ITC candy aisles spared from the wrath of inflation

ITC

Discretionary segment has had no major impact from inflation as it sees good demand for all categories, said operating chief for ITC's chocolates, coffee, and confectionery segment.

"We are seeing quite a good demand materialising for all discretionary categories," Anuj Rustagi told CNBC-TV18.

"We are not yet seeing a major impact of inflation on the demand of the discretionary category," he added.

Going ahead, Rustagi expects robust demand to continue after double-digit growth clocked by the confectionary segment during Rakshabandhan and as people start to socialise ahead of the festive season and corporate gifting trends begin to take off.

By 2025, the chocolate confectionery market in India is forecast to reach $2.41 billion, increasing at a compound annual growth rate of 6.33 percent during 2020-2024. This is down from 12.11 percent CAGR during 2015-2019, according to marketresearch.com.

Rustagi said that they are expecting double-digit growth during the upcoming festive season.

The company has already launched chewable candies in its confectionery segment under the brand name Candyman priced at Rs 1 for three pieces. The primary focus of the firm remains on the urban space. "The urban market gives more headroom for growth," he added.