India Chocolate Market - Growth, Trends, and Forecasts (2023 - 2028)

India Chocolate Market Analysis

The Indian chocolate market is projected to register a CAGR of 8.15% over the upcoming five years.

The Indian chocolate market is witnessing a high demand for dark chocolates. The low sugar content of dark chocolates is a major factor driving demand for them as consumers become more aware of the link between high sugar intake and chronic diseases such as diabetes. Additionally, the demand for sustainable and environmentally friendly packaging is also on the rise. Increasingly, chocolates are packaged in eco-friendly packaging, which is expected to boost market growth over the next few years.

Another major factor driving the Indian chocolate market is the increase in the population of young people, who are the key consumers of chocolate. According to NFHS-5 (2019–21), over half of India's total population (52%) is aged below 30 years. Moreover, chocolate is replacing traditional sweets in the country. Other factors contributing to the growth of the premium chocolate market include the increased popularity of chocolates in the gifting industry. Several Indian buyers believe that chocolate selection boxes are more hygienic, more expensive, and more durable, and that this is contributing to an increase in the sales of chocolates as gifts in the country.

India Chocolate Industry Segments

Chocolate, which is extracted from roasted cacao seeds, is primarily used in confectionery and bakery products. The Indian chocolate market is segmented by type, product type, and distribution channel. By type, the market is segmented into dark chocolate and milk and white chocolate. By product type, the market is segmented into softlines/selflines, countlines, molded chocolates, and other product types. By distribution channel, the market is segmented into supermarkets/ hypermarkets, specialty stores, convenience stores, online retail stores, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of the value (in USD million).

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India Chocolate Market Trends

This section covers the major market trends shaping the India Chocolate Market according to our research experts:

Consumer Shift Toward Healthy Chocolates

Premium chocolates are popular in India, where people prefer to limit their confectionary consumption by treating themselves to bite-sized chocolates. Premium chocolate fits with the "clean eating" trend in the country, and its consumption is now dominated by health-conscious consumers. A variety of chocolates are available, including sugar-free, organic, vegan, and gluten-free ones that lure customers. Moreover, several innovative marketing and promotional strategies are being used by manufacturers operating in the industry to increase their sales. The rise in middle-class disposable income and growing awareness of the health benefits of chocolates, such as dark chocolates, are likely to boost chocolate sales in India.

According to the International Diabetes Federation, in 2021, around 74,194.7 thousand people in India had diabetes, an increase from 61,258.4 thousand in 2011. Hence, the country's demand for sugar-free chocolates or chocolate infused with sweeteners such as stevia, monk fruit, and aspartame, among others, is rising. These ingredients in premium chocolate are well-balanced, good for health, and play a significant role in raising HDL and protecting LDL from oxidation. They also reduce the risk of low blood pressure and high cholesterol, which attracts diabetic consumers. Moreover, key players are actively engaged in the manufacture of low-calorie chocolates to fulfill the demands of health-conscious consumers and increase their sales at the same time. For instance, in April 2022, The Whole Truth, India's 100% clean label brand, launched its first dark chocolate range, sweetened only with dates and without added sugar or artificial sweeteners.

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