The changing market for chocolates in India

Demand for chocolates can soar as much as 40% during India’s festive season, as they become an alternative gifting option to traditional mithai. 

Why India’s chocolate market matters

Per capita consumption of chocolate is actually quite low in India, at less than 200g a year (in Europe it’s 5-10kg), but it’s gaining wider acceptance thanks to a combination of urbanisation, aspiration and smart marketing. Those factors, plus a long shelf life, make it an attractive option for gifting.

Takeaways 

• That’s something Cadbury has long understood: “We acknowledged the importance of aligning our products with the cultural significance of shared moments of joy during any celebration, festival,” Nitin Saini, vice president (marketing), Mondelez India, told the Financial Express. 
• Alongside the international mass-market brands in the market, often positioned as luxury offerings, there are a growing number of local, artisanal brands, created using domestically grown cacao beans. 
• Traditional products are being adapted to include chocolate as an ingredient: “We perceive this trend as a culinary revolution, especially among the younger generation,” according to the director of sweet shop Bhagat Halwai.

The wider context 

Indian consumers have a sweet tooth. Recent research by citizen engagement platform LocalCircles found that 41% of urban Indians say they consume traditional Indian sweets at least three or more times a month, while 44% do so once or twice a month – and that’s without considering other sweet products such as chocolate, ice cream, cakes and biscuits, which most people eat three or more times a month. 

Such habits are one reason why the Food Safety and Standards Authority of India has developed a draft notification for front-of-pack labelling which would require all packaged food companies to add nutrition information about sugar, fat and salt content.

Sourced from Financial Express, Mint, Counterview, midday india, Forbes India