangalore. With a unique position in the biscuit industry, Tiger is a very popular brand in Britain. It has a humongous production and distribution network throughout India with 80+ production units, 2.8 million packs per day, 51 depots and more than 36 depots selling in Britain.

3.     Sunfeast

ITC introduced it in 2003. Sunfeast offers nutritious and rich biscuits that tend to all the segments in the market. It has gained a lot of public trust with its quality, packaging and innovativeness. It is regarded as a heritage brand in India.

Conclusion

Biscuits are used worldwide for their health value and can be stored for a long. The production of biscuits in India is a major food industry. Available in a variety of shapes, fillings, colours, and toppings, biscuits are popular with consumers of all ages. The large and small ingredients used in the manufacturing of biscuits play an important role, and the chemistry between them must be well understood by biscuit manufacturers to maintain quality and avoid bulk variations. These days, the production method may be completely automated or a slow-acting plant in the planned field. However, this process is not entirely automatic or dependent on people in the informal sector. Packing biscuits also plays an important role in protecting the product from getting adulterated and attracting the consumer.

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Frequently asked questions

Get answers to the most common queries related to the Railway Examination Preparation.

Which is the Indian biscuit that came first?

Ans. Parlé is the Indian biscuit manufacturer that first came out with biscuits in India. With 90+ years of heritag...Read full

What is the share of the biscuit market in India?

Ans. The total Indian biscuit market is estimated to be worth around $5-5.5 billion. Although cookies account for 35...Read full

Give a brief history of the biscuit industry in India.

Ans. The Indian biscuit industry flourished and began to gain momentum in the bakery industry in the latter part of ...Read full

Who are the first three top players in the Indian biscuit industry?

Ans. The top players in the Indian biscuit industry are Parlé...Read full