Chocolate Confectionery

in India
Industry Profile

Reference Code: 0102-0038

Publication date: April 2004

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India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 2
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Market Value

The Indian chocolate confectionery market grew by 9.2% in 2003 to reach a value of
$141 million.

Market Value Forecast

In 2008 the market is forecast to have a value of $201 million, an increase of 42.2%
since 2003.

Market Volume

The market grew by 6.3% in 2003 to reach a volume of 47 million Kg.

Market Volume Forecast

In 2008 the market is forecast to have a volume of 61 million Kg, an increase of

29.6% since 2003.

Market Segmentation I

The largest sector in the Indian chocolate confectionery market was the moulded bars
segment, which accounted for 49.3% of the market by value.

Market Segmentation II

India accounted for 2.1% of the Asia Pacific market by value in 2003.

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 3
CONTENTS

TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

CHAPTER 1 Market Overview 6

1.1 Market Definition 6

1.2 Market Analysis 6

CHAPTER 2 Market Value 7

CHAPTER 3 Market Volume 8

CHAPTER 4 Market Segmentation I 9

CHAPTER 5 Market Segmentation II 10

CHAPTER 6 Market Forecasts 11

6.1 Market Value Forecast 11

6.2 Market Volume Forecast 12

CHAPTER 7 Further Reading 13

7.1 Sources 13

7.2 Related Datamonitor Research 13

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 4
CONTENTS

LIST OF TABLES

Table 1: India Chocolate Confectionery Market Value: $ million, 1999-2003 .................... 7

Table 2: India Chocolate Confectionery Market Volume: Kg million, 1999-2003............... 8

Table 3: India Chocolate Confectionery Market Segmentation I: % Share, by Value, 2003

.............................................................................................................................. 9

Table 4: India Chocolate Confectionery Market Segmentation II: % Share, by Value,

2003 ................................................................................................................... 10

Table 5: India Chocolate Confectionery Market Value Forecast: $ million, 2003-2008 ... 11

Table 6: India Chocolate Confectionery Market Volume Forecast: Kg million, 2003-2008 .

............................................................................................................................ 12

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 5
MARKET OVERVIEW

CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

The chocolate confectionery market principally involves products that contain either
real chocolate or a chocolate compound containing substitute raw material
ingredients such as cocoa butter extenders. Sectors covered in this market include
boxed chocolate, countlines, filled bars, molded bars, novelties and straightlines.
Values are measured at retail selling price (RSP).

The data in this industry profile is based on the most recent figures available at the
time of publication. Where necessary, historical data has been extrapolated from
base drivers.

1.2 Market Analysis

One of the important emerging markets, India’s economy has posted an impressive
average growth rate of 6% since 1990. India’s chocolate confectionery market grew
from $95.70 million in 1999 to $129.43 million in 2002. India was not only the fastest
growing market during the 1999-2003 period for the Asia Pacific region, but also the
fourth fastest market in the world behind Russia, Hungary and Poland.

The Indian chocolate confectionery market reached a value of $141.35 million in

2003, having grown with a compound annual growth rate (CAGR) of 10.2% in the
1999-2003 period. This growth was considerably stronger than that of the Asia Pacific
market itself, leading to the Indian market’s share increasing by 0.4 percentage points
between 1999 and 2003, accounting for 2.1% of the Asia Pacific market by the end of
this period. This growth was caused by the strong expansion of country’s domestic
market.

The leading revenue source for the Indian chocolate confectionery market in 2003
was the molded bar sector, which accounted for just over 49% of the market’s value.
In value terms this sector was worth $69.75 million in 2003, making this sector the
strongest performing within the market. The countlines sector generated the second
largest revenues in 2003, reaching a value of $46.12 million, equivalent to 33% of the
market’s value. It is unlikely that this sector will challenge the leading sector’s position
going forward.

During the next five years, the market is expected to experience high but decreasing
growth rates. By 2008 the market is forecast to reach a value of $200.9 million, a
CAGR of 7.3% in the 2003-2008 period, higher than the Asia Pacific market. India’s
share of the Asia Pacific region is expected to increase to 2.5% by 2008.

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 6
MARKET VALUE

CHAPTER 2 MARKET VALUE

The Indian chocolate confectionery market grew by 9.2% in 2003 to reach a value of
$141 million.

The compound annual growth rate of the market in the period 1999-2003 was 10.2%.

The strongest growth was in 2001 when the market grew by 11.3%.

Table 1: India Chocolate Confectionery Market Value: $ million, 1999-

2003

Year $ million INR million % Growth

1999 95.7 4,465.5

2000 105.6 4,926.9 10.30%
2001 117.5 5,483.1 11.30%
2002 129.4 6,039.2 10.10%
2003 141.3 6,595.4 9.20%

CAGR, 1999-2003: 10.2%

Source: Datamonitor DAT AMONITOR

Figure 1: India Chocolate Confectionery Market Value: $ million, 1999-

2003

$ million % Growth

160 12.0%
140
10.0%
120
8.0%
% Growth
$ million

100
80 6.0%
60
4.0%
40
2.0%
20
0 0.0%
1999 2000 2001 2002 2003

Source: Datamonitor DAT AMONITOR

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 7
MARKET VOLUME

CHAPTER 3 MARKET VOLUME

The Indian chocolate confectionery market grew by 6.3% in 2003 to reach a volume
of 47 million Kg.

The compound annual growth rate of the market volume in the period 1999-2003 was
15.7%.

