Premium chocolate brands have ramped up their advertising spend for the Indian market as revenue growth surges significantly during the festive season. These Premium chocolate brands have increased their ad budgets by an average of 8-10% to expand reach and boost sales. Recently, several premium international chocolate brands have also entered the Indian market.
According to a report from Maximize Market Research Pvt. Ltd, the Indian chocolate market was valued at USD 2.74 billion in 2023, with revenue expected to reach USD 5.87 billion by 2030, at a CAGR of 11.5% over the forecast period. This growth is largely driven by the rising demand for premium chocolates.
Albinder Dhindsa, CEO of Blinkit, had shared on his X account that 406 chocolates per minute were sold during Valentine’s week. Q-commerce platforms have significantly contributed to the growth of premium chocolate sales.
In the confectionery category, DS Group’s ad spend for FY24 reached Rs 100 crore. Sanskriti Gupta, spokesperson for Läderach India at DS Group, noted, “In the luxury chocolate segment, Läderach has experienced over fivefold growth since its launch in India in 2023. Global brands are flocking to the country, recognizing the potential of its luxury market, primarily driven by a growing affluent class and an increasing demand for high-end experiences.”
Gupta added, “This momentum fuels our expansion plans. We recently launched our second store in Mumbai at Jio World Plaza, and we plan to open 5-7 more exclusive stores over the next two years. This festive season, we anticipate a 10% growth increase, especially as we focus on corporate and wedding-event gifting.”
Media agency experts indicate that premium chocolate brands recently entering the Indian market have raised their ad budgets by 15-20%, while established brands have increased their spending by up to 7-10% for the festive season.
For Mondelez, premium chocolate accounts for 20% of its portfolio in India, with this segment growing 20-30% faster than the overall chocolate market. Ferrero, meanwhile, recently introduced its premium chocolate brand Rafaello to the Indian market.
Zoher Kapuswala, Marketing Head of Pralines at Ferrero India, commented, “The wave of premiumization in India has led to significant growth in premium chocolate sales. The launch of Rafaello was a strategic decision as we foresee high demand during the festive season. The chocolate is ideal for premium gifting, and we expect a strong response.”
Kapuswala also noted, “We have several strategies to enhance product reach and are targeting high-end buyers in our campaign.”
In recent quarters, companies like Unilever, Coca-Cola, Colgate-Palmolive, Pernod Ricard, Skechers, and Whirlpool have observed varied purchasing trends in India’s consumer market. Premium brands in the fast-moving consumer goods sector are growing at roughly twice the pace of their non-premium counterparts in India.
Gaurav Mirchandani, Founder Director of Candytoy Company, which recently partnered with Reliance Retail to supply confectionery toys for 1,400 stores, explained, “Our growth depends on the success of our partners. We currently received monthly orders of Rs two crore from Reliance Retail’s 200 stores, which we aim to scale up to Rs 4 to 4.5 crore per month by the end of this fiscal year.”
Mirchandani further added, “We manufacture candy toys for several companies, including Colgate Palmolive, Puma, MTR, Bournvita, Yellow Diamonds, Vistara Airlines, and AirAsia. With both domestic and international orders, we expect to close this fiscal year with Rs 260 to 280 crore.”
With the ongoing festive season, experts indicate that the premium chocolate brands are not only ramping up ad spending and opening exclusive stores for catering to festive gifting but are also driving year-round demand for premium chocolates.