Can Indian craft chocolate go global and compete with the world's finest?

Time of India

24-05-2025

At a chocolate tasting in Hyderabad, guests swirl wine and savour 72% single-origin dark chocolate, the beans sourced from a farm just hours away. The bar is priced at Rs 400, the packaging sleek and the intent unmistakable: Indian
craft chocolate
isn't a niche indulgence anymore. It is eyeing the same shelf and status as
Lindt
,
Valrhona
and Godiva.
A decade ago, the idea of premium Indian chocolate, priced at Rs 350-500, felt far-fetched. Today, it's a fast-growing category, led by brands like
Manam
,
Pascati
, Mason & Co, Paul & Mike and Soklet, among others. They are talking terroir, fermentation and bean profile—terms once reserved for coffee cuppings and wine tastings—and finding takers among urban consumers, gourmet retailers and luxury gift buyers.
Interestingly, while Switzerland and Belgium don't grow beans for their celebrated chocolates, Indian craft chocolates are often rooted in the land. The
cacao
is grown, fermented and crafted in the country, giving rise to a uniquely local chocolate identity.
by Taboola
by Taboola
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The Indian chocolate space, which is dominated by Mondelez of which Cadbury is a subsidiary, Nestle and Amul, is nurturing a new kind of cocoa ambition. While mass market continues to rule, the rise of craft chocolate marks a slight shift from industrial sweetness to origin pride. Even industry giants have responded, launching premium chocolate ranges and ethical sourcing initiatives.
However, there are challenges. India's per capita chocolate consumption is around 100-200 grams a year, dwarfed by Europe's 5-9 kilograms, according to the International Cocoa Organisation. But as with Indian coffee and craft gin, consumption isn't the only story. It's also about intent, flavour and brand play. Which brings to another question. Can
India
transform into a recognised origin for fine chocolate?
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BEAN THERE, DONE THAT
As Indian craft chocolate grows up, so does cocoa. From the shade of coconut and arecanut trees, it is stepping into the spotlight, especially in Andhra Pradesh,
Tamil Nadu
and Kerala, which are emerging as the epicentres of India's craft chocolate movement.
It started in 1965, when Cadbury India set up the country's first experimental cocoa farm in Kerala. 'Our journey began 60 years ago when we introduced cocoa, a non-indigenous crop, through an experimental farm in Kerala,' says Nitin Saini, VP–marketing, Mondelez India. 'Now we work through eight nurseries in Tamil Nadu, Kerala, Karnataka and Andhra Pradesh, collaborating with farmers, governments, NGOs and supply chain partners as part of Cocoa Life to support sustainable cocoa production.' The company sources cocoa from over 100,000 Indian farmers and aims to reduce its dependency on imports from Ivory Coast and Ghana, which are the top global producers of cocoa. Ivory Coast produced 2.3 million tonnes of cocoa in 2023.
India, in contrast, produces roughly 30,000 tonnes of cocoa annually, with Andhra Pradesh leading the way. But most of it goes into industrial chocolate. Now craft chocolate makers are working closely with farmers to improve post-harvest processes — especially fermentation and drying — to make Indian beans shine.
IT'S ALL IN THE PROCESS
Says Devansh Ashar, founder of Maharashtra-based craft chocolate brand Pascati: 'Cocoa variety was once a marker of quality. Now, terroir and post-harvest techniques matter more. Beans from Andhra Pradesh or Kerala, when processed well, can rival those from Peru or Madagascar.'
Indian cocoa's flavour identity is still evolving, with inconsistent results. 'There is no consistent flavour profile yet,' says L Nitin Chordia, founder of sustainable bean-tobar chocolate brand Kocoatrait. 'Soil, varietal, fermentation, drying, storage—each stage influences flavour. But standardised post-harvest protocols are not followed, so most Indian beans still show defects. It is premature to assign state-wise flavour labels just yet. Maybe by 2030, we will be there.'
A major obstacle is in the genetics of the beans. The genetic makeup of India's cocoa beans, which were primarily introduced for better yield, does not yield high-quality flavour. Says Chaitanya Muppala, founder of Hyderabad-based craft chocolate brand Manam Chocolate: 'Indian cacao lacks fine-flavour genes, so we make up for it with evolved, proprietary, post-harvest processing at our company-owned Fermentery to bring out the unique flavour profiles of Indian cacao.'
That can go a long way in adding taste and texture. Swiss brands like Lindt became global icons by combining precision in processing with innovation. Lindt's invention of the conching machine in 1879, for instance, gave chocolate its signature smoothness. Meanwhile, Belgium built its reputation on artisanal craftsmanship, praline-making traditions and strict quality control, turning Belgian chocolate into a hallmark of luxury.
Indian craft chocolate brands are up against these legacy names. There is also the price hurdle. A bar of Indian craft chocolate can cost `400 when a mass-market brand sells theirs for `40. Industrial chocolate makers buy dried cocoa in bulk at lower costs for mass manufacturing, while craft chocolate makers work with small batches. The latter also point to the use of products—real vanilla over vanillin; and the kind of packaging— ecofriendly over plastic that push up prices. They also obsess over origin, fermentation and conching—a time-intensive process that boosts flavour but adds cost.
