Professional Documents
Culture Documents
Top Chocolate Brands in India & Tushar
Top Chocolate Brands in India & Tushar
This project aims at understanding the overall Chocolate Industry in India, the
product portfolios of different players in the market, various factors affecting
the growth and success of chocolate industry in India, the challenges and
opportunities which the market offers and the changing trends in the Indian
Chocolate Industry.
Industry in India
The chocolate industry in India as it stands today is dominated by two
companies, both multinationals. The market leader is Cadbury with a lion's
share of 70 percent. The companys brands (Five Star, Gems, Eclairs, Perk,
Dairy Milk) are leaders their segments. Till the early 90s,Cadbury had a market
share of over 80 percent, but its party was spoiled when Nestle appeared on
the scene. The latter has introduced its international brands in the country (Kit
Kat, Lions), and now commands approximately 15 percent market share. The
Gujarat Co-operative Milk Marketing Federation (GCMMF) and Central Are
canut and Cocoa Manufactures and Processors Co-operative (CAMPCO) are the
other companies operating in this segment. Competition in the segment will get
keener as overseas chocolate giants Hershey's and Mars consolidate to grab a
bite of the Indian chocolate pie.
Per Capita Chocolate Consumption (in lb) of first 15 countries of the world
Rank Countries Per Capita
Consumption (in lb)
1 Switzerland 22.36
2 Austria 20.13
3 Ireland 19.47
4 Germany 18.04
5 Norway 17.93
6 Denmark 17.66
7 United Kingdom 17.49
8 Belgium 13.16
9 Australia 12.99
10 Sweden 12.90
11 United States 11.64
12 France 11.38
13 Netherlands 10.56
14 Finland 10.45
15 Italy 6.13
INDIA, stands nowhere even near to these countries when compared in terms of
Per Capita Chocolate Consumption. The Indian chocolate industry is extremely
fragm ented with a range of products catering to a variety of consumers. We
have the bars/slabs, jellies, lollipops, toffees and sugar candies.
Given India's mammoth population, it comes as a surprise that per capita
chocolate consumption in the country is dismally low - a mere 20 gms per
Indian. Compare this to over 7 kgs in most developed nations.
However, Indians swallowed 22,000 tonnes of chocolate last year and
consumption is growing at 10-12 percent annually.
The market size of chocolates was estimated to be around 16,000 tonnes, valued
around Rs.4.16 billion in 1998. Volume growth which was over 20% pa in the 3
years preceding 1998, slowed down thereafter.
Both chocolate and sugar confectioneries have abysmally low penetration
levels, in fact, even lower than biscuits, which reach 56 per cent of the
households. Market growth in the chocolate segment has hovered between 10 to
20%. In the last five years, the category has grown by 14-15% on an average
and will expect it to continue growing at a similar rate in the next five years.
The market presently has close to 60mn consumers and they are mainly located
in the urban areas. Growth will mainly come through an increase in penetration
as income levels improve.
However, almost all of this consumption is in the cities, and rural India is nearly
Chocolate-free. But the fact is that three quarters of Indians live in Rural
Areas. Average summertime temperatures reach 43 degrees Celsius in India.
Chocolate melts at body temperature of36 degrees. Per capita consumption of
chocolates in India is minuscule at 20gms in India as compared to around 5-8
kgs and 8-10 kgs respectively in most European countries.
Awareness about chocolates is very high in urban areas at over 95%. ...
Growth of other lifestyle foods such as malted beverages and milk food have
actually declined by 3.7 per cent and 11.7 per cent, however the
CHOCOLATES continue to grow at the rate of 12.6%. Low priced unit packs,
increased distribution reach and new product launches can be said to have
fuelled this growth.
The launch of lower-priced, smaller bars of chocolate in the last two years and
Positioning of chocolate as a substitute to traditional sweets during festivals,
have boosted consumption. This is also because chocolate, which was
considered to be an elitist food, has caught the fancy of buyers looking for a
lifestyle item at affordable cost.
AC Nielsen ORG Marg report estimates the Indian Chocolate Industry worth at
Rs
2,000-crore (Rs 20 billion).
Types of Chocolates
Depending on what is added to (or removed from) the chocolate liquor, different
flavours and Varieties of chocolate are produced. Each has a different chemical
make-up, the differences are not solely in the taste.
