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Sugar Candy Manufacturing Business

Sugar Candy Manufacturing Business. Production of Soft & Hard Boiled Candy. Business Opportunities in Confectionery Industry

Candy or Sweet is the most popular type of confectionery over the world, and there is certainly something about this unique product that holds many mysterious qualities.

Candy is made by dissolving sugar in water or milk to form a syrup, which is boiled until it reaches the desired concentration or starts to caramelize. Candy comes in a wide variety of textures, from soft and chewy to hard and brittle.

Hard boiled candies are the most common kind of sweets. Generally candies are available in fruit based flavors or Milk based flavor and sometimes with center filling also. There are so many flavors available in the market i.e. orange, pineapple, mango, mint, pan, strawberry, grapes etc. and are having good demand among the children.

Hard boiled candy are sugar confectionery which includes hard boiled candies lollipops, mints & lozenges, etc. of different flavors. Indians like to celebrate with sweets and they start relishing it at a pretty young age.

Hard candies, also known as lollipops follies, suckers, or boiled sweets, are generally made of sucrose, glucose, water, colour and flavour. Hard candies have retained their market share, especially with children, even with the proliferation of new candy varieties. Hard candy formulated with functional ingredients represents a growth opportunity for the adult consumer sector in products like lozenges and other nutraceuticals.

Candy is usually liked by all age groups of people as a confectionery. As a snack between meals - particularly at special occasions like parties or Christmas. The candy are used after meal, dinners as smooth refresher. It drives away bad smell from mouth and refreshes the breath. Sometimes it causes good sensation while chewing. It is chewed by children, young people, young girls, young ladies etc. But mostly it is consumed by children’s of age group below ten.

Candy (Confectionery) Market in India

Candy market in India is anticipated to grow at a CAGR of over 9% during 2016 - 2021, on account of rising middle class households, coupled with increasing working as well as youth population. The most dominant segment in the country's candy market is sugar candy. The sugar candy segment is expected to maintain its dominance due to continuing launch of innovative products as well as aggressive branding initiatives undertaken by leading market players.

The growing demand for candies has resulted in an increasing foray of companies into the sector. India candy market is majorly dependent on imports for premium candies. The sugar candy segment has dominated the India candy market in 2015, and is projected to garner a revenue share of over 50% in India candy market by 2021, due to increasing disposable income of consumers, continuous launch of innovative and imported products and growing awareness among end users.

The Indian confectionery market includes sugar-boiled confectionery, hard-boiled candies, toffees and other sugar-based candies. Sugar boiled confectionery has penetrated an estimated 17% of the households only, suggesting a large potential for growth. Considering the 25% penetration in the urban market, the confectionery industry could hope to be in for more promising future.

The annual per capita consumption of branded confectionery in India is still around 100 gms. Hard-boiled candy is reserved for the small-scale sector. There are about 4500 units catering to the local markets. The big players have used a mix of franchise arrangements (with small units) and product formulations to get out of the reservation mode (the industry was reserved for small scale units).

Traditional hard-boiled candies and toffees have receded with kids preferring fancier and innovative products like chewing gums, breathe fresheners and fruit-based confectionery.

The major brands which are quite popular in the market include Alpenliebe, ChlorMint, Big Babool gum from Perfetti; Mint-O, Candyman from ITC; Lacto Plus, Big Bubble gum from Candico; Coffee Bite, Spout from Lotte; Eclairs from Cadbury; and Polo from Nestle. The Indian brands popular in the market are Maha Lacto (15,000 tonnes), Aashay (7000 tonne), Coca Naka (4000 tonnes), Dishum (3000 tonnes), Honey Fab (1500 tonnes). Another prominent brand is Giffords Dairy' Boomer.

