India is the world's largest biscuit consuming nation. Biscuits and cookies is the largest segment in the bakery industry in the country contributing about 72%.. The biscuits and cookies industry in India, valued at INR 145bn (USD 2.41bn) in FY 2014, has been growing at a CAGR of about 10% over the last three years.
Industry estimates that the Indian Biscuit industry will be worth nearly INR 279bn (USD 4.65mn) by FY 2019, growing at a CAGR of about 14%.
Growth of this segment is expected to slow down as manufacturers are offering discounts to push volume sales, which in turn has slowed down the value growth of the industry.The share of glucose biscuits is expected to decline as they have reached a point of saturation.
With rising incomes, consumers are being lured towards cream biscuits and cookies instead of glucose biscuits.Share of premium biscuits is likely to increase by FY 2019 as manufacturers are now aggressively entering the premium biscuit and cookie segment on account of higher margins prevalent in the segment.
Increase in disposable income, changing lifestyles, growth in organized retail and increasing consumption of processed and packaged food are the main drivers of the industry.