As the festive season approaches, India’s chocolate industry is experiencing a surge in demand, reflecting changing consumer preferences. Traditionally known for its focus on traditional sweets and homemade mithai during festivities, India has also witnessed a shift in recent years towards chocolate consumption. Notably, global chocolate brands are eyeing the Indian market, launching new products and campaigns to tap into this evolving trend.
Market researchers at IMARC predict that the Indian chocolate market is poised for substantial growth, with its value expected to climb from $2.4 billion in 2023 to $4.1 billion by 2028, representing an impressive compound annual growth rate of 8.8%. This growth has caught the attention of renowned global brands, including Ferrero, which recently introduced a new product, Kinder Schoko Bons Crispy, to cater to Indian consumers’ festive needs.
Amedeo Aragona, Marketing Director, Indian Sub-continent, Kinder Brands at Ferrero, shared insights on their strategic timing, saying, “We have targeted this time for launch because it is the time of high chocolate consumption. We are also coming out with some gift packs from Kinder’s portfolio. Ferrero is also working on another offering called the Ferrero Rocher Moments. It comes in luxurious packaging, making it an ideal gift.”
Chocolates have emerged as the preferred gift choice during festivals, boosted by attractive packaging, consistent quality, and easy online accessibility. Urban affluence among the youth and disposable incomes are contributing to this trend. However, Indian consumers still perceive festival buying as an emotional decision, prompting brands to devise special festive campaigns to connect with their target audience.
One of the leaders in the Indian chocolate market, Cadbury (Mondelez), has been successful in positioning its products as the ‘modern Meetha’ (sweet). The company has achieved this through innovative marketing campaigns, such as ‘Kuch Meetha Ho Jaye.’ Nitin Saini, Vice President, Marketing, Mondelez India, emphasized the brand’s efforts to build cultural and personal relevance for consumers.
Chocolate brands are also attuned to the changing tastes of the Gen Z demographic, catering to the growing trend of premium chocolates and unique flavours. Indian consumers are developing a fondness for dark chocolates, aligning with global preferences for healthier and more refined chocolate choices. Cadbury, Amul, and Mars Wrigley India are among the brands capitalizing on this evolving landscape.
Amedeo Aragona noted, “I have seen a dramatic change in how consumers are looking at chocolate. Indian taste has changed a lot towards sophistication. That’s where global brands can have a good opportunity.”
The ease of online ordering, prompt delivery, and longer shelf life of chocolates compared to traditional sweets are contributing to their increasing popularity during the festive season. India’s chocolate industry is set to enjoy a sweet surge, with both global and domestic brands capitalizing on evolving consumer preferences.