Ferrero Eyes India Among its Top 10 Global Markets
Ferrero, a leading Italian confectionery company, aims to enhance its position in India, forecasting the nation to rank among its top 10 global markets in the long run, fueled by increasing consumer aspirations, a youthful demographic, and heightened demand for premium chocolates.
India has emerged as one of the quickest expanding markets for the group worldwide and is now a key focus, according to Ferrero India Subcontinent Marketing Head Zoher Kapuswala.
"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," Kapuswala says.
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The company aims to broaden its brand portfolio, enhance distribution, and develop sustainable growth instead of seeking quick expansion that jeopardizes profitability.
Ferrero, known for brands like Ferrero Rocher, Ferrero Rocher Moments, Raffaello, Kinder, Nutella, and Tic Tac in India, announced a revenue of Rs 2,585.5 crore for the fiscal year ending March 31, 2025, showing a sales increase of more than 19 percent, as per Registrar of Companies data. The firm has experienced double-digit growth since the previous fiscal year.
Outside major urban areas, Ferrero is broadening its presence in smaller towns through retail distribution, modern trade, e-commerce, and quick-commerce platforms.
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"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," he mentions.
Kapuswala mentioned that consumers in various city tiers are being exposed to comparable content, resulting in a blending of aspirations and a growing desire for premium goods. The firm is utilizing its operations in India to bolster its worldwide business. The manufacturing site in Baramati, Maharashtra, employs approximately 3,500 individuals and acts as a center for manufacturing and sourcing. Approximately 45 percent of Ferrero India's output is sent to over 30 nations throughout Southeast Asia, Africa, and the Middle East.
Product development and premium positioning are key components of the firm's strategy in India. Ferrero has launched Ferrero Rocher bars in the chocolate bar market, aiming to meet the demand for premium treats and sharing beyond conventional gifting moments. The market for chocolate bars in India is valued at approximately Rs 20,000 crore.
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The company is also aligning its brands with various consumption moments. Ferrero Rocher emphasizes high-end gifts, while Ferrero Rocher Moments aims at more affordable presents. Raffaello is designed for romantic events, and Kinder targets child and family enjoyment. Nutella is investigating regional eating patterns by encouraging pairings with chapati, parathas, and bread. Tic Tac, on the other hand, aims to attract a younger audience.
Kapuswala stated that Ferrero aims to expand more rapidly than the segments in which its brands compete, while steadily increasing market share.
Celebratory spending enhances growth potential. India's growing market for festive and celebratory gifts presents another chance for the confectionery producer. The firm is synchronizing its products and promotions with regional celebrations, such as Diwali, while modifying its services for various gifting events. Kapuswala indicates that the market for gifting is expanding past chocolates, as consumers are increasingly looking for experiences and items that resonate with local customs.