Premium Varieties To increase Chocolate Demand In India

As consumers become health conscious and take a liking for premium, luxury and niche chocolates are expected to drive growth in the Indian chocolate market.

According to 6Wresearch, the Indian chocolate market is projected to grow at a CAGR of 19% during 2017-23. While white chocolate bagged the highest market share in 2016, the segment is gradually giving way to dark and premium chocolates, driven by changes in customer preferences. And chocolate makers are quick to spot the trend. Dairy major Amul has recently launched three single-country origin chocolates including that of Peru, Venezuela and Tanzania for which raw material is imported from the cocoa hubs.

For a long time, premium segment was predominated by global brands including Lindt, Ferrero, Godiva, Mars etc. Recently, home grown players such as Amul, Parle, Campco, ITC entered the segment. Recently, Nestle launched bon bon versions under the brand Alpino with bitter sweet & 70% dark chocolate variants.

RS Sodhi, managing director, Amul said “Consumers are fast shifting towards niche and premium chocolate varieties and there is tremendous demand for dark chocolates as they have less sugar and more cocoa taste. There is a perception that dark chocolate is genuine and low-sugar varieties are gaining traction. Catering to the demand, the company has invested Rs 150 crore to develop new types of chocolates that will be manufactured at its Tribhuvandas factory.”

Abhijit Chakravorty, head of marketing, chocolates, coffee and new categories, foods division, ITC said “Tastes are evolving for the premium chocolate categories and we are moving on to other selling formats, including modern trade outlets and exclusive stores, along with our facilities in our hotels. With well-travelled consumers coming in with the experience of having consumed single-origin cocoa-based chocolates, dark chocolate is becoming more prevalent. The customers are also willing to spend more they spend up to Rs 1500 on an average”.

Saloni Nangia, president, Technopak India said “Fabelle has dark chocolates having up to 84% cocoa content in them. Industry experts point out that that the premium segment, predominated by dark chocolates grows at 15-20% faster than the industry average. “Premium chocolates form 5% to 8% of the total category and they are the fastest growing, with majority of takers from urban pockets. While milk and white chocolate varieties are available in the premium category, dark chocolate consumption drives growth”.