Consumer Profiling in the Indian Chocolate Market
Bhavya Tarun
Department of Management Studies,
Bachelor of Management Studies (BMS),
Shaheed Sukhdev College of Business Studies, University of Delhi
1. Industry Landscape
The chocolate industry in India has evolved significantly over the past few decades. Once seen as a luxury product, chocolate has become widely accessible, with major brands adapting to the preferences of Indian consumers and contributing to the market’s expansion. The Indian chocolate market has grown due to factors such as urbanization, increasing disposable incomes, and Western influences on Indian consumer behaviour. This section examines these factors, providing an overview of the market landscape, key players, market structure, and growth projections.
Market Growth and Trends
The Indian chocolate market has seen impressive growth, fuelled by a shift from traditional sweets to chocolates, especially during festivals and celebrations. According to market reports, India’s chocolate industry is expected to grow at a compound annual growth rate (CAGR) of around 11% from 2022 to 2027, with high demand for premium and dark chocolates as consumer tastes evolve. The market was valued at approximately $2.2 billion in 2021, and rapid urbanization and lifestyle changes continue to drive growth. Key growth drivers include increasing consumer awareness about product quality, changing dietary habits, and an inclination toward Western-style confectionery products.
Key Market Segments and Product Types
The chocolate market in India is segmented by type, including milk chocolate, dark chocolate, and white chocolate. Milk chocolate remains the most popular segment due to its affordability and appeal to a wide demographic, particularly children and young adults. However, dark chocolate has been gaining popularity, especially among health-conscious consumers and those interested in premium products. This trend is attributed to rising awareness of the health benefits associated with dark chocolate, including its higher antioxidant content and lower sugar levels. White chocolate remains a niche product but is favoured in certain regions, particularly in urban areas with higher incomes.
Premium chocolates, which include gourmet and organic options, are also experiencing growing demand. This segment appeals primarily to urban consumers who seek unique flavours, organic ingredients, and artisanal qualities. Brands like Ferrero Rocher, Lindt, and Amul have capitalized on this trend, with offerings that cater to the premium segment. Seasonal demand for these products spikes during festive seasons, as chocolates have become a preferred gift option.