Processing is key, says craft chocolate makers. 'Unlike tea or coffee—where 90% of flavour is in the leaf or the bean—cocoa beans contribute only 30-40% of chocolate's final flavour. Roasting, refining and added ingredients do the rest,' says Akhil Grandhi, founder of Andhra Pradesh-based Bon Fiction, which owns farms in the Godavari region and works closely with farmers on fermentation and drying of cocoa beans. Grandhi says climate change is shrinking harvest windows and yields, while 'the cost of setting up fermentation and drying facilities is high'.
Grandhi's 82% bar, Song of Bitter and Sweet, contains just two ingredients: cocoa beans and organic sugar. 'We do small batches with high cocoa content. We can't escape those costs,' he says. Bon Fiction's Andhra debut in 2022 yielded two bronze medals at the Academy of Chocolates Awards, UK—one for its 70% dark bar, another for its mango-chili dark chocolate.
Each of India's four cocoa origins— Andhra, Kerala, Tamil Nadu and Karnataka—offers unique flavour bases, but require careful fermentation, roasting and conching to unlock their potential. 'People need to understand what they are paying for—flavour, ethics, craftsmanship. Only then can makers scale up,' says Ashar of Pascati. Chordia agrees: 'We need more training, tastings, chef collaborations, workshops—a stronger ecosystem to help Indian consumers value what global ones already do.'
Manam Chocolate offers over 300 products and its sales have grown 150% in 2024-25, year-on-year. Over 40% of its sales comes from Delhi where it will open a flagship store next month. Says Muppala: 'We are not just selling chocolate—we are selling provenance, process and purity.' And fair trade too: Manam Chocolate's sister concern, Distinct Origins, which manages the cacao bean business, ensures farmers earn 20-25% of the final value versus less than 6% reported in massmarket supply chains.
SPACE ON SHELF?
A new tribe of chocolate lovers is reshaping India's confectionery aisle. These aren't casual nibblers, but conscious buyers who know their 72% Idukki from 70% Ecuador. Varun Totlani, head chef at Mumbaibased Masque, says the Indian chocolate market is just beginning to find its footing.
At Masque, the popular 'Citrus | Cacao' dessert is made with chocolate from Tamil Nadu-based bean-to-bar brand Mason & Co. 'We were one of the first restaurants to use Indian chocolate in a tasting menu course,' says Totlani. But his search for the ideal chocolate continues. 'I haven't come across a great Indian chocolate suitable for tempering, especially one that gives that perfect snap,' he says.
Consumers remain experimental. It was Covid that changed consumption patterns, says Ashar. The pandemic nudged people toward clean labels, low sugar and local provenance. Compared with mass-market chocolate with 50-60% sugar, craft bars usually contain just 20-30%.
It is still a long road ahead. Even in 2024, India claimed just 1% of the global premium chocolate market, but revenues are set to climb from $313.5 million in 2024 to $481 million by 2029, according to Grand View Research.
Pascati, which earlier exported to the US, now targets Indian metros—Mumbai, Delhi, Chennai—where shoppers are willing to pay more for organic, fairtrade and vegan bars. 'Consumers want transparent sourcing, single-origin cocoa and clean labels,' says Chordia. This demand has spurred investments in fermentation techniques, sensory labs and direct farmer partnerships.
Before the domestic market piped up, there was global acclaim: Paul & Mike's Keralaorigin 64% Dark Sichuan Pepper & Orange Peel bar won silver at the 2020 International Chocolate Awards. Last year, Manam Chocolate took home three silvers and eight bronzes at the 2024 UK Academy of Chocolate Awards.
Yet scaling up means hard math. 'Cacao prices are at historic highs,' says Karan Tejani, founder of craft chocolate brand Ziaho. The price of cocoa—while cacao refers to the raw bean, cocoa is processed and powdered—has surged from $3,130 per tonne in 2023 to $7,422 in 2024 and to $8,758 in 2025.
'Margins take a hit if we don't pass costs to consumers,' adds Tejani. According to Ashar, steep shelf-listing fees — Rs 500 to Rs 5,000 per SKU per store—and long credit periods favour deep-pocketed companies. Nestlé India, for instance, is kicked about a chocolate boom. 'The chocolate and confectionery industry in India is witnessing a boom—both in terms of volumes and product offerings,' says a spokesperson of Nestlé India, which has expanded Kitkat's premium range and added a new line at its Sanand factory in Gujarat.
GOING GLOBAL
To join the ranks of Belgium, Switzerland and Ecuador, it takes more than good beans. It takes a narrative — built on flavour, consistency and cultural cachet. Right now, Indian chocolate is having a moment. But for it to evolve into a recognised global category, experts say three things are crucial: consistent supply of fine-flavour beans, robust branding at origin and the infrastructure to scale exports. Look at these numbers. India exported 27,319 tonnes of chocolate in 2021-22, according to the Directorate of Cashewnut and Cocoa Development. Yet, to meet domestic demand, it imported over 111,000 tonnes of cocoa beans in 2023—signalling gaps in both quality and supply.
There has been little awareness around fine-flavour varieties of cocoa in India. There has to be a strong focus on educating farmers about premium-grade cacao, not just industrial-quality beans. Infrastructure is the biggest hurdle: many farmers still lack fermentation boxes, solar dryers, or reliable buy-back mechanisms. Without these, quality varies, and consistency—key to global success—remains elusive. If it can get its mix right, Indian-origin fine chocolate can become a go-to label.