WORLD CHOCOLATE DAY SPL: Shifting palates, rising trends

World Chocolate Day offers a perfect opportunity to explore the ever-evolving landscape of this globally-loved treat. Chocolates, which were once reserved for special occasions, are now a common indulgence. Rising disposable incomes, a young population and increasing awareness of global trends have all contributed to India’s significant chocolate market growth.

While milk chocolate remains a popular choice globally, recent years have witnessed a significant shift towards dark and more complex flavours. With $4.24 billion in sales projected to grow at a CAGR of 11.5 per cent between 2021 and 2027, India’s chocolate market is all set to undergo a revolution, thanks to the collaborative efforts of international chocolate producers focussing on rural India. What’s more: India’s chocolate confectionery market, estimated at $1.98 billion in 2020, is presently acknowledged as one of the world’s fastest-growing chocolate markets.

Rise of dark chocolate in India

While milk chocolate dominates the Indian market too, accounting for almost 56 per cent of total product revenue, dark chocolate is slowly and steadily gaining ground. Dark chocolate is appreciated for both its delicious flavour and health advantages. It contains antioxidants, flavonoids and other healthy ingredients, compared with milk chocolate which is generally high in sugar and dairy. And with people becoming more health-conscious and creative with their food choices, the growth in its consumption is only expected. The consumption is likely to increase at a faster rate – with a CAGR of nine per cent.

The competitive landscape

The Indian palate is developing, with people looking for deeper and more diverse flavours. Dark chocolate, with its rich, powerful taste and complex flavour details, meets this expanding need. Furthermore, the worldwide trend of premiumisation is affecting Indian consumers, who are willing to spend more for high-quality, artisanal dark chocolate.

International chocolate producers are playing an important role in increasing the appeal of dark chocolate in India. These companies are utilising their experience and brand names to launch a diverse line of dark chocolate products targetted at Indian tastes.

Barry Callebaut is the leading manufacturer of Cocoa products and high-quality chocolate in the world. Their dark chocolate range called Accent comprises a wide range of coca components with low bitterness. Likewise, ITC with their luxury chocolate brand, Fabelle, has a wide range of dark chocolates made with cocoas collected from exotic cocoa-growing locations across the world.

New kid on the block

Now, let’s explore the lighter side of chocolate with the vibrant and unique variety of ruby chocolate, which started the trend of more complex varieties of chocolate. Ruby is a revolutionary addition to the chocolate variety, introduced to the world in 2017, and ever since the chocolate industry has been transforming its legacy.

Ruby beans make ruby chocolate. This invention turned out to be a breakthrough for many chocolate-producing brands beyond dark, white, and milk that experience fresh flavours and surprising tastes. Ruby chocolate was earlier known as the "first pinkish chocolate" and “millennial chocolate”.

The global ruby chocolate market is driven by rising consumer consumption. Due to rising awareness and key companies’ focus on R&D, its market is likely to increase further - globally the market is projected to grow at a CAGR of 5.2 per cent between 2023 and 2030 according to IndustryARC. It inspires future baking, confectionery, dessert and ice cream products. Research, innovation and increased investment in chocolate businesses are expected to open new markets for ruby chocolate. These factors will drive worldwide ruby chocolate market expansion in the coming years. Ruby chocolates require patent rights, which may slow market growth. Research, innovation and increased investment in chocolate businesses are expected to open new markets for ruby chocolate.

Recent developments

Due to the existence of numerous small and large-scale vendors, the worldwide chocolate industry is highly fragmented. These players compete in the aspects of product innovation, distribution, price, and quality. To develop manufacturing facilities around the world and satisfy rising product demand, a majority of major businesses have been investing in R&D. Moreover, to strengthen their distribution network, manufacturers intend to open new retail locations, which will result in a bigger market by 2032.

Inputs Kumud and Nikita Meshram