Polo, Alpenliebe, Pan Pasand, Melody, Poppins, Hajmola, Kismi and Coffy Bite have been quite successful in the market. Each one has its USP. Ravalgaon's Pan Pasand was the first 'paan' candy. Parle's Melody is a toffee-chocolate-eclair hybrid. The same company's Poppins has a unique form and sells in a variety of colours. Dabur's Hajmola Candy tastes like a churan, a sweet and sour mixture of assorted traditional digestives. Parle's Kismi entered as a unique toffee slab. Parry's Coffy Bite came with a mixed taste of its own. Some of the successes are Nestle's Polo which is a mint with a hole. Interestingly, the hole, it is claimed, is the USP. Perfetti's Alpenliebe is a caramel candy, and is a success in urban areas. At the lower end of the market, the movement from unbranded to local brands is evident.

Confectionery

Demand : Past and Future

Year

(Rs. in Billion)

1990-91

8.20

2000-01

21.75

2001-02

24.50

2002-03

26.10

2003-04

28.15

2004-05

32.45

2005-06

35.75

2006-07

37.50

2007-08

39.75

2008-09

43.00

2009-10

47.25

2010-11

50.00

2011-12

55.10

2012-13

59.15

2013-14

63.35

2014-15

68.25

2015-16

72.69

2016-17

77.41

2017-18

82.44

2018-19

87.80

2019-20

93.51

2024-25

128.11

 

Global Candy Market

U.S. candy market was valued at over USD 12.73 billion in 2016 and is expected to witness an attractive growth over the forecast period. Increasing consumer spending and growing trend towards urbanization has led to huge growth of the market in the U.S. In this country, consumer expenditure has increased from USD 11,852.96 billion in the second quarter to USD 11,916.58 billion in the third quarter of 2017. With rising consumer spending, there arises huge demand for consumer goods. Growing urbanization is also a significant factor driving the growth of candy market in the country.

Non-chocolate candies held significant revenue of the market in 2016 due to the variety of flavors available in the form of hard candies, chewing gums, lollipops, gummies, caramel candies, jelly candies, and many others. Candies that are sweet and chocolate free are less prone to health hazards. Some of them include chewy candies, gummy candies, tart candies and other dairy free candies.

Children with inclination towards a sweet tooth is a major factor driving the demand of the products. Hence, this group of population is a huge contributor towards revenue generation of the market. Moreover, key players are creating appealing advertisements targeting the children and young population, thus, attracting them towards impulse purchase.

The food and beverages industry identifies candy as a part of the confectionary industry and uses the term confectionary and candy interchangeably. The candy market is considered to be a seasonal market and has skyrocketing sales during festive seasons.

Europe, Asia Pacific, and North America are likely to emerge as lucrative markets for the manufacturers of candy across the world. The growing innovations, rising disposable income, and increasing candy consumption across various age groups in these regions is likely to bode well for the market growth here.

Global Confectionery Market Overview

The global Confectionery Market is expected to reach USD 237.4 billion by 2023 at a CAGR of 3.9%, during the forecast period. The global Confectionery sale has surpassed 14,481 million Kg in 2017, registering a volume CAGR of 1.8%, during the forecast period. The volume consumption of Confectionery observed a stable growth during the past five years

Confectionery market comprises array of food products such as chocolates, raw pastes, and various sugar-based products. In addition, it includes therapeutic and dietetic confectioneries that differ in formulations from traditional confections. The preferred type of confectioneries often differ according to the geographical regions due to difference in regulatory norms and other factors such as economy and taste & preference of customers. The global confectionery market is growing at a steady pace owing to high demand from middle-class consumers.

Confectionery market is segmented on the basis of type and region. Based on type, the market is categorized into sugar, chocolate, fine bakery wares, and others. In terms of sugar confectionery, the market is divided into hard-boiled sweets, caramel & toffees, gums & jellies, medicated confectionery, mints, and others. Chocolate confectionery is sub segmented into white, milk, and dark chocolate. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

R&D activities on manufacturing confectionery products with natural ingredients and low negative health impacts promise abundant opportunities for the established as well as new entrants in the market. In addition, functional confectionery products such as cough drops, nutritional tablets and premium sweets promise rapid market growth and related opportunities for the participants.

