Sector Trend Analysis – Sweet spreads, honey and maple products in India

Trade performance

In 2023, a total value of US$64.5 million (21.1 million kilograms) of sweet spreads, honey, and maple products were exported to India. The top 3 largest exporters to India for sweet spreads, honey, and maple products were China (US$20.4 million), Austria (US$11.1 million), and Italy (US$4.4 million). Canada was India's 22nd largest import market at a value of US$0.2 million in 2023.

In 2023, Canada supplied to India a total value of US$242.8 million (73.5 thousand kilograms) in sweet spreads, honey and maple products, which represents a compound annual growth rate (CAGR) of 47.2% over the last 5 years (2019 to 2023). Top Canadian imports to India were natural honey at US$150.9 thousand (HS: 040900), followed by maple sugar and maple syrup at US$91.8 thousand (HS:170220 in 2023.

Market sizes

In 2023, India registered total retail sales of US$549.7 million in the sweet spreads, honey and maple products sector. The sweet spreads category increased by 14.6% in value terms and by 7.1% in retail volume terms over the last year, from US$ 479.6 million (53.8 thousand tonnes) in 2022. With a CAGR of 18.2% from 2018 to 2023, sweet spreads are forecasted to grow with a CAGR of 13.2% for the forecasted 2023 to 2028 period and is expected to reach US$1.0 billion by 2028. The largest sub-category within sweet spreads was honey products which experienced a 15.9% increase in value terms and an 8.5% increase in retail volume terms in 2023 from the previous year to reach US$355.8 million (34.5 thousand tonnes). Jams and preserves, the second largest in terms of retail sales, increased by 9.4% in value terms and by 3.2% in retail volume terms over the same period, to reach US$80.0 million (12.9 thousand tonnes) in 2023. During the historic period of 2018 to 2023, honey experienced the greatest value growth with a CAGR of 21.1%, while nut and seed-based spreads are predicted to experience the greatest value growth over the forecasted period (2023-2028) with a CAGR of 16.6%.

The rising popularity of sweet spreads, honey, and maple products in India is propelled by the increasing embrace of Western food trends. The swift urbanization and the resumption of busy schedules among local consumers in a post-pandemic context persistently fuel the retail demand for sweet spreads, honey, and maple products, as they provide a fast and convenient choice for breakfast or snacks (Euromonitor International, 2023).

Honey has sustained its influence on the retail demand for sweet spreads, honey, and maple products in India due to its perceived natural qualities and specific health benefits. These benefits encompass immunity enhancement, anti-inflammatory properties, and efficacy in treating various chronic conditions like diabetes, hypertension, and bacterial infections. Recognized as a key ingredient in homemade immunity-boosting drinks or kaadhas, honey received additional endorsement from the Indian Ministry of Ayurveda for its immunity-boosting properties in the wake of the COVID-19 pandemic. Furthermore, honey holds deep-rooted significance in homemade remedies across India. Its role extends beyond being a natural sweetener and a substitute for refined sugar, as there is a growing demand for diverse flavors and origins of honey. Brands like Beelicious, for instance, cater to this demand by offering flavors such as cinnamon, turmeric, eucalyptus, and cardamom, along with Kashmir acacia honey (Euromonitor International, 2023).

In 2023, value sales of sweet spreads, honey, and maple products in the manufacturer sales price (ex-factory prices, therefore minus sales tax, value-added tax, retailer and wholesaler mark-ups, etc.) reached to US$380.0 million, representing an increase of CAGR at 192.9% from 2018. The value sales is expected to increase at a CAGR of 13.2%, reaching US$707.6 million by 2028.

In 2023, foodservice sales of sweet spreads, honey and maple products in India reached a total volume of 7.9 thousand tonnes, increased at a CAGR of 2.2% (2018-2023). Foodservice sales are expected to increase at a CAGR of 4.2% at 9.7 thousand tonnes, by 2028.

As local consumers increasingly prioritize convenience in their busy lives, traditional Indian breakfast options are being replaced by quick and nutritious alternatives. Baked goods like bread, paired sweet spreads, honey and maple products such as honey, peanut butter, or chocolate spreads, are gaining popularity as convenient go-to options. The demand for healthy options, particularly honey and nut-based spreads, is expected to drive retail growth. The expanding local workforce, including more women, and busier lifestyles are anticipated to contribute to the continued growth of sweet spreads, honey and maple products in the forecast period (Euromonitor International, 2023).

The robust growth observed in India's sweet spreads, honey, and maple products market presents lucrative opportunities for Canadian exporters in this sector. Canadian exporters can strategically position themselves by emphasizing the quality, purity, and unique variants of honey to cater to diverse Indian consumer preferences. Regarding maple products, emphasizing the natural and pure aspects aligns with the growing interest in specialty and gourmet offerings, prompting Canadian exporters to explore partnerships with local distributors in urban areas, strategically targeting regions with a preference for international brands to maximize market penetration and success. Diversification and innovation within the sweet spreads segment, especially in jams and preserves, offer avenues for differentiation and capturing consumer attention. With nut and seed-based spreads predicted to have the greatest value growth, Canadian exporters may explore partnerships or collaborations to introduce healthier alternatives to the Indian market.

