December 4, 2020

Small and medium mithai retailers closing down as packaged sweets most well-liked over conventional ones



NEW DELHI: New social distancing norms and habits introduced in by the Covid-19 pandemic have taken a toll on conventional sweets retailers with prospects choosing packaged sweets from organised gamers. “Small and medium scale mithai retailers have began closing down because of excessive leases, non-opening of malls and decrease demand over the previous few months,” stated Virender Jain, president of Federation of Sweets & Namkeen Producers (FSNM).

Restrictions on social gatherings comparable to weddings and company occasions have additionally impacted their gross sales. “Already 5-10% of the retailers have closed since March this yr, and extra can observe go well with,” Jain stated.

He stated the pandemic is pushing folks in direction of packaged merchandise from branded retailers.

Radhey Mohan Aggarwal, director at conventional sweets and namkeen chain Bikanervala, stated it is because shoppers are assured about branded retailers’ hygiene practices and well being considerations.

“Total, the gross sales have been down by 70% to 80% with negligible demand this marriage ceremony season. Bulk demand by corporations for occasions like AGMs was additionally not there,” Aggarwal stated. “Nevertheless, we have now noticed that the demand for packed namkeens and mithai has elevated because the lockdown was introduced in March.”

Organised sector accounts for under 5% of the general sweets and namkeen market estimated at about 1 lakh crore.

The pandemic has attracted new gamers available in the market comparable to dairy manufacturers Amul and Mom Dairy that at the moment are promoting conventional milk-based sweets.