India's Chocolate Companies and Markets

India’s Chocolate Companies and Markets

Monoswini Sarmah

Chocolates are irresistible delicacies and the ideal gifts to give loved ones. Therefore in every year 9th February celebrate chocolate day (one of the day of valentine week) for gift Chocolates as a token of love to special one.

World Chocolate Day is celebrated every year on July 7th, honoring the introduction of chocolate to Europe in the 16th century. This day is a global celebration of chocolate in all its forms. Chocolates, after all, are one of the most delectable treats available.

India's Chocolate Companies and Markets — Image: Powershift

The top companies in the India chocolate industry are introducing premium clean-label and specialty chocolate product variants in diverse shapes and flavours, such as nuts and raisins, to cater to evolving consumers preferences.

Additionally, the increasing health concerns. If we look the india’s top chocolate company list then we find the names: Mondelez, Ferrero,Nestle,Mars,ITC Limited, Gujarat Cooperative Milk Marketing Federation Ltd, Global Consumer Products Private Limited,Surya Food & Agro Ltd,Lotus Chocolate Company Limited. Among these Mondelez is the top most chocolate company in india.

It covers more than 50% of the chocolate market. After this Nestle achieved second position and Ferrero achieved third position in the chocolate market. Mondelez established in 1948 and it’s headquarters situated in Maharashtra. Mondelez India Foods Private Limited deals with the manufacturing and distribution of various beverages, biscuits, cookies, gum, candy, and chocolates.

Their chocolate product segmentation includes incredible brands, including: 5-star,Alpen Gold, Cadbury, Dairy Milk, Cote d’Or, Freia, Lacta, Marabou, Toblerone. These products are commercially available in fruit & nut, whole nut, caramello, and snack product variants. Apart from these, their chocolate products are globally supplied across 33 countries, including the United Kingdom (UK), Australia, and New Zealand.

Nestle established in 1959 and it’s headquarters situated in Haryana. Nestle India Limited is one of the eminent manufacturers in the fast-moving consumer goods (FMCG) sector. They encompass internationally famous product groups, including Maggi, Milkybar, Milo, Kit Kat, Bar-One, Nestea, Munch, and Milkmaid.

These products are commercially available in diverse product variants and are frequently endorsed in the market through the implementation of strategic marketing practices and advertisements. Ferrero established in 2004 and it’s headquarters situated in Maharashtra.Ferrero India Private Limited was incorporated in 2004.

The company is currently unlisted and is identified as a company limited by shares. Ferrero India’s line of business includes the wholesale distribution of confectionery and related products that are sold under various prominent brands, such as: Tic Tac, Kinder Joy, Ferrero Rocher, Nutella. In the financial year ending March 31, 2024, Mondelez India Foods reported a profit of Rs 2020.8 crore.

The India chocolate market size reached US$ 2.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.3 Billion by 2032.The growth of the middle class and the corresponding rise of disposable incomes among Indians are major drivers for the chocolate market.Additionally, the youthful demography characterized by Western influence is also driving chocolate consumption.

Changing consumer demographics in India is one of the major trends in the chocolate industry. In other words, consumers are turning to dark chocolates arguing that they are good for their health as they contain low sugar and high cocoa. Therefore, this is positively influencing the India chocolate demand. The tradition of gift-giving in India is making chocolates a standard choice for various festive gifts and occasions.

In addition, the market is enhanced by the launch of special, festive-themed and gift-wrapped chocolates and chocolate gift sets available during the festive season, which significantly supports the market. chocolate brands are prioritizing social media by creating interactive and engaging advertisements to increase brand recognition and attractiveness among millennials and Gen Z consumer cohorts.

Milk chocolate is the most popular type of product in the India chocolate market, appealing to customers of all ages and backgrounds. As a result, milk chocolate has long been marketed as a relaxing snack, perfect for any occasion. North India exhibits a clear dominance, accounting for the largest India chocolate market share.The region’s cultural fondness for sweets and gifting has boosted chocolate consumption, which often consumes the product during various festivals and occasions.

The India chocolate market has been experiencing significant growth over the last decade, driven by rising disposable incomes, increasing urbanization, and the changing consumption habits of Indian consumers.There are some key growth device which helps to expand the chocolates market in India.

These are: Rising Disposable Incomes, Urbanization and Changing Lifestyles, Growing Awareness of Dark Chocolate’s Health Benefits, Innovative Product Launches and Marketing Strategies, Expansion of Retail Networks etc. As Indian consumers become more sophisticated and exposed to global trends, the demand for premium and luxury chocolates is on the rise. Chocolate manufacturers are experimenting with Indian regional flavors to cater to local tastes.

Besides this India’s chocolate market also facing some challenges also. Firstly The cost of cocoa, which is the main raw material for chocolate, can be volatile, leading to fluctuating production costs. Additionally, premium chocolates require high-quality ingredients, which can drive up costs.

Secondly despite the growing popularity of chocolates, traditional Indian sweets (mithai) still dominate during festivals and special occasions and The Indian climate, characterized by high temperatures in many regions, poses challenges in storing and distributing chocolates, which are prone to melting.

The India chocolate market is expected to grow at a compound annual growth rate (CAGR) of 12-15% over the next five years, with increasing consumer demand for premium products, healthy chocolate alternatives, and innovative flavors driving the market forward. The expansion of e-commerce and organized retail will further improve the accessibility and availability of chocolates across the country.

close up photo of assorted chocolates — Photo by Polina Tankilevitch on Pexels.com

Monoswini Sarmah is from Sivasagar from assam, India

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