It works, almost everywhere, on every occasion. And this isn’t a by product of chance. Chocolate is meant to make us feel better. For instance, it contains tryptophan — a type of amino acid that can aid serotonin production. Serotonin by the way is a neurotransmitter that can make you happy. (View Highlight)
Chocolate also contains something called phenylethylamine — a natural antidepressant. And it has theobromine — a compound known to relieve stress. (View Highlight)
So even during an impending recession, you need to hold on to something to keep yourself from feeling low and despondent. And for a lot of people, it’s self-care that fits the bill. It helps maintain sanity! And much like beauty products, chocolates can be a perfect fix when you’re feeling blue. (View Highlight)
But when a research firm looked at recent data from the US, they saw something else. The demand elasticity for chocolate stood at -0.4. Meaning that a 10% increase in price resulted in only a 4% drop in sales by volume. (View Highlight)
Also, finding a close substitute for chocolate can be hard. You could argue that ice cream is a good replacement. But it’s not an all-weather comforter like a bar of chocolate. Also, other types of Indian sweets can’t induce the happiness and highs, chocolate can produce. Their molecular chemistry is different. (View Highlight)
But things could change. The chocolate effect could die out. Especially in the western world. The per capita chocolate consumption in Europe and the US is already upwards of 7 kg per year. There’s not a lot of room for growth especially if people are turning health-conscious. Also, while the market continues to expand, the rate of growth is slowing. (View Highlight)
So chocolate makers are eyeing unexploited territories. For instance, they’re looking at countries such as India which has a per capita chocolate consumption of a tiny 140 gms. To capture a larger share of this market, in 2016, Mondelez spent $190 million to open its biggest Asia-based chocolate factory in Andhra Pradesh. And today, even Blas Maquivar, head of global emerging markets at Mars Wrigley says and we quote, “If you go to India, you go to Mexico right now, you will see new offerings [from] us that are playing at the lower price point that didn’t exist [before].” (View Highlight)
