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India Industrial Chocolate Market - Growth, Trends, and Forecasts (2023-2028)

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  • 90 Pages
  • April 2023
  • Region: India
  • Mordor Intelligence
  • ID: 4703886
During the time frame of the forecast, the Indian industrial chocolate market is expected to grow at a CAGR of 12.89%.

Chocolate consumption volume is continuously rising in the country, with molded chocolate registering the largest sales volume. The rising per capita income and westernization trend are the key drivers for the market. Expanding retail channels and increasing impulse purchases are further driving the market. Surging demand for premium varieties offers a potential opportunity for foreign brands to tap the market.

The compound chocolate segment has been witnessing substantial growth in the market over the past few years. Many small-scale compound chocolate makers have entered India as a result of the population's trend toward artisanal and healthier chocolates. Small-scale compound chocolate producers are establishing themselves and fighting for their share of the market to supply to well-known chocolate producers. Furthermore, concerns about healthy eating, the demand for convenience, and the desire for variety continue to be the key consumption trends in the bakery industry. As a result, industrial chocolates such as cocoa butter and compound chocolates offer the following qualities that consumers need. Additionally, the increase in the production of chocolates across the nation has been driving the industrial chocolate market across the region. According to the UN Comtrade, the exports of chocolates and chocolate preparations from India increased from USD 100.29 million in 2020 to USD 122.34 million in 2021, creating opportunities for the expansion of the industrial chocolate market across India.

India Industrial Chocolate Market Trends

Premium Chocolates Gaining Popularity

There has been a rise in the demand for premium and dark chocolates as a result of the increasing purchasing power of consumers and surging marketing and promotional activities. Molded chocolate dominates Indian chocolate retail sales, followed by countlines. The sales of boxed assortments are rising at a faster pace, driven by the trend of occasional gifting. The price discounts offered by the supermarkets and hypermarkets and healthy eating habits are other factors contributing to the boost in sales. The competition is likely to build up the country’s cold chain structure, as more investments are expected to be drawn in favor of reshaping and introducing refrigeration and distribution channels.

The preference among consumers is slowly shifting toward dark chocolate on account of various health benefits, which act as positive factors in surging the demand for premium chocolates in India. The country has also been witnessing the entry of new players offering premium chocolate into the Indian market. For instance, in July 2021, Kokoma! by Harbinger Foods will introduce artisanal chocolate in India with the goal of becoming an 'Indian, world-class, luxury chocolate brand.' Such factors in turn drive the demand for industrial chocolate across the region.

High Demand for Compound Chocolate

In the food industry, compound chocolate is used as a low-cost alternative to couverture chocolate. Moreover, as compared to real chocolate, compound chocolate does not require tempering, which is one of the major reasons for consumers’ preference for compound chocolate over real chocolate. However, the absence of a shiny appearance and the lack of a rich and creamy taste are among the main factors responsible for the low preference for compound chocolates in the premium segment.

Different forms of compound chocolate variants are used as one of the main ingredients in a variety of bakery manufacturers' and confectionery products, including chocolate cakes, mousse, rolls, pies, pastries, chocolate bars, toffee, fudge, and other things. Compound chocolate producers are being influenced to diversify their product lines to gain market share by shifting consumer demands for emerging products like vegan and gluten-free desserts. Compound chocolates are a less expensive alternative to pure chocolate because they use vegetable oils instead of cocoa butter, which is more expensive. As a result, industry players are investing in research and development to find other, less expensive substitutes, like shea butter, to replace cocoa butter in compound chocolates.

To set themselves apart from other market participants, manufacturers are concentrating on product innovations. For instance, Puratos Group offers colored compound chocolates. Such innovations have also been driving the compound chocolate market across the region.

India Industrial Chocolate Market Competitor Analysis

The industrial chocolate market in India is highly competitive due to the presence of many local and international players. Major companies in the market studied include Barry Callebaut Group, DP Cocoa Products Pvt. Ltd., Lotus Chocolate Company Ltd., Puratos Group, and Aadra International. The players in the market are primarily using strategies such as product innovations and expansions to establish a strong presence in the market. Additionally, acquisition has also been one of the prominent strategies used by players operating in the market. Companies are also focusing on introducing single-origin chocolate by collaborating with Indian farmers for specific cocoa requirements.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Type
5.1.1 Cocoa Powder
5.1.2 Cocoa Liquor
5.1.3 Cocoa Butter
5.1.4 Compound Chocolate
5.2 Application
5.2.1 Bakery Products Cakes Biscuits Pastries Other Bakery Products
5.2.2 Confectionery
5.2.3 Bakery Premixes
5.2.4 Beverages
5.2.5 Frozen Desserts and Ice Creams
5.2.6 Other Applications
6.1 Strategies Adopted by Leading Players
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Barry Callebaut Group
6.3.2 DP Cocoa Products Pvt Ltd
6.3.3 Lotus Chocolate Company Ltd.
6.3.4 Puratos Group
6.3.5 Aadra International
6.3.6 Jindal Drugs Pvt. Ltd. (Jindal Cocoa)
6.3.7 The Campco Ltd
6.3.8 FarmSpice Traders Private Ltd (Cocoabean)
6.3.9 Amrut International
6.3.10 Cargill, Incorporated

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Barry Callebaut Group
  • DP Cocoa Products Pvt Ltd
  • Lotus Chocolate Company Ltd.
  • Puratos Group
  • Aadra International
  • Jindal Drugs Pvt. Ltd. (Jindal Cocoa)
  • The Campco Ltd
  • FarmSpice Traders Private Ltd (Cocoabean)
  • Amrut International
  • Cargill, Incorporated