India: Chocolate Market Growing Rapidly

Friday, May 19th, 2017 | 532 Views

India is now one of the world’s fastest growing chocolate confectionery markets, with sales growing by 13 percent between 2015 and 2016, according to Mintel.

While the global chocolate confectionery market posts slow growth, India is defying the odds and displayed a strong growth. The country’s chocolate confectionery market had a strong compound annual growth rate (CAGR) of 19.9 percent in retail market value between 2011 and 2015, and is expected to grow at a CAGR of 20.6 percent from 2016 to 2020.

Sales of chocolate confectionery in retail markets grew by 13 percent between 2015 and 2016 in India, followed by Poland which saw sales growth of two percent. In comparison to the rest of the world, Poland and India were the only two markets to see sales of chocolate grow in 2016; with sales in the US, United Kingdom (UK), Germany and France flat over this period, while sales fell in Russia (-2 percent), Brazil (-6 percent), and China (-6 percent).

When it comes to chocolate confectionery consumption, it seems India is a nation of chocolate lovers as volume sales were 228 thousand tons in 2016. Meanwhile, Australia and Indonesia consumed 95 thousand tons and 94 thousand tons worth of chocolate in 2016 respectively.

“Our research indicates that consumers in India believe chocolate to be beneficial and convenient—seemingly the key reasons behind the growth of the country’s chocolate confectionery market both in value and volume,” said Marcia Mogelonsky, director of Insight, Mintel.

Over two in five Indian consumers (44 percent) find sweet or sugary snacks like chocolates and cakes to be healthy, while 35 percent Indians believe these snacks provide them with energy. Moreover, 49 percent of Indian consumers associate sweet or sugary snacks like chocolates with convenience. Over half (53 percent) of Indian consumers reported that they tend to snack in between meals because they get hungry.

Overall, global launch activity in the confectionery category was somewhat restrained in 2016. The number of chocolate confectionery launches globally grew by just three percent between 2015 and 2016, with seasonal chocolate launches accounting for 25 percent of global chocolate new product launches; and this was the biggest area of chocolate new product development in 2016.

Product launches of chocolate confectionery with an organic claim increased six percent between 2014 and 2016, and this category accounting for six percent of global new product introductions in 2016. In India, as many as 19 percent of Indian consumers would like to see a wider variety of natural snacks that have no additives or preservatives.