1. Unsweetened or Baking chocolate is simply cooled, hardened chocolate
liquor. It is used primarily as an ingredient in recipes, or as a garnish.
2. Semi-sweet chocolate is also used primarily in recipes. It has extra cocoa
butter and sugar added. Sweet cooking chocolate is basically the same, with
more sugar for taste.
3. Milk chocolate is chocolate liquor with extra cocoa butter, sugar, milk and
vanilla added. This is the most popular form for chocolate. It is primarily an
eating chocolate.
Cocoa is chocolate liquor with much of the cocoa butter removed, creating a
fine powder. It can pick up moisture and odors from other products, so you
should keep cocoa in a cool, dry place, tightly covered.
There are several kinds of cocoa
Low-fat cocoa has the most fat removed. It typically has less than ten percent
cocoa butter remaining.
Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter
in it.
Drinking or Breakfast cocoa has over twenty-two percent left in it. This is the
cocoa used in chocolate milk powders like Nestle's Quik.
Dutch process cocoa is cocoa which has been specially processed to
neutralize the natural acids in the chocolate. It is slightly darker and has a much
different taste than regular cocoa.
Decorator's chocolate or confectioner's chocolate isn't really chocolate at all,
but a sort of chocolate flavored candy used for things such as covering
strawberries. It was created to melt easily and harden quickly, but it isn't
chocolate.
Categories of Chocolates
Commercial Chocolates are available in the following forms:
1. Bars or Moulded Chocolates
2. Counts
3. Panned Chocolates (Gems)
4. clairs
5. Assorted Chocolates
Bars or moulded chocolates (like Dairy Milk, Truffle, Amul Milk Chocolate,
Nestle Premium, and Nestle Milky Bar) comprise the largest segment,
accounting for 37% of the total chocolate market in volume terms. ... Wafer
chocolates such as Kit-Kat and Perk also belong to this segment.
Pannedchocolates accounts for 10% of the total chocolate market. ... Wafer
chocolates such as Kit-Kat and Perk also belong to this segment. ..
Form of Consumption
a. Pure Chocolates
b. Toffees
c. Cakes & Pastries
d. Malted Beverages
e. Wafer Biscuits & Baked Biscuits
f. Chocolate Desserts
Chocolate Manufacturing Process
Workers cut the fruit of the cacao tree, or pods open and scoop out the beans.
These beans are allowed to ferment and then dry. Then they are cleaned, roasted
and hulled. Once the shells have been removed they are called nibs. Nibs are
blended much like coffee beans, to produce different colors and flavors. Then
they are ground up and the cocoa butter is released. The heat from the grinding
process causes this mixture of cocoa butter and finely ground nibs to melt and
form a freeflowingsubstance known as chocolate liquor. From there, different
varieties of chocolate are produced.
What is conching?
Raw unprocessed chocolate is gritty, grainy and really not suitable for eating.
Swiss chocolate manufacturer Rudolph Lindt discovered a process of rolling
and kneading chocolate that gives it the smoother and richer quality that eating
chocolate is known for today. The name 'conching' comes from the shell-like
shape of the rollers used. The longer chocolate is conched, the more luxurious it
will feel on your tongue.
from that, increasing health consciousness among the urban masses is also
tempting them towards dark chocolates rather than calorie-stuffed sweets. Ad
campaigns like Meethe Pe Kuch Meetha Ho Jaye and Shubh Arambh are also
luring consumers towards making chocolates a part of their everyday life.
List of India's leading and popular chocolate brands: Cadbury Cadbury is a
British multinational chocolate major. It is handled by Mondelez India (earlier
Cadbury India). Cadbury was established in Birmingham, U.K. by John
Cadbury in 1824. Cadbury entered India in 1948 and started its operations by
importing chocolates. Today, Cadbury is the most loved and most widely sold in
India. According to Euromonitor International, Cadbury accounted for 55.5% of
the total chocolate sales in India during 2014. Dairy Milk is the flagship brand
of Cadbury. Here are some of the most famous Cadbury variants: Dairy Milk 5
Star Gems Perk Silk Bournville Celebrations Nestle Founded in 1866, Nestle is
a multinational beverage and consumer food items company based in
Switzerland. Henry Nestle founded the company in Vevey, Switzerland. Nestle
came to India in the late 1950s. Nestle was the second best-selling chocolate
brand in India in 2014 with 17% share of the total sales volume. Kit Kat, a bar
of crisp wafer fingers covered with chocolate layer, is Nestle's flagship variant
in India. Some of the widely consumed Nestle brands are as follows: Extra
Smooth Kit Kat Senses Kit Kat Dark Senses Alpino Kit Kat Bar-One Munch
Ferrero India Ferrero is an Italian food and beverage company founded in 1946
by Michele Ferrero. The company started its business in India in 2004 and has
gained a considerable ground in the Indian chocolate industry within a decade.
