Consumer Pyramids

5/2/2014

Consumer Pyramids

Consumer Pyramids

Results from India's Largest survey of Households Over 150,000 Households Surveyed every Quarter Demographic characteristics of over 700,000 individuals

Hom e 03 Mar 2 01 4 5:2 5 PM, Insights

Mahesh Vy as

Household market for salty snacks and biscuits worth Rs.300 billion Competition within and between product categories Indians have savored their samosa as much as their Gluco biscuit. The former is part of a highly diverse category called “salty snacks” and the latter is a part of a large variety in biscuits that prevail in the Indian markets. Collectively, these two expense items of the Indian household account for a fairly small - 1.3 per cent of the total consumption expenditure of households. Yet, these participate in fierce competitive battles. A few large organised companies jostle as much to claim a share from each other as they do to claim a share from the large number of unorganised entrepreneurs in this space. Salty snacks includes packaged and loose snacks. Packaged salty snacks include the well-branded types such as those of Pepsi’s “Lays” or “Kurkure” or Haldiram’s “Bhujia Sev” or “Bombay Mix”. Besides, there is unbranded but packaged snacks such as chips, chiwda, murukku, samosas, etc. The salty snacks expense head of households also includes the various unpackaged salty snacks purchased from local snack makers. It includes the samosas purchased from the local halwai or the gathia purchased from the local farsan shop. These salty snacks collectively account for 0.7 per cent of total expenses of households. The market size for salty snacks consumption by households including branded and unbranded, packaged and unpackaged was Rs.157 billion in 2012-13. This does not include consumption in restaurants or in institutions. Most market estimates for branded salty snacks has been of the order of Rs.80 billion. The Consumer Pyramids survey provides the larger estimate for this market which includes the unbranded and unpackaged salty snacks. The market for salty snacks is a little larger than for biscuits. The market size of biscuits in the household sector is of the order of Rs.128 billion. This includes organised and unorganised sectors, branded and unbranded biscuits. But, it excludes the consumption of biscuits through institutions such as in hotels and restaurants, in government or in business enterprises. Biscuits is a competitive industry with several large Indian and multi-national companies catering to a highly segmented market. Competition amongst biscuit brands is intense at almost every segment of the market. Multiple brands from multiple companies vie for a share of every market segment. But, the competition is not limited to biscuit brands alone. Biscuits compete directly with salty snacks. The salty snacks category is a little bigger than biscuits and it is also a lot more dispersed as it includes the well branded Lays and Kurkure’s and the traditional samosa, gathia and murukku. It is the latter that makes competition in the biscuits and salty snacks categories blurry. Perhaps, it makes sense to see the two - salty snacks and biscuits - as one big market of the size of about Rs.300 billion with competitive forces at work at various sub-category levels and also at the broader level between the sub-categories. Both categories - biscuits and salty snacks - have similar penetration levels of around 85 per cent. Both have a higher penetration in urban India. But then, salty snacks has a higher penetration in urban areas at 86.9 per cent compared to biscuits that has a penetration of 85.3 per cent. The difference is somewhat similar in rural areas although it is reversed. In rural areas, biscuits has a greater penetration of 83.3 per cent compared to the 81.9 per cent penetration of salty snacks. The higher market size of salty snacks reflects the slight urban bias of salty snacks that offers higher price points. The biscuits market on the other hand is concentrated relatively more in the lower income households as a cheap and quick nutritional supplement. Interestingly, the market for salty snacks and biscuits is larger than the market for bread, which is a mere Rs.71.5 million. A Product by Centre for M onitoring Indian Economy Pvt. Ltd.

Use of www.consumer-pyramids.com implies acceptance of the usage agreement & privacy policy

Economic Outlook | Industry Outlook | Prowess | CapEx | Commodities | States of India ♦ FAQ's

http://www.consumer-pyramids.com/kommon/bin/sr.php?kall=wclrdhtm&nvdt=20140303172556403&nvpc=095000000000&nvtype=INSIGHTS

1/1