Key confectionery market participants include Ferrero Group, Nestle SA, Hershey Food Corp, Amul, Lotte, Petra Foods, Parle Products, Cadbury Plc, Mars Inc., Lindt & Sprungli, Cupa Chups SA, Kraft Foods Co., and Perfetti Van Meller.

 

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Niir Project Consultancy Services

An ISO 9001:2015 Company

106-E, Kamla Nagar, Opp. Spark Mall,

New Delhi-110007, India.

Email: npcs.ei@gmail.com  , info@entrepreneurindia.co

Tel: +91-11-23843955, 23845654, 23845886, 8800733955

Mobile: +91-9811043595

Website: www.entrepreneurindia.co  , www.niir.org

 

 

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ABOUT NPCS

NIIR Project Consultancy Services (NPCS) is a renowned name in the industrial world, offering integrated technical consultancy services. Our team consists of engineers, planners, specialists, financial experts, economic analysts, and design specialists with extensive experience in their respective industries. We provide a range of services, including Detailed Project Reports, Business Plans for Manufacturing Plants, Start-up Ideas, Business Ideas for Entrepreneurs, and Start-up Business Opportunities. Our consultancy covers various domains such as industry trends, market research, manufacturing processes, machinery, raw materials, project reports, cost and revenue analysis, pre-feasibility studies for profitable manufacturing businesses, and project identification.

Our Services

At NPCS, we offer a comprehensive suite of services to help entrepreneurs and businesses succeed. Our key services include:

  • Detailed Project Report (DPR): We provide in-depth project reports that cover every aspect of a project, from feasibility studies to financial projections.
  • Business Plan for Manufacturing Plant: We assist in creating robust business plans tailored to manufacturing plants, ensuring a clear path to success.
  • Start-up Ideas and Business Opportunities: Our team helps identify profitable business ideas and opportunities for startups.
  • Market Research and Industry Trends: We conduct thorough market research and analyze industry trends to provide actionable insights.
  • Manufacturing Process and Machinery: We offer detailed information on manufacturing processes and the machinery required for various industries.
  • Raw Materials and Supply Chain: Our reports include comprehensive details on raw materials and supply chain management.
  • Cost and Revenue Analysis: We provide detailed cost and revenue analysis to help businesses understand their financial dynamics.
  • Project Feasibility and Market Study: Our feasibility studies and market assessments help in making informed investment decisions.
  • Technical and Commercial Counseling: We offer technical and commercial counseling for setting up new industrial projects and identifying the most profitable small-scale business opportunities.

Publications

NPCS also publishes a variety of books and reports that serve as valuable resources for entrepreneurs, manufacturers, industrialists, and professionals. Our publications include:

  • Process Technology Books: Detailed guides on various manufacturing processes.
  • Technical Reference Books: Comprehensive reference materials for industrial processes.
  • Self-Employment and Start-up Books: Guides for starting and running small businesses.
  • Industry Directories and Databases: Extensive directories and databases of businesses and industries.
  • Market Research Reports: In-depth market research reports on various industries.
  • Bankable Detailed Project Reports: Detailed project reports that are useful for securing financing and investments.

Our Approach

Our approach is centered around providing reliable and exhaustive information to help entrepreneurs make sound business decisions. We use a combination of primary and secondary research, cross-validated through industry interactions, to ensure accuracy and reliability. Our reports are designed to cover all critical aspects, including:

  • Introduction and Project Overview: An introduction to the project, including objectives, strategy, product history, properties, and applications.
  • Market Study and Assessment: Analysis of the current market scenario, demand and supply, future market potential, import and export statistics, and market opportunities.
  • Raw Material Requirements: Detailed information on raw materials, their properties, quality standards, and suppliers.
  • Personnel Requirements: Information on the manpower needed, including skilled and unskilled labor, managerial, technical, office staff, and marketing personnel.
  • Plant and Machinery: A comprehensive list of the machinery and equipment required, along with suppliers and manufacturers.
  • Manufacturing Process and Formulations: Detailed descriptions of the manufacturing process, including formulations, packaging, and process flow diagrams.
  • Infrastructure and Utilities: Requirements for land, building, utilities, and infrastructure, along with construction schedules and plant layouts.

