Interview: Chocolate and Cocoa Trends in India
Rahul Gupte, marketing director India, AAK Group offered us insight into the Indian chocolate market in this exclusive interview:
What trends can be observed for chocolate used in bakery in India?
Chocolate is one of the most popular and widely consumed food items in the world. But making chocolate products is no longer a simple business. Today, there is a high demand for innovative confectionery products such as center-filled chocolates, sandwich biscuits, wafer biscuits, chocolate chip cookies, and much more. The appeal of chocolate is that it enhances any biscuit or product that it is used in. And consumers today are looking to indulge their taste buds with premium and high-end chocolate-based products. Rise in consumption of premium chocolate offerings like that of sandwich biscuits and wafer biscuits are primarily driven by the wave of millennial consumers. Their preferences and tastes are creating new avenues for chocolate manufacturers. Unlocking the potential of this indulgence factor, these latest innovations are an attempt to further premiumization of the biscuit category while expanding its trajectory in India on the back of agile innovations that continue to match growing consumer expectations. New kinds of flavour combinations wherein chocolate is paired with ingredients such as sea salt, caramel, and tropical fruits are also in vogue.
What are your views on sustainability practices?
AAK has ‘The AAK group’s House of Sustainability’ which represents the foundational structure of sustainability initiatives undertaken by us. The overall objective of this initiative is to progress within the purview of sustainability as a whole. AAK puts a lot of effort into improving sustainability and responsible sourcing commitments for its customers. The raw materials that we use are obtained from all over the world. AAK is committed to sustainable development and continues to act responsibly towards all our stakeholders – investors, local and global customers, suppliers, employees, and the local communities in which we operate.
What are some dynamics in the main types of chocolate used in bakery products? What changes could be observed this year?
With several countries under lockdown regulations due to the pandemic, take-home products along with instant consumable products were driving outsized growth. Consumers look at convenience and on-the-go products that have a high shelf life and can be consumed as a snack. This year, with the pandemic forcing consumers to stay at home, demand for biscuits, cookies, and chocolates went up. The confectionery and bakery industry witnessed a fourfold demand in urban and rural areas. Most biscuit brands in India launched new products for the consumers during the lockdown period. Most manufacturers are observing the industry trends and continuing to innovate with center filled chocolate cookies and biscuits. Industry experts predict that chocolate biscuits are a big attraction and shall continue to grow.
What does innovation mean in this field? What are some best practice cases that can serve as inspiration for bakery manufacturers?
As consumer knowledge expands, artisans and manufacturers will continue to launch new and innovative products. Demand for high quantity and good quality has forced artisanal product producers and bakers to upgrade equipment in order to meet the higher demand volume, drive up efficiency, and crack down on waste. Innovation in the health foods category has been interesting to watch because more and more manufacturers are now experimenting with texture and crispiness of their products while trying to maintain good taste. When it comes to taste perception, texture is an important player. Front-of-pack texture claims are more and more prominent, and brands are finding new and creative ways to describe the texture of their products. The more traditional smooth and creamy textures are slowly giving way to newer mouthfeels such as chunky and crispy. More and more chocolate brands are trying to combine soft fillings with crispy elements that can add that “extra wow” factor to a product. Consumers today have busy lives and most people are always in a hurry moving from one task to the other, hence, bite-sized treats that deliver on taste and health will fast become popular.
What characteristics are requested for premium product ranges that use chocolate inclusions (fillings, toppings)?
Biscuits or cookies are generally produced keeping in mind smell, taste, mouthfeel, look, and many such other sensory factors. Chocolate flavours and fillings available from the market are generally grouped into categories of milk chocolate (every day), dark chocolate (special, healthy), flavor enhancements (bold), fill inclusions (fun), and multi-layered (premium). The taste of food products strongly affects the willingness to purchase. There are also various associations with the packaging of a product, and more often than not, along with taste, consumers have an equally deep connection with a product’s packaging. Manufacturers request us for support with texture of a product because melting properties of chocolates and cookies are different. We also help manufacturers with fusion flavours and inclusion of fruits or healthy ingredients into their products. Making the outer-shell of the cookie and adjusting its gooeyness are also some of the other characteristics we help our customers with.
How are health concerns addressed?
Since the beginning of the pandemic, there have been heightened feelings of anxiety and stress among many and this has led to a shift in priorities. More and more people are now looking to adopt a more holistic approach to wellness. The global health crisis has thus changed consumer preferences in new and unexpected ways. A greater awareness around health also means an increase in guilt among Indian consumers upon impulse purchases of baked goods and snacks. The consumption pattern of bread will see a major shift from white breads towards more multigrain, wholegrain, ethnic and seeded breads. This is all due to consumer desire for nutritious and healthy products that are fresh and have more complex flavor profiles. Another variant for health-conscious consumers are the low sugar or sugar-free biscuits that help with weight management and cholesterol management. It is important to note that such low sugar and sugar-free biscuit varieties do not compromise on taste as they contain healthy replacements such as honey, coconut, fruits, dark chocolate etc. The health foods trend is also in conjunction to The Foods Safety and Standards Authority of India (FSSAI) rule that aims to limit trans-fats content in food items and oils to 3% percent by 2021 and 2% by 2022, against the present limit of 5% percent. The objective is to reduce the trans-fat content in food items. Manufacturers are thus constantly updating themselves with new innovations that are tasty and fulfill the health conscious consumer’s demands.
What long-term evolution is anticipated in this field that bakery manufacturers should consider/prepare for?
The top most preferences that manufacturers should be prepared for are taste, origins, ingredients, and benefits of their food. Multiple layers, colors, and exotic flavours add to the ‘Instagrammable’ nature of products in the millennial age. Fruit and vegetable flavours added to chocolate-based confectionary products in powder form will continue to be a trend because they can replace refined sugar. Nostalgia and comfort food trends are also giving bakers the opportunity to reinvent the classics. Innovative pairings for chocolate include adding more unusual fruits or vegetables to a cake. For example, chocolate muffins with avocado frosting, beetroot cake with dark or milk chocolate drizzle. Combining Southeast Asian flavours like Pandan leaves with white chocolate and matcha with dark chocolate are also trends that are gaining traction among millennials.
What solutions, including know-how and consultancy, does AAK provide for Indian manufacturers?
AAK provides fats and oil solutions across various categories like Bakery, Confectionery, Plant-based foods, Special nutrition, and Medical nutrition. Yes, AAK does have solutions which cater to regional businesses, Indian mid-sized companies, and Indian multinational giants. Our products K-Lite & K-Cookiez have a good creaming ability that result in better volume of cookies and biscuits. They also lend to a light and crisp mouth feel, enhanced taste, and better shelf life. We also provide tailor-made solutions and provide our customers with opportunities to expand their businesses. Our co-development approach is a collaborative process to add value to our customers’ businesses.