Global confectionery majors have recorded their weakest India performance in years, as soaring cocoa prices and shifting consumer preferences push buyers towards cheaper, locally made candies, reshaping India’s ₹25,000 crore confectionery market.
Multinational brands see slowdown
Industry data for FY25 shows that global players struggled to maintain momentum. Mondelez International and Perfetti Van Melle each reported a 2 per cent decline in India sales. Hershey’s posted flat growth, while Mars managed only a modest 2 per cent increase. This marks their weakest showing since the pandemic period.
Cocoa prices trigger trade-down
The key driver behind the slowdown has been an unprecedented surge in cocoa prices, which touched nearly $12,000 per metric tonne in April 2024, compared to the long-term average of around $2,500. Rising input costs forced chocolate makers to hike prices or shrink pack sizes, prompting value-conscious Indian consumers to downgrade to smaller packs or switch to non-chocolate alternatives.
Regional players gain ground
Hundreds of regional Indian manufacturers have capitalised on this shift by flooding the market with hard-boiled candies and low-priced confectionery. Offering higher trade margins and aggressive discounts to retailers, these local players have rapidly gained shelf space.
Mayank Shah, vice-president at Parle Products, said the cumulative impact of smaller companies is now visible in the financials of large multinational firms.
‘Indianness’ drives consumer choice
Local brands are also benefitting from flavour innovation and nostalgia. Prayagh Consumer, maker of Cintu candies, has crossed ₹900 crore in revenue, while DS Foods’ Pulse candy brand is nearing ₹750 crore.
According to Rajiv Kumar of DS Group, consumers are increasingly favouring local flavours and familiar taste profiles over Western options such as caramel and chocolate.
Long-term optimism remains
Despite near-term pressure, global executives remain cautiously optimistic. Dirk Van de Put has said India continues to perform better than expected and could rebound as cocoa prices soften and pricing stabilises.
With low per-capita chocolate consumption, India remains a long-term growth market — but one where global brands must now compete harder with homegrown players.