Mars Wrigley Aims To Sweeten India Market Share With Chocolate Gift Packs

Mars Inc., which makes M&M's, Snickers and Galaxy chocolates, has forayed into India's burgeoning gifting market ahead of the festive season in a strategic move to enhance its foothold and take on global and local peers.

The local arm of the $50 billion U.S.-based chocolate and confectionery manufacturer is targeting the premium gifting market, which is experiencing a robust growth rate of 20% compared to the mass category's growth of just 3%, Nikhil Rao, chief marketing officer of Mars Wrigley India, told NDTV Profit.

Offered in two sizes, priced at Rs 299 and Rs 549, the 'Galaxy Jewels' gift packs are competitively priced, he said. It also plans to market it aggressively and ensure widespread availability in modern retail outlets as well as in e-commerce channels.

"Galaxy Jewels comes in never-before-seen disruptive packaging, perfectly embodying the name of the brand—Jewels," Rao said, adding that Mars aims to capture about 50% market share in the gifting space over the next decade. The company already has Galaxy Jewels in markets such as the Middle East and Africa, where it enjoys about 50% market share.

Chocolate brands, including Mondelez's Cadbury and Ferrero Rocher, as well as Fabelle by ITC Ltd., come out with special packs with extra goodies during festivals. Mars seems to have preempted the trend this year by rolling out Galaxy Jewels in Kerala starting in June. But that is because the company would not want to restrict the gift packs to the festive season, Rao said.

India's chocolate market, valued at $2.6 billion, is projected to grow to $5.3 billion by 2032, implying a growth rate of 7.7% from 2024 to 2032, according to IMARC Group. The market research firm attributes this growth to several key factors, including the expansion of e-commerce, increased accessibility to a diverse range of domestic and international products, and a flourishing gifting culture linked beyond festive celebrations. Additionally, rising affluence among urban youth and higher disposable incomes are contributing to this trend. However, India's annual chocolate consumption stands at a meagre 150 gm, compared with 5–9 kg per person in Europe.

Rao said Mars Wrigley India has also been expanding its core business, betting on two of its largest chocolate brands—Snickers and Galaxy.

While Snickers is relatively premium, Galaxy appeals to a wide set of consumers—from those who enjoy everyday treats to premium chocolate enthusiasts. The company has recently rolled out Galaxy Flutes, which is priced at Rs 10, in a bid to cater to the mass market through its 24 lakh retail outlets. It also forayed into the dark chocolate segment with the launch of Galaxy Fusion last year.

Galaxy has grown 16.5% in the first half of the year, becoming the fastest-growing chocolate brand in the country, according to Nielsen data. "The brand has had a scorching pace of growth in India since its launch and we hope to accelerate this growth in the second half of the year," Rao said.

In fact, Galaxy may eventually surpass Snickers to become the biggest chocolate brand for the company in India, according to him. "We are driving both brands, but chocolate tablets make up more than half of the Indian market. This presents a significant opportunity for Galaxy to grow even larger."

Mars holds a 3% share in total chocolate market, according to Nielsen data.

Though it is a late entrant in India’s chocolates and confectionery market, dominated by the likes of Mondelez India Foods Pvt., Nestle India Ltd., ITC and Amul, it started locally producing its flagship Snickers brand in 2016, followed by the Galaxy chocolates in October 2021 at the Pune plant.

While Mars Wrigley’s business in India is still small, it has been among the fastest growing markets for the company globally, for the last four years, Rao said. "The Indian market has been breaking record after records since 2020, that is, after domestic demand rebounded from pandemic lows."

However, commodity inflation remains the core concern for consumer companies like Mars, even though it has moderated somewhat over the past month or two. In 2023, the costs of sugar, coffee and cocoa have seen dramatic increase. At $8,279 per metric ton, cocoa futures for September still remain approximately 90% higher despite prices having softened from the peak reached in March, largely due to expectations of improved supply conditions.

"Cocoa inflation is inevitable, but we are currently evaluating how much we can absorb and then pass on whatever is beyond control," said Rao. "We are well-hedged for another three-four months, so we don't intend to raise prices this year, but we might need to next year."