World Chocolate Day 2025: The innovation-driven rise of Indian craft chocolates

For a nation with a sweet tooth like India’s, it comes as no surprise that chocolate has been stealing the spotlight. Market research organisation IMARC Group projects a growth of 7.30 percent for 2025–2033 in the Indian chocolate market, which is expected to increase from USD 2.9 billion in 2024 to USD 5.5 billion by 2033. The irony is that there is a global shortage of cacao, the source of the chocolatey goodness that everyone craves, driven by the insatiable demand. While a vast majority of this is driven by commercial confectionery brands, for India, this presents an opportunity for homegrown craft chocolateries.

The trend of Indian craft chocolates

It is still very early days for Indian cacao and craft chocolates. “To put things in perspective, India produces only 0.4 percent of the world’s cocoa production, but consumes close to 7 percent of the world's cocoa production. Given this fact, to be honest and realistic, India cannot play a significant role in the global cocoa scenario,” shares L Nitin Chordia, co-founder of Kocoatrait chocolates and chocolate taster. India’s cacao growing belt is across the states of Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala. The commercial viability of these farms only came to the forefront in the 1960s when British brand Cadbury made a play for Indian retailers’ shelf space. But it is only in the last decade that in-depth research has come to light about geographical distinctions and flavours of Indian cacao.

There has been a flurry of homegrown craft chocolate brands that have become the go-to for the discerning and taste-seekers. Flavour innovation, genuine bean-to-bar philosophy, along with targeted consumer outreach, has ensured there is an ongoing conversation about Indian craft chocolates. Even on a global stage, these niche brands are standing tall. Kochi-based Paul & Mike won a gold medal for its Milk Chocolate Coated Salted Capers at the International Chocolate Awards 2024. Manam Chocolate in Hyderabad was listed in a leading magazine’s World’s Greatest Places 2024. A week ago, Manam opened its doors to its second outlet in Delhi’s Eldeco Centre.

Bolstering the innovation amidst craft chocolate is the strong and growing preference among Indian consumers for Indian cacao and fine craft chocolate. Indian consumers have always known exactly what they wanted, but previously lacked access options. They are exploring newer brands, flavours; they are trying darker and higher cocoa content and are willing to pay a premium for quality. Indian craft chocolate brands have also become the go-to gifting alternative to Indian sweets and have effortlessly replaced imported chocolate brands.

For craft chocolates in India, the biggest value is derived from how and where they source the cacao. Investment at the grassroots level is critical to get access to the raw material, which will make the life of the chocolate maker easier and help him produce fine-flavoured chocolate. Chaitanya Muppala, founder of Manam Chocolates and CEO, Distinct Origins, shares that being invested and in control of the entire journey is a business decision. “We start from the fruit, so we have to work with the farmer. Even before that, with soil and genetics, we can make a differentiated product of a superior quality and complexity by doing that,” he says. It took them five years to build a reliable farmer network that allows Manam to transact equitably and transparently with the original producer of the commodity and offset the volatility in availability.

This long-term planning is crucial for the sustainability of the business as well as the value chain, starting from the farmer to the chocolate-loving consumer. “To ensure the continued growth of local brands and to ensure that chocolate does not become unaffordable for the Indian consumer, new cocoa plantings are a must,” says Vikas Temani, co-founder of Paul & Mike.

However, it is still an emerging market, given that Indian craft chocolates are a relatively new phenomenon and as not widely known. “Traditionally, high-quality chocolate has been associated with Europe. However, Europe does not grow cacao; it only manufactures chocolate and has had a 100-year head start. Recognising and celebrating our own cacao can shift this narrative and foster greater national pride,” say the co-founders of Chandigarh-based Mozimo Chocolates, Amritanshu Agarwal and Priyanka Gupta.

(Written by Sayoni Bhaduri)

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