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Invest in a Chocolate Confectionery Distribution Business

Nikita Arya
Nikita Arya Sep 17 2019 - 3 min read
Invest in a Chocolate Confectionery Distribution Business
Although the Indian market is in the initial phase of growth as compared to the developed markets, the confectionery market in India is one of the fastest growing in the world with a strong double-digit CAGR.

In the culturally-rich India, where sweets have a deeper meaning to them (we eat sweets to celebrate our rituals!) than just satiating the craving for sweet, the innate fondness for sweets, chocolates and confectionery among Indians is nothing but a growth driver for the chocolate and confectionery businesses in India. Even though a lot many people do not possess sweet tooth, but chocolate is something that no one can resist.

India’s love for everything sweet pushes the demand for chocolate and confectionery products. Although the Indian market is in the initial phase of growth as compared to the developed markets, the confectionery market in India is one of the fastest growing in the world with a strong double-digit CAGR. A fair distribution chain is essential to meet the growing demand of chocolate confectionery, which creates a lot of entrepreneurial opportunities for distributors across India.

Why Chocolates Confectioneries are in Demand

Many Indians still have major sweet tooth despite the fact that India is among the top three nations in diabetes (accounting for more than 70 million cases). This is one of the biggest reasons why chocolates and other confectionery products are in demand.

One of the very reasons that are fuelling the growth of the confectionery market, especially the demand of chocolates is the notion of chocolates being healthier. If we go by statistics, it is revealed that 44% of Indian consumers think chocolates are healthy, which is true to some extent. Nutritionally, dark chocolate is the healthiest type of chocolate because it is lowest in sugar and supplies beneficial antioxidants that are present in much smaller doses in milk and white chocolates. With the growing inclination towards intake of healthier food products, the health-quotient of chocolates is helping chocolate confectionery brands to double their sales and distribution across India.

Indian confectionery market is competitive and is evolving year by year. Seeing the burgeoning demand, multinational companies are bidding their money in the Indian market for greater returns.  A big bump in sales is expected around the festival seasons, especially Diwali as Indians seek out for trendy replacements for traditional local sweets exchanged in the festival.

Another growth driver of the chocolate and confectionery businesses is the affordability-factor. As already mentioned, Indians have an ingrown love for sugar, they don’t crave for chocolates but they crave for sugar. And keeping the rates of Indian sweets like Barfi, Laddoo, Gulab Jamuns etc. into consideration, chocolates can help satiating their sugar-cravings in a more pocket-friendly way. In fact it is easier to buy chocolates than buying traditional sweets.

A Sugary-Sweet Opportunity to Become a Distributor

In the above mentioned pointers, one thing is quite clear that chocolate businesses are doing a great job in India and the good distribution chain is responsible to meet its demand across India. The manufacturers are solely dependent on the supply chain that includes various channels such as wholesalers, distributors and

With the rising market, chocolate and other confectionery businesses are on the peak of success and are perfect destination for those who are interested in grabbing business opportunities. Becoming a distributor of popular brand will help those people who possess a sound knowledge of how demand-supply chain works and how distribution could be easily managed. With higher margins and lower investment amount, chocolate distributorship is a lucrative business opportunity. Here are some of the insights about chocolate distributorship opportunity in India.

Investment Requirement: Rs 1-2 lakhs

Space Requirement: 100 sq ft

Margin:30%

Distributorship Level: City Level

 

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