The festive season is here and perhaps it is also the season of sweets and chocolates. One of the most awaited periods of the year, the consumption of sweets and chocolates typically go off the roof. “While it all started with the fresh-made Indian sweet, the convenience factor moved it all to the turf of the chocolate. Chocolates can be kept longer and that counts. The festive season is a moment when purse strings loosen fast and quick. Hence the desire of marketers to capitalise on this loose-purse season,” Harish Bijoor, brand-strategy specialist and founder, Harish Bijoor Consults told BrandWagon Online.
The India chocolate market size reached $2.4 billion in 2022 shows data from a recent report by the IMARC Group. The market is further expected to grow to $4.1 billion by 2028, exhibiting a compound annual growth rate (CAGR) of 8.8% between 2023-2028. The IMARC’s report also highlighted that Mondelez India, Ferrero India, Nestle India, Mars International India, ITC, AMUL, Hershey India, among others are the key players in this sector.
The growth….
While India has had a long history of gifting sweets during the festive season, a large part of those sweets have been replaced by chocolate. According to industry experts the rise of e-commerce platforms across the country, easy access to a wide range of domestic and international chocolate products, introduction of new flavours and packaging formats are among the key factors driving the market growth. “Capitalising on this trend, at Hershey, we have introduced bespoke, premium gift packs comprising Hershey’s Kisses, Hershey’s Exotic Dark and Hershey’s Bars. These offerings are supported by a comprehensive integrated marketing campaign and customer partnership across various channels,” Geetika Mehta, managing director, Hershey India, explained.
Even as home-grown Indian sweets are still being gifted during the festive season, packaged chocolates tend to last longer. Not to mention, a range of packages at various price points have rather made it easier for consumers from all walks of lives to buy these. Furthermore, industry experts opine that there is a huge demand for gifting packages especially in the homemade chocolates and bars category. “Chocolates are becoming a go-to option for gifting during this festival season —the growing acceptance of packaging and superior quality and taste is facilitating this,” Preeti Bhatnagar, founder, The Chocology, noted.
Add to this, the growing corporate gifting culture which too has played a role in the expansion of the chocolate market in India. For Mondelez India the festive season kicked off on a positive note with the good offtakes during Rakhi. Additionally, the company claims to leverage a segmented portfolio approach to cater to the diverse preference of their customers. “Customers can choose from a Cadbury Celebrations box, Cadbury Dairy Milk Silk hamper to packs that include Oreo with more options. We have packs ranging from Rs 50-650 within the Celebrations portfolio alone. Our efforts are aimed at enhancing the consumer experience and ensuring our products remain a top choice for gifting during celebrations,” Desmond D’Souza, senior director – sales, Mondelez India, said.
Brands’ chocolaty affair!
To cash in on the festive season, almost all have rolled out premium variants. For example, the premium chocolate brand from the house of ITC, Fabelle, has launched its new offering ‘One Earth’.
Ferrero India kickstarted its festive launches with the roll-out of Ferrero Rocher Moments during Rakshabandhan, which was followed with Kinder Schoko Bons Crispy before Navratri, besides recently it launched its mix assortment pack for Diwali. “During festivities, gifting and consumption both are on the rise as the consumer and shopper sentiment are positive. With the range being available and activated across traditional trade and modern trade across town classes, we have been able to cater to the distinct buying behaviours and expectations of consumers,” Zoher Kapuswala, regional marketing manager, Ferrero, added.
Meanwhile, all these new offerings are now being promoted through an array of marketing initiatives. For example, Mondelez, like every year, has come up with several campaigns including #ThisAdIsMyStory for Cadbury Celebrations, #SitTogether for its Cadbury Dairy Milk, Oreo’s ‘Don’t jinx it’, and ‘My Masti, My Music’ for Gems. Similarly, Hershey rolled out its ‘Everyday Endearing Moments of Affection’ campaign featuring brand ambassador – actor Shraddha Kapoor for its chocolate brand Kisses “”Chocolates are the sweet stars of this festive season, with the Indian chocolate market poised for exponential growth. Global and domestic brands are adapting to changing consumer tastes, launching new products tailored to Indian palates and occasions, including premium and unique flavours for the GenZ generation,” Krishna Iyer, director – marketing, MullenLowe Lintas Group, said.