Chocolate makers in India are witnessing a boom in sales despite high inflation and subdued consumer sentiment. The market has a forecasted CAGR of 4.9 percent until 2026.
“Consumers’ perception of chocolates as an affordable indulgence amid the rising inflation seems to be driving the demand, even as they cut back on other discretionary expenses. Consumers also turn to chocolates as a means of stress relief, which is further boosting the sales of chocolates in a volatile economic environment. This trend is substantiated by GlobalData’s Q4 2022 consumer survey, wherein 51 percent of respondents said their spending on chocolates was quite/very high over the last three months,” said Suneera Joseph, Consumer Analyst.
Producers are leveraging the indulgence factor to raise product costs amid rising ingredient prices. Confectionary giant Mondelēz is focusing on innovation across categories to benefit from the growing consumer demand.
“With conscious living on the rise in the post-COVID-19 period, premium chocolates resonate with health-conscious consumers who desire treats with fewer additives and top-quality ingredients. This is in line with GlobalData’s Q4 2022 consumer survey results, wherein 51 percent of Indian respondents said that they are actively looking for high-quality products/ingredients while making product purchases. As a result, brands should focus on premiumization and expand their portfolio with better-for-you chocolates that appeal to Indian consumers willing to pay a premium for healthier chocolates.”
