Market Trends of India Industrial Chocolate Industry
This section covers the major market trends shaping the India Industrial Chocolate Market according to our research experts:
Premium Chocolates Gaining Popularity
There has been a rise in the demand for premium and dark chocolates as a result of the increasing purchasing power of consumers and surging marketing and promotional activities. Molded chocolate dominates Indian chocolate retail sales, followed by countlines. The sales of boxed assortments are rising at a faster pace, driven by the trend of occasional gifting. The price discounts offered by the supermarkets and hypermarkets and healthy eating habits are other factors contributing to the boost in sales. The competition is likely to build up the country's cold chain structure, as more investments are expected to be drawn in favor of reshaping and introducing refrigeration and distribution channels.
The preference among consumers is slowly shifting toward dark chocolate on account of various health benefits, which act as positive factors in surging the demand for premium chocolates in India. The country has also been witnessing the entry of new players offering premium chocolate into the Indian market. For instance, in July 2021, Kokoma! by Harbinger Foods will introduce artisanal chocolate in India with the goal of becoming an "Indian, world-class, luxury chocolate brand." Such factors in turn drive the demand for industrial chocolate across the region.
High Demand for Compound Chocolate
In the food industry, compound chocolate is used as a low-cost alternative to couverture chocolate. Moreover, as compared to real chocolate, compound chocolate does not require tempering, which is one of the major reasons for consumers' preference for compound chocolate over real chocolate. However, the absence of a shiny appearance and the lack of a rich and creamy taste are among the main factors responsible for the low preference for compound chocolates in the premium segment.
Different forms of compound chocolate variants are used as one of the main ingredients in a variety of bakery manufacturers' and confectionery products, including chocolate cakes, mousse, rolls, pies, pastries, chocolate bars, toffee, fudge, and other things. Compound chocolate producers are being influenced to diversify their product lines to gain market share by shifting consumer demands for emerging products like vegan and gluten-free desserts. Compound chocolates are a less expensive alternative to pure chocolate because they use vegetable oils instead of cocoa butter, which is more expensive. As a result, industry players are investing in research and development to find other, less expensive substitutes, like shea butter, to replace cocoa butter in compound chocolates.
To set themselves apart from other market participants, manufacturers are concentrating on product innovations. For instance, Puratos Group offers colored compound chocolates. Such innovations have also been driving the compound chocolate market across the region.
