India emerged as one of the fastest growing markets in the world for chocolate in recent years, with a total market size of over 112.5 million Indian rupees in 2016. Although the production and consumption of chocolate was growing steadily each year, only a handful of companies ruled the sector. Mondelez – earlier known as Cadbury in India, had consistently been the country’s largest chocolate-maker since the 1990s. In 2016, it held the largest share of the country’s chocolate confectionery market with around 49 percent. This was much higher compared to the other global giant in the food and beverages industry – Nestle, at around 13 percent of the market share.

Cocoa production in India

In India, the cocoa crop had been grown commercially only since the 1970s and even then, it is grown primarily as an intercrop since it requires plenty of shade and a specific tropical climate. The country produced over 147.3 thousand metric tons of chocolate and cocoa powder during fiscal year 2016, out of which Andhra Pradesh produced over 7,000 metric tons of cocoa, followed by Kerala at 6,500 metric tons. That same year, the worldwide estimates of coca production amounted to approximately 3.97 million tons.

India’s sweet tooth

The retail sales of chocolate products across India amounted to approximately 1.8 billion U.S. dollars in 2018, up from around 1.6 billion dollars in the year 2016 and analysts estimated the figures to only grow over the next years. Extensive marketing and promotional strategies by chocolate manufacturers, a growing culture of gifting chocolates, and changing taste preferences of Indian consumers were some of the factors that accounted for this surge in the country’s chocolate confectionery market. For India's chocolate makers and consumers, the fun seems to have only just begun.