2013-02-26 11:39:38 - Increasing per capita consumption of chocolates accompanied by growth of confectionery market is driving the demand for chocolates in India. Changing palate of consumers from Indian sweets to chocolates along with international brands aiming to target niche premium segment is expected to lead higher sales for the chocolates in the country
The chocolates sales globally have witnessed a decline in the last few years due to 2009 economic crisis. However, the global chocolate market has shown an upward trend since late 2010 with the improvement in the economy. Western Europe accounts for the largest market for chocolate followed by North America and Asia Pacific. With the increased consumption of chocolate and substituting it with traditional sweets,the market is expected to accelerate in the coming five years.
According to the recently published report by TechSci Research“India Chocolate Market Forecast & Opportunities, 2018”, the chocolate market revenues in India is expected to witness the compounded annual growth rate (CAGR) of around 21% from 2013-2018. The chocolate industry is also considered as the most popular
productin the food processing sector. With the demand of premium high end chocolate going up in the market; international companies are entering into the market through collaborations and acquisitions in order to increase their share in the market. It is forecasted that India chocolate market will reach USD 3.2 Billion revenues by 2018 due to increasing gifting culture in the country and increase in the income bracket which will fuel the demand for chocolate products in India.India chocolate market is divided into four segments where Bars chocolate segment accounts for maximum share of 36%.However, the demand for assorted chocolates is expected to increase with the highest growth rate within next five years considering the increasing gifting culture in the country followed by growing demand for luxury chocolates.
TechSci Research’s report further elaborates that the domestic market for chocolate has increased due to shift in consumer preference and development in rural markets. The Indian chocolate market is dominated by Krafts Food being the market leader followed by Nestle and Amul. There are certain local manufacturers who also play a significant role in the chocolate market due to proximity in non-metropolitan areas and increasing awareness among the consumers. India imports chocolate products from a lot of countries such as China, Singapore, UAE, Malaysia, UK, Switzerland and Netherlands.However, one of the major challenge for the local manufacturers is the increasing cocoa prices in the country which is currently being imported and act as a main raw material used for preparing chocolates by many leading players.
The chocolate industry has a considerable growth potential in the country but the area of concern lies in high input cost of raw materials such as sugar, cocoa, milk powder and increasing packaging cost. Increasing tariffs and rising custom duty also makes the imported chocolate costly thereby affecting the sales of premium chocolates in the country.
The report has evaluated the future growth potential of chocolate market in India and provides statistics and information on market structure, market trends, market size, etc. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and key challenges faced by the industry