At the Pitch CMO Summit 2025, Gopichandar Jagatheesan, Director – Dairy & Confectionery at Nestlé India, offered a compelling look into how India’s chocolate market is evolving, from the rise of rural consumption and changing consumer behavior to brand salience and global experimentation.
Opening the session, Jagatheesan shared that the Indian chocolate market is at an inflection point. While India's per capita chocolate consumption still lags behind Western markets, at less than 200 grams per person annually compared to over 8 kilograms in the UK, it is the evolving patterns of consumption that are capturing Nestlé’s focus.
“In urban India, consumers are increasingly looking at chocolate as more than just a treat, it’s becoming part of the daily snacking repertoire,” he said. But what’s particularly striking is how rural markets are not just catching up but in some cases outpacing growth.
“Seventy-five percent of chocolate consumption in India is urban India, and only 25 percent is rural,” he noted. “But rural, over the last three to four years, has consistently grown 500 basis points faster than urban.”
He added that rural consumers are not just buying more, but they are also trading up. “The price per gram growth in rural areas is significantly faster than in urban areas, which means the preferences are converging.” More premium chocolates are being purchased in rural India at a faster growth rate than urban markets, challenging older marketing assumptions.
Sharing a telling anecdote, Jagatheesan said, “I was in rural West Bengal, in a village of about 10,000 people, and saw KitKat Dark Chocolates on shelves. I thought it was just there for show, but the retailer showed me data to say they consistently buy.” For Nestlé, this signals the increasing affluence and aspiration emerging from India’s hinterlands, and he stressed the importance of marketers moving past old assumptions to tap into that growth.
He further explained that one of the biggest growth drivers in the category today is premiumization. This shift, he believes, is about more than price, it's about the emotional and sensory upgrade that that consumers are seeking. He attributed this trend to a mix of rational upgrade and emotional gratification. "There's a segment of consumers saying, 'I've earned this moment, and I want to indulge.’ In a post-COVID world, that insight is more relevant than ever,” he said.
To meet these evolving expectations, Nestlé is investing in product innovation and manufacturing. The company recently operationalised a local chocolate molding line in India, which allows it to respond to market needs faster and tailor offerings for Indian consumers. Newer products like KitKat Dessert Delight and Nestlé Moments are focused on celebration and gifting, two emerging consumption occasions.
On expanding Nestlé’s global portfolio in India, Jagatheesan revealed that the company has set up a dedicated import incubation arm. This team studies white spaces such as gifting and then identifies global brands that might work in the Indian market. “The team looks around the world in Dubai, Malaysia and brings in brands like Quality Street and Rolo to test them in the Indian market,” he said. These imported products are currently being tested through channels like e-commerce and organized trade in tier-three towns.
However, Jagatheesan cautioned that the company takes a measured approach to such experimentation. “Creating a brand is super expensive. Chocolates globally have the least share of private labels, avout less than five percent. That tells you brand salience is everything in this category,” he explained. He believes e-commerce is an excellent trial space, but emphasized that it is not the only route to scale. “Once something gains traction, we take it into the business with a clear case.”
Nestlé is also conducting small-scale experiments in quick commerce, which Jagatheesan referred to as “quick prototype experimentation.” This approach helps the company test demand signals without committing large investments upfront. “If it has legs, then we bring in the big monies,” he said.
When asked about campaigns that have inspired him, Jagatheesan cited Pidilite’s work on Fevicol and Fevikwik, and Dove’s Real Beauty campaign. Among Nestlé’s own initiatives, he recalled the iconic Nescafé ad featuring a stammering comedian. “A lot of us were awestruck. Some of us broke down,” he said, calling it one of his most emotional marketing memories. He also praised the latest KitKat campaign led by his predecessor. “It’s a fantastic piece of work,” he added.
On a lighter note, he shared that his personal favorite from Nestlé’s portfolio is Milkybar Moosha. “I’m a South Indian, so I tend to like white chocolates. This one has a caramel center with white chocolate on the outside. It tastes great,” he said.
Throughout the discussion, Jagatheesan emphasized that while data and structure are important, it is brand meaning and resonance that truly move the needle in the chocolate category. “Brand salience is the single most important driver in this category,” he reiterated.
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