Mondelez International says Indian consumer spending shifted due to inflationary pressures

Dirk Van De Put, Chairman and CEO, Mondelez International
| Photo Credit:
PAUL NORONHA

Snacks major Mondelez International said that inflationary pressures impacted Indian consumer spending which led to slower growth in categories such as chocolates. The company added that it expects to see an acceleration in its India business due to factors including government measures. Amidst an unprecedented rise witnessed in cocoa prices, the company said it is also working to offer products at the right price in emerging markets like India while protecting key price points.

The snacks major is known for various brands including Cadbury and Oreo.

Speaking at dbAccess Global Consumer Conference on Wednesday, Dirk Van De Put, Chairman and CEO, Mondelez International said, “In India, in the last three years, the consumer has seen inflation and it has clearly shifted their spending. So we see a slowdown.. from a very high growth in the chocolate category to slower growth right now.. and in biscuits, we see a shift from premium where we play to more basic products. So we can see in our business that there is an effect from the consumer. ” He added that the Indian consumers are starting to feel better with factors such as government measures and that the company expects to see an acceleration taking place.

He stated that expanding distribution every year is a key focus in markets such as India. “…the big focus for us is to offer our product at the right price point. And in an emerging market, it’s quite critical. And you can imagine with a situation like chocolate, for instance, where your input costs go up quite a bit to keep that price point in a country like India, that requires quite a bit of work on the size of the bar and how you play with your mix and so on and how you offset the cost of that,” the global chief of Mondelez International pointed out.

Meanwhile, the company also said that it is finding ways to bring the India consumers back to the premium segment

In an earnings call for the March quarter , the company’s management noted that overall consumption in the market was challenged but it expects the business to grow faster in the remainder of the year. 

“We do expect to improve the trajectory of the India business beginning in Q2 through targeted activation, distribution gains and an improving macro backdrop resulting from income tax relief and recently enacted interest rate cuts,” the company’s management had stated in April. 

Published on June 6, 2025