The Indian and Chinese chocolate markets are among those expected to see the most growth over the next few years, research shows.
In “Indo-China Chocolate Market Study 2017,” India-based Smart Research Insights projects the global chocolate market to grow at a compound annual growth rate of 5 percent through 2020, thanks to innovations in flavors and packaging.
“World over there is growth potential in the customized and luxury segments,” the report’s executive summary reads. “People have a rising affinity for handcrafted chocolate, and many startups are dabbling in the art of chocolate making.”
The United States is expected to be the largest consumer of chocolate globally, followed by Russia. However, India’s chocolate market — which experienced 13 percent year-on-year growth in 2016 — is projected to grow by 30 percent by 2020.
Smart Research Insights said nearly 70 percent of India’s chocolate consumption occurs in urban areas, thanks to poor infrastructure, lack of cold storage facilities and greater affinity for traditional Indian sweets in rural areas. However, consumption of chocolate in small packages priced between 5 and 10 Indian rupees, is expanding in rural parts of the county.
The research firm also pointed to potential in China’s chocolate market, noting the country’s per capita consumption was about a tenth of that in Brazil and the United States in 2014. Chinese chocolate brands could also stand to have a greater presence, since 70 percent of the market is controlled by European brands.