India Industrial Chocolate Market - Segmented by Type (Cocoa Powder, Cocoa Liquor, Cocoa Butter, and Compound Chocolate), Application (Bakery Products, Bakery Premixes, Beverages, Frozen Dessert and Ice Cream, Confectionery, Compound Chocolate), and Growth, Trends and Forecasts (2018 - 2023)
India Industrial Chocolate Market Insight
The Indian industrial chocolate market is projected to grow at the rate of 12.8% during the forecast period 2018 to 2023. The market is driven by the increasing demand for chocolate in several end-user industries, such as bakery, confectionery, beverages, and frozen desserts, among others. The inflationary pressure on prices of cocoa and the continuous demand for product innovations are hampering the market’s growth. However, the increasing community awareness programs and rising interest of multinational giants in the country’s cocoa business are likely to offer a significant potential for cocoa cultivation, over the forecast period. In India, cocoa is primarily grown as an intercrop, in Andhra Pradesh, Tamil Naidu, Karnataka, and Kerala, as the tree requires about 40-50% shade. It is a produce of cocoa plant, mainly cultivated as a companion crop interspersed within the irrigated coconut and/or arecanut gardens.
During 2016-2017, the total area under cultivation was about 82,940 ha with a production volume of about 18,920 metric ton.
Demand for Chocolate Flavor in the Bakery and Confectionery Industry in India
Indian consumers were found to consume an estimated 228 thousand metric ton of chocolate confectionery in 2016 -reflecting their preference toward chocolate-based snacks and their willingness toward spending on premium confectionery. The consumers in India have been shifting their preference toward chocolate products, over traditional sweets. The rising disposable income of the middle class population in the country has affected the demand for overall chocolate consumption in India. The consumption is not limited to being a luxurious option, but has also become a part of casual snacking, gifting on occasions, and so on.
For instance, nut and milk sweets are often topped with fine chocolate, whereas, some truffle sweets filled with dried fruits and spices are being hand rolled in chocolate and nut powders. Unexpected aberrations in rainfall have made cocoa more dependent on drip irrigation and more susceptible to waterlogging, in Kerala and Tamil Nadu. Warmer maximum temperatures have reduced the area suitable for cocoa cultivation, in the plains of Tamil Nadu.
North India the Largest Market for Chocolate
With rising health consciousness and increasing obesity rates in North Indian cities, food and beverage manufacturers have witnessed a considerable demand for organic and sugar-free industrial chocolate in India, instead of the conventional types of chocolate. The region comprises cities in the national capital region (NCR) and other urban cities, in which, there has been a significant rise in the number of bakery chains and cafes. This factor is driving the growth of the segment.
Chocolate confectionery products in India account for the highest revenue in the region, owing to their lower price and the effective marketing strategies adopted by players, such as Parle, Mondelez, Nestle, etc. Companies, such as Modern Food Enterprises Private Limited, Bonn Food Industries, and other local bakeries, are utilizing industrial chocolates and compound chocolates in India, in their products. Kraft Foods, Nestle, and Amul are some of the other companies that operate in the organized sector and utilize industrial chocolate, for their chocolates, cake, and confectioneries.
Key Developments in the Indian Industrial Chocolate Market
Sep 2017 : Wilmar International Ltd, through its wholly-owned subsidiary, KOG Investments Pte Ltd, acquired a 50% equity interest in Aalst Chocolate Pte Ltd. The joint venture is done to expand the business portfolio of chocolate ingredients in Asia.
March 2013 : Puratos introduced Carat Coverlux White, a new compound chocolate in the Indian market. The chocolate is made with mainly fractionated fat, and is refined to a smooth texture.
Indian Industrial Chocolate Market Competitive Landscape
The most active companies are The Barry Callebaut Group, India Cocoa Private Limited, and DP Cocoa Products Pvt. Ltd, among others. Mondelez International is the biggest buyer of Indian cocoa ingredients, followed by Nestle and Campco.
Reasons to Purchase Indian Industrial Chocolate Market Report
Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
Market dynamics, which essentially consider the factors, which are impelling the present market scenario, along with growth opportunities of the market in the years to come
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
Country level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
3-month analyst supports, along with the Market Estimates sheet in excel
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