Despite high inflation and subdued consumer sentiment, chocolate makers in India are witnessing booming sales as consumers are less sensitive to an increase in the prices of chocolates. With chocolates remaining a key item in consumers’ shopping baskets, India’s chocolate market is projected to grow at a compound annual growth rate (CAGR) of 4.9% during 2021-26, forecasts GlobalData, a data and analytics company.

Suneera Joseph, consumer analyst, GlobalData, comments, “Consumers’ perception of chocolates as an affordable indulgence amid the rising inflation seems to be driving the demand, even as they cut back on other discretionary expenses. Consumers also turn to chocolates as a means of stress relief, which is further boosting the sales of chocolates in a volatile economic environment. This trend is substantiated by GlobalData’s Q4 2022 consumer survey, wherein 51% of respondents said their spending on chocolates was quite/very high over the last three months.”

With strong consumer loyalty, chocolate makers in India are leveraging the indulgence factor to raise their product prices amid the rising ingredient costs and maximize revenue. In addition, confectionery giant Mondelēz is focusing on product innovations across categories, and strengthening distribution, particularly in rural areas, to benefit from the growing consumer demand.

Joseph concludes, “With conscious living on the rise in the post-COVID-19 period, premium chocolates resonate with health-conscious consumers who desire treats with fewer additives and top-quality ingredients. This is in line with GlobalData’s Q4 2022 consumer survey results, wherein 51% of Indian respondents said that they are actively looking for high-quality products/ingredients while making product purchases. As a result, brands should focus on premiumization and expand their portfolio with better-for-you chocolates that appeal to Indian consumers willing to pay a premium for healthier chocolates.”