Perfetti Van Melle's Gunjan Khetan calls confectionery fast fashion; bets on format, flavour, tech

Perfetti Van Melle (PVM) is doubling down on innovation, experience-led products, and regional expansion as consumer expectations—especially among younger audiences—rapidly evolve. Speaking to Storyboard18, Gunjan Khetan, Chief Marketing Officer, outlined how the company is reshaping its strategy to stay ahead in a category defined by impulse buying and fast-changing tastes.

According to Khetan, the core shift isn’t in consumer “preference” but in “expectation.” Today’s youth seek new formats, flavours and experiences within the same accessible price points. “Confectionery is like fast fashion,” he said, adding that PVM introduces 12–16 innovations annually, ranging from flavour extensions and packaging upgrades to technology-led product enhancements. This relentless pipeline, he emphasised, helps the company remain culturally relevant and aligned with emerging subcultures and trends.

The Indian confectionery market size reached Rs 379 billion in 2024, as per a report by imarc. The market is further expected to reach Rs 597 billion by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033. The market growth is attributed to urbanization, growing disposable incomes, changing consumer behavior toward premium, healthy and occasion-based confectionery consumption, spread of modern retailing formats, rising digital connect, product innovation, and accelerated trend towards sugar-free, organic, and clean label products.

PVM’s strong brand portfolio including Alpenliebe, Center Fresh, Center Fruit, Chupa Chups and Happydent, continues to drive growth across urban and rural markets. While urban–rural differences once influenced product preferences, Khetan noted that access to cheap data has narrowed aspirations across geographies. “Affordability was never a barrier,” he said, citing the brand’s wide reach and low-ticket pricing.

On sales channels, Khetan shared that quick-commerce and e-commerce currently contribute only 2–3%, as the impulse-led, low-ticket nature of confectionery makes profitability harder on delivery platforms. However, growth in these channels remains strong, especially for youth-focused, higher-ticket products.

PVM is also experimenting with AI across marketing and media optimisation. The company previously executed an industry-first, AI-led campaign in data- and media-dark regions of Bihar, a highlight Khetan described as a significant achievement for both the brand and the industry. While FMCG has fewer AI use cases than categories like banking or insurance, PVM continues to explore new applications in both communication and operations.

With a strong innovation calendar and continued investment behind flagship brands like Alpenlieb, where new campaigns are expected soon, PVM aims to close the financial year in line with industry growth, projected in the mid- to high-single digits. Despite a highly fragmented market with strong regional competitors, Khetan said PVM remains the largest organised player, strengthened by scale, distribution, and strong brand equity.