The forecasted expansion in both retail and foodservice segments further accentuates the business potential. By focusing on establishing strong retail partnerships and collaborating with foodservice establishments, Canadian exporters can navigate the evolving preferences of Indian consumers, particularly those driven by urbanization and busier lifestyles. Strategically aligning marketing efforts with local trends and preferences will be paramount for successful market penetration and sustained growth in this dynamic market.

Competitive landscape

In 2023, the top-3 brands in India represented for 56.2% market share. Among the top 10 brands, Patanjali (Patanjali Ayurved Ltd) saw a highest market share growth at a CAGR of 4.4% from 2019 to 2023.

In India, the honey market is primarily dominated by Dabur India Ltd and Patanjali Ayurved Ltd, with Dabur venturing into direct-to-consumer sales through its e-commerce platform, Dabur Shop. Dabur has also expanded into other sweet spreads, introducing the Réal Health Peanut Butter line, capitalizing on the growing interest in high-protein content products aligned with health trends. Despite the dominance of major players, smaller competitors like Tata Consumer Products and Ambrosia Organic Farm are entering the honey and nut-based spread markets. Tata Consumer Products introduced honey through its Himalayan brand, known for its sustainable and natural positioning, while Ambrosia Organic Farm innovates with peanut butter in Mango and Blueberry flavors, offering variety and natural positioning. Agro Tech Foods Ltd and Dr Oetker India Pvt Ltd continue to dominate the nut and seed-based spread market in 2022 (Euromonitor International, 2023).

For jam products, competition primarily involves domestic producers, including smaller entities known for innovation and a diverse range of flavors, as well as larger producers that concentrate on popular options like mango jams (European Research Executive Agency, 2023). Maple products are less prevalent in India compared to honey or sweet spreads, yet there is a rising interest in specialty and gourmet offerings. Certain urban and metropolitan areas may host the presence of international brands providing maple syrup and related products. Additionally, local and artisanal brands emphasizing natural and pure maple products could tap into niche markets.

Distribution channels

In 2023, grocery retailers make up the majority of sweet spread sales in India with an 87.7% share of sales. Small local grocers are by far the largest distributor of sweet spreads in India with a share of 71.3% of sales although small local grocers are more likely to distribute domestically products. E-commerce experienced the greatest growth at a CAGR of 49.8 % from 2019 to 2023. All categories within store-based retailing also experience relatively high double-digit growth rates, peaking at convenience stores with a CAGR of 33.4% from 2019 to 2023.

Online sales of sweet spreads, like many packaged foods in India, surged during the pandemic due to home seclusion. Despite being a niche channel within sweet spreads, retail e-commerce holds significant growth potential, offering a diverse range of brands and leveraging e-commerce capabilities for widespread geographical distribution. This trend, fueled by habit persistence among local consumers, is expected to continue, prompting players to enhance logistics to meet increasing demand through the online channel. As a result, retail e-commerce is likely to further erode the market share of traditional brick-and-mortar channels in the forecast period (Euromonitor International, 2023).

Product launch analysis

According to data from Mintel,1,072 sweet spreads products were launched in India between 2019 and 2023. During this period, honey was the leading sub-category, followed by confiture & fruit spreads and nut spreads. Most popular claims among sweet spreads were that they were vegetarian, or no additives/preservatives, or were all natural products. Dabur, Agro Tech Foods and Omnisun GSS were the three companies with the most launches in the past five years.

Convenience is poised to be the primary factor for sweet spreads consumers in India. Portable sweet and savoury spreads, available in single-serve packs, provide easy access and portion control (Mintel, 2023). The COVID-19 pandemic prompted reverse migration in India, resulting in a notable uptick in the popularity of packaged foods, particularly sweet spreads. While traditionally confined to tier 1 cities, the awareness of chocolate spreads and nut-based spreads has increased in tier 2 cities. Furthermore, the expanding reach of grocery e-commerce and direct-to-consumer platforms beyond metropolitan areas is improving access to sweet spreads in tier 2 cities (Euromonitor International, 2023).

Examples of new product launches

Conclusion

The sweet spreads, honey, and maple products market in India experienced robust growth in 2023, fueled by changing consumer preferences, health-conscious trends, and the influence of Western food habits. The sector demonstrated significant trade activity, with key players like China, Austria, and Italy dominating exports to India. Notably, Canada showcased remarkable growth as an exporter, with a CAGR of 34.4% from 2018 to 2022. The market is characterized by a diverse product landscape, with honey leading in popularity, driven by perceived health benefits.

The retail sector, particularly grocery retailers and small local grocers, dominates sales, while e-commerce exhibits a notable surge. Leading brands like Patanjali and Dabur continue to shape the market, with smaller players gaining ground through unique offerings. The forecast indicates a positive trajectory, with retail value sales expected to reach US$1.0 billion by 2028. The future of the industry seems promising, underpinned by evolving consumer preferences and a dynamic product landscape.

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Resources

• Global Trade Tracker, 2024
• Euromonitor International, 2024
• Euromonitor International 2023, Sweet Spreads in India
• Mintel Global New Products Database, 2024
• Mintel 2023, A year of innovation in sweet & savoury spreads, 2023
• European Research Executive Agency, 2023: The Food and Beverage Market Entry Handbook - India

Sector Trend Analysis – Sweet spreads, honey and maple products in India
Global Analysis Report

Prepared by: Zhiduo Wang, Market Analyst

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