Indian chocolatiers bet on local cocoa — Channel NewsAsia
Indian premium chocolate producers are increasingly using locally grown cocoa and creating flavours tailored to consumer preferences in the country. Channel NewsAsia reports that local brands are seeking to capture a larger share of India’s premium chocolate market, which is still dominated by Western brands.
Demand for the premium segment
According to an estimate by research company IMARC Group, India’s chocolate market was worth $3.05 billion last year and could grow to $5.62 billion by 2034. Rising incomes and expanding consumer preferences are cited among the factors driving growth.
Mumbai-based Subko Cacao processes cocoa beans grown in southern India into craft chocolate bars. Sukumar Magarati, the company’s head of product operations, said the quality of Indian cocoa is improving and producers better understand how to bring out the properties of the raw material in the finished product.
Another producer, SMOOR, still sources most of its cocoa from West Africa, but has begun adding beans from India to its products in recent years. SMOOR founder and CEO Vimal Sharma said the company works with farmers throughout the entire process — from plantations and fermentation to obtaining the beans needed for artisanal production. According to him, quality and the fermentation process are improving, but infrastructure requires significant investment.
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Price fluctuations and local flavours
India is a relatively new cocoa producer compared with Côte d’Ivoire and Ghana, which together account for around 60% of global supply. At the same time, volatility in global prices is increasing interest in local raw materials: after remaining at around $3,000 per tonne for a long time, the price of cocoa exceeded $12,000 in 2024 due to adverse weather and poor harvests in West Africa. In recent weeks, it has remained at approximately $6,000 per tonne amid concerns over weather conditions and harvests.
Local cocoa is not necessarily cheaper than imported cocoa, but it can give producers more control over quality and supply. SMOOR expects that Indian beans will eventually be used in 40% of its products. The company is also recording growing demand for dark chocolate: currently, at least 70% of its chocolate products contain more than 60% cocoa.
Producers are experimenting with coconut and lime, mango and chilli flavours, preparing offerings for the festive period from Raksha Bandhan in late August to Diwali in November. Premium chocolate is increasingly bought as a holiday gift, competing with traditional Indian sweets. Subko Cacao already exports its products to Dubai and is considering entering the UK market.
