Bitter-sweet story of craft chocolate makers

livemint.com:

₹80, a craft chocolate bar can cost anywhere between ₹200 and ₹400. But unlike beer or coffee, chocolates have a wider consumer base, including children. The appetite appears to be growing fast.

Two years ago, India had less than 30 craft chocolatiers. The number has doubled today, some estimates suggest. There are companies of all sizes, mostly spread across the southern states where cacao beans grow.

India’s chocolate market was valued at $2.2 billion in 2022, and is expected to nearly double to $4.1 billion by 2028, as per market research firm the IMARC Group. This growth would come on the back of growing consumption. According to Statista Market Insights, India’s per capita consumption of chocolate is only about 1kg compared to 9kg in the US.

Therefore, Indian chocolate makers have a long runway. The market is dominated by well-known fast-moving consumer goods companies such as Mondelez India and Nestlé India. Premium chocolates are about 25-30% of the market, according to various estimates.

Craft chocolate makers fit in here. This segment is also the playground of imported chocolates and the competition for any small Indian brand is thereby fierce. Still, home-grown craft chocolate makers see an opportunity as customer preferences evolve towards healthier dark and vegan chocolates.

The upwardly mobile consumer has perhaps outgrown the nostalgia of a Cadbury bar. Some urban consumers are also favourably disposed towards the country of origin. When beans are locally sourced, it implies less carbon footprint.

“The goalposts in this business are constantly shifting. What was considered great craft chocolate five years back is seen as average today," says the 36-year-old Belo. “Everybody, including us, is trying to