Ferrero is looking to make India one of its top 10 markets globally, betting on rising demand for premium chocolates, expanding retail networks and a growing appetite for branded gifting. The Italian confectionery maker is pursuing the ambition through gradual expansion rather than aggressive scaling, with India emerging as one of its fastest-growing markets.

Ferrero India reported revenue of ₹2,585.5 crore in FY25, registering growth of more than 19%. The performance has strengthened the country’s position in the company’s global growth strategy, although Ferrero expects its top 10 market ambition to take shape over time.

Zoher Kapuswala, Marketing Head at Ferrero India Subcontinent, said the company views India as a strategic market and wants to build its position through sustainable growth.

“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 said.

Ferrero Bets on Premium Chocolate Demand in India

Premiumisation remains central to Ferrero’s India strategy. The company is looking to benefit from changing consumer preferences, rising aspirations and growing interest in premium chocolate products.

One of its latest moves is the launch of Ferrero Rocher chocolate bars in two variants: Classic Hazelnut and 70% Cocoa Hazelnut. The products are aimed at expanding the brand’s presence beyond traditional gifting occasions and tapping into India’s ₹20,000 crore chocolate bar market.

Ferrero is also working across different consumption occasions through its existing portfolio. While Ferrero Rocher caters to premium gifting, Ferrero Rocher Moments targets more accessible gifting options. Raffaello is positioned around romantic occasions, while Kinder focuses on family consumption. Nutella and Tic Tac are also part of its India portfolio, with products tailored to local consumption habits.

However, the company is taking a measured approach to introducing new products. Kapuswala said Ferrero intends to give innovations time to establish consumer awareness and relevance before expanding them further.

“Going forward, we will continue to bring in new elements and innovations, but in a phased manner. Innovation needs to be nurtured rather than simply launched at scale,” he said.

Smaller Cities Become a Key Part of Expansion Strategy

Ferrero is also looking beyond India’s major metropolitan markets to expand its consumer base. The company is strengthening distribution across tier-two and tier-three cities through modern retail, general trade, e-commerce and quick-commerce platforms.

The expansion reflects the company’s view that consumer aspirations are becoming increasingly similar across different city categories. Greater exposure to digital content has contributed to this convergence, creating opportunities for premium brands to reach consumers outside major urban centres.

The company is also using India as a manufacturing and export base. Its Baramati plant employs around 3,500 people and exports 45% of its output to more than 30 countries.

This manufacturing presence adds another dimension to India’s importance within Ferrero’s operations, beyond its role as a consumer market.

Festivals and Gifting Remain Important Growth Drivers

Festive consumption continues to be an important part of Ferrero’s India strategy, particularly during Diwali. The company aligns its campaigns and product offerings with Indian celebrations, while providing different pack sizes to suit varying gifting occasions.

Ferrero is also observing changes in how younger consumers approach festive gifting. The focus is increasingly extending beyond conventional products towards experiences and more personal ways of expressing appreciation.

Kapuswala believes festivals have gained greater importance as people look for opportunities to strengthen relationships beyond their increasingly digital interactions.

“We are socially connected but, in the physical world, increasingly disconnected. That is why festivals and celebrations have become so important,” he said.

For Ferrero, the challenge will be to expand its presence while maintaining the premium positioning of its brands and adapting to India’s diverse consumption habits. Its strategy combines new product introductions, deeper distribution and culturally relevant marketing as it works towards bringing India into its top 10 global markets.

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