INDIAN CHOCOLATE LOVERS SCOFF THE LOT India is defying the odds…while the global chocolate confectionery market posts slow growth, India has emerged as one of the world’s fastest growing chocolate markets, with sales exploding by 13% last year. Global market intelligence agency Mintel reports that the Indian market is expected to grow around 20% by 2020, and is one of only two markets to see chocolate sales growth in 2016. “Chocolate confectionery had an uneven year in 2016,” Mintel director of insight Marcia Mogelonsky says. “Volume sales in developed markets remained flat, while the picture was a bit brighter in emerging markets, like India, where sales generally fared better. Our research indicates that consumers in India believe chocolate to be beneficial and convenient – seemingly the key reasons behind the growth of the country’s chocolate confectionery market both in value and volume.” India consumed 228,000 tonnes of chocolate last year, compared with Australia at 95,000 tonnes and 1.3m tonnes in the United States. Nearly half of Indian consumers have eaten sweet or sugary snacks in the previous three months of the research, and two-in-five think chocolate and cake is healthy. Overall, global launch activity in the confectionery category was somewhat restrained in 2016, she says. “Our research shows that seasonal chocolate tops all chocolate new product development, a testament to the popularity of seasonal treats among consumers across the globe. This reflects the fact that these products are typically bought to help celebrate holidays or special occasions.” Interest in ethical products remains relatively strong, with 17% of new products claiming some sort of ‘ethical-human’ positioning. Launches off chocolate confectionery with an organic claim increased 6% between 2014 and 2016, and as many as 19% of Indian consumers would like to see a wider variety of natural snacks that have no additives or preservatives. “Providing organic cocoa is proving to be a challenge for the industry,” Mogelonsky says. “In order to satisfy the growing demand, it will become necessary for more cocoa growers to switch to organic farming methods. As interest in healthy sweets continues to rise, the availability of chocolate that offers organic or all natural positioning will be desirable as consumers look for better-for-you options.” Indian market is expected to grow around 20% by 2020 India consumed 228,000 tonnes of chocolate last year, compared with Australia at 95,000 tonnes and 1.3m tonnes in the United States 19% of Indian consumers would like to see a wider variety of natural snacks that have no additives or preservatives INTERNATIONAL
FT-Jun17
To see the actual publication please follow the link above