New Product Launches in Mumbai's Premium Confectionery Market by Zaara Balwa

Examining the Process of New Product Development and Launch in the Premium Confectionery Market in Mumbai by Zaara Balwa

Introduction

The Indian confectionery industry is one of the largest and most culturally significant food industries in the country. Within this industry, traditional Indian sweets, commonly referred to as mithai, play an extremely important role. Mithai describes a wide range of sweets made with ingredients such as milk solids (khoya), sugar, ghee, flour, nuts and aromatic flavourings like saffron or cardamom. For centuries, these sweets have been prepared by traditional sweet makers known as halwais. As a concept, mithai holds a deep-rooted connotation in Indian culture and daily life – being used as offerings to God, sweets for celebrations, and part of rituals to mark auspicious beginnings. A phrase commonly told at happy occasions is ‘muh meetha kijiye’ which translates to 'let us sweeten the momentous occasion by having sweets’, and the line itself depicts a confirmation and positive next step between families. In comparison, traditional Western sweets are more casual desserts and are eaten occasionally after meals. On the other hand, mithai carries a deeper cultural meaning in India and is closely tied to celebration, hospitality and religious customs.

Momentous Occasions that drive the Mithai Industry

The organised sector of the mithai industry generates an estimated revenue of around 80,000 crore rupees (approximately USD 9.6 billion). To add to that, it is estimated that the largely unorganised sector of the industry, consisting of local sweet shops and small family businesses, holds a larger market share. This demonstrates the strong economic importance of sweets within the Indian food industry as well as their cultural relevance.

The demand for mithai in India is largely driven by the wide range of occasions on which sweets are purchased. Festivals are one of the most important drivers of mithai consumption. Celebrations such as Diwali, Raksha Bandhan, Eid and Ganesh Chaturthi typically involve the exchange of sweets among family members, friends and business associates. It is common for people to visit relatives and carry boxes of sweets as a gesture of goodwill for welcoming them into their home or to add to a celebration. Weddings and other life events also contribute heavily to sweet consumption. Engagement ceremonies, weddings, house-warming events and religious rituals often include the distribution of sweets as a symbol of happiness and prosperity.

In recent years, corporate gifting has also become an important factor influencing demand, especially during festive seasons when companies send premium sweet boxes to employees and clients. At the same time, mithai is not only limited to major celebrations, but a large percentage of the population purchases sweets such as jalebi, laddoos and pedas as everyday treats or daily pooja offerings. This regular consumption creates a steady demand throughout the year, while festive periods create additional spikes in sales.

General Consumer Preferences and Trends

The Indian confectionery industry offers a very large variety of sweets, ranging from traditional mithai to modern desserts influenced by Western confectionery styles. Traditional Indian sweets – mithai – continue to dominate the market and are available in many forms depending on ingredients and regional preferences. However, the most popular ones are the crowd favourites and ubiquitous presence throughout India (Appendix A):

1. Kaju katli is one of the most well-known sweets and is made using cashew paste and sugar. It is usually cut into diamond-shaped pieces and is widely associated with gifting during festivals.

2. Gulab jamun is another popular sweet made from deep-fried milk-solid dumplings that are soaked in sugar syrup.

3. Rasmalai is made from soft dumplings placed in sweetened milk and is often served chilled as a dessert.

4. Pedas are milk-based fudge sweets

5. Laddoos are small round sweets often made from gram flour or boondi.

6. Soan papdi is another popular product that has a flaky texture and is commonly sold in decorative boxes.

While these traditional sweets remain extremely popular, modern confectionery brands have begun introducing new products that combine Indian flavours with global dessert techniques. Chocolate-based mithai, fusion sweets and innovative flavour combinations are becoming more common as brands attempt to appeal to younger and more urban consumers.

Case Study: The Mithai Industry in Mumbai

Mumbai provides an interesting and useful environment for studying the confectionery market because it is one of India’s largest and most cosmopolitan cities, often compared to New York, and is the financial/commercial capital of India. The city has a diverse population representing many cultural backgrounds and income groups. This diversity creates demand across multiple segments of the sweet market, from affordable daily sweets sold in local shops to premium and luxury confectionery products designed for gifting. Mumbai also has a longstanding tradition of established mithai businesses that have operated for decades while newer brands are introducing modern ideas in product design and marketing. Because of this combination of tradition and innovation, the city offers a valuable case study for understanding how the confectionery industry is evolving in modern urban India.

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