Candy biscuits and cookies are a well-established, indulgent snacking class in India. Not surprisingly, some shoppers are prepared to pay a premium for elevated indulgence. On the similar time, a majority of them are additionally prepared to pay extra for more healthy biscuits.
The chai-biscuit ritual is taken into account a driving power for candy biscuit/cookie consumption. It’s typically consumed as an accompaniment to scorching drinks like chai, espresso, plain milk, malt drinks and inexperienced tea.
Due to this fact, the time is ripe for premiumisation. Higher-for-you (BFY) choices and elevated indulgence can each open shopper wallets. Specializing in scorching beverage pairings may also help drive utilization.
Attraction with BFY choices
The rising prevalence of persistent illnesses related to nerve-racking city life is probably going driving curiosity in wholesome snacking amongst city shoppers. The same development is seen in candy biscuits and cookies, the place 57% of metro dwellers (vs 53% in tier-3 and 54% in tier-2 cities) are prepared to pay extra for more healthy than common biscuits and cookies.
It’s essential for biscuit/cookie manufacturers to know the various definitions of healthfulness, because it differs from shopper to shopper. For instance, options like decrease sugar and better protein and fibre content material resonate extra amongst upper-tier metropolis shoppers than lower-tier metropolis dwellers. Due to this fact, develop decrease sugar, excessive protein and fibre-rich biscuits/cookies and emphasise these options in advertising and marketing communications.
Candy biscuits take pleasure in mass enchantment in India. Even amongst financially struggling shoppers who’re usually extra price-sensitive, practically 57% of those that are at the moment in OK or a decent monetary scenario are prepared to pay extra for more healthy biscuit/cookie variants. Which means that even price-conscious shoppers are prepared to spend additional in the event that they understand a transparent well being profit.
Due to this fact, positioning better-for-you biscuit choices in a mass-premium tier is a development alternative. Emphasising value-for-money proposition to drive trials and adoption amongst price-conscious middle-class Indians is the important thing to getting forward.
Amp up the indulgence
Practically a 3rd (31%) of shoppers are prepared to pay a premium for elevated indulgence in biscuits/cookies. This sentiment notably resonates higher with Gen Z residing in metro cities. It’s price noting that the demand for indulgence decreases as age progresses, making it essential for manufacturers to search out methods to ship added indulgence with new product choices to broaden their enchantment amongst Gen Z shoppers.
Flavour and texture will play a pivotal function in justifying premium pricing in candy biscuits/cookies. Due to this fact, manufacturers can ship a superior consumption expertise with novel and intense flavours with crunchy textures. As an illustration, the TURF evaluation states that Indian-mithai-flavour, crunchier in texture and smaller/munchable packs may also help attain 69% of indulgence seekers in candy biscuits/cookies.
Premiumisation alternative lies in giving a desi twist to the mithai biscuits/cookies with mithai flavour. This will even assist manufacturers to interrupt into the festive celebrations and festive gifting. For instance, one in 4 shoppers discover candy biscuits ultimate festive presents. Due to this fact, make candy biscuits/cookies gift-friendly to faucet into this untapped market.
In addition to mithai flavour, make the crunch rely. At the moment, crunchy texture leads in biscuit launches; stand out by delivering crunchier texture than rivals.
The potential exists for candy biscuits/cookies manufacturers to compete with different on-the-go classes by introducing smaller, munchable biscuits and handy pack sizes.
Drive consumption with scorching beverage pairings
94% of biscuit/cookie shoppers have consumed biscuits/cookies with scorching tea/inexperienced tea/scorching espresso/black espresso/plain milk or malt drinks. Chai is the most well-liked beverage drink paired with biscuits/cookies and Marie is the most typical candy biscuit format consumed with chai.
Emphasising scorching beverage pairings, particularly with chai, supplies an avenue for manufacturers to reinforce the general consumption expertise. In addition to chai, inexperienced tea and low will also be strategically paired with biscuits/cookies, serving to candy biscuits/cookies to enchantment to completely different shopper segments.
What we expect
The time is ripe for premiumisation within the biscuit/cookie class.
BFY choices in candy biscuits/cookies are key to unlocking the potential for mass premiumisation by upgrading the mighty middle-class Indian shoppers. Attraction to higher city-tier well being seekers with decrease sugar, increased protein and fibre content material. All-natural components may also help broaden the enchantment of BFY biscuits/cookies amongst health-seekers in Tier-2 cities.
Gen Z and metro dwellers make up the vast majority of the indulgence-seeking cohort. To win over indulgence seekers, ship a superior consumption expertise. Attraction to them with mithai-flavoured biscuits/cookies which have crunchier and melt-in-the-mouth textures and can be found in munchable/smaller packs.
Growth alternative additionally lies in emphasising scorching beverage pairings. The recent-beverage-biscuit ritual drives biscuit consumption. Scorching milk tea is the most well-liked beverage drunk alongside biscuits/cookies. Equally, encourage consumption by pairing biscuits/cookies with different scorching drinks like inexperienced tea, scorching milk espresso and plain milk/malt drinks.
