Chocolate market in India to hit US$ 5.3B by 2033 – Astute Analytica

INDIA – The analysis conducted by Astute Analytica has revealed that the chocolate market is growing at a CAGR of 8.35% and is expected to reach US$ 5.3 billion by 2033 from US$ 2.6 billion in 2024. 

In the past year, the sector had more than 150 chocolate launches and a 35% increase in demand for dark chocolate due to the rise of health-conscious consumers.

Companies such as Nestlé, Mondelez International, Mars International, Hershey, Campco Chocolates, Ferrero International, Anand Milk Union Limited and ITC Limited have been among the key players in the chocolate sector.

The sector also developed new trends to address challenges such as high-sugar chocolates, competition from traditional Indian sweets during festive seasons, supply chain disruptions, and fluctuating raw material prices, which affect production.

Innovation in chocolate textures and formats has been a key driver of consumer preference in the Indian chocolate market. More than 30 new products were introduced, and about 70% of consumers preferred them.

The major innovation was the introduction of chocolate-coated snacks (nankeen and bhujia). Sales of chocolate-coated snacks increased by 80% in the past year.

During the festive season of 2024, sales of chocolate gift boxes and assortments increased by 40% during Diwali compared to the previous year. 

Many chocolate brands launched unlimited-edition flavours and packaging designs tailored to specific celebrations.

For instance, a range of mithai-inspired chocolates for Diwali was introduced, featuring flavours like gulab jamun and kaju katli. Within the first week of launch, the chocolates sold over 1 million units.

Sales of sugar-free chocolates increased by 45%, catering to health-conscious consumers and those with diabetes. 

Functional ingredients like probiotics and adaptogens have gained traction, with over 20 new product launches in this category in the past year.

Chocolates made with alternative sweeteners like stevia and monk fruit have seen a 30% increase in sales, appealing to consumers looking to reduce their sugar intake. 

Over 40 new chocolate products featuring distinctly Indian flavours, ranging from masala chai-infused truffles to paan-flavoured chocolate bars, were launched.

These unique flavour combinations have resonated with consumers, with 55% expressing a preference for chocolates that incorporate familiar Indian tastes.

Several premium chocolate brands partnered with traditional mithai makers to create fusion products that blend the best of both worlds.

The rise of artisanal and craft chocolates has added a new dimension to India’s chocolate market. The number of small-batch chocolate makers in India increased by 40%, with many focusing on bean-to-bar production methods.

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