|Study Period:||2016 -2027|
|Fastest Growing Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The chocolate market is projected to witness a CAGR of 4.5% during the forecast period (2021 - 2027).
The chocolate market was impacted by low sales volumes due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. In terms of exports, a survey of the impact of the COVID-19 pandemic conducted by the Fine Cacao and Chocolate Institute (FCCI) revealed some worrying findings. It was reported in the Dominican Republic that the drastic lockdown put in place prevented the producers and the agricultural workers from going to the plantations for several weeks until exceptions were granted by the authorities. Thus, disruption in the supply chain of raw materials, followed by lockdown, resulted in an increasing number of specialty stores remaining closed for a long time and the decreased volume consumption of premium chocolates. For instance, Barry Callebaut, a Switzerland-based manufacturer of premium chocolates and cocoa products, reported a slowdown for the first six months of the year, with the volume declining in the third quarter (ended May 31, 2020) by 143%.
Key trends impacting the market include growing demand for organic, vegan, sugar-free, and gluten-free chocolates. With growing awareness about the negative effects of synthetic products on health and the environment, most health-conscious and informed consumers have started using organic products. Furthermore, seasonal demand plays an important role in the sales of premium chocolates. Various companies launch a wide range of chocolate varieties during occasions like Easter and Christmas. For instance, Lindt Teddy, wearing a traditional English Christmas pullover, is still a seasonal top-seller in the United Kingdom.
Scope of the Report
Chocolate, extracted from the roasted cacao seeds, is primarily used in confectioneries and bakery products. The global chocolate market is segmented by type into white/milk chocolate and dark chocolate. By product type, the market has been segmented into softlines/selflines, countlines, molded chocolates, and other products. By distribution channel, the market has been segmented into supermarkets/ hypermarkets, specialist retailers, convenience stores, online channels, and other distribution channels. The report also provides an analysis of the emerging and established economies across the global market, including regions like North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
|Milk and White Chocolate|
|By Product Type|
|Other Product Types|
|By Distribution Channel|
|Other Distribution Channels|
Key Market Trends
Increasing Demand for Single-origin and Certified Chocolate
The demand for fine flavor cocoa in regions like Europe and North America is experiencing substantial growth. Ultra- and high-end beans are used for gourmet chocolates. Regular and low-fine beans are used for regular premium chocolates, especially in countries like the United Kingdom, Brazil, the United States, China, India, the Netherlands, Germany, and Switzerland. This development is driven by the health trend and the quest for more exclusive products. The premium cocoa market, with sustainability certification and single-origin, accelerates the overall growth of the market studied. In response to the propelling demand, manufacturers are introducing their single-origin and premium chocolate line-ups. They are also supporting the local economies. These strategies are helping brands gain more profit margins and grow with a more positive brand image. For instance, Nestle set up a new chocolate molding and packing line in Ecuador. This helped the company incorporate the single-origin specific variety, “Arriba cocoa” beans, to manufacture value-added chocolates for export and domestic consumption.
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Europe Dominates the Market
European consumers place greater emphasis on the quality of chocolates, owing to increasing health concerns involving cheaper chocolates in the region and a surge in the popularity of fine cocoa. Therefore, European consumers are willing to pay more for chocolate products that meet their demand. The European consumer’s paradigm shift toward high-quality chocolate products (such as single-origin chocolates, organic chocolates, handmade chocolates, artisan chocolates, etc.) is a major factor driving the chocolate market in the region. There is a tremendous demand for dark chocolates, as they have lower amounts of sugar, paired with a rich bitter taste of concentrated cocoa.
The UK market is one of the significant chocolate-consuming markets in Europe. Plain chocolate appears to be the most popular choice. However, premium chocolates are gaining traction, with consumer preference growing toward premium dark chocolate. In addition, Britain’s confectionery sales have been on the rise, with an increase in the demand for chocolate targeted toward a specific set of consumers. Companies are also focusing on developing free-from and vegan chocolates to capture the growing demand