The New World of Chocolate: How is Consumption in Emerging Markets Developing?

October 16, 2014

In contrast with developed countries where chocolate consumption has declined, consumption has grown or remained steady in all BRIC countries (Brazil, Russia, India, China) and all MINT countries (Mexico, Indonesia, Nigeria, Turkey).  Russia now ranks as a global top 20 chocolate consuming country and has the highest consumption of all the emerging markets.  However in terms of growth, India and Turkey have been marked as the two markets to watch. Currently Mondelez dominates the market in India through its Cadbury brand but other global giants such as Mars, Nestle, and Ferrero have growth strategies involving India, and global cocoa and chocolate players such as Barry Callebaut and Ferrero have built factories in Turkey as rising incomes allow consumers to shift to more premium chocolate from cheaper sugar confections.   Although per capita consumption in India is still quite low, major brands are offering small, single-serve versions of their products for a very low price equal to a few cents. Growth is obtained through economy of scale due to India’s population of 1.2 billion.

 

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