Untapped markets

Chocolate consumption in more mature chocolate markets is experiencing a slow down. Although growth is being exhibited, this growth is extremely slow suggesting a stagnation of these markets.

The latest Fast Moving Consumer Goods (FMCG) industry trends report from SymphonyIRI Group reveals a decline in the volume of confectionery sales over the last year in the UK, despite events like the Diamond Jubilee and the Olympic Games. This may be due to a rise in confectionery prices, forcing shoppers to cut back to make savings.

Therefore, it is no wonder manufacturers are considering different regions where greater opportunities exist, eg India.

In fact, Mintel has stated that when it comes to chocolate, India is the world’s fastest growing market, and hence it is extremely lucrative to manufacturers. However, to break into these untapped markets many different factors need to be considered, for example, packaging may have to change to prolong shelf life in higher humidities and it may be wise to take advantage of religious festivals such as Diwali where chocolate confectionery can be given as a gift.

Mondelex, Nestle and Mars are already making efforts to establish a strong presence in the Indian market.