Chocolate Industry - India
Chocolate and Cocoa : A Rich History
Chocolate dates back to ancient America when the Mayans, and later the Aztecs, ground the beans of the Theobroma cacao tree into a bitter beverage, which they prized for its mystical and medicinal attributes. Chocolate’s name comes from the Aztec word, xocalatl, which means bitter water. Cortés, the conqueror of the Aztecs, brought the beans to Europe in the 1500s, where they were used to treat anemia, fever, gout, hemorrhoids, poor digestion, depression, and heart ailments. Today, chocolate is usually a highly processed blend of chocolate liquor, cocoa butter (all fat), cocoa powder, sugar, emulsifiers, and milk—far different from its origins. White chocolate contains no real chocolate at all—it’s just cocoa fat, sugar, and flavorings.
Chocolate market in India
The size of the chocolate market in India is about 4,000 tonnes and is valued at Rupees 6500 million (US$ 130 million). Cadbury India has the biggest market share at 70 per cent while Nestle is the second largest at 20 per cent. Cadbury’s reaches 0.6 million retail outlets.
Confectionary Unit 2002-03 Growth 2003-04 Growth
Sugar Confectionary / gums (Volume) Tonns 163110 10 176170 8
Sugar Confectionary / gums (Value) Rs Billion 16.8 10 18.5 6
Chocolates (Volume) Tonns 27000 9 30000 10
Chocolates (Value) Rs Billion 8.5 12 9.4 10
Chocolates is impulse category
The impulse category is finally driven by visibility and purchasing power of consumers. Traditionally, this is how products are positioned within the impulse category. First come soft drinks, which is a major market. They are followed by biscuits, sugar confectionery, ice creams and salted snacks. In the past, chocolate companies used to consider only the different brands in the chocolate market as their competitors. That was a mistake.
In real life, chocolate products are fighting for a share of the consumers' pockets. They are facing competition not only from chocolates but also other...