The strongest growth was in 2000 when the market grew by 47.2%.

Table 2: India Chocolate Confectionery Market Volume: Kg million,

1999-2003

Year Kg million % Growth

1999 26.4
2000 38.9 47.20%
2001 41.6 7.20%
2002 44.4 6.70%
2003 47.3 6.30%

CAGR, 1999-2003: 15.7%

Source: Datamonitor DAT AMONITOR

Figure 2: India Chocolate Confectionery Market Volume: Kg million,

1999-2003

Kg million % Growth

50 50.0%
45 45.0%
40 40.0%
35 35.0%
Kg million

% Growth

30 30.0%
25 25.0%
20 20.0%
15 15.0%
10 10.0%
5 5.0%
0 0.0%
1999 2000 2001 2002 2003

Source: Datamonitor DAT AMONITOR

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 8
MARKET SEGMENTATION I

CHAPTER 4 MARKET SEGMENTATION I

The largest sector in the Indian chocolate confectionery market was the moulded bars
segment, which accounted for 49.3% of the market by value.

Table 3: India Chocolate Confectionery Market Segmentation I: % Share,

by Value, 2003

Categories % Share

Moulded bars 49.30%

Countlines 32.60%
Boxed 9.20%
Novelties 5.50%
Straightlines 3.30%

Total 100.0%

Source: Datamonitor DAT AMONITOR

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© Datamonitor (Published April 2004) Page 9
MARKET SEGMENTATION II

CHAPTER 5 MARKET SEGMENTATION II

India accounted for 2.1% of the Asia Pacific market by value in 2003.

Table 4: India Chocolate Confectionery Market Segmentation II: %

Share, by Value, 2003

Geographic % Share

Rest of Asia Pacific 97.90%

India 2.10%

Total 100.0%

Source: Datamonitor DAT AMONITOR

Figure 3: India Chocolate Confectionery Market Segmentation II: %

Share, by Value, 2003

India
2.1%

Rest of Asia
Pacific
97.9%

Source: Datamonitor DAT AMONITOR

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 10
MARKET FORECASTS

CHAPTER 6 MARKET FORECASTS

6.1 Market Value Forecast

In 2008 the Indian chocolate confectionery market is forecast to have a value of $201
million, an increase of 42.2% since 2003.

Annual growth is forecast to fall steadily from its 2003 rate of 9.2% to a low of 6.3% in
2008.

Table 5: India Chocolate Confectionery Market Value Forecast: $ million,

2003-2008

Year $ million INR million % Growth

2003 141.3 6,595.4 9.20%

2004 153.3 7,151.5 8.40%
2005 165.2 7,707.7 7.80%
2006 177.1 8,263.8 7.20%
2007 189.0 8,820.0 6.70%
2008 200.9 9,376.1 6.30%

CAGR, 2003-2008: 7.3%

Source: Datamonitor DAT AMONITOR

Figure 4: India Chocolate Confectionery Market Value Forecast: $ million,

2003-2008

$ million % Growth

250 10.0%
9.0%
200 8.0%
7.0%
% Growth
$ million

150 6.0%
5.0%
100 4.0%
3.0%
50 2.0%
1.0%
0 0.0%
2003 2004 2005 2006 2007 2008

Source: Datamonitor DAT AMONITOR

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 11
MARKET FORECASTS

6.2 Market Volume Forecast

In 2008 the Indian chocolate confectionery market is forecast to have a volume of 61

million Kg, an increase of 29.6% since 2003.

The compound annual growth rate of the market volume in the period 2003-2008 is
predicted to be 5.3%.

Table 6: India Chocolate Confectionery Market Volume Forecast: Kg

million, 2003-2008

Year Kg million % Growth

2003 47.3 6.30%

2004 50.1 5.90%
2005 52.9 5.60%
2006 55.6 5.30%
2007 58.4 5.00%
2008 61.2 4.80%

CAGR, 2003-2008: 5.3%

Source: Datamonitor DAT AMONITOR

Figure 5: India Chocolate Confectionery Market Volume Forecast: Kg

million, 2003-2008

Kg million % Growth

70 7.0%

60 6.0%
50 5.0%
Kg million

% Growth

40 4.0%
30 3.0%
20 2.0%
10 1.0%

0 0.0%
2003 2004 2005 2006 2007 2008

Source: Datamonitor DAT AMONITOR

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 12
CONTENTS

CHAPTER 7 FURTHER READING

7.1 Sources

This report is based on a combination of primary Datamonitor research, including

online, face-to-face and telephone interviews with consumer and industry players,
and secondary research using various sources (including trade associations, news
providers and others).

Industry Associations

International Confectionery Association

Rue Defacqz 1- 1000 Brussels,
Belgium,
Tel: +32 2539 18 00
Fax: +32 2539 15 75
Email: secretariat@international-confectionery.com
http://www.international-confectionery.com

7.2 Related Datamonitor Research

Datamonitor Industry Profiles

Global Chocolate Confectionery ($200)

Chocolate Confectionery in Asia-Pacific ($200)
Chocolate Confectionery in Europe ($200)
Chocolate Confectionery in the United States ($200)
Chocolate Confectionery in the United Kingdom ($200)
Chocolate Confectionery in France ($200)
Chocolate Confectionery in Germany ($200)
Chocolate Confectionery in Japan ($200)

India - Chocolate Confectionery

© Datamonitor (Published April 2004) Page 13