European chocolates and pasta will become significantly cheaper in India. The India-European Union free trade agreement, expected by early 2027, will reduce prices by at least 50%. This will make popular brands like Toblerone, Lindt, and Barilla m...
New Delhi: Indians are in for a treat once the India-European Union free trade agreement (FTA) is implemented, expected by early 2027, as Swiss, Belgian and German chocolates such as Toblerone, Lindt, Godiva, Guylian and Ferrero and Italian pasta brands like Barilla and De Cecco are set to turn at least 50% cheaper.
The deal has eliminated tariffs on a slew of processed foods including pasta, chocolate and olive oils, as well as on breads, biscuits, pastries, pet food and fruit juices imported from Europe.
The FTA will help increase affordability and variety, said industry executives and retailers.
"This is a pivotal step in making iconic European luxury products more accessible to Indian consumers; we see it as a natural evolution of gourmet living," said Karan Ahuja, spokesperson at gourmet retail chain Le Marche, which retails an extensive range of luxury imported packaged foods. The agreement also underpins business expansion for the DS Group-owned Le Marche, he said.
The market dynamics are likely to impact mainstream chocolate companies such as category leader Mondelez, which makes Cadbury Dairy Milk and Five Star; Nestle, which makes KitKat and Munch; and Snickers maker Mars, as well as indigenous artisanal gourmet chocolate labels such as Manam and Mason & Co.
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"While we expect the FTA will lead to a surge in European food brands entering India and offer more variety to consumers, it will also have a cascading impact on Indian brands, which will be forced to up their game on quality and innovation, as well as supply chain," said Arjun Kapoor, a Delhi-based importer of premium chocolates and olive oils.
According to a report by research firm IMARC Group, India's premium chocolate market is projected to expand to $2.24 billion by 2034 from $1.24 billion in 2025. The report attributed the surge to affluence, e-commerce and quick-commerce channels enabling reach and the increasing trend of festive gifting of premium chocolates.
