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When chocolate becomes costly, Indian consumers choose candy
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Saturday, 24 January, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Record-high cocoa prices have shaken up India’s confectionery landscape, driving shoppers away from premium chocolates and boosting demand for inexpensive local candy alternatives. In the fiscal year 2025 (FY25), global confectionery titans such as Mars, Mondelez, Perfetti Van Melle and Hershey recorded their slowest performance in India in years a trend not seen since the pandemic largely due to sharp increases in chocolate prices triggered by the surge in cocoa costs.
After hovering around roughly $2,500 per metric tonne for many years, cocoa prices soared to nearly $12,000 per tonne in April 2024. Although they have since retraced to around $5,000 — still more than double historical averages — the earlier spike forced major chocolate producers to raise prices or reduce product sizes. This made chocolates less affordable for price-sensitive Indian consumers, prompting many to switch to lower-cost sugar confectionery.
Hundreds of regional manufacturers seized the opportunity, flooding neighbourhood shops with hard-boiled candies and other budget sweets, supported by attractive trade margins and heavy retailer discounts. Industry insiders say this aggressive local presence has started to reflect in the financial results of large multinational confectionery companies.
Domestic players are also innovating with flavours and formats that resonate with Indian tastes. Prayagh Consumer, known for its Cintu candy range, crossed Rs 900 crore in revenue with robust growth, while DS Foods’ Pulse brand expanded its sales to about Rs 750 crore. A shift in preference towards homegrown brands and flavours has complemented this trend, with consumers increasingly valuing “Indianness” and nostalgic taste profiles.
India’s overall chocolate and confectionery market is estimated at around Rs 25,000 crore, roughly split between chocolate and sugar sweets. With per-capita chocolate consumption still low compared to Western markets, industry executives believe long-term growth remains intact, especially as input costs ease and pricing stabilises.
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