India Hazelnut Chocolate Spread Market to Reach New Heights

India Hazelnut Chocolate Spread Market Size & Share 2024–2031

Jolie Alexa

Aug 14, 2025 - 10:17

India Hazelnut Chocolate Spread Market to Reach New Heights

The India Hazelnut Chocolate Spread Market is witnessing an exciting phase of growth and transformation, with evolving consumer preferences, rapid urbanization, and the increasing influence of Western dietary habits fueling demand. According to TechSci Research, the market stood at USD 253.10 million in 2025 and is projected to reach USD 375.59 million by 2031, expanding at a healthy CAGR of 6.8% during the forecast period. This growth trajectory reflects the shift in India’s food consumption patterns from traditional breakfast and snack items towards convenient, indulgent, and versatile products that cater to modern lifestyles. Hazelnut chocolate spreads, once considered a niche category, have now firmly established themselves as a desirable pantry staple for urban households. Their popularity extends far beyond the simple bread spread application; they are now widely used in baking, dessert toppings, shakes, waffles, pancakes, and even fusion recipes. The market’s expansion is supported by the proliferation of modern retail formats, the rapid rise of e-commerce grocery platforms, and innovative marketing strategies by leading brands that tap into emotional appeal, nostalgia, and the promise of indulgence.

Emerging Trends

The India Hazelnut Chocolate Spread Market is being shaped by several emerging trends that are redefining both product offerings and consumer engagement strategies. One of the most notable trends is premiumization, where brands are introducing higher-quality products made with premium-grade hazelnuts, reduced sugar content, and no artificial additives to cater to the health-conscious yet indulgence-seeking consumer. This aligns with the global movement towards clean-label and minimally processed food products. Another prominent trend is the rise of artisanal and niche brands that focus on unique flavors such as hazelnut with sea salt, dark chocolate variants, or hazelnut-cocoa blends infused with superfoods like chia seeds or flaxseeds. The influence of social media and digital marketing cannot be overstated—Instagram-friendly recipes, influencer collaborations, and interactive campaigns showcasing versatility have significantly boosted brand recall and consumer trial rates. Additionally, direct-to-consumer (D2C) sales channels are becoming more prominent, with brands offering personalized bundles, limited-edition seasonal flavors, and subscription-based delivery models to build consumer loyalty. Another evolving trend is the adoption of sustainable sourcing and eco-friendly packaging, with several brands opting for recyclable jars, paper-based labels, and ethical sourcing certifications to appeal to environmentally conscious buyers. Furthermore, the growing café culture and the integration of hazelnut chocolate spreads into foodservice menus in bakeries, coffee chains, and dessert parlors are expanding consumption occasions beyond the home kitchen.

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Market Drivers

Several factors are driving the robust growth of the India Hazelnut Chocolate Spread Market. First, urbanization and lifestyle changes have led to a growing demand for convenient, ready-to-eat food options. Hazelnut chocolate spreads fit seamlessly into this need, offering a quick breakfast or snack solution that is both tasty and versatile. Second, rising disposable incomes and the expansion of India’s middle class have increased the willingness to spend on premium food products. This has enabled the market to grow even in the face of price sensitivity challenges. Third, Western dietary influences have penetrated deeply into Indian consumer habits, particularly among younger generations, leading to a preference for products traditionally popular in Europe and North America. Fourth, e-commerce penetration has made hazelnut chocolate spreads accessible even in smaller towns, where physical retail availability may be limited. Platforms like BigBasket, Amazon Pantry, and Blinkit have played a crucial role in breaking geographical barriers and offering consumers the convenience of doorstep delivery. Fifth, innovative marketing campaigns emphasizing indulgence, nostalgia, and product versatility have effectively created emotional connections with the brand, boosting consumer retention. Lastly, the rise in home baking and dessert-making during and after the COVID-19 pandemic has significantly increased the demand for hazelnut chocolate spreads as an essential ingredient.

Industry Key Highlights

The India Hazelnut Chocolate Spread Market is experiencing a multifaceted expansion with several noteworthy highlights.