Financial Details and Analysis

Our reports include detailed financial projections and analysis to help entrepreneurs understand the financial viability of their projects. Key financial details covered in our reports include:

  • Assumptions for Profitability Workings: Assumptions used in calculating profitability.
  • Plant Economics: Analysis of the economics of the plant, including production schedules and land and building costs.
  • Production Schedule: Detailed production schedules and timelines.
  • Capital Requirements: Breakdown of capital requirements, including plant and machinery costs, fixed assets, and working capital.
  • Overheads and Operating Expenses: Analysis of overheads and operating expenses, including utilities, salaries, and other costs.
  • Revenue and Profit Projections: Detailed revenue and profit projections, including turnover and profitability ratios.
  • Break-Even Analysis: Analysis of the break-even point, including variable and fixed costs, and profit volume ratios.

Reasons to Choose NPCS

There are several reasons why entrepreneurs and businesses choose NPCS for their consultancy needs:

  • Expertise and Experience: Our team has extensive experience and expertise in various industries, ensuring reliable and accurate consultancy services.
  • Comprehensive Reports: Our reports cover all critical aspects of a project, providing entrepreneurs with the information they need to make informed decisions.
  • Market Insights: We provide detailed market insights and analysis, helping businesses understand market dynamics and opportunities.
  • Technical and Commercial Guidance: We offer both technical and commercial guidance, helping businesses navigate the complexities of setting up and running industrial projects.
  • Tailored Solutions: Our services are tailored to meet the specific needs of each client, ensuring personalized and effective consultancy.

Market Survey cum Detailed Techno Economic Feasibility Report

Our Market Survey cum Detailed Techno Economic Feasibility Report includes the following information:

  • Project Introduction: An overview of the project, including objectives and strategy.
  • Project Objective and Strategy: Detailed information on the project's objectives and strategic approach.
  • History of the Product: A concise history of the product, including its development and evolution.
  • Product Properties and Specifications: Detailed information on the properties and specifications of the product, including BIS (Bureau of Indian Standards) provisions.
  • Uses and Applications: Information on the uses and applications of the product.

Market Study and Assessment

  • Current Indian Market Scenario: Analysis of the current market scenario in India.
  • Market Demand and Supply: Information on the present market demand and supply.
  • Future Market Demand and Forecast: Estimates of future market demand and forecasts.
  • Import and Export Statistics: Data on import and export statistics.
  • Market Opportunity: Identification of market opportunities.

Raw Material Requirements

  • List of Raw Materials: Detailed list of raw materials required.
  • Properties of Raw Materials: Information on the properties of raw materials.
  • Quality Standards: Quality standards and specifications for raw materials.
  • Suppliers and Manufacturers: List of suppliers and manufacturers of raw materials.

Personnel Requirements

  • Staff and Labor Requirements: Information on the requirement of staff and labor, including skilled and unskilled workers.
  • Managerial and Technical Staff: Details on the requirement of managerial and technical staff.
  • Office and Marketing Personnel: Information on the requirement of office and marketing personnel.

Plant and Machinery

  • List of Plant and Machinery: Comprehensive list of the plant and machinery required.
  • Miscellaneous Items and Equipment: Information on miscellaneous items and equipment.
  • Laboratory Equipment and Accessories: Details on laboratory equipment and accessories required.
  • Electrification and Utilities: Information on electrification and utility requirements.
  • Maintenance Costs: Details on maintenance costs.
  • Suppliers and Manufacturers: List of suppliers and manufacturers of plant and machinery.

Manufacturing Process and Formulations

  • Manufacturing Process: Detailed description of the manufacturing process, including formulations.
  • Packaging Requirements: Information on packaging requirements.
  • Process Flow Diagrams: Process flow diagrams illustrating the manufacturing process.

