The global demand for chocolate is now showing recovery and leading suppliers such as Barry Callebaut are now forecasting stabilization of demand in the key markets worldwide. In 2020, the United States is expected to be the largest consumer of chocolate globally, followed by Russia. Amongst the BRIC nations, while India and China are nations projected to have the highest chocolate market growth in the period 2015-2020, economic conditions in Brazil and Russia have been hampering the chocolate market’s growth.
It is expected that the global chocolate market will grow at a CAGR of approximately to 5% through 2020. New flavors coupled with product packaging innovations will be the trend going forward. World over there is growth potential in the customized and luxury chocolate segments. People have a rising affinity for handcrafted chocolate and many startups are dappling in the art of chocolate making. Popularity of premium chocolates is on the rise particularly in the United States and brazil. While rising obesity and health concerns world wide is a challenge for the growth of the sector, there is also growing awareness about the benefits of dark chocolate. Players have also been introducing low sugar and sugarless chocolates.
Globally, India is amongst the fastest growing chocolate markets. In 2016, the chocolate market in the country grew by 13% year-on-year. Other than India, Poland’s market which grew at 2% year-on-year are the only two countries globally t have shown growth in the chocolate market. India is amongst the four countries projected to have the highest chocolate market growth in the period 2015-2020. Other countries include Mexico, China and Brazil. The chocolate market in India is currently growing at a rate of 20% annually and is projected to grow by 30% by 2020.
Close to 70% of the chocolate is consumed in urban India. Factors such as poor infrastructure, lack of cold storage facilities and greater affinity for traditional Indian sweets inhibit the growth of the rural chocolate market. In recent times chocolate consumption in the smaller towns and villages of the country has been increasing and smaller packets typically priced at INR 5 and 10 see higher consumption in these areas. Emerging trends in the sector include a growing affinity for dark and sugarless chocolate, along with growing demand for premium chocolates.
Related Research Reports: India Confectionery Market