The chocolate industry has undergone a significant revolution over the past century. From its humble beginnings as a currency in ancient Mesoamerica to becoming one of the most popular confectionaries in the world today, it has come a long way. The introduction of new technologies and techniques has made it possible to produce high-quality chocolates on a large scale. Additionally, there is an increasing demand for organic and fair-trade chocolates as consumers become more aware of the environmental impact of cocoa farming.
The history of chocolate dates back to the ancient Mesoamerican civilization where the cacao beans were used as currency and for religious ceremonies. The first chocolate factory was established in Switzerland in 1819 by Francois-Louis Cailler. Since then, the chocolate industry has undergone a revolution with the introduction of new technologies and techniques.
In the late 19th century and early 20th century, family chocolate companies such as Cadbury, Mars and Hershey were mass-producing a variety of chocolate confections to meet the growing demand for chocolate. In 1847, Fry and Sons combined cocoa butter with chocolate liquor and sugar to produce sweet (eating) chocolate—the base of most chocolate confectionary—and in 1876 Daniel Peter of Switzerland added dried milk to make milk chocolate. The proliferation of flavoured, solid, and coated chocolate foods rapidly followed.
Today, the chocolate industry is a more than 4-billion-dollar industry in the United States alone. The average American eats at least half a pound of chocolate per month. The industry has seen a lot of changes over the past century. One of the most significant changes is the introduction of new technologies that have made it possible to produce high-quality chocolates on a large scale. For example, modern machinery has made it possible to produce chocolates with consistent quality and texture.
Another significant change in the industry is the increasing demand for organic and fair-trade chocolates. Consumers are becoming more aware of the environmental impact of cocoa farming and are demanding more sustainable practices from manufacturers. This has led to an increase in the production of organic chocolates that are free from pesticides and other harmful chemicals.
Indian Chocolate Industry at a glance:
Chocolate industry’s market size in India in 2022 was of approximately Rs 15,000 Cr. A significant trend in the Indian chocolate industry is the increasing popularity of dark chocolates. Dark chocolates are known for their health benefits and are becoming increasingly popular among health-conscious consumers. In addition, there has been a growing trend towards premiumization in the Indian chocolate market. Consumers are willing to pay more for high-quality chocolates that offer unique flavors and textures.
In India, the chocolate market is made up of different types of chocolates. Referring to the most recent data at hand and approximately speaking, out of all the chocolates sold, 45% are tablet chocolates, which are solid bars or slabs. Countlines, which are chocolates with fillings like nuts or caramel, make up 29% of the market. Chocolate pouches and bags account for 11% of sales, while 10% are chocolates that come with toys. The remaining 5% consists of other types of chocolates.
When it comes to the composition of chocolates, 58.50% of the chocolates sold in India are milk chocolates, which are creamy and sweet. Filled chocolates, which have various fillings like caramel or nougat, make up 31% of the market. Dark chocolates, which have a higher cocoa content and are less sweet, account for 7.70% of sales. It's worth noting that the market share of dark chocolates has increased from 6.50% in 2019 to 7.70% in 2021.
In terms of consumer awareness, 37% of Indian consumers understand that dark chocolates offer health benefits. Additionally, 39% of consumers are interested in chocolates with added vitamins or minerals, and 44% are willing to pay more for chocolates that promote health.
In the Indian chocolate market, Mondelez has the largest market share at 57.40%. Nestle follows with a share of 16.10%, and Ferrero Roscher holds 8.40% of the market. Mars accounts for 2.50%, Hershey's has 1.20%, Amul has 1.10%, and other brands make up 13.30% of the market.
Among specific chocolate brands, Cadbury Dairy Milk has the highest market share at 30.50%. Kinder Joy represents 7.30% of sales, Cadbury Gems account for 7%, Cadbury 5 Star holds 6.90%, Nestle Kit Kat has 6.10%, and Nestle Munch accounts for 5.80%.
When it comes to retail channels, offline retail dominates with a share of 95.80%. Among offline retailers, small local grocers have the largest share at 77.20%. Supermarkets and hypermarkets make up 13% of the market, while food, drinks, and tobacco specialists hold a 3.10% share. Retail e-commerce has a 4.20% share of the market.
Sources:
- History of Chocolate: Cocoa Beans & Xocolatl - HISTORY
- A Brief History of Chocolate - Smithsonian Magazine
- Chocolate | Definition, History, Types, Production, & Facts.
- Chocolate Crisis: Climate Change and Other Threats to the Future of Cacao
- Dark Chocolate Market in India 2021-2025
- India Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026).
- YouTube Video - India's Chocolate Industry: Decoding The Success Story | Mad About Markets | CNBC-TV18 dated Oct 29, 2022.
Disclaimer: The article has been in part generated by an AI language model, while these sources provide valuable insights, the specific information and details presented in the article are a result of the interpretation and synthesis of knowledge by the AI language model. However, we try to ensure accuracy by thoroughly reviewing the AI-generated article before publishing, making necessary adjustments as per our understanding to address inaccuracies or inconsistencies, if any.
