Business3 min read

Indians develop a taste for dark chocolate

By · Published by Everything Blog

In short

India is experiencing a significant rise in dark chocolate consumption, with urban consumers accounting for 87% of home chocolate purchases. Consumption is expanding beyond the home, with out-of-home purchases up 19% over the past year. Despite barriers such as price and distribution constraints, dark chocolate is a key growth segment, growing 3.8 times faster than the overall chocolate category, fueled by health-conscious consumers and experimentation.

Key points

  • India's dark chocolate consumption is on the rise, driven by urban consumers and rising d…: India's dark chocolate consumption is on the rise, driven by urban consumers and rising disposable incomes.
  • The trend is concentrated in urban centres with populations exceeding 1 million, indicati…: The trend is concentrated in urban centres with populations exceeding 1 million, indicating potential for becoming an increasingly important growth driver for the broader chocolate market.

Sources checked by our analysis pipeline: 1

Dark chocolate's household penetration stood at 8.5%, with urban consumers accounting for 87% of purchases for home consumption, indicating that the category remains concentrated in cities despite its rapid growth.

"Rising disposable incomes, aspirations and greater awareness are driving this evolution in consumer palate and acceleration in premiumisation," said Hemant Malik, chief executive of ITC Foods, which makes Fabelle chocolates, comparing the shift with premiumisation trends seen in categories such as coffee.

Also Read | Ferrero India enters premium chocolate bar segment with Classic Hazelnut, 70% Cocoa Hazelnut

Exposure to Global Trends

Dark chocolate, defined as that containing more than 50% cocoa, remains a small part of India's roughly 15,000-crore market for the confection. Chocolate consumption is also low at about 200 grams per person annually, compared with more than 10 kg in the UK, leaving room for growth but highlighting the gap in habits.

"Dark chocolate remains a relatively small segment, but its momentum is striking," said Manoj Menon, director of commercial at Worldpanel by Numerator, South Asia. If the trend continues, it could become an increasingly important growth driver for the broader chocolate market, he said. Consumption is also spreading beyond the home, with out-of-home purchases rising 19% over the past year, Menon added.

So what really changed in favour of dark chocolate? For one, the surge in quick-commerce orders, especially for a premium impulse buy that's not easily available at local kiranas.

"Dark chocolate is a key growth segment in India, fuelled by quick commerce and evolving consumer preferences," said Vinay Subramanyam, vice president of marketing at Mondelez India. Consumers are increasingly experimenting with dark-led flavours and chocolates with greater cocoa intensity, he said.

Also Read | India's a call-out market, but there's room to grow: Nestle

Health and wellness trends are also supporting demand. Dark chocolate is growing 3.8 times faster than the overall chocolate category, driven by health-conscious consumers and experimentation, said Zoher Kapuswala, marketing head at Ferrero Rocher India Subcontinent. Growth, however, remains concentrated in urban centres with populations exceeding 1 million. Companies cite price, consumer preferences and distribution constraints as barriers to wider rural adoption.

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Original source: economictimes.indiatimes.com

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