As the festive season descends upon us, there's a surge in demand in India's chocolate industry. Watching this trend, global brands are eyeing the Indian market with new launches and domestic players are going big on festive launches and advertisement campaigns. Even though Indian festivities are seen to be more about traditional sweets and home-made mithai, there is a change in trend over the past few years.

Share Market Live

NSE

The Indian chocolate market is poised for growth, with its size expected to escalate from $2.4 billion in 2023 to $4.1 billion by 2028, marking a compound annual growth rate of 8.8%. This is according to a report by market researcher — IMARC. Of course, global brands also want a piece of the pie.

Recently, European chocolate brand — Ferrero launched a new product, Kinder Schoko Bons crispy, in India. The brand is also coming up with new offerings ahead of festival season in India.

"We have targeted this time for launch because it is the time of high consumption of chocolate. We are also coming out with some gift packs from the portfolio of kinder. Ferrero is also working on another offer called the Ferrero Rocher moments. It comes in a luxurious packaging which makes for a good gift,” said Amedeo Aragona, Marketing Director, Indian Sub-continent, Kinder Brands at Ferrero.

Chocolates are becoming the go to option for gifting during festivals. The growing acceptance of chocolates as gifts is flavoured further by attractive packaging, consistency in quality and easy availability online. Experts suggest that urban affluence among the youth and high disposable incomes are contributing to this trend. However, Indian shoppers still see festival buying as an emotional decision. Brands are eyeing special festive campaigns to target their TG.

The leader in the chocolate market — Cadbury (Mondelez) has, for years, placed their product as the ‘modern meetha'’. This has been achieved through marketing campaigns like ‘kuch meetha ho jaaye'.

“At Mondelez, we offer a wide range of products at different price points to offer our diverse base of consumers products that suit their preferences. We’ve consciously embraced the idea of building cultural and personal relevance for our consumers through our product offerings and ad campaigns. More so, chocolates are a universal joy that transcend boundaries, so whether it's our classic Cadbury Dairy Milk for those who love the timeless taste, or Cadbury Bournville for consumers who prefer dark chocolates, we have options for everyone. We kicked off the festive season with great enthusiasm through our ‘Brothers Who Care’ Rakhi campaign. We also rolled out some exciting campaigns for ICC Cricket World Cup for Cadbury Dairy Milk and Oreo, adding an extra layer of thrill to the mix. As Diwali approaches, you can look forward to some touching campaigns lined up,” said Nitin Saini, Vice President – Marketing, Mondelez India.

Chocolate brands are also tapping into the changing sensibilities and tastes of the GenZ (born between mid-90s and 2010). In recent years, there has been a growing trend of indulgence in premium chocolates and unique flavours. The nation's palette is developing a sweet spot for dark chocolates, revealing a shift towards the global trend of healthier and more refined chocolate choices. Brands like Cadbury, Amul etc. have already jumped on this trend. Recently, Mars Wrigley India also announced the launch and local production of GALAXY FUSIONS Dark chocolate in India.

“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. There is a global influence on what we eat and how we dress also. And, youth in India are no different, they want to give luxurious looking and sophisticated chocolates as a gift,” Amedeo Aragona said.

The ease of online ordering, timely delivery, and the longevity of chocolates over traditional sweets are also making them a preferred choice, this festive season.

Also Read:Searching for lost, unclaimed shares to get easier on MCA’s new integrated portal

(Edited by : Sangam Singh)

First Published:Oct 12, 2023 3:48 PM IST