The Indian Chocolate Market

In, 2015 value sales grow by 24% to reach Rs125.5

billion

Easy availability across modern retailing outlets in urban

India and increasing penetration in rural India help
chocolate confectionery in India

Chocolate with toys records the fastest value growth of

28% in 2015

Average unit price increases by 7% in 2015

Mondelez India Foods Ltd (previously known as Cadbury

India Ltd) maintains the lead with a value share of 55%
in 2015

Chocolate confectionery value sales are expected to see

a CAGR of 12% at constant 2015 prices to reach
Rs217.8 billion by 2020

Trends In India
Chocolate tablets grew by 22% in
terms of retail value sales in 2015.
This is, mainly because of the
increasing number of smaller SKUs
and also slowly increasing penetration
into rural India.
The premium chocolates are gaining popularity
across India, mainly due to gifting in festive
seasons and because children enjoy having them.

The average unit price increased by 8% in 2015.

Increases in raw material prices and marketing
expenditure and more premium brands being available
in 2015 contributed to the increase in average unit
price in 2015.

The value growth rate was marginally slower in 2015

when compared to 2014. The manufacturers were
concentrating to capture the rural India market, which is
untapped, with small packs, as the growth in urban India
is almost saturated

There were no particular flavour trends in chocolate

confectionery as of 2015 in India. However, orange
peel, strawberry and many more flavours were
available in chocolate tablets such as Cadburys Dairy
Milk.

The sales of gift packs of chocolate increase in

the third quarter of the financial year, as
major festivals such as Deepavali and
Dusheera fall under this period and
consumers buy more when compared to other
periods.

Increasing numbers of new brand launches and

extension of product portfolios from existing players
such as Nestl and Mondelez was the latest trend in
2015. Furthermore, the established players increasing
the penetration into rural India also helped the growth
of chocolate confectionery in India in 2015.

Competitor Landscape

Mondelez India
Foods Ltd
Maintained the lead with a value
share of 55% in 2015. The
company introduced smaller
SKUs at lower price points and
also increased penetration into
rural India. Furthermore, the
companys brands such as 5 Star
and Cadbury Dairy Milk have
strong recall value when
compared to other brands in
chocolate confectionery.

Ferrero

Rajhans
Nutriments
Rajhans Nutriments
introduced Bollywood actor
Priyanka Chopra as the brand
ambassador for its flagship
premium brand Schmitten.
The marketing budget for
Schmitten stood at Rs650
million.

Nestl
Extended its flagship Kit Kat
brand with the introduction of
two new variants: Senses
plain milk and dark. The
company announced plans to
strengthen its local and
regional positioning across
the premium chocolate
confectionery segment. The
newly launched variants are
slightly sweeter than
traditional dark chocolate
confectionery.

Recorded the biggest share

increase in terms of value sales,
mainly because of increasing
sales of its brand Kinder Joy
positioning separate products for
boys and girls. Ferrero gained
popularity amongst urban
consumers by increasing its
product reach to small traditional
grocery outlets and also
increasing advertising campaigns
both in-store and through all
formats of media channels.

Sales of Chocolate Confectionery by Category: Volume 2010-2015

'000 tonnes

2010

2011

2012

2013

2014

2015

Bagged Selflines/Softlines

4.14

4.69

5.23

5.83

6.49

7.21

Boxed Assortments

3.93

4.8

5.85

6.87

8.06

9.38

- Standard Boxed Assortments

3.93

4.8

5.85

6.87

8.06

9.38

- Twist Wrapped Miniatures

Chocolate with Toys

Countlines
Seasonal Chocolate
Tablets
Other Chocolate Confectionery
Chocolate Confectionery

1.91

2.73

3.66

4.55

5.54

6.62

34.71

41.01

47.9

55.42

63.7

72.9

33.32

40.46

48.33

56.43

64.9

73.8

0.1

0.09

0.07

0.07

0.07

0.06

78.12

93.77

111.05

129.16

148.75

169.97

Source: Euromonitor International from official statistics, trade associations, trade

press, company research, store checks, trade interviews, trade sources

Company Shares of Chocolate Confectionery: % Value 2011-2015

% retail value rsp

2011

2012

2013

Mondelez India Foods Ltd

Nestl India Ltd

Ferrero India Pvt Ltd
Mars International India Pvt Ltd

2014

2015

55.14

54.8

22.26

20.55

17.91

15.03

14.1

3.87

4.45

4.75

4.93

5.35

0.99

1.05

1.08

1.14

Gujarat Co-operative Milk Marketing

Federation Ltd

1.92

1.53

1.23

1.12

1.02

Chocoladefabriken Lindt & Sprngli AG

0.15

0.15

0.16

0.16

0.16

Buttercup Confectionery Ltd

0.19

0.17

0.15

0.13

0.11

Cadbury India Ltd

57.19

57.37

56.29 -

Others

14.41

14.79

18.46

22.41

23.31

100

100

100

100

100

Total

Source: Euromonitor International from official statistics, trade associations, trade

press, company research, store checks, trade interviews, trade sources

Brand Shares of Chocolate Confectionery: % Value 2014-2015

% retail value rsp

Company (NBO)

Cadbury Dairy Milk (Mondelez International Inc) Mondelez India Foods Ltd

2014

2015

25.95

26.06

5 Star (Mondelez International Inc)

Mondelez India Foods Ltd

7.81

7.65

Cadbury Gems (Mondelez International Inc)

Mondelez India Foods Ltd

5.36

5.10

Kit Kat (Nestl SA)

Nestl India Ltd

5.32

5.09

Munch (Nestl SA)

Nestl India Ltd

5.23

4.92

Cadbury Dairy Milk Silk (Mondelez International

Inc)

Mondelez India Foods Ltd

4.47

4.53

Cadbury Perk (Mondelez International Inc)

Mondelez India Foods Ltd

4.2

4.22

Kinder Joy (Ferrero Group)

Ferrero India Pvt Ltd

2.97

3.30

Others

Others

38.69

39.13

Total

Total

100

100.00

Source: Euromonitor International from official statistics, trade associations, trade

press, company research, store checks, trade interviews, trade sources