The presence of Mishti or sweets, a wide-ranging category of confections, has always been inextricably linked to Bengali culture and hospitality for centuries.
The longstanding business of these sweet treats has been the source of livelihood for thousands of people across Bangladesh for decades.
In recent decades, however, the traditional sweet business has been turning into a corporate business with many renowned companies coming into the fray with big investments.
Many companies have started chain shops of sweets across the country, especially in Dhaka, and even expanded abroad considering the demands of expatriate Bangladeshis.
Sector people say the sweets market is a big one in Bangladesh, as the demand for the confections is always high due to various festivals, and social, traditional and religious occasions around the year.
The demand for Bangladeshi sweets abroad has also increased in recent years. Some companies have already opened outlets in different countries while several others are currently mulling over exporting sweets.
Bangladesh Sweets Manufacturers Association (BSMA) President Madhab Chandra Ghosh told The Business Post that major changes came in the country’s sweet business after many companies, including big market players, entered the business with massive investments.
The companies are now marketing various types of quality sweets by opening outlets across the nation under different brands with modern packaging, he said.
However, Madhab, also the proprietor of Bhagyakul Mistanna Bhander, said the sweet industry is facing some problems at present like other sectors, including rising prices of sweet-making materials. “But we not faltering and are moving forward tackling these issues,” he added.
Journey of sweet branding
Once upon a time, the sweet business in Bangladesh was mostly controlled by the Ghosh family. But now this industry has gone through massive corporatisation.
In 1983, Alauddin Sweetmeat started widespread advertisements about their business and opened several outlets across Bangladesh where they started selling packaged sweets.
Through that move, Haji Masum turned the inherited sweets business into a modern corporate business and converted Alauddin Sweetmeat into a limited company. The company also opened branches in New York, London, Saudi Arabia, Malaysia, Singapore and India at that time.
Maruf Ahmed, the current proprietor and a fourth-generation family member of Alauddin Halwai, told The Business Post, “Chawkbazar has been the home of Alauddin Sweets for over 150 years. My great-grandfather-in-law Alauddin Halwai opened the first branch at Chawkbazar in the 1860s after the one in India’s Lucknow.”
“Since 1864, Alauddin Halwai has been operating in Dhaka. The early items were Roshogolla, Golap Jam and Shondesh at the sweet shop but now various items have been added to the list,” he said.
Corporatisation
Customers nowadays prefer the branding of sweets, giving importance to quality and hygiene, as the brands are gradually gaining popularity following more attention by the traders to the branded sweet business.
Traders said that people favour branded sweets as they offer more varieties and flavours. Their hygienic production and selling environment also play a big role to attract customers.
The brands are leaving the conventional business of sweets behind and moving towards branding, considering the rising demands. According to industry insiders, the annual trade of sweets is worth Tk 20,000 crore in Bangladesh.
Many companies started this business with big investments and they are expanding by doing market studies. Renowned companies like Premium Sweets have branches in the US, the UK, Canada and various countries in the Middle East as expatriate Bangladeshis crave sweets from home.
Mithai, one of the brands of PRAN Group, started its journey in 2015. It makes various types of popular sweets at its factories in the country. Mithai currently has 137 outlets across the country.
Kamruzzaman Kamal, director (marketing) at PRAN-RFL Group, told The Business Post that the growth of their sweet business has been good so far as they ensure the best quality and proper hygiene.
“Everyone makes sweets with milk but when it comes to consumers, they want to ensure that the milk is safely sourced. So, when sweets are made by a corporate organisation like Mithai, people feel confident to consume the products,” he said.
About the potential of sweet exports, he said, “Many countries including India are exporting different items of sweets, so we want to grab a slice of that market by producing and exporting the best quality sweet items.”
There are many branded sweet shops in Bangladesh, including Mithai, Premium Sweets, Rosh Sweets Ltd, Banolata Sweets, Modhubon Sweets, Fulkoli Sweets, Bikrampur Mistanna Vandar, Bhagyakul Mistanna Bhander, Well Food, Muslim Sweet Ltd, The Alibaba Sweets, Muslim Sweets and Bakery, and Premier Sweets.
Talking to The Business Post, BSMA General Secretary Md Aminur Rahman said many companies are manufacturing sweets under different brand names and selling various types of sweets using modern packaging to attract customers.
