Global chocolate makers have sweet-loving Indians in their sights

 Chocolate -as well as ice cream, cakes and milk shakes - is starting to displace traditional treats among the middle classes

India has long been known for its love affair with sugar. Sweets play a major role in festivals and family celebrations and delicacies such as gulab jamun — fried dough balls soaked in syrup —and barfi —made with condensed milk — are popular gifts. Not only is India the world’s biggest consumer of sugar, but it’s also one of the top producers.

That penchant for sweet confections together with a massive, youthful, and increasingly affluent population has chocolate-makers around the world sitting up and taking notice. Indians currently eat only about a 10th as much chocolate confectionery as the global average and the International Cocoa Organization recently described the country as the No. 1 potential market of the future.

Chocolate —as well as ice cream, cakes, and milkshakes — is starting to displace traditional treats among the middle classes. No longer just something to be given at special occasions such as weddings or the Diwali festival, it’s becoming an everyday snack for many Indians. The country’s chocolate market was estimated to be worth 172 billion rupees ($2.3 billion) in 2019 and will grow by 6.7 percent a year from 2020 to 2024, according to Mintel.

The rise of India as a chocolate consumer comes at a welcome time for a global industry struggling with stagnating sales as people seek out healthier snacks. Lockdowns are also posing a challenge in the shorter term, with cocoa prices in New York posting their biggest quarterly drop in a year.

As the global outlook dimmed, Barry Callebaut was building its presence in India. From just a single employee in 2007, the chocolate titan now has 200 staff and has just opened its third factory.