India’s confectionery market saw a clear shift in consumer behaviour in FY25 as soaring cocoa prices squeezed chocolate consumption and opened the door for local candy makers to gain ground over global giants. Companies such as Mars, Mondelez, Perfetti Van Melle and Hershey reported their weakest India performance since the pandemic, weighed down by higher input costs and aggressive competition from regional players.
Cocoa prices surged sharply in 2024 and early 2025, peaking near $12,000 per tonne compared to a long-term average of around $2,500. This forced multinational chocolate brands to raise prices or reduce pack sizes, making chocolates less affordable for price-sensitive consumers. As a result, shoppers gravitated towards cheaper alternatives, particularly sugar confectionery and hard-boiled candies.
Industry executives say hundreds of regional manufacturers capitalised on this opportunity by flooding local markets with low-priced candies, offering retailers higher margins and steep trade discounts. This intensified competition in general trade channels, directly impacting volumes for large multinational brands. Mondelez and Perfetti each reported a 2 percent decline in India sales during FY25, Hershey’s growth remained flat, while Mars saw only marginal growth of about 2 percent.
At the same time, domestic players scaled rapidly. Prayagh Consumer, which sells Cintu candies, crossed ₹900 crore in revenue with double-digit growth during the year. DS Foods expanded its Pulse candy brand to nearly ₹750 crore in sales, supported by strong distribution and flavours rooted in Indian tastes. Executives point to a broader shift in consumer preference towards familiar flavours and nostalgic formats, especially during periods of economic pressure.
India’s confectionery market is estimated at around ₹25,000 crore, split evenly between chocolates and sugar confectionery. While chocolate consumption per capita remains low at about 200 grams annually, demand has begun to stabilise in recent months as cocoa prices cooled to nearly $5,000 per tonne. With costs easing and pricing resetting, global players expect gradual recovery, even as local brands continue to strengthen their foothold.
