**Perfetti Van Melle Aims to Transform India’s Confectionery Market**
**Meta Description:** Perfetti Van Melle is shifting focus to higher-priced candies in India, aiming to reshape the market while maintaining its ₹1 segment.
**URL Slug:** perfetti-van-melle-india-confectionery-strategy
**Headline:** Perfetti Van Melle Targets Higher Price Points to Reshape India’s Candy Market
Perfetti Van Melle, the renowned candy manufacturer known for brands like Chupa Chups, Mentos, and Alpenliebe, is strategically shifting its focus in the Indian confectionery market. While ₹1 sweets continue to dominate sales, the company is betting on expanding its ₹5 and ₹10 product lines, aiming to reshape consumer preferences and enhance its market presence.
Currently, approximately 70% of Perfetti’s revenue in India is generated from the ₹1 segment, which is prevalent in small retail outlets and significantly contributes to overall sales. However, the company is determined to increase the share of its higher-priced products from around 30% to a more substantial figure over the next three to four years, a notable rise from just 7% in 2019. This ambitious plan hinges on expanding distribution networks and driving product innovation.
Nikhil Sharma, managing director of Perfetti Van Melle India, emphasized the importance of maintaining the ₹1 segment while fostering growth in the ₹5 and ₹10 categories. “We don’t want the ₹1 business to shrink in absolute terms. In fact, we want it to continue to grow and remain profitable. The strategy is not to eliminate ₹1, but to ensure that ₹5 and ₹10 products grow much faster,” he stated. Sharma aims to double the company’s turnover within the next few years, setting a meaningful and ambitious goal.
In the fiscal year 2025, Perfetti reported revenues of ₹3,500 crore, solidifying its position as the largest player in India’s sugar confectionery market, competing with notable brands like ITC Ltd, Dharampal Satyapal Group, and Parle Products. The DS Group recently announced that its hard-boiled candy brand, Pulse, surpassed ₹750 crore in annual revenue, highlighting the competitive landscape.
One of the primary challenges in encouraging consumers to opt for higher-priced candies is distribution. Sharma noted that many companies remain focused on the ₹1 and ₹2 price points, despite advancements in digital payment systems like UPI, which have made transactions for low-ticket items easier. “Children with loose change of ₹10-20 continue to be the predominant consumers of candies,” he explained.
Currently, Perfetti’s ₹10 products are available in about 200,000 outlets, a stark contrast to the millions of outlets selling ₹1 candies. “Our main objective over the next five years is to ensure that our ₹10 portfolio reaches one million outlets. If we can achieve that, it would be transformational for us. Similarly, we aim for our ₹5 products to reach two million outlets. The challenge lies in expanding our reach,” Sharma added.
As Perfetti Van Melle embarks on this strategic journey, the future of India’s confectionery market may witness a significant shift, driven by innovation and a broader distribution network.
**FAQ:**
**Q: What is Perfetti Van Melle’s strategy for the Indian market?**
A: The company aims to increase the share of its ₹5 and ₹10 products while maintaining the ₹1 segment, focusing on wider distribution and product innovation to reshape consumer preferences.