India Hazelnut Chocolate Spread Market, By Region, Competition, Opportunities & Forecast, 2021-2031F

The India Hazelnut Chocolate Spread Market was valued at USD 253.10 Million in 2025, and is expected to reach USD 375.59 Million by 2031, rising at a CAGR of 6.80%. The India Hazelnut Chocolate Spread Market has witnessed significant growth in recent years, driven by rising consumer demand for convenient, indulgent, and premium food products. The increasing influence of Western dietary habits, coupled with the growing popularity of breakfast spreads, has fueled market expansion. Urbanization, rising disposable incomes, and the influence of social media marketing have further accelerated adoption, particularly among millennials and Gen Z consumers.

Key Market Drivers

Rising Consumer Preference for Convenient and Indulgent Breakfast Options

The growing urban lifestyle and hectic work schedules in India have led to an increased demand for quick, ready-to-eat breakfast solutions. Hazelnut chocolate spreads, being versatile and easy to consume, have gained popularity as a convenient breakfast and snack option. Unlike traditional Indian breakfasts that require preparation time, these spreads can be instantly paired with bread, toast, fruits, or pancakes, making them a preferred choice among working professionals, students, and busy families. India’s urban population increased from 31.2% (2011 Census) to estimated 35.4% (2023, MoSPI), driving demand for quick breakfast solutions.

Per capita expenditure on processed foods rose by 12.3% YoY (2022-23, NSSO survey), indicating a shift toward convenience foods. Additionally, the indulgent taste of hazelnut chocolate spreads appeals to consumers seeking a sweet yet satisfying food option. The influence of Western eating habits, fueled by globalization and exposure to international food trends, has further normalized the consumption of such spreads in Indian households. Brands like Nutella have successfully positioned their products as a fun and tasty addition to meals, leveraging emotional marketing campaigns that resonate with children and young adults. As disposable incomes rise and consumer palates evolve, the demand for premium and convenient breakfast spreads is expected to grow, driving market expansion.

Key Market Challenges

High Price Sensitivity and Affordability Constraints

One of the most significant challenges facing the hazelnut chocolate spread market in India is the price sensitivity of consumers, particularly in a country where traditional breakfast options like homemade spreads (peanut butter, fruit jams) and regional foods remain dominant. Imported and premium brands such as Nutella and Hershey’s are priced at a premium compared to local alternatives, making them less accessible to middle- and lower-income households. The cost of key ingredients like cocoa, hazelnuts, and sugar - often subject to global price fluctuations and import duties - further drives up production costs, limiting the ability of brands to reduce retail prices.

While urban consumers with higher disposable incomes may indulge in these products occasionally, price remains a major deterrent for mass adoption. Smaller domestic brands attempting to compete face margin pressures due to the high costs of quality ingredients and branding efforts. Additionally, the perception of hazelnut chocolate spreads as a "luxury" or "occasional treat" rather than an everyday staple restricts volume sales. To overcome this challenge, brands must explore cost optimization strategies, localized sourcing, and smaller pack sizes to improve affordability while maintaining quality.

Key Market Trends

Premiumization and Gourmet Offerings

The Indian hazelnut chocolate spread market is witnessing a notable shift toward premium and gourmet products, driven by evolving consumer preferences for high-quality, indulgent food experiences. Affluent urban consumers, particularly millennials and Gen Z, are increasingly willing to pay a premium for artisanal, imported, or specialty chocolate spreads that offer superior taste, texture, and ingredient quality. Brands are capitalizing on this trend by introducing single-origin cocoa variants, organic certifications, and exotic flavor infusions such as sea salt caramel, dark chocolate with orange zest, and hazelnut-cinnamon blends.

Limited-edition and festive packaging further enhance the premium appeal, positioning these spreads as gifting options rather than just everyday consumables. Additionally, brands are emphasizing ethical sourcing and sustainability - highlighting fair-trade cocoa, eco-friendly packaging, and reduced carbon footprints - to attract environmentally conscious buyers. This premiumization trend is reshaping the market, with both international players and domestic brands launching upscale products to cater to India’s growing segment of discerning, high-spending consumers.

Key Market Players

• Ferrero India Pvt. Ltd.
• Hershey India Pvt. Ltd.
• Dr. Oetker India Pvt. Ltd.
• The J.M. Smucker Company (via Indian imports)
• Lotus Chocolate Company Ltd.
• Orkla India Pvt. Ltd. (formerly MTR Foods)
• Bajoria Foods Pvt. Ltd.
• Zydus Wellness Ltd.
• Desai Brothers Ltd. (Mother’s Recipe)
• Dlecta Foods Pvt. Ltd.

Report Scope:

In this report, the India Hazelnut Chocolate Spread market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Hazelnut Chocolate Spread Market, By Product Type:

• Organic
• Conventional

India Hazelnut Chocolate Spread Market, By Distribution Channel:

• Supermarket & Hypermarket
• Convenience Stores
• Online
• Specialty Stores

India Hazelnut Chocolate Spread Market, By Packaging:

• Tubes
• Jars
• Bottles
• Others

India Hazelnut Chocolate Spread Market, By Region:

• North
• East
• West
• South

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Hazelnut Chocolate Spread market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).