Indian markets seriously seem to run on the success path off late, especially after the power shift things look like they are changing this time it’s to the healthier side. The economy is growing as the trades flourish and there is business from all parts of the globe. Eatables are major commodities that India trades (both imports and exports). Chocolates are among most demanded products in India, there are several renowned companies manufacturing premium to moderate quality chocolate products.
The likes of Mondelez India (Cadbury’s) and Nestle India have quite a strong hold, (something good for Nestle after the Maggi row). The home grown companies like the government backed Amul and massive private multi-industry player ITC looking to snatch bigger pies in the circle. The domestic chocolate market is estimated at bit more than 7,000 crores INR. This is quite a big industry when considered that chocolate isn’t a natural sweet dish in India. The premium range of chocolates have a presence of 10-12 % which is constantly on an upward growth.
Chocolate companies in India are looking to expand their reach whereas most of them aren’t looking to dominate
Developing economic conditions, rising disposable incomes, change in lifestyle and a rich population of youngsters are prominent elements for the chocolate business growth in India. Long ago, in 1998 Mondelez India Foods (widely known by old name Cadbury’s) introduced the Rs.5 packet; this was primly done to penetrate into the rural areas and to grow consumption among adults. The idea turned out to be a super successful one, as the brand shot up to a premium range and the company revenues spun with profits.
Chocolate Business in India, calls for celebrations:
By the end of 2014, the Indian industry for chocolates was calculated at 58 billion INR and it is projected to reach 122 billion INR with a CAGR of 16% by 2019.
As mentioned, Nestle India and Mondelez India top the charts with a whopping 92% of the total sales all over the country in 2014. International brands like Mars and Ferrero India are launching their products and slowly trying to gain momentum.
Milk chocolate is undoubtedly the most liked chocolate variant in India with a strong hold of 75% market. The dark chocolate which was once ‘not so preferred’ is today the fastest growing segment with a 9% market share. Moreover, companies like Cadbury’s, Nestle India and ITC are introducing products like Bournville and Dark Chocolate to pump in the dark chocolate segment in India.
Urban population in India are chocolate eaters:
80% of India’s chocolate consumption comes from the urban regions. Unsound infrastructure, defective warehousing and transportation facilities are some factors which are hurdles in the growth of rural chocolate market in India. Although, the scene is much better than what it was in the past as villages and towns today are increasingly aware about products and consume chocolates more often.
Smaller quantities worth less than 30 grams priced around Rs.10 are the fastest growing category which has the largest sales volume in India.