Wednesday, December 26, 2007

Chocolate Market in India

Facts & Figures
1. Chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum
2. Cadbury is the market leader with 72% market share
3. The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom
4. Over 70 per cent of the consumption takes place in the urban markets
5. Margins in the chocolate industry range between 10 and 20 per cent, depending on the price point at which the product is placed
6. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according to one estimate. Another estimate puts the figure at 25000 tonnes
7. The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually
8. As per Euromonitor study, Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery
9. Entire Celebrations range marketshare is 6.5%
10. The global chocolate market is worth $75 billion annually

Companies
1. The chocolate market in India has only three big players, Cadbury, Nestle and Amul
2. New brands such as Sweet World, Candico and Chocolatiers are present in several malls
3. The largest target segment for Cadbury is youth
4. Delhi-based Chocolatiers, started with a small shop in south Delhi’s Chittaranjan Park and has now ventured into malls and multiplexes in NCR, Mumbai and Bangalore, with focus on high-end or designer chocolates, a niche market of their own
5. Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010.
Companies & Brands
1. Cadbury - Cadbury, 5 Star, Bytes (chocolate snack), Celebration, Dairy Milk, Gems, Perk
2. Nestle - Bar One, Kit Kat, Milkybar, Munch, Nestle
3. Amul - Amul (Chocozoo, Chocomines)
4. Dairy Milk is the market leader
5. 5 Star (heritage brand which came to India in 1969) has a marketshare of over 14%

Consumer Trends
1. Mithai- the traditional Indian sweats is getting substituted by chocolates among upwardly mobile Indians. Instead of buying sweats on Raksha Bandhan, sisters prefer offering chocolates to their brothers. This is the reason for sudden spurt in advertisement between July & Sep by most of the companies
2. The range and variety of chocolates available in malls seems to be growing day by day, which leads to lot of impulse sales for chocolate companies
3. Chocolates which use to be unaffordable, is now considered mid-priced. Convenience over Mithai in terms of packaging and shelf life in making both middle class and rich Indians opt for chocolates
4. Designer chocolates have become status symbols. They are linked to one’s aspiration and lifestyle and malls are perfect points of sale as people usually are happy and gay at these destinations
5. Cadbury initial communication for Celebrations was concentrated on occasions like Diwali and Rakshabandhan. Over the last seven to eight years, the brand emerged as a good gift proposition for occasions and enabled people to come closer. Research done by Cadbury suggested that they should extend the plank of occasion-based gifting to social gifting i.e. all-year-round gifting options
6. Consumers can choose from wide range of chocolates, which initially was limited to Milk chocolates like DairyMilk and MilkyBar. In past few years we have seen so many SKUs with almonds, raisins and all sort of nuts. And how can we forget latest 5 star crunchy and Ulta Perk, which has opened new windows for consumers
7. In past, consumers had negligible inclination for dark chocolates. But now we have seen a change in the Indian palate, which is increasing the base of this sub-segment

Advertisement Trends (AdEx - division of TAM Media Research)
1. Chocolate advertising rose by 30 per cent during January-November 2007 compared to January-November 2006
2. Maximum chocolate advertising was during Raksha Bandhan across 2005 and 2006 and January-November 2007
3. As expected chocolate advertising skewed towards kids channels and regional GEC took the second position
4. Cadbury India Ltd rules chocolate advertising on television
5. 17 per cent more advertising during third quarter 2007 (Raksha Bandhan festival) compared to first quarter 2007
6. Regional GEC took the second place with a 21 per cent share ad volumes of chocolates, followed by Hindi movie with 13 per cent share during January-November 2007
7. Among regional GEC, maximum advertising of chocolates was on Malayalam and Bengali channels
8. Cadbury India Ltd was way ahead of its peers with 66 per cent share followed by Nestle India Ltd and Parle Products Pvt Ltd during January-November 2007
9. During January-November 2007 the number of new chocolate brands advertised decreased to seven from 12 during 2006
10. Nestle Munch Pop Chocolate led the chart of new chocolate brands advertised on television during January-November 2007

Some BTL Activities
1. Cadbury India has tied up with leading coffee chain Café Coffee Day for direct sampling of the product in top cities

External Environment
1. The prices of cocoa and milk, the chief ingredients used in chocolates, have gone up by 50 per cent, while the price of sugar, another important raw material, has come down. The overall input costs have gone up by 20 per cent. If the prices of these commodities keep increasing, companies will be forced to increase the prices. India imports most of its cocoa requirements. The prices of cocoa have risen globally due to unavailability of the commodity
2. US-based chocolate-maker Hersheys is mulling a foray into the Indian chocolate market through its joint venture with Godrej

Labels: , , ,

19 Comments:

Blogger adam brown said...

