Confectioners too need to grow with India’s rising chocolate industry

Consumer preferences in India have gradually transitioned from traditional sweets to chocolates over the last couple of decades. The demand and preference for sweets as a gifting option and celebratory consumption during the festive season has plummeted significantly, between 40-45 percent or more due to the fear of adulteration. The promotional campaigns by chocolate companies have also been the cause of the downfall of traditional sweets.

A delectable combination of rising disposable incomes, changing lifestyles and a young population’s growing penchant for indulgence has transformed India into one of the world’s fastest growing chocolate markets.

Chocolates to sweets as a gifting option is considered due to many factors like longevity, health-related benefits, attractive packaging and others. Chocolate gift hampers sell like hot cakes during the festive season and for gifting purpose.

One of the other significant factors that is fuelling the chocolate demand is that it can be easily ordered online and its timely delivery at the desired destination which is why the demand for chocolate gifting has risen to 60% in India.

India’s chocolate industry is worth $ 900 Million. The per capita chocolate consumption is hovering at about 170 gm and urban centres comprise 40% of the chocolate consumption in the country. The gifting chocolates make up to 32% of the total industry.

Big giants like Cadbury, Nestle, Amul, Ferrero Rocher and Toblerone are leading the pack with about 80 percent market share. Growing health consciousness is making urban consumers incline towards dark chocolates as they contain various health friendly ingredients and antioxidants.

Chocolate confectionary makers have also increased their prices and reduced their pack sizes owing to the sky-rocketing input costs as prices for major ingredients like cocoa, milk and sugar have soared in both domestic/global markets but this has not deterred consumers from coughing up the money in large chocolate packets.

Though chocolates have become a product which is available at even the smallest neighbourhood shop, today’s consumer wants a one-stop destination where they can get to choose from both popular and premium chocolate hampers and that too ordered in the comfort of their home.

Attracted by the country’s voracious appetite for chocolates and increasing sales in the premium segment, a mobile app, Clappily is tying up with merchants to sell all types of chocolates online where customers can choose from a range of brands and products.

Clappily is a marketplace both for merchants and consumers, shortly available on Android and iOS. The app becomes a single destination for varied party needs that customers may have, chocolate hampers being an increasingly important part of the mix.

The merchants can sell even more products as the tech platform offers wider visibility. Overall, India’s per-capita spending on confectionery is tiny—and that means there’s plenty of room for growth. The confectioners can definitely capitalise on such a marketplace app and increase their reach manifold.You can also find us on Twitter, Facebook and Instagram.