Amul has doubled its chocolate production capacity and is preparing for another round of expansion as demand for chocolates continues to surge across India. The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, reported 100% year-on-year growth in chocolate sales during the current quarter, driven by rising consumer demand, stable cocoa prices, and increasing preference for premium and healthier chocolate offerings.
The dairy cooperative is also expanding its portfolio of nutrition-focused snacks with the planned launch of a high-protein chocolate wafer bar. The move reflects Amul’s strategy to diversify beyond dairy products and strengthen its position in India’s fast-growing confectionery market.
Amul Doubles Chocolate Manufacturing Capacity
The company has significantly expanded production to meet rising demand.
| Expansion Highlights | Details |
|---|---|
| Company | Amul (GCMMF) |
| Capacity increase | Doubled |
| Sales growth | 100% YoY in the current quarter |
| Expansion focus | Chocolates and nutrition products |
According to GCMMF Managing Director Jayen Mehta, the rapid sales growth reflects growing consumer trust in the Amul brand.
Chocolate Demand Continues to Rise
India’s chocolate market is witnessing strong momentum.
Key growth drivers include:
- Rising consumption among Gen Z consumers.
- Growing demand for premium chocolates.
- Expansion of modern retail.
- Increasing preference for healthier products.
- Higher demand for everyday snacking.
Industry estimates suggest India’s chocolate market could grow from about $2.48 billion in 2025 to nearly $3.58 billion by 2030.
Stable Cocoa Prices Support Expansion
After two years of sharp volatility, cocoa prices have stabilized.
This has encouraged manufacturers to:
- Expand production capacity.
- Launch new products.
- Increase investments.
- Improve production planning.
- Strengthen supply chains.
Amul said cocoa prices have remained relatively stable over the past four to five months, providing greater confidence for additional capacity expansion.
Focus on Premium and Healthier Products
| Product Strategy | Focus Area |
|---|---|
| Dark chocolate | Market leadership |
| Sugar-free chocolates | Growing consumer demand |
| High-protein snacks | New product launches |
| Premium chocolates | Category expansion |
Amul said its sugar-free dark chocolate now contributes around 10% of total chocolate sales, highlighting increasing demand for healthier alternatives.
Manufacturing Capacity Expands Further
The company’s chocolate business has grown rapidly since its manufacturing facility at the Tribhuvandas Food Complex in Mogar began operations in 2018.
According to Amul:
- The plant’s capacity was initially expanded fivefold.
- The facility reached full utilization within two years.
- Annual production capacity has now doubled to 24,000 metric tonnes.
- Another round of expansion is planned during the current year.
Competition Intensifies in India’s Chocolate Market
Amul is not alone in expanding production.
Industry trends include:
- Capacity expansion by leading manufacturers.
- Growth in premium chocolate brands.
- Rising demand for convenient snack formats.
- Greater investment in innovation.
- Increased focus on nutrition-based confectionery.
Other companies, including Schmitten Luxury Chocolates, are also increasing production to meet growing consumer demand.
Outlook
Amul’s aggressive expansion into chocolates signals the cooperative’s ambition to become a stronger player in India’s rapidly growing confectionery market. Supported by stabilizing cocoa prices, rising demand for premium products, and increasing interest in healthier snacks, the company is investing in additional manufacturing capacity and product innovation to sustain its growth momentum.
What It Means for India’s Chocolate Industry
Amul’s expansion reflects a broader transformation in India’s chocolate market, where consumption is shifting from being largely seasonal to an everyday habit. Younger consumers are driving demand for premium, dark, sugar-free, and protein-enriched chocolates, encouraging manufacturers to invest in larger production facilities and new product categories.
For the industry, rising investments by both established brands and newer players indicate strong long-term confidence in the market’s growth potential. As competition intensifies, innovation, premiumization, and health-focused offerings are expected to become key differentiators in India’s evolving confectionery landscape.
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