Italian confectionery major bets on premium chocolates, new product launches and deeper reach into smaller cities
Italian confectionery major Ferrero is looking at India as one of its most important growth markets, with ambitions to make the country one of its top 10 markets globally over the long term. Rising consumer aspirations, a young population and increasing demand for premium chocolates are driving the company’s expansion strategy.
India has emerged as one of Ferrero’s fastest-growing markets worldwide, prompting the company to strengthen its brand portfolio, expand distribution and introduce products for new consumption occasions. However, the company is prioritising sustainable growth and profitability over aggressive expansion, Zoher Kapuswala, Marketing Head, India Subcontinent, Ferrero, told PTI.
The company has recorded double-digit growth since the previous financial year, reflecting the growing appetite for premium confectionery in the country. According to regulatory filings, Ferrero India reported revenue of Rs 2,585.5 crore for the financial year ended March 31, 2025, registering sales growth of more than 19%.
Its Indian portfolio includes Ferrero Rocher, Ferrero Rocher Moments, Raffaello, Kinder, Nutella and Tic Tac. The company is now looking beyond traditional chocolate consumption and gifting to capture opportunities across everyday indulgence, sharing and celebrations.
One of its major moves is the entry of Ferrero Rocher into the chocolate bar segment with its Classic Hazelnut and 70% Cocoa Hazelnut variants. The launch is aimed at tapping into India’s chocolate bar market, estimated at around Rs 20,000 crore, and extending the brand’s appeal beyond conventional gifting occasions.
Ferrero is also widening its consumer reach by strengthening its presence in smaller cities. Modern retail, general trade, e-commerce and quick-commerce platforms are becoming important channels in its distribution strategy.
According to Kapuswala, consumers in smaller cities are increasingly displaying aspirations similar to those in metropolitan markets. Greater exposure to digital content and changing lifestyles are influencing purchasing decisions, creating opportunities for premium brands beyond major urban centres.
The company is also adapting its marketing approach to Indian consumption habits. Nutella, for instance, is being positioned around familiar foods such as chapatis, parathas and bread, while Kinder continues to focus on children and family consumption. Ferrero Rocher and Raffaello cater to different premium and celebratory gifting occasions.
Festivals remain another major growth opportunity. Ferrero is aligning its campaigns with Indian occasions, particularly Diwali, as gifting becomes increasingly important across consumer categories. The company believes that younger consumers are looking for experiences and products that connect with their cultural celebrations.
India’s importance to Ferrero extends beyond domestic consumption. Its Baramati manufacturing facility in Maharashtra, employing around 3,500 people, serves as a major production and sourcing hub. Nearly 45% of Ferrero India’s production is exported to more than 30 countries across Southeast Asia, Africa and the Middle East.
With a growing domestic market, expanding manufacturing capabilities and rising demand for premium products, Ferrero is positioning India as a long-term growth engine for its global business.