India Chocolate Market 2024–2033

Reports Description

India Chocolate Market was valued at USD 3.8 Billion in 2023 and is expected to reach USD 9.2 Billion by 2032, at a CAGR of 6.1% during the forecast period 2023 – 2032.

Chocolate is a sweet, typically brown-coloured food product made from roasted and ground cacao beans. It can be presented in various forms, such as bars, truffles, or liquid, and often contains additional ingredients like sugar, milk, and flavours. Chocolate is enjoyed worldwide for its rich, indulgent taste and is commonly used in confectionery and desserts.

India Chocolate Market: Growth Factors

Growing popularity of gifting and impulse purchases

The surge in the popularity of gifting and impulsive buying habits is fuelling the robust growth of the chocolate market in India. Additionally, the rise in impulse purchases, driven by factors like attractive packaging, innovative flavours, and strategic product placements, has further boosted sales.

The consumer inclination towards indulgent and premium chocolate offerings has also played a pivotal role in expanding the market. Brands strategically leveraging these trends through marketing campaigns and product innovations are experiencing a surge in demand, making the chocolate industry in India dynamic and responsive to evolving consumer preferences.

This growing inclination towards spontaneous purchases and the inherent charm of chocolates as gifts contribute synergistically to the expanding chocolate market landscape in India. For instance, DS Group, the Indian company that recently launched the premium Swiss chocolate brand Läderach in the country, predicts a potential 40% surge in chocolate demand during the festive season.

The increasing preference for chocolates over traditional Indian mithais is evident in changing consumer tastes influenced by urbanization trends. In recent years, chocolates have gained popularity as a favoured festive treat, showcasing a shift in preferences towards contemporary confectionery options.

Rising disposable income and changing lifestyles

The growth of India chocolate market is propelled by rising disposable income and evolving lifestyles. As incomes increase, consumers are more inclined to spend on indulgent treats like chocolates, contributing to higher demand.

Changing lifestyles, characterized by a preference for convenience and on-the-go snacks, further boosts chocolate consumption. With a shift towards Westernized dietary habits and a desire for premium and innovative chocolate offerings, manufacturers are adapting to meet evolving consumer preferences, fostering continuous market expansion in India.

For instance, according to Custom Market Insights, there are shifting consumer preferences from traditional sweets, along with increased disposable income, premiumization, and a rising health-conscious trend, which are driving the demand for premium chocolates in India.

The premium chocolates category constitutes approximately 30% of the overall chocolate market, with a current emphasis on metropolitan areas with 8 to 10 percent growth rate for the Indian chocolate market over the next five years.

India Chocolate Market: Restraints

Concern about high sugar content in chocolates hinder market growth

The rising concern about health issues linked to the high sugar and fat content in chocolates acts as a significant hindrance to market growth. With increasing awareness of the impact on obesity, diabetes, and other health issues, consumers are opting for healthier dietary choices. This shift in preferences impedes the growth of the chocolate market as individuals limit their consumption of products perceived as indulgent or unhealthy.

Manufacturers face the challenge of reformulating products or introducing healthier alternatives to align with evolving health-conscious consumer trends, navigating the delicate balance between taste and nutritional considerations to sustain market appeal.

India Chocolate Market: Opportunities

Increased demand for sugar-free chocolates with natural ingredients

The surge in demand for sugar-free chocolates with natural ingredients is propelling the growth of the chocolate market in India. As health consciousness and dietary preferences evolve, consumers are increasingly seeking healthier alternatives.

Sugar-free chocolates cater to individuals with dietary restrictions, such as diabetics, while the emphasis on natural ingredients aligns with the growing preference for clean and wholesome products. This trend reflects a broader societal shift towards wellness and a mindful approach to consumption.

Chocolate manufacturers are responding to this demand by innovating their product offerings, emphasizing natural sweeteners and ingredients, thereby capitalizing on the market’s changing dynamics. This shift not only addresses health concerns but also taps into the broader appeal sugar-free chocolates in India.

For instance, the bean-to-bar chocolate market is projected to achieve a 60% year-on-year growth, according to Cocoatrait research. Many chocolate brands use natural ingredients and organic sugar substitutes, with a diverse range of chocolate options. They offer various vegan, sugar-free, gluten-free, and keto chocolates, reflecting the industry’s commitment to meeting diverse consumer preferences.

India Chocolate Market: Segmentation Analysis

India Chocolate market is segmented by type, product form, distribution channel and region.  Based on type, the market is classified into milk & white chocolates and dark chocolates. Milk & white chocolates dominated the market in 2022 with a market share of 70% and are expected to keep their dominance during the forecast period 2024-2032.

