Sales grew by 13% in 2016
While the global chocolate confectionery market posts slow growth, new research from Mintel shows India is now one of the world’s fastest growing chocolate confectionery markets.
Sales of chocolate confectionery in retail markets grew by 13% between 2015 and 2016 in India, followed by Poland which saw sales growth of 2%. In comparison to the rest of the world, Poland and India were the only two markets to see sales of chocolate grow in 2016.
When it comes to chocolate confectionery consumption (volume sales), it seems India is a nation of chocolate lovers. Research indicates that consumers 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.
When it comes to chocolate confectionery consumption (volume sales), it seems India is a nation of chocolate lovers. Mintel research reveals the country consumed 228 thousand tonnes worth of chocolate in 2016. Other markets that have consumed in excess of 200,000 tonnes of chocolate last year include:
- France – 251 thousand tonnes.
- Brazil – 236 thousand tonnes.
- China – 202 thousand tonnes.
Data from Mintel also reveals India’s chocolate confectionery market has had a strong CAGR (compound annual growth rate) of 19.9%, in retail market value, between 2011 and 2015, and is expected to grow at a CAGR of 20.6% from 2016 to 2020.
Marcia Mogelonsky, director of insight for Mintel Food and Drink, points out chocolate confectionery had an uneven year in 2016. 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,” she says.
Indeed, according to a consumer study by Mintel, 42% of Indian consumers have eaten sweet or sugary snacks (other than biscuits) like chocolates and cakes in the past three months, rising to 53% of consumers aged 18 to 24. On the benefits of chocolates, Mintel research reveals over two in five Indian consumers (44%) find sweet or sugary snacks like chocolates and cakes to be healthy, while over one in three (35%) Indians believe these snacks provide them with energy.
Other statistics show as many as one in two (49%) Indian consumers associate sweet or sugary snacks like chocolates with convenience. Data from Mintel also reveals 43% of Indians consume sweet or sugary snacks like chocolate and cake between lunch and dinner, with over half (53%) of Indian consumers reporting that they tend to snack in between meals because they get hungry.
Mintel research also shows that consumer demand is likely to be the major impetus for more conversion to organic offerings. In India, as many as 19% of Indian consumers would like to see a wider variety of natural snacks that have no additives or preservatives.