Cheap candies priced at ₹1 still make up the largest share of sales in India’s confectionery market, but the leading candy maker is increasingly focusing on higher-price offerings to lift revenue and margins. By pushing ₹5 and ₹10 packs, expanding distribution and rolling out new launches, the company aims to capture more value from both urban and rural consumers.
Why the shift to higher price points?
The move toward ₹5 and ₹10 products follows a common retail strategy known as premiumisation. Small price jumps are designed to raise average transaction value without alienating core customers. For many buyers, upgrading from a ₹1 piece to a multi-piece pack at ₹5 or ₹10 is a low-friction decision, especially when new flavors, packaging or perceived quality adds clear benefit.
Higher-priced SKUs also help the company improve margins. Single-rupee pieces are volume drivers but leave little room for profit after packing, distribution and promotional costs. Multi-piece packs and value-added formats create room to recoup investments in innovation, branding and wider reach.
Expanded distribution: reaching more stores and shoppers
Beyond product mix, distribution is a central pillar of the growth plan. The strategy emphasises:
- Deeper rural penetration: Tapping smaller towns and villages where affordability matters but demand for packaged sweets is growing.
- Stronger presence in modern trade: Ensuring visibility in supermarkets and convenience chains, where shoppers are more likely to try new SKUs.
- Better coverage of mom-and-pop stores: Improving supply frequency and pack assortment to keep ₹1, ₹5 and ₹10 options available at the neighbourhood level.
Better logistics and category management make it easier for retailers to stock a wider price ladder, giving consumers more choice at the point of purchase.
New launches and product innovation
New product introductions are being tailored to appeal across demographics. Typical innovations include:
- Multi-piece packs with a mix of flavours to encourage trial
- Limited-edition seasonal flavours tied to festivals
- Smaller-format premium candies with improved packaging for gifting
- Health-conscious variants with reduced sugar or natural flavours
These launches serve two purposes: they attract attention in a crowded market and give retailers easy upsell options alongside the widespread ₹1 pieces.
Consumer behaviour and market trends
Several trends support the strategy. Rising incomes and greater exposure to packaged goods have shifted preferences toward branded sweets. Urban shoppers often trade up for taste, convenience and hygiene. At the same time, price-conscious consumers in smaller towns still drive volume through single-rupee purchases, creating a two-tier market where both low-cost and slightly premium options can succeed.
Promotions, festive demand and impulse purchases remain strong drivers of candy sales. Packaging that stands out on shelves and small, affordable premium SKUs are particularly effective at converting footfall into higher spend.
Challenges and risks
The approach is not without hurdles. Key risks include:
- Price sensitivity: A significant portion of the market remains highly sensitive to price, limiting the pace at which shoppers will move up the ladder.
- Distribution costs: Reaching smaller outlets and remote areas raises logistics expenses that can erode margins.
- Competition: Local brands and unbranded sweets continue to compete fiercely on price and regional taste preferences.
- Input cost volatility: Fluctuating raw material and packaging costs can compress profits, especially at lower price points.
What this means for the sweets market
The push for ₹5 and ₹10 products suggests a maturing market where volume alone is no longer enough. Companies that can combine wide availability of entry-level candies with compelling higher-price offerings stand to grow both sales and profitability. For retailers, a richer assortment across price points can increase basket size and frequency of repeat purchases.
Looking ahead
Expect to see continued experimentation with flavours, formats and distribution models. If executed well, the strategy should expand the share of revenue coming from higher-priced packs while keeping the mass-market appeal that made the ₹1 segment so dominant. For consumers, that means more choice — from the familiar single-rupee treat to affordable mini-premium options for gifting and snacking.