“There is a huge potential for sweets business in Bangladesh as people go for various types of sweets around the years, especially during festivals and social occasions,” said Aminur, also the owner of Muslim Sweets.
He, however, said that now the sector is facing problems due to high prices of sugar and other raw materials due to the impact of the Covid-19 pandemic and the Russia-Ukraine war.
The middle-income and lower-income people’s purchase capacity has decreased because of the rising prices of daily essentials, Aminur added.
Sweet market
Stakeholders said that there is no specific information on how many sweets shops are operating across the country, but it estimated that the numbers of branded and non-branded sweets shops are around 20,000, which has created job opportunities for millions of people in the sector.
However, there are around 1,000 sweet shops or outlets across the country run by established corporate sweet traders.
According to Aminur, around 5,000 sweets shops are operating across the country and around 300 of them are BSMA members. “There are also many small sweets shops nationwide but we don’t have enough data.”
Branded sweets companies are making various types of sweets, including dry sweets and dessert items, but the local non-branded sweet shops make limited-item sweets and sell them instantly. Roshgollas are among the most popular sweets in such shops.
However, all traders do not manufacture sweets. The number of sweet manufacturing companies is around 200 across the country. Apart from the local sweet makers or Karigars, many came from Kolkata and are now working in Bangladesh.
Bangladesh already has some regionally popular sweets. Cumilla’s Rosmalai, Tangail’s Chamcham, Jashore’s Jamtala Rosgolla, Naogaon’s Para Sandesh, Natore’s Kachagolla, Muktagacha’s Manda, Netrakona’s Balish Mishti, Gaibandha's Roshmonjuri, and Meherpur’s Sabitri and Roskadam are highly popular among the people.
The popularity of these regionally popular sweets is massive but the corporate organisations are not directly selling these sweets. The companies are gradually mastering how to make sweets by visiting particular regions and directly learning from the local Karigars.
Govt’s sweets revenue on the rise
Meanwhile, the government is getting a huge amount of revenue from the sweet business sector every year.
The National Board of Revenue (NBR) data shows that a total of 3,378 sweets shops are paying VAT to the government through the 11 commissionerates across the country.
According to NBR data, out of 3,378 sweet shops, 267 are under Customs, Excise and VAT Commissionerate in Jashore; 120 in Cumilla; 462 in Sylhet; 251 in Khulna; 512 in Dhaka (West); 295 in Dhaka (North); 300 in Dhaka (South); 273 in Dhaka (East); 176 in Rangpur; 279 in Rajshahi; and 443 in Chattogram.
The top 220 sweet companies paid Tk 49.84 crore in VAT in FY2021-22 and the amount increased to Tk 66.83 crore in FY2022-23 under the 11 commissionerates.
The top 10 VAT-providing sweet companies in FY23 were Meena Sweets in Dhaka (Tk 9.8 crore); Matri Vandar at Monoharpur in Cumilla (Tk 1.2 crore); Mithai in Dhaka (Tk 2.90 crore); Fusion Food Limited at Nimtola, Bandar in Chattogram (Tk 1.4 crore); Tribani Misti Vander at Hathazari Sadar in Chittagong (Tk 5.7 crore); Joy Kali Mistanna Bhandar in Tangail (Tk 7.4 lakh); Star Line Sweets at Mohipal in Feni (Tk 3.73 lakh); Rosh Mistanna Bhandar at Sagardi in Barishal (Tk 1.09 lakh); Nirmal Mistanna Bhandar at Panbazar in Rajbari (Tk 18.08 lakh); and Mosen Mistanna Bhandar in Rajbari (Tk 4.06 lakh).
Stakeholders said that most of the branded companies accept the key materials only through quality testing and they have modern factories. They are selling sweets with colourful packaging.
Moreover, bamboo canes are now being used in the packaging of sweets while the traditional clay bone has made a comeback in a new form, making packaging also emerge as a small industry separately.
Maruf Ahmed of Alauddin Sweets said, “We strictly control the quality at every stage from raw material to production and marketing maintaining hygiene because that is what the customers want and deserve.”
“This now is the era of branding. We’ve updated and are now delivering sweets in beautiful packaging to customers. Quality packaging is getting more and more priority because the customers want the packets to match the occasions, like Pohela Boishakh and other such festivals,” he added.