The category is transitioning from being perceived solely as a bread spread to a multi-purpose indulgent food ingredient.
Urban millennials and young families are the most active consumer segment, driving repeat purchases.
The West India region, led by Maharashtra and Gujarat, is emerging as the fastest-growing regional market due to high urbanization, retail penetration, and exposure to global food trends.
Supermarkets and hypermarkets remain dominant sales channels, but online retail is the fastest-growing segment due to convenience, accessibility, and a broader product assortment.
Premium and artisanal brands are gaining traction alongside mass-market players, widening the competitive landscape.
Health-oriented variants such as sugar-free, organic, and high-protein spreads are on the rise, catering to evolving dietary preferences.
Social media marketing and influencer partnerships are becoming central to brand-building strategies.
Sustainability is becoming an important selling point, with brands adopting recyclable packaging and ethically sourced ingredients.
Smaller pack sizes are being introduced to encourage trial among first-time buyers and price-sensitive consumers.
Quick-commerce services offering delivery in under 15 minutes are boosting impulse purchases.

Distribution Channel Insights

In terms of distribution, the India Hazelnut Chocolate Spread Market is segmented into supermarkets/hypermarkets, convenience stores, online retail, and specialty/gourmet stores. Supermarkets and hypermarkets such as Reliance Smart and DMart dominate due to their wide assortment, attractive discounts, and high foot traffic. Convenience stores play a supplementary role, especially in urban neighborhoods for quick purchases. However, online retail is the fastest-growing channel, benefiting from India’s digital commerce boom and the rise of quick-commerce platforms like Blinkit and Zepto. Online shopping provides access to niche brands, imported products, and subscription models, making it particularly appealing to younger, tech-savvy consumers. Specialty and gourmet stores cater to high-end buyers seeking artisanal or imported spreads, offering a premium retail experience.

Regional Insights

West India is the fastest-growing region for hazelnut chocolate spreads, with Maharashtra and Gujarat leading the charge. Mumbai and Pune, as cosmopolitan cities with strong café cultures, are key demand hubs. The region’s strong offline and online retail network ensures easy accessibility of products. Gujarat’s affluent middle-class consumers are increasingly adopting healthier variants, contributing to premium segment growth. Food-tech startups and local premium brands are also fostering innovation in this region. North India remains a strong market due to its metropolitan cities, while South India’s rising café culture and dessert consumption habits are creating fresh opportunities.

Competitive Analysis

The India Hazelnut Chocolate Spread Market is highly competitive, with a mix of multinational corporations, domestic players, and niche artisanal brands. Ferrero India Pvt. Ltd. remains a dominant player with its flagship Nutella brand, benefiting from strong brand recall and wide distribution. Hershey India Pvt. Ltd. and Dr. Oetker India Pvt. Ltd. leverage their global expertise to introduce differentiated offerings. The J.M. Smucker Company, primarily through imports, caters to premium consumers, while Lotus Chocolate Company Ltd. and Orkla India Pvt. Ltd. target both mass and niche markets. Indian players like Bajoria Foods Pvt. Ltd., Zydus Wellness Ltd., Desai Brothers Ltd. (Mother’s Recipe), and Dlecta Foods Pvt. Ltd. focus on localized marketing strategies and competitive pricing. Competition is intensifying as new entrants explore opportunities in healthier, organic, and flavored variants. Marketing spends are shifting towards digital platforms, and brands are actively engaging in recipe-based promotions to increase consumption occasions.

Future Outlook

The India Hazelnut Chocolate Spread Market is poised for sustained growth, driven by rising urbanization, increasing disposable incomes, and deeper e-commerce penetration. The premium and health-oriented segments are expected to grow at a faster pace, supported by clean-label trends and the demand for functional ingredients. Product innovation will remain critical, with opportunities in flavor diversification, healthier formulations, and cross-category collaborations with bakery and dairy brands. Expansion into tier 2 and tier 3 cities will unlock significant potential, particularly with smaller, affordable pack sizes. Quick-commerce and subscription-based sales models will further drive convenience-led purchases. Over the next decade, brands that can balance indulgence with health-conscious positioning, while maintaining affordability, will emerge as market leaders.

10 Benefits of the Research Report

Provides detailed market size and forecast analysis for strategic planning.
Identifies key growth drivers, restraints, and opportunities shaping the market.
Offers in-depth segmentation by product type, distribution channel, packaging, and region.
Highlights emerging consumer trends and their impact on product innovation.
Evaluates competitive dynamics and market share of leading players.
Analyzes regional growth hotspots and their unique market drivers.
Assesses the role of e-commerce and digital marketing in driving sales.
Provides insights into supply chain challenges and pricing strategies.
Helps businesses identify untapped opportunities in tier 2 and tier 3 markets.
Serves as a valuable tool for investors, manufacturers, and retailers for informed decision-making.