The wave of premiumization in India has led many brands to introduce premium products, including Ferrero, which recently launched its premium chocolate, Raffaello, targeting the country’s high-end markets. Additionally, Ferrero in India is exploring local character licenses for branding and merchandise.
Amid the launch of Raffaello, Zoher Kapuswala, Marketing Head for the Indian Subcontinent at Ferrero spoke to Storyboard18 and discussed the brand’s growth in India and the increasing demand for premium chocolate.
According to Mordor Intelligence Industry Reports, the Indian chocolate market is estimated to be worth USD 2.21 billion in 2024 and is expected to grow to USD 3.05 billion by 2029, with a CAGR of 6.64% over the forecast period (2024–2029).
Commenting on the premiumization trend in India, Kapuswala noted, “A few years ago, India was primarily a commodity market, but now we’re seeing a shift toward branded products, and even further toward premium experiences. Consumers are evolving; they are looking for global experiences. We have ‘global Indians’ who travel and explore different cultures and cuisines.”
He added, “This trend is still in its early stages, but as India continues to progress, we expect consumers to pay a premium for quality and experience. Premium gifting, for instance, will grow as people move from traditional assortments to branded, premium products. The mass market will also grow as product penetration increases, but we’re seeing a faster migration toward premium products among consumers who are already familiar with the brand. This migration will outpace traditional growth numbers.”
Kapuswala elaborated further, “We have seen significant growth in the premium category. We are building the necessary infrastructure and portfolio to meet this demand, ensuring that our products maintain high quality.”
Ferrero’s Kinder Joy recently collaborated with Wizarding World for its Harry Potter license, and the company has been associated with other global licenses such as Tom & Jerry, Hello Kitty, Batman, and Disney Princess. Ferrero introduced Kinder Joy to the Indian market in 2007, disrupting the industry with its unique product proposition.
When asked if Ferrero plans to explore local licenses like Viacom18’s Chhota Bheem, Paw Patrol, and Motu Patlu, Kapuswala responded, “Localization makes sense, but we also consider cultural cues. We look at local licenses, and it’s not just about market exclusivity; the license must meet mandates such as being gender-neutral and respecting community sentiments. If it fits these criteria, we’re open to both local and international licenses. The decision really depends on market fit.”
Ferrero invests heavily in digital and connected TV (CTV) advertising. On media spending, Kapuswala said, “CTV versus digital is a balance depending on the consumer’s daily life.”
Speaking about BARC’s plan to introduce a CTV measurement system, Kapuswala remarked, “As an advertiser, BARC’s initiative to consolidate CTV data could be useful, but in reality, many agencies already have such tools to provide comprehensive reach across TV, CTV, and digital platforms. While it might help to some extent, we already have this intelligence available through our media agencies, which track reach across all channels.”
He added, “As an advertiser, it doesn’t matter if BARC consolidates CTV numbers; our media agencies already have the tracking mechanisms, and we can review that data.”
With the festive season approaching, Ferrero anticipates strong growth in India’s premium chocolate segment, particularly for gifting. Kapuswala stated, “We’ve already achieved widespread distribution for Kinder Joy and Tic Tac, covering all urban areas and some rural regions. Currently, we’re not looking for aggressive expansion but are focusing on improving the quality of our reach. We’re also targeting premium consumers in major cities and exploring potential in rural areas.”
He continued, “We have partnered with major chains like Reliance and DMart, as well as regional chains like Vijayta. Visibility in these outlets is crucial, especially during the festive season. We focus on secondary visibility to remind consumers to purchase, as our products are often impulse buys. For example, during Diwali, we use special sleeves for Ferrero Rocher that match the festive theme, enhancing the in-store experience.”
Kapuswala expressed optimism about revenue growth during the festive season, stating, “We have strong plans in place, and our Diwali activation is already underway.”
In India, Raffaello will be available in two pack sizes: a 15-piece pack priced at Rs 450 and a 3-piece pack priced at Rs 99, suitable for gifting, sharing, and personal consumption. The product will be imported from Poland and will be available in outlets equipped to store the chocolate at the required controlled temperature.