Small chocolate companies are looking to expand their share in rural and semi urban regions. The rural segment which is growing anywhere between 18 and 20 per cent in the country is easier to get hold and drive up market share. Metros are dominated by multinationals and have competition from imported stuff, whereas in rural, the lower priced segment of Rs. 5 and Rs.10/- are catching the imagination.
Some other factors which help them are cheaper Chinese equipment compared to costly German/Italy equipment help smaller companies with similar products compared to MNC's. Innovations in printing also helps to retain an edge.
India is relying more on the import of cocoa products to bridge the gap between demand and supply. While cocoa production in the country rose 6 per cent in 2014 15 to 16,
Indian confectionery market is an evolving one. With product innovations driving growth with young consumers, there is a demand to expand the product range further. Indian market has several segments like ayurvedic confectioneries ? honey based lozenges, digestive mints apart from fruit flavoured candies, chocolates and chewing gums. The industry is growing at 8% with 3200 brands with total market size of INR 56,000 million.
In recent years, India had seen international players & brands like Fruit-tella, and Cofitos, Schogetten from Germany, Ferrero Rocher , Alpenliebe from Perfetti Van Melle. In the chocolate segment, Cadburys is the market leader closely followed by Nestle.
With higher disposable incomes, there is also a rise in demand for premium chocolates where Japan based luxury b