It is famous for its unique taste defined by its main ingredients creamy filling,
a crunchy wafer and a hazelnut centre. Ferrero India was the third biggest
chocolate brand in India as it held 5% market share in 2014. Ferrero Rocher is
the flagship variant of Ferrero India. Here are some of the Ferrero variants:
Ferrero Rocher Nutella Kinder Raffaello Mon Cheri Amul Amul is India's
indigenous dairy cooperative primarily dealing in dairy products. It is also one
of the biggest players involved in chocolate manufacturing industry of India.
Amul is owned by Gujarat Co-operative Milk Marketing Federation Ltd.
(GCMMF) and was founded in 1946 by Dr. Verghese Kurien. The credit of
making India the largest producer of milk and dairy products by bringing about
the 'White Revolution' goes to Amul. Milk chocolate is Amul's most trusted
brand amongst Indians. Accounting for 1.1% of India's overall chocolate sales
volume in 2014, Amul stands fourth. Some of its variants are as follows: Milk
Chocolate Dark Chocolate Fruit & Nut Chocolate Tropical Orange Chocolate
Almond Bar Mars India International Mars was established in 1911 by Franc C.
Mars in Washington, U.S.A. The first recognised brand of Mars was Milky Way
that was launched in 1920s. Mars has been popular in India as well. Very
recently, Mars has started its manufacturing in India. Snickers and Galaxy are
the most popular chocolates in India that are made by Mars. The company was
the fifth biggest seller of chocolates in India in 2014 as it got 1.1% share of the
total sales. Some of its products are as follows: Snickers Galaxy Mars Milky
Way Skittles M&M's Twix
Campco Campco (Central Arecanut and Cocoa Marketing and Processing
Cooperative Ltd.) is an Indian cooperative that was founded in 1973 in
Mangalore, Karnataka. Areca nut is the main ingredient of the Campco
chocolate products, which is mainly cultivated in Indian states of Kerala,
Karnataka and Assam. Campco processes, procures, markets and sells areca nut
and cocoa. Some of its products are as follows: Bar Krust Fun Tan Melto Snack
Bar Treat Turbo Dairy Cream ChocOn India ChocOn started making chocolates
in 1998, but it was founded in 1994 and started off with manufacturing bottled
mineral water. The company's operations were stretched to a whole new
manufacturing segment of sweet and the first brand was Milk N Nut, which was
launched in 1998. Since then, a series of exciting tasty chocolate brands have
been launched. Some of ChocOns products are as follows: Chocolaty Bar
Milcreme Choco Bar ChocOn Coconut Parle World's best-selling biscuit ParleG is the flagship product of Parle, an Indian manufacturer of consumer goods,
confectioneries and beverages. Parle was founded in 1929 by Vile Parle's
Chauhan family. The company is the biggest biscuit manufacturer in India. It
deals in confectionery items as well. Parle products are a rare combination of
fine taste, nutrition and quality. Chocolate variants of Parle are as follows:
Kismi Bar Kismi Toffee 2-in-1 Eclairs 2-in-1 Fruit Drops Lotus The Lotus
chocolate company was founded in 1992 and is the maker of some of India's
finest and most exquisite chocolates, cocoa derivatives and cocoa products.
Lotus supplies cocoa and chocolate products to local bakeries as well as
multinational chocolate manufacturers. Chuckles Milky Punch Eclairs Kajoos
Candyman Candyman is owned by Indian conglomerate ITC founded in 1910
and based in Kolkata, West Bengal. ITC launched its confectionery brands in
2002. Within a little more than a decade of its existence, Candyman has
launched a wide range of confectionery variants that have ruled over Indian
masses. Candyman is admired by the people of India for the innovative and
unique taste it provides through various products. Choco Double Eclairs Eclairs
Creme Lacto Toffichoo Coition .
