India’s mithai industry is gearing up for a strong Diwali season this year, with branded sweet sales expected to rise 15–20% year-on-year. Growth is being driven by corporate gifting, last-minute retail demand, and product innovation. While optimism is high, brands remain cautious amid changing consumer spending patterns and inflationary pressures.

The packaged sweets market in India, valued at around ₹7,200 crore in 2024, is projected to reach ₹27,600 crore by 2033, registering a 16% CAGR, according to IMARC Group. Branded mithai, though a smaller segment, is expanding faster in urban centres, with some players reporting annual growth of 40–50%.

Corporate gifting drives early orders

Almond House reports that corporate gifting continues to fuel bulk orders. “Around a quarter of our annual revenue comes during the festive period,” said MD & CEO, Chaitanya Muppala. With Diwali falling on a Tuesday this year, he expects an extended shopping weekend.

The Hyderabad-based brand is introducing millet-based sweets and a Silk Read Collection inspired by Arabian desserts. “Many of our products are vegan or use alternative sweeteners. I don’t call them healthy; I call them less unhealthy,” Chaitanya quoted.

Value and customisation are increasingly important in gifting. “Whether someone is spending ₹700 or ₹7,000, creating value within gifting is essential,” he said. “We’ve also seen a sharp rise in customisation, from choosing boxes, hampers, ribbons, logos, motifs, to even designing your own box.”

Innovation blends tradition with surprise

While maintaining traditional roots, brands are innovating to enhance texture, flavour, and presentation. Chaitanya shared, “For example, we have a walnut peda, but we add a walnut praline inside. The ingredients remain the same, but the surprise in texture adds significant value. Our kaju katli also has variations this year—rose katli, chocolate kaju katli, and last year’s bestseller, pista katli with gold leaf.”

Sid Mathur, founder of Khoya Mithai, emphasised that modern consumers want festive treats that feel both traditional and new. “People want sweets that feel festive but also exciting. We’re blending heritage with design, flavour, and modern indulgence,” he said.

Last-minute urban rush 

Mumbai-based Bombay Sweet Shop expects 100% year-on-year growth. “Consumers are placing orders just 2–3 days before the festival, causing sharper last-minute spikes,” said Yash Bhanage, founder and COO of Hunger Inc. Hospitality. The brand is offering contemporary twists on classics, such as Biscoff Mathura Peda, Gulab Saffron Roll, and Hazelnut Besan Laddu.

Regional legacy brands see revival

Kolkata’s Balaram Mullick & Radharaman Mullick anticipates 10–12% growth, bouncing back from a flat 2024. “Durga Puja and Diwali together bring a huge rush. Winters are strong because of nolen gur. We innovate every year with new flavours to attract customers,” said Sudip Mullick, owner.

Balancing indulgence and health

Across the industry, brands are innovating with millets, jaggery, vegan options, and reduced sugar, while maintaining festive indulgence. Chaitanya said, “When people want to indulge, they want indulgence. That’s what sweets are meant for.”

With a mix of traditional flavours, modern presentation, product innovations, and tailored gifting solutions, India’s branded mithai industry is set for a festive season that combines heritage with contemporary consumer trends.

So, what’s on your mind while buying mithai this Diwali? Tradition? Innovation? Healthy? Or mere indulgence?