Hi again, see tthis is the site i told you i signed up to. It has some nice information about how to make money using OPP, i think you might find it interesting. here it is. bye!

April 10, 2008 7:01 AM  
Blogger pakhi said...

why chocolate is considered as FMCG product

May 14, 2008 10:04 PM  
Blogger Konfucious said...

nitin gr8 work man....but y hs ther bin such little activity in d past few mnths.......r u 2 bz???

cos i really mis nu posts....

June 04, 2008 3:47 PM  
Blogger modak said...

Chocolate comes in catogary Fast Moving Consumers good, meant they can sold quickly...hence its in FMCG

June 26, 2008 9:49 AM  
Blogger tear film said...

good info can there be little addon from where to get low cost raw materials for chocolate?

January 22, 2009 5:42 PM  
Blogger Jaya said...

Hi there. There has been a level of interest in Cold Chain for Chocoltaes, controlled temp of uto 10-15 Deg C. Is there really a need for this. How critical, and how many of the Indian companies are actually into this for the last mile distribution.

February 05, 2009 11:16 PM  
Blogger BS said...

hi.. why you didnot consider the Campco chocolates? this organization is also having share in chocolate market..

June 05, 2009 12:08 PM  
Blogger vishwas said...

hi can anyone suggest me to take up a particular course that would help me make and build my career in fmcg industry.

August 09, 2009 1:07 PM  
Blogger mythili said...

thanks for ur information

April 30, 2011 1:37 PM  
Blogger mythili said...

upto now i doesnt know dat hersheys had a joint venture with godrej

April 30, 2011 1:43 PM  
Blogger Cheap Flights said...

Edmonton is nicknamed the Festival City of Canada. Edmonton's vibrant urban feel, mixed with its proximity to unsurpassed outdoor adventure, makes it a top-notch destination whether traveling for business or pleasure. Book your Cheap Flights to Edmonton with Crystal Travel and spend a perfect vacation. New York Flights|Cheap Flights to Miami.

October 18, 2011 5:17 PM  
Blogger Eutanasi78 said...

Hi,

could you tell me where you found this data on the chocolate market in India? I need to prepare a country market report (topic: Chocolate Market in India) and I need recent data (up to 2011).

Thanks,
Eutanasi78

November 03, 2011 8:41 PM  
Blogger anjujo said...

wats the market share of cadbury cholates (figure preffered)..?

January 15, 2012 7:38 AM  
Blogger SHRISTOCKTIPS said...

Indian stock market tips, indian commodity market tips, share market tips, nse bse stock tips, intraday tips, deleivery, BTST, STBTt, Nse Bse intraday tips, technicalSHARE MARKET FREE TIPS Intraday NSE BSE TIPSanalysis, mcx, free mcx tips, free stock tips, nifty future tips, mininifty, bank nifty, call option, put option, stock option, nifty option, gold, silver, crude, copper, bullion, agro, mcx trading calls, base metal, online trading.
Regards
SHRISTOCKTIPS TEAM

February 27, 2013 2:03 PM  
Blogger Research 4u said...

Thanks for sharing the information. That’s a awesome article you posted. I found the post very useful as well as interesting. I will come back to read some more. Stock tips

April 30, 2013 12:09 PM  
Blogger Commodity tips said...

This is so cool. I am such a huge fan of their work. I really am impressed with how much you have worked to make this website so enjoyable. Free Commodity Tips

May 01, 2013 5:46 PM  
Blogger Free Stock market tips | Free share market tips said...

I always like your blog post because you always comes with different ideas and information. I always shared your site post with my friends. Keep posting and i will follow you.Stock market Tips

May 02, 2013 4:30 PM  
Blogger Powerof TradingCom said...

Today indian share market is so fluctuating that it is very hard to work & earn money but some companies giving really very good calls so that we can earn in this Share market. PowerofTrading.com is one of them. They are giving regular 5-7 calls with more than 98% accuracy. Go for Free Share Market Tips

Regards
POWEROFTRADING TEAM

You can go for Bux Website to start earning money visit Ninja Bux -
Earn Money through Bux Website

You can use the full Guide which guide you all - Neobux Guide

November 30, 2013 5:05 PM  
Blogger Mcx Tips said...

I am very much pleased with the contents you have mentioned. I enjoyed every little bit part of it. It contains truly information. I want to thank you for this informative read; I really appreciate sharing this great.ShareMarket Tips

January 10, 2014 4:23 PM  

Post a Comment

<< Home