Ferrero sees India entering top 10 global markets, bets on premiumisation, ramps up product launches

Varanasi: Italian confectionery major Ferrero sees India emerging as one of its top 10 markets globally over the long term, driven by rising consumer aspirations, a young population and growing demand for premium chocolates, according to a senior company executive.

India is among the fastest-growing markets for the group globally, and has emerged as a strategic market, with the company pursuing investments to expand its brand portfolio, strengthen distribution and build a sustainable growth trajectory, its India Subcontinent Marketing Head Zoher Kapuswala told PTI in an interaction here.

The company is focusing on consistent growth, brand-building and profitability rather than expanding at an unsustainably rapid pace, Kapuswala said, adding that India's growing consumption potential and demographic profile make it an important market for the group.


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"India is a strategic market. We are one of the fastest-growing markets across the globe, and the future is that it has to be among the top 10 markets. But it will happen gradually, because we are looking at long-term sustainable growth," he said.

The company, which operates in India with brands such as Ferrero Rocher, Ferrero Rocher Moments, Raffaello, Kinder, Nutella and Tic Tac, is logging double-digit growth from last fiscal year. It reported revenue of Rs 2,585.5 crore for the financial year ended on March 31, 2025, with over 19 per cent sales growth, according to RoC data.

Beyond the domestic market, the Ferrero group, which operates a manufacturing unit in Baramati, Maharashtra, also focuses on exports. Around 45 per cent of Ferrero India's production is exported to over 30 countries in Southeast Asia, Africa, and the Middle East regions.

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According to Kapuswala, Ferrero's Baramati plant, which employs around 3,500 people, is an "important manufacturing and sourcing hub" for the group for its global markets and underlines the company's long-term commitment to India.

"We are one of the fastest-growing markets in the entire globe (for Ferrero Group). We are growing much faster than the other global markets," he said.

In the domestic market, Ferrero is also expanding its presence beyond metropolitan markets, tapping growing demand in smaller cities through wider retail distribution, modern trade, e-commerce and quick-commerce platforms, making its brands more accessible to consumers.

"Every Indian, across different tiers of cities, is exposed to the same content. Aspirations are becoming similar, and consumers want to express themselves at the same level as metro consumers," Kapuswala said, explaining the growing reach of premium chocolate brands in smaller markets.

PREMIUMISATION, NEW PRODUCTS

Kapuswala said all Ferrero brands in India are delivering consistent growth, outperforming their respective categories and reflecting strong consumer demand.

Our "entire thought process is to grow gradually but grow faster than the category, gain share on a consistent basis," he said, adding the company is focused on building its brands and expanding its presence in India as it is "looking at long-term sustainable growth" here.

The company is also entering new consumption segments, with the launch of Ferrero Rocher bars aimed at tapping demand for indulgence and sharing beyond traditional gifting occasions.

Ferrero expects its entry into the chocolate bar segment to help it tap the growing demand for premium chocolates beyond traditional gifting occasions. The Indian chocolate bar market is valued at around Rs 20,000 crore, offering significant opportunities.

The company is also strengthening its portfolio around different consumer occasions, with Ferrero Rocher positioned in premium gifting, Ferrero Rocher Moments targeting more accessible gifting, Raffaello catering to romantic gifting, and Kinder focusing on children and family consumption.

Nutella and Tic Tac are also part of Ferrero's India portfolio, with the company seeking to align its brands with local consumption habits and preferences. "We are creating need states with local carriers like chapati, parathas and bread" for Nutella, while Tic Tac is positioned to appeal to India's young consumers, Kapuswala said.

FESTIVE GIFTING

The company sees India's expanding festive and celebratory gifting market as another important growth driver.

"Every festivity, the gifting market is going to increase. And when we say it's not only chocolates, it's the entire gifting market that is seeing a sea change, and it's increasing year on year," he said.

Ferrero is seeking to capitalise on this shift by aligning its products and campaigns with Indian festivals and traditions, including Diwali, while developing offerings suited to different gifting occasions.

"We are ensuring that we rise to the Indian tradition, and when you represent the tradition well to the Indian consumers, they reward you with consumption; they reward you with real cultural stories and insights," he said, adding, "the new generation is an experience-seeking generation."