The Indian chocolate market is worth approx. INR 7000+ crores growing in double digits annually and projected to rise at 30% by 2020 driven by e-commerce as well as the traditional retail channels seeing sustained demand. While urban India consumes a majority of these chocolate sales, rural India is said to have around 10% to 15% contribution to overall chocolate category growth in recent times. Major players and chocolate companies are targeting increasing penetration in newer and these rural areas while maintaining their position and growth in existing regions.
Economic factors have hit China and Brazil chocolate market in recent past and the sales growth of chocolates have slowed down in both of these markets. With manufacturers seeing a very low scope of growth in these markets, India and to certain extent Japan, accompanied with Middle East are the countries/regions helping the chocolate industry sustain the targeted double digit yearly growth. While India has major international chocolate brands fighting for their market share, Japan chocolate market offers a challenge to these players, which is very ‘local’ in nature. Companies are adapting to these local flavours and preferences to tap into the chocolate growth scope of the region. In the Middle East, Saudi Arabia, Turkey and UAE are showing hope of acquiring additional chocolate sales for these manufacturers. In developed markets like the U.S., chocolate companies are trying new flavors, which are either local to a place or are trending across other F&B segments and applicable in chocolate.
The cocoa primarily used in chocolates come in multiple grades and cocoa source countries are competing hard for having a ‘premium’ status for their products. Though fine flavor cocoa currently accounts for a small portion of worldwide cocoa exports, looking at the wine market development, organizations and businesses have starting giving importance to ‘premium’ at this very early stage. As consumers loosen their pockets by valuing high quality chocolate products, the demand and consumption of fine flavor cocoa is projected to sky rocket. Led by Ecuador, newer countries and specifically from the Asian region (Indonesia, Vietnam) are joining the ecosystem not only to create healthy competition but also to tap on the market before others.
India, on the other hand, is still opening up to usage of specific ingredients in chocolates, with a recent draft proposal that may allow vegetable fats, which were not allowed in chocolate within India all these years. India is aiming to meet the CODEX and European standards via this change and adopt international industry standards.
eMarketOrg.com has a new research addition titled ‘A Study Of The Indo-China Chocolate Market 2016’ that says India and China are amongst the four countries projected to have the highest chocolate market growth in the period 2015-2020. Other countries include Mexico and Brazil. In 2014, the chocolate market in China generated sales worth approximately USD 3.2 billion and is projected to grow to USD 4.4billion by 2020. Read more at http://emarketorg.com/pro/a-study-of-the-indo-china-chocolate-market-2016/ . Explore more reports on chocolate market at http://emarketorg.com/product-tag/chocolate/ .