A majority of people, today, loves chocolates and thus the demand for good quality chocolates has only been on the rise since the past few years. Chocolate has also become one of the main ingredients for desserts and sweets. Growing awareness of the health benefits it has to offer has only increased the popularity of chocolate. Customers are willing to spend any amount of money for high quality and delicious chocolates.
Market for chocolate in India
The market for chocolate in India has come a very long way. Cadbury is not the only brand that consumers are aware of today. India has started importing high quality cocoa in the past few years. The demand for this commodity is growing at good 15 percent and is only expected to grow further and faster in the years to come.
According to TechSci Research, the Indian market for chocolate will grow at a Compound Annual Growth Rate of 18 percent in terms of value. In the past five years, the per capita chocolate consumption has increased from 40 grams to 120 grams, which is massive.
The leaders in market sales of chocolates are Cadbury and Nestle. However, consumers have now also taken a liking towards dark and bitter chocolate, which has led rise to other brands coming to the foreground as well. Consumers also prefer good quality homemade chocolates or custom-made chocolates. The sales have drastically increased in all segments of chocolates like dark chocolate, milk chocolate and white chocolate.
Consumers are also now using chocolates during festive season for gifting purposes. This trend has further boosted the overall sales and demand of chocolate during festivities. According to Reuters, various companies across India have plans to increase the production of chocolate domestically.
Way back in 2008, the market size for the chocolate industry was 30,000 tones. Chocolate bars account for 37 percent of the market volume. The count segment, with Perk and Kitkat, account for the next 30 percent. This segment is rapidly growing with the passing years. The next 10 percent is accounted by the panned chocolates. Certain research also states that in the year 2016, India alone has consumed 228,000 tones of chocolate.
Although a majority of population prefers milk chocolates in India and it is still the strongest segment of the market, recent exposure to the western trends has brought the concept of other varieties of chocolates too. Now, the market is flooded with various ranges of chocolates including premium and dark chocolates. Bigger players like Cadbury and Nestle have brought in new varieties of chocolate products. Consumers are now open to trying other types too.
Indians are major chocoholics. Two in every five Indian consumers like chocolates for snack and energy.Forty three percent of Indians consume chocolate as a snack in between meals.As Indian consumers are open to a wider range and variety of chocolates, the chocolate industry has a lot of potential for growth in the years to come.
For budding entrepreneurs, there are many good opportunities in this business. Consumers are now taking a lot of interest in buying a range of varieties of homemade chocolates. There are also many other niche products that one can create from chocolate using unique recipes. With the right training, this can soon become a booming business.
India has become one of the fastest growing markets for chocolate due to the changing lifestyles and a growing tendency for indulgence. The constant growth in population, new market trends and innovation drive the growth in this industry. The increase in demand is not completely met, neither globally or locally, due to the deficient supply.
Chocolate is a very popular commodity for various purposes like gifting, cooking and consumption. Small businesses produce unique and special chocolates while the larger players focus on large-scale production. The demand for chocolate is growing and it will only increase moving forward.
Therefore, it is safe to say that the chocolate industry has great potential for every one willing to be part of it. There are huge opportunities for both large companies and small business owners as it is almost impossible to satiate the desire for chocolate in consumers.