Chocolate brands' plan to stay relevant in health conscious consumer market

To keep young and health-conscious customers in the fold, chocolate and confectionary brands adopt clean labelling methods, keep pack sizes small

4 min read Last Updated : Nov 25 2019 | 11:07 PM IST

How must chocolate brands expand their footprint in the midst of a growing wave of health consciousness among consumers? Get responsible, says a report by Mintel on the Indian chocolate market. Small packs, being more open about the ingredients and explicit about the promise they offer, are among the many ways in which chocolate brands could stay relevant for consumers today, the report said.

Many companies are already doing that. Small size offerings, in the form of individually wrapped chocolate products as against large packs, are selling more according to the report. The report hypothesises that this trend is consumer driven, given that more and more buyers are looking to control their sweet tooth and proclivity for processed food. Between August 2017 and July 2018 and August 2018 and July 2019, the percentage of individually wrapped chocolate launches doubled, increasing by 50.4 per cent. Also, one-sixth of consumers surveyed in India say they would prefer chocolates in smaller portions.

“An increase in the share of individually wrapped chocolate products is indicative of increasing health-consciousness among Indian consumers who are trying to control portion size,” said Natasha Kumar, Food & Drink Analyst, India, at Mintel. By retailing small packs, the report suggests, companies are tuning in to consumer concerns.

The story bears out for the country’s homegrown chocolate and confectionary brand Amul. R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the brand, said that small sizes have helped expand the market. “We have grown our individually wrapped chocolate sales by around 60 per cent during the period and are further looking to launch new variants in coming months,” said Sodhi. And it is with the help of such packaging that Amul has almost tripled its share of chocolate market in the last three years and is the largest dark chocolate brand in India, he added.

In the consumer segment Amul’s Chocomini has done well and last year, it launched a 5 gram individually wrapped miniature variant of its dark and milk chocolates in 100 and 250 gram variants, the company said. It is taking the strategy forward with other brands too. Amul is not the only brand going small to grow bigger in the Indian market, but Mondelez and Nestle said they did not want to comment on their plans.

Going small, or diversifying their portfolios and bringing in new flavours and combinations help increase the opportunities for purchase according to experts. And this, in turn, helps expand the brand footprint.

The Indian chocolate market that is still a fledgling when compared to global counterparts, in terms of per capita consumption of chocolates, presents an attractive proposition for many. It has been growing at a CAGR of close to 12 per cent, the Mintel report said and it estimates that the market will be worth Rs 17,200 crore by the end of 2019.

“Bite-sized portions are gaining popularity in India and, therefore, new product innovation should do the same. This will have more advantages in the future, when it comes to attributes like portability, storage and, more importantly, controlled portion size, creating permissible indulgence for consumers,” said Kumar.

L Nitin Chordia, chocolate taster and consultant however, believes that across all chocolate segments, the decision to offer smaller packs (around 40 grams) is driven by manufacturer’s needs rather than consumer’s needs. “Health consciousness is not yet a mainstream driver of demand or sales,” he said. Going small, according to him, arises out of the need to keep individual bar prices below a specific perceived threshold, with an aim to drive volumes and most importantly the ability to increase the price/profitability per gram. The consumer may well be a collateral beneficiary in this case.