Milk and white chocolates play pivotal roles in propels Indian chocolate market, captivating consumers with their diverse flavours and creamy textures. The popularity of milk chocolates, known for their rich taste, has established them as a staple treat. Their widespread appeal contributes significantly to the growth of the chocolate industry in India, catering to varied tastes and preferences.

As consumer demand for indulgent and diverse chocolate options rises, the market continues to be driven by the enduring popularity of milk and white chocolates. Henceforth, generate significant opportunities for India chocolate market.

Based on product form, the market segmented into molded, countlines, softlines and others. Molded chocolates dominated the market in 2022 with a market share of 40% and is expected to keep its dominance during forecast period 2024-2032.

Molded chocolates play a pivotal role in propelling the Indian chocolate market by offering diverse shapes, flavours, and premium quality. With an increasing consumer inclination towards indulgent and innovative confectionery, molded chocolates cater to evolving tastes.

The aesthetic appeal and customization options provided by molded chocolates contribute to their popularity, enticing consumers and driving the market growth. This trend aligns with the rising demand for premium and unique chocolate experiences, positioning molded chocolates as a key driver in shaping the dynamics of the thriving chocolate industry in India. Henceforth, create significant opportunities for India chocolate market.

Based on distribution channel, the market segmented into retail stores and online. Retail stores dominated market in 2022 with market share of 75% and is expected to keep its dominance during forecast period 2024-2032.

The retail distribution channel significantly propels the India chocolate market by ensuring widespread accessibility and consumer reach. In addition, robust network of supermarkets, convenience stores, and online platforms enhances product visibility and availability across diverse regions.

This strategic distribution fosters consumer convenience, drives impulse purchases, and capitalizes on the burgeoning demand for chocolates. The retail channel efficiency in product placement, promotions, and varied offerings enhances market penetration, contributing to the sustained growth of the chocolate industry in India.

Report Scope

India Chocolate Market: Regional Analysis

India Chocolates market is segmented into South India, North India, West India and East India. The South India dominated the global market in 2022 with market share of 45% in 2022 and is expected to keep its dominance during forecast period 2024-2032.

South India significantly influences the Indian chocolate market, playing a pivotal role in its growth and dynamics. Furthermore, region boasts a large consumer base with a penchant for chocolates, contributing substantially to the overall consumption patterns in the country.

The unique cultural and culinary preferences in South India have led to a diverse demand for chocolates, influencing product innovations and variations to cater to local tastes.

Moreover, cities such as Chennai, Bangalore, and Hyderabad are key drivers, with a growing urban population that exhibits a penchant for premium and international chocolate brands. South India economic prosperity, coupled with a rising middle-class population, has increased disposable income, fostering a culture of indulgence and gifting, thereby boosting the chocolate market.

Additionally, the region festivals, celebrations, and traditional events often involve the exchange of sweets, including chocolates, further propelling market growth. Chocolate manufacturers strategically tailor their products to align with South India cultural festivities, contributing to increased market penetration and brand loyalty.

Overall, South India’s vibrant consumer landscape and cultural nuances make it a cornerstone in steering the trajectory of the thriving chocolate market in India. Henceforth, create significant opportunities for India chocolate market.

India Chocolate Market: Recent Developments

• In December 2023, Mondelez India’s announced ₹4,000 crore investment over four years in India, aimed at increasing manufacturing capacity and enhancing cold-chain and warehouse facilities.

• In October 2023, ITC Ltd. luxury chocolate brand, Fabelle Exquisite Chocolates, introduced a groundbreaking creation, the Fabelle Trinity – Truffles Extraordinaire, recognized as the world’s most expensive chocolate. This brand is now accessible at Fabelle boutiques in Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, and Mumbai.

• In March 2023, Ferrero Rocher launched its exclusive 2023 Easter collection, showcasing 11 limited edition of chocolates which include finest ingredients, including sustainably sourced cocoa adhering to independent standards like Rainforest Alliance and Fairtrade.

List of the prominent players in the India Chocolate Market:

• Mondelez India
• Nestle India
• Ferrero India
• Mars International India
• Hershey India
• Amul
• ITC Limited
• Lotte India
• Parle Products
• Ferrero Rocher
• Anmol Industries Limited
• Campco Ltd
• Vochelle
• Delaviuda
• Morde Chocolate
• Mapro Foods
• Cocoacraft
• Meiji India Pvt. Ltd,
• Leonidas Belgian Chocolates
• Candico India
• Others

These key players are adopting various growth strategies such as merger & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Chocolate Market is segmented as follows:

By Type

• Milk & White Chocolates
• Dark Chocolates

By Product Form

• Molded
• Countlines
• Softlines
• Others

By Distribution Channel

• Retail Stores
• Online