Homegrown chocolatiers hope to win over India’s sweet-toothed consumers

India’s premium chocolate makers are betting on domestically sourced cocoa and flavours catering to local tastes, as volatility in global cocoa supplies puts fresh focus on where chocolate is from.

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21 Sep 2026 05:30PM

MUMBAI: When it comes to premium chocolate, Switzerland, Belgium and France have long been among the countries that come to mind.

But a new generation of chocolatiers wants consumers to add another to the list: India.

Homegrown chocolate makers are increasingly experimenting with locally grown cocoa and flavours tailored to Indian tastes, as they seek to carve out a bigger share of the country’s growing premium chocolate market.

Among those betting on Indian cocoa is Mumbai-based Subko Cacao.

At its factory, cocoa beans grown in southern India are transformed into craft chocolate bars – part of the company’s ambition to show that homegrown chocolate can hold its own.

“Now with Indian cacao getting better … and also us chocolate makers understanding how to get the best of the fruit to your chocolate, a lot of people are appreciating the value there is in creating this product,” said Sukumar Maharathy, Subko Cacao’s head of product operations.

GROWING APPETITE FOR PREMIUM CHOCOLATE

India’s chocolate market was valued at US$3.05 billion last year and is expected to reach US$5.62 billion by 2034, according to market research firm IMARC Group.

The growth is being driven by factors including rising disposable incomes and an expanding consumer palate.

Western brands still dominate the market, but several Indian chocolate makers have emerged.

One of them is SMOOR, which, like Subko Cacao, makes artisanal chocolates at premium prices.

SMOOR still sources most of its cocoa from West Africa but has in recent years begun incorporating beans grown in India.

“We have in the past couple of years been able to work with farmers, from the plantation to fermentation, and then in terms of getting the artisanal beans we need,” said Vimal Sharma, founder and CEO of SMOOR Chocolates.

“It's on the upward trend in terms of the quality, in terms of the fermentation process, but the infrastructure still needs a significant amount of investment,” he added.

VOLATILE COCOA PRICES

India is a relative newcomer to cocoa cultivation compared with heavyweights such as Cote d'Ivoire and Ghana, which together account for around 60 per cent of the world’s supply.

But cocoa prices have been volatile.

After hovering at around US$3,000 per metric tonne for years, cocoa prices surged to over US$12,000 in 2024 following bad weather and poor harvests in West Africa.

While prices have since retreated, they have remained at around US$6,000 a tonne in recent weeks amid concerns over weather and crop production.

For chocolatiers like SMOOR, the volatility and supply concerns are a reason to go local, especially as demand for its dark chocolate increases.

“Initially the demand (for) the white chocolate and the milk outweighed the dark chocolate,” said Sharma.  

“Today if you look at the mix, at least 70 per cent of our chocolates are above 60 per cent cocoa.”

Indian cocoa is not necessarily a cheaper alternative – producers say it can be more expensive than imported beans, but sourcing locally can give chocolate makers more control over quality and supply.

SMOOR expects that Indian-grown cocoa will eventually be used in 40 per cent of its products.

AN INDIAN TWIST

It is not just the source of the cocoa that is becoming more local.

Chocolate makers are also experimenting with flavours designed to appeal to Indian consumers, with combinations such as coconut and lime to mango and chilli.

Manufacturers are preparing new offerings for the festive season, which stretches from Raksha Bandhan in late August to Deepavali in November.

It is a crucial time for the industry, as premium chocolate increasingly competes with traditional Indian sweets for a place at the table.

“Premium chocolates are used for gifting and gifting is a big thing around festivals,” said Ankur Bisen, senior partner at consulting firm The Knowledge Company.

“So premium chocolates do occupy a space around Diwali gifting or Christmas gifting, which was not the norm earlier,” he added.

For now, India’s chocolatiers are focused on the domestic market, though some have already begun to look further afield.

Subko Cacao is already exporting to Dubai and is eyeing the United Kingdom next.

For these chocolate makers, the ambition is not to imitate Europe’s finest offerings, but to build a reputation for Indian chocolate in its own right.