"Higher disposable incomes and a taste for richer chocolates are ensuring a steady growth of the premium chocolate segment in India.
Chocolate is a typically sweet, usually brown, food preparation of cocoa beans, roasted and ground, often flavoured, as with vanilla. Chocolate has become one of the most popular food types and flavours all over the world, and a vast number of foodstuffs involving chocolate have been created. The chocolate industry in India has also come a long way. Chocolates have become an essential part of daily appetite among Indians. Be it a birthday, job promotion, salary increment, examination success or religious and traditional fiesta, every Indian is ready to chew his / her share of chocolate to rejoice.
According to recently published report of Bonafide Research “India Chocolate Market Outlook, 2021”, premium chocolate was just 29% of the overall chocolate market in 2014. The premium segment is small yet it is growing at a steady 15-25 percent per annum and is anticipated to reach 45% of the overall chocolate market by 2021.
Premium chocolate refers to those products whose average price is Rs 100 and above. Quite a few chocolates fall in this segment, including brands such as Cadbury, Nestle, Lindt, Ferrero, Hershey, Mars, Amul etc. There is a segment out there, mostly in the urban India, which is aware and conscious of premium chocolate brands. These discerning consumers wish for these chocolates and are willing to pay the price for it. Even though discerning consumers are willing to pay the price, at some stage brands have to look at how many more consumers they can get into the fold and their pricing strategy depends on this. Due to this strategy, many brands have come up with smaller packs of high-end chocolates which have already proven to be a huge success in the country.
Such growth can be attributed to a list of drivers, most prominently, increased disposable income and the growing trend of gifting premium chocolates on special occasions and festivals. Festivals are an occasion when sales of premium chocolates are seeing a shoot, mainly because of their ability to be fine gifting options. Additionally, the growing craving amongst consumers to buy premium chocolates that offer a rich taste and experience of pleasure is providing continuous support to sustain double-digit growth in the near future as well. "