The Indian chocolate market has been forecast to increase at a compound annual growth rate (CAGR) of 23% over the next five years, reaching an estimated volume of 3.41 million tons by 2018.
Consumers in India are increasingly developing a sweet tooth for the Western confectionery chocolate, with sales doubling in the span of three short years to make India the fastest growing market for chocolate in the world.
Chocolates in India are slowly and steadily substituting the mithai or traditional Indian sweets. Due to the increasing levels of social consciousness people prefer gifting well wrapped chocolate packets rather than sweets on occasions and festivals.
Taking advantage of this situation the top chocolate brands in India are now concentrating on the packaging and are introducing well packaged chocolates for specific occasions.
Initially chocolates were just limited to a few flavours caramel and milk chocolate till recent years when the introduction of dry fruits in chocolates created waves in the chocolate industry in India. Even dark chocolate which was not widely available in the Indian subcontinent till some time back has started gaining ground in the Indian chocolate market.
Chocolate is being pitched as a premium, luxury item in India: the 'premiumisation' claim, for instance, has seen a 100% growth over the last three years, from 4% of launches in 2008 to 6% in 2011.
And while per capita consumption of chocolate remains low in India compared to other countries at 70 grams in 2011, that just means the potential for growth is high in this booming economy where consumers have disposable income to spend
Increasing consumer demand has led to more and more players entering the market. Cadbury Kraft Foods has been a market leader in the chocolate category for the last 64 years in India. Cadbury Kraft Foods has a 70% share, 20% is held by Nestle and the others operate in the remaining 10%, which forms around Rs 310-320 crore.
The chocolate industry in India works at different levels that include chocolate giants like Cadbury's , Dairy Milk, etc, small chocolate manufacturers, chocolate retailers, chocolate importers and people who make chocolates at home.
For more information on the Indian chocolate market, see the latest research: Indian Chocolate Market
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