LONDON, Oct. 19, 2016 /PRNewswire
The global demand for chocolate is now showing recovery and leading suppliers such as Barry Callebaut are now forecasting stabilization of demand in the key markets worldwide. In 2020, the United States is expected to be the largest consumer of chocolate globally, followed by Russia. Amongst the BRIC nations, while India and China are nations projected to have the highest chocolate market growth in the period 2015-2020, economic conditions in Brazil and Russia have been hampering the chocolate market's growth.
India and China are amongst the four countries projected to have the highest chocolate market growth in the period 2015-2020. Other countries include Mexico and Brazil. India domestic chocolate industry is worth approximately INR 7,000 crores (1.12 billion USD) and is currently growing at a rate of 20% annually, projected to grow by 30% by 2020. Close to 70% of the chocolate is consumed in urban India. Factors such as poor infrastructure, lack of cold storage facilities and greater affinity for traditional Indian sweets inhibit the growth of the rural chocolate market.Emerging trends in the country include a growing affinity for dark and sugarless chocolate, along with growing demand for premium chocolates.
The government corruption crackdown has dampened the chocolate market in China. In 2014 the per capita consumption of chocolate in China was just 0.2 kgs as compared with 2.5 kgs per person in Brazil, 0.7 kgs per person in India and 2.2 kgs in United States.In 2014, the chocolate market in China generated sales worth approximately USD 3.2 billion and is projected to grow to USD 4.4 billion by 2020.A challenge facing the market is that Chinese customers do not trust home grow brands due to food safety issues. They have a greater affinity for foreign chocolate brands, close to 70% of the Chinese chocolate market is controlled by European brands. Other than the food safety concern, the poor performance of local chocolate brands can be attributed primarily to poor marketing efforts.