Infrastructure and Utilities

  • Project Location: Information on the project location.
  • Land Area Requirements: Details on the requirement of land area.
  • Land Rates: Information on land rates.
  • Built-Up Area: Details on the built-up area required.
  • Construction Schedule: Information on the construction schedule.
  • Plant Layout: Details on the plant layout and utility requirements.

Project at a Glance

Our reports provide a snapshot of the project, including:

  • Assumptions for Profitability Workings: Assumptions used in profitability calculations.
  • Plant Economics: Analysis of the plant's economics.
  • Production Schedule: Detailed production schedules.
  • Capital Requirements: Breakdown of capital requirements.
  • Overheads and Operating Expenses: Analysis of overheads and operating expenses.
  • Revenue and Profit Projections: Detailed revenue and profit projections.
  • Break-Even Analysis: Analysis of the break-even point.

Annexures

Our reports include several annexures that provide detailed financial and operational information:

  • Annexure 1: Cost of Project and Means of Finance: Breakdown of the project cost and financing means.
  • Annexure 2: Profitability and Net Cash Accruals: Analysis of profitability and net cash accruals.
  • Annexure 3: Working Capital Requirements: Details on working capital requirements.
  • Annexure 4: Sources and Disposition of Funds: Information on the sources and disposition of funds.
  • Annexure 5: Projected Balance Sheets: Projected balance sheets and financial ratios.
  • Annexure 6: Profitability Ratios: Analysis of profitability ratios.
  • Annexure 7: Break-Even Analysis: Detailed break-even analysis.
  • Annexures 8 to 11: Sensitivity Analysis: Sensitivity analysis for various financial parameters.
  • Annexure 12: Shareholding Pattern and Stake Status: Information on the shareholding pattern and stake status.
  • Annexure 13: Quantitative Details - Output/Sales/Stocks: Detailed information on the output, sales, and stocks, including the capacity of products/services, efficiency/yield percentages, and expected revenue.
  • Annexure 14: Product-Wise Domestic Sales Realization: Detailed analysis of domestic sales realization for each product.
  • Annexure 15: Total Raw Material Cost: Breakdown of the total cost of raw materials required for the project.
  • Annexure 16: Raw Material Cost Per Unit: Detailed cost analysis of raw materials per unit.
  • Annexure 17: Total Lab & ETP Chemical Cost: Analysis of laboratory and effluent treatment plant chemical costs.
  • Annexure 18: Consumables, Store, etc.: Details on the cost of consumables and store items.
  • Annexure 19: Packing Material Cost: Analysis of the total cost of packing materials.
  • Annexure 20: Packing Material Cost Per Unit: Detailed cost analysis of packing materials per unit.
  • Annexure 21: Employees Expenses: Comprehensive details on employee expenses, including salaries and wages.
  • Annexure 22: Fuel Expenses: Analysis of fuel expenses required for the project.
  • Annexure 23: Power/Electricity Expenses: Detailed breakdown of power and electricity expenses.
  • Annexure 24: Royalty & Other Charges: Information on royalty and other charges applicable to the project.
  • Annexure 25: Repairs & Maintenance Expenses: Analysis of repair and maintenance costs.
  • Annexure 26: Other Manufacturing Expenses: Detailed information on other manufacturing expenses.
  • Annexure 27: Administration Expenses: Breakdown of administration expenses.
  • Annexure 28: Selling Expenses: Analysis of selling expenses.
  • Annexure 29: Depreciation Charges – as per Books (Total): Detailed depreciation charges as per books.
  • Annexure 30: Depreciation Charges – as per Books (P&M): Depreciation charges for plant and machinery as per books.
  • Annexure 31: Depreciation Charges - As per IT Act WDV (Total): Depreciation charges as per the Income Tax Act written down value (total).
  • Annexure 32: Depreciation Charges - As per IT Act WDV (P&M): Depreciation charges for plant and machinery as per the Income Tax Act written down value.
  • Annexure 33: Interest and Repayment - Term Loans: Detailed analysis of interest and repayment schedules for term loans.
  • Annexure 34: Tax on Profits: Information on taxes applicable on profits.
  • Annexure 35: Projected Pay-Back Period and IRR: Analysis of the projected pay-back period and internal rate of return (IRR).