PLAYERS
The population of India presents multiple avenues for companies to foray into
India. "The regulatory environment, too, has become conducive for foreign
players to operate in the country. There is immense scope that the country
presents to players in terms of hiring home grown talent to grow business, given
the educational boom. This clearly means that the three main factors like
demand for products, conducive regulations and customised talent are abundant
in India, which makes it inevitable for foreign players to ignore India," says
Ramanathan.
Patchi, a chocolate brand from Lebanon with over 300 stores worldwide opened
its franchise store in Delhi in 2007. Meenal Babbar, manager, Patchi, Delhi,
says that there is no competition between international chocolate brands and the
Indian ones. "The client-base is different for international brands. People who
generally buy chocolates of an international brand have a good purchasing
power
and
are
looking
for
quality,"
says
Babbar.
As to the challenges faced by an international brand in India, Babbar says, "The
Indian market is sensitive to the price. If the price of a product is high, it cannot
be consumed by the masses. Also, in terms of importing, for franchises, it is a
bit difficult because the price of the dollar is not fixed. For example, Patchi
chocolates in Dubai are cheaper than the ones in Delhi."
ENTRY
LEVEL
OPTIONS
SCHOOLS
AROUND
THE
WORLD
COURSES
The programmes range from one day to a week and may go on till three months
depending on the course. While the online-part-time Professional Chocolatier
Programme is a three-month course (Ecole Chocolate Professional School of
Chocolate Arts), the Discovering Chocolate programme (Chocolate Academy )
is a two-day programme.
8. Ghirardelli
This is an Italian chocolatier, owned by Domingo Ghirardelli. It was founded in
1852. Today, Ghirardelli has become one of the finest chocolate manufacturers.
The irresistible taste and unique styles of its chocolates tend to be everyones
favorite. These Italian craftsmen use milk, and cocoa in their chocolates, along
with caramel and fresh cream. This brand is currently headquartered in USA.
7. Ferrero Rocher
Saving the last for the best is what the motto of Ferrero Rocher is. This is
another Italian brand that sells the chocolates worldwide with great pride. It is
one of the oldest chocolate companies, founded originally in 1981 by Ferrero
SpA. Every bite of its wafers and chocolates is filled with so much taste and
rich ingredients. The brands wafer-filled chocolates with milk constituents are
the best and widely loved.
6. Patchi
Patchi is yet another chocolate manufacturing company. It uses the fine quality
cocoa and fresh milk as its core ingredients. Established in 1974, by chocolatier
Nizar, this brand now deals in attractive and magnificent chocolates and wafers
that are sold in great packages. The tastes depict mixed flavors of Swiss and
Belgian origins.
5. Guylian
Guylian has its retail stores in over 40 countries worldwide. This brand is
known for its richly designed chocolates and other eatables. It also deals in
brownies, pastries, and pancakes. The premium quality cocoa bars of this
company are right in taste, and shaped very well. In 2005, it received the title of
Best Chocolate Manufacturer with Eggs.
4. Mars
The famous majestic Mars bars are known for their yummy taste and quality
ingredients. This brand has its roots from UK, and was founded in 1932. The
magical taste of Marss chocolates and pancakes has absolutely no alternate. It
packs its items in perfect boxes, and add nougat, minced almonds, caramel
topping, and honey to make them rich in flavor.
3. Cadbury
Cadbury is yet another famous chocolate manufacturing company. it is one of
the major outselling brand, founded by John Cadbury in 1824 in London. The
company deals in flavorful chocolates, milk bars, fruity nuts, crunches, and
delicious wafersall made of milk, cocoa, sugar, cream, and honey like fresh
ingredients. One of its major varieties is delightful special Cadbury flakes.
2. Kit Kat
Kit Kat, a brand of trust, was established in 1935. It is a famous confectionery
company. One of the very first Kit Kat products was named Kit Cat which was
actually the finger bars made of wheat, milk, and sugar. Later on, the brand
continued the manufacturing of hot chocolates, wafers, milky bars, and other
eatables that come in flavors like fruits, honey, and caramel.
1. Galaxy
Galaxy is the best selling chocolate company of the era. This brand is owned by
the team of Mars. Currently, it has its outlets across America, Europe, Canada,
and other nations. It was originally established in 1986, and is headquartered in
UK. Some of the best varieties of its chocolate are Galaxy Jewels, Caramel,
Fruitia, and Dove.