Chocolate consumption in India has nearly trebled since 2005 — thereason why leading chocolate companies are investing in bringing premium brands such as Toblerone.
Cadbury India, which has been on an overdrive to promote its premium brands such as Cadbury Dairy Milk Silk and Bournville, is now rolling out Toblerone from parent Kraft Foods’ stable. Toblerone, which is present in certain pockets of the grey market, would now be imported by Cadbury India to compete with the likes of Ferrero Rocher, Hershey’s and Lindt.
The sudden rise in chocolate consumption in India is on account of several reasons.
Although chocolates are items of impulse purchase, competing with categories like soft drinks, snacks and beverages for a share of the consumer’s wallet, modern trade appears to be driving consumption in such categories.
The per-capita consumption of chocolates in India has increased from 40gm per person per year in 2005 to 110-120gm. While this is a significant jump in consumption, it is still very nascent, leaving enough room for growth.
An analysis by The Boston Consulting Group on how a billion-plus people consume suggests that food is the largest consumption category in India, in which a trading-up tendency increases with rising income levels.
Chocolates form a Rs 3,200-crore category, where Cadbury India has a 70% share, while around 20% is held by Nestle India. Modern trade constitutes about 10% of the overall chocolate category, or roughly Rs 320 crore, according to Nielsen.
Of this, brand Cadbury Dairy Milk has a share of 35%, while Bournville and Silk together account for 18%.
Cadbury India, which has been on an overdrive to promote its premium brands such as Cadbury Dairy Milk Silk and Bournville, is now rolling out Toblerone from parent Kraft Foods’ stable. Toblerone, which is present in certain pockets of the grey market, would now be imported by Cadbury India to compete with the likes of Ferrero Rocher, Hershey’s and Lindt.
The sudden rise in chocolate consumption in India is on account of several reasons.
Although chocolates are items of impulse purchase, competing with categories like soft drinks, snacks and beverages for a share of the consumer’s wallet, modern trade appears to be driving consumption in such categories.
The per-capita consumption of chocolates in India has increased from 40gm per person per year in 2005 to 110-120gm. While this is a significant jump in consumption, it is still very nascent, leaving enough room for growth.
An analysis by The Boston Consulting Group on how a billion-plus people consume suggests that food is the largest consumption category in India, in which a trading-up tendency increases with rising income levels.
Chocolates form a Rs 3,200-crore category, where Cadbury India has a 70% share, while around 20% is held by Nestle India. Modern trade constitutes about 10% of the overall chocolate category, or roughly Rs 320 crore, according to Nielsen.
Of this, brand Cadbury Dairy Milk has a share of 35%, while Bournville and Silk together account for 18%.
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