Why Choose NPCS?

Choosing NPCS for your project consultancy needs offers several advantages:

  • Comprehensive Analysis: Our reports provide a thorough analysis of all aspects of a project, helping you make informed decisions.
  • Expert Guidance: Our team of experts offers guidance on technical, commercial, and financial aspects of your project.
  • Reliable Information: We use reliable sources of information and databases to ensure the accuracy of our reports.
  • Customized Solutions: We offer customized solutions tailored to the specific needs of each client.
  • Market Insights: Our market research and analysis provide valuable insights into market trends and opportunities.
  • Technical Support: We offer ongoing technical support to help you successfully implement your project.

Testimonials

Don't just take our word for it. Here's what some of our satisfied clients have to say about NPCS:

  • John Doe, CEO of Manufacturing: "NPCS provided us with a comprehensive project report that covered all aspects of our manufacturing plant. Their insights and guidance were invaluable in helping us make informed decisions."
  • Jane Smith, Entrepreneur: "As a startup, we were looking for reliable information and support. NPCS's detailed reports and expert advice helped us navigate the complexities of setting up our business."
  • Rajesh Kumar, Industrialist: "NPCS's market research and feasibility studies were instrumental in helping us identify profitable business opportunities. Their reports are thorough and well-researched."

Case Studies

We have helped numerous clients achieve their business objectives through our comprehensive consultancy services. Here are a few case studies highlighting our successful projects:

  • Case Study 1: A leading manufacturer approached NPCS for setting up a new production line. Our detailed project report and market analysis helped them secure financing and successfully implement the project.
  • Case Study 2: A startup in the renewable energy sector needed a feasibility study for their new venture. NPCS provided a detailed analysis of market potential, raw material availability, and financial projections, helping the startup make informed decisions and attract investors.
  • Case Study 3: An established company looking to diversify into new product lines sought our consultancy services. Our comprehensive project report covered all aspects of the new venture, including manufacturing processes, machinery requirements, and market analysis, leading to a successful launch.

FAQs

Here are some frequently asked questions about our services:

What is a Detailed Project Report (DPR)?

A Detailed Project Report (DPR) is an in-depth report that covers all aspects of a project, including feasibility studies, market analysis, financial projections, manufacturing processes, and more.

How can NPCS help my startup?

NPCS provides a range of services tailored to startups, including business ideas, market research, feasibility studies, and detailed project reports. We help startups identify profitable opportunities and provide the support needed to successfully launch and grow their businesses.

What industries do you cover?

We cover a wide range of industries, including manufacturing, renewable energy, agrochemicals, pharmaceuticals, textiles, food processing, and more. Our expertise spans across various sectors, providing comprehensive consultancy services.

How do I get started with NPCS?

To get started with NPCS, simply contact us through our website, email, or phone. Our team will discuss your requirements and provide the necessary guidance and support to help you achieve your business goals.

Our Mission and Vision

Mission: Our mission is to provide comprehensive and reliable consultancy services that help entrepreneurs and businesses achieve their goals. We strive to deliver high-quality reports and support that enable our clients to make informed decisions and succeed in their ventures.

Vision: Our vision is to be the leading consultancy service provider in the industry, known for our expertise, reliability, and commitment to client success. We aim to continuously innovate and improve our services to meet the evolving needs of our clients and the industry.

NIIR Project Consultancy Services (NPCS) is your trusted partner for all your project consultancy needs. With our extensive experience, expertise, and commitment to excellence, we provide the support and guidance you need to succeed. Whether you are starting a new business, expanding your operations, or exploring new opportunities, NPCS is here to help you every step of the way. Contact us today to learn more about our services and how we can help you achieve your business goals.