India Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian chocolate market is projected to grow at a CAGR of 15.2% during the forecast period (2021-2026).

The chocolate market was impacted by COVID-19 during its onset in 2020. However, the market became more stable post the ease of restrictions across both importing and exporting countries. Consumers’ in-home consumption of chocolates witnessed a steep rise during the lockdown. Chocolates were bought in bulk, which led to higher volume sales through supermarkets and hypermarkets.

The India chocolate market is growing appetite for premium chocolate and the availability of dark chocolate brands such as Lindt, Hershey, Toblerone among others has led to the increased market penetration for dark chocolates. Also, the low sugar content in the dark chocolates is another reason for propelling the demand for dark chocolates, as consumers have become aware of high sugar intake and its link with chronic diseases like diabetes.

Another major factor driving the Indian chocolate market is young population which are key consumers for chocolates. Currently around half of the total population in India is below the age of 25 years and two thirds are below the age of 35 years. Driven by these factors chocolates are replacing traditional sweets in the country.

Key Market TrendsIncreasing Demand of Premium and Healthy Chocolates

The premium chocolate market is quite popular in India, as people in the country prefer treating themselves with bite-sized chocolates to limit their confectionary consumption. Premium chocolate is fitting pleasantly with the ‘clean eating’ trend in the country. Since chocolate was found to have numerous health benefits, consumers are opting for premium chocolates to have a guilt-free experience. The supermarkets and hypermarkets, like D-Mart and Reliance Mart, are trying to gain higher market traction by stocking up premium chocolate brands like Ferrero. The ingredients in premium chocolate are very balanced which is good for health and also reduces the risk for low blood pressure and cholesterol.

Hypermarkets/Supermarkets are Leading Distribution Channel

The hypermarkets/supermarkets segment accounts for a considerable share in the chocolate sales, with dark chocolates and molded chocolate becoming a popular choice among consumers. Owing to a huge retail space catering to a wide variety of preferences, the supermarkets/hypermarkets are dominant channels for the sales of chocolate in the country. Factors, such as business expansion and the rising number of hypermarkets and supermarkets, add to the sales of these retail formats and significantly contribute to the higher penetration of premium chocolate. Shopping at hypermarkets/supermarkets is also perceived as useful, due to the wide selection of brands on offer, considerable shelf space, and frequent price promotions.

Competitive Landscape

The market studied is competitive, and consists of regional and international competitors. It is dominated by players, like Mars, Incorporated, The Hershey Company, Nestlé SA, Ferrero International, Mondelez International, etc. The development of new products to enhance their portfolio and to capture untapped markets has driven the growth of the chocolate market. Owing to the changing tastes and preferences of consumers, there have been considerable developments of products by various market players.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Mondelez International
Mars Incorporated
Nestle S.A.
Ferrero International
The Hershey Company
Chocoladefabriken Lindt and Sprungli AG
The Campo Ltd.
Buttercup Confectionery Limited
Lotus Chocolate Company
GCMMF (Amul)

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