India Chocolate Market anticipated to generate double revenues by 2021: Bonafide Research
Jun, 01

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India Chocolate Market anticipated to generate double revenues by 2021: Bonafide Research


Phenomenal growth in the confectionery industry, diversification and innovation, rising per capita income, gifting culture in the country and entry of new players in the industry will drive the market Chocolate is a typically sweet, usually brown, food preparation of cocoa beans, roasted and ground, often flavoured, as with vanilla. Chocolate has become one of the most popular food types and flavours all over the world, and a vast number of foodstuffs involving chocolate have been created. The chocolate industry in India has also come a long way. Chocolates have become an essential part of daily appetite among Indians. Be it a birthday, job promotion, salary increment, examination success or religious and traditional fiesta, every Indian is ready to chew his / her share of chocolate to rejoice. According to recently published report of Bonafide Research "India Chocolate Market Overview", chocolate market was growing at a CAGR of more than 15% in the period 2009-2014. This growth is expected to continue in the forecast period as well. There are mainly three types of chocolate: dark chocolate, milk chocolate and white chocolate. The dark chocolates are expected to gain the market share when compared to milk and white chocolates in the forecast period. The chocolate market has been witnessing fantastic growth in terms of value as well as volume. Urban consumers, who would buy chocolates mostly during festivals, now buy them for everyday consumption. Also, more and more Indian consumers are replacing traditional sweets with chocolates. Over the years, change in consumers preferences, eating habits and their global exposure has given a boost to the India chocolate industry. Chocolates may be items of impulse-purchase, competing with other categories like soft drinks, snacks and beverages for a share of the consumer's wallet, but modern trade and other factors like liberalization of the economy and growing income of middle class have had a positive impact on consumer spending. Moreover, the sheer size of the market makes India a profitable proposition. The per capita consumption of chocolate is also increasing in the country which will continue to boost the market revenues. Diversification and innovation is the need of the hour and chocolatiers are exactly doing that to increase their client-base. The population of India presents multiple opportunities for companies to foray into India. The regulatory environment, too, has become favorable for foreign players to operate in the country. There is enormous scope that the country presents to players in terms of hiring home grown talent to grow business, given the educational boom. This clearly means that the three main factors like demand for chocolates, favourable regulations and customised talent are abundant in India, which makes it inevitable for foreign players to ignore India. Hence, many international players are entering in the market with their global chocolate brands.