Branded Chocolate - India - Sample


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Chocolate accounts for a small share of the sugar and confectionary market in India. However, due to increasing consumption levels the industry offer significant prospects, especially for foreign players. The report provides a snapshot of the market indicating the size and growth as well as sales breakdown by price points and geography.

A brief analysis of drivers and challenges primarily focuses on cultural influences and manufacturers’ initiatives in driving growth, while challenges include raw material prices and artificial price inflation from government duties. The report also explains the shift in consumer preferences, channel trends, role of imports, and the possibility of private label products.

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Branded Chocolate - India - Sample

  1. 1. Branded Chocolate - India December 2008
  2. 2. Executive Summary <ul><ul><li>Estimated worth USD XX mn in 2008 & USD YY mn in 2009 </li></ul></ul><ul><ul><li>a% of products sold are priced in INR X – Y range </li></ul></ul><ul><ul><li>Profit Margins range between a – b% </li></ul></ul>SAMPLE <ul><ul><li>Drivers: Opportunity to expand due to low penetration, strong tradition of gifting sweets, attractive pricing driving volumes, demand from new segments </li></ul></ul><ul><ul><li>Challenges: Inflationary pressures on raw material prices, lack of government initiative, and duopolistic element of the market </li></ul></ul>Market Drivers & Challenges Trends Competition <ul><ul><li>Changing palate of consumers from Indian sweets to chocolate </li></ul></ul><ul><ul><li>Growing distributional channels </li></ul></ul><ul><ul><li>Foreign brands targeting a niche premium segment </li></ul></ul><ul><ul><li>Major retailers foraying into the industry </li></ul></ul><ul><ul><li>Market is dominated by A and B </li></ul></ul><ul><ul><li>X and Y are other domestic players </li></ul></ul><ul><ul><li>Foreign players in the market are U and V, catering only to the premium segment </li></ul></ul>
  3. 3. <ul><li>Market Overview </li></ul><ul><li>Drivers & Challenges </li></ul><ul><li>Trends </li></ul><ul><li>Competition </li></ul><ul><li>Key Developments </li></ul>
  4. 4. The branded chocolate market is growing with the bulk of sales concentrated in mid-price range products <ul><li>Chocolate represents approximately c% of the confectionary market in India with the rest accounted by sugar confectionary </li></ul><ul><li>Industry estimated to be worth approximately USD XX mn in 2008 </li></ul><ul><li>Market is expected to grow to approximately USD YY mn in 2009 </li></ul>SAMPLE Overview Size and growth (estimates) X 2003 Y 2006 Z 2009 b% a% USD mn a% Urban b% Rural Consumption Source: <ul><li>Urban markets account for the major share and also for a higher penetration rate of ~a% </li></ul><ul><li>Various price points exist with the mass market existing in INR 2 – INR 10 range </li></ul><ul><li>Profit margins range between u – v% based on the price point of the product </li></ul>Characteristics Price points and consumption u% v% w% 2 5 - 10 Other Price points (INR) vs. sales
  5. 5. Drivers & Challenges Innovation through brand and product variants Attractive pricing Tradition of gifting sweets Sweet taste preference in an under-penetrated market Drivers High entry barriers due to duopolistic market High excise and import duties Soaring price of raw materials Challenges
  6. 6. Key Trends <ul><li>Driven by marketing initiatives, consumer preferences are slowly changing in favour of chocolate </li></ul>Foreign or imported brands are successfully targeting the lucrative premium segment in urban markets Shift in consumer preferences Channel Trends Foreign brands target premium market Possibility of private labels Independent retailers are the largest channel but modern retail is growing faster Retailers may launch their own chocolate brands in a bid to grow their private label sales Trends
  7. 7. X is the market leader followed by Y, which dominate the market with a collective share of more than a% SAMPLE <ul><li>X is the leading player </li></ul><ul><ul><li>X is planning to increase sales by a-b% by 20-- </li></ul></ul><ul><ul><li>Y accounts for over a% of the market </li></ul></ul><ul><ul><li>Z and other chocolate wafers constitute b% of the total chocolate market and have been growing at c% annually </li></ul></ul><ul><li>Recent foreign players in the market </li></ul><ul><ul><li>U in a JV with V , and W currently catering to the premium segment only </li></ul></ul><ul><li>Other domestic companies are Y and Z </li></ul>Estimated Market Share a% Company X b% Company Y c% Others d% Imported Source: Major Players 1% INR y-z INR x-y Price range INR YY crore (20--) INR XX crore(20--) Revenue U,V,W A,B,C,D Brands b% a% Market Size Y X Parameter
  8. 8. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Branded Chocolate report is a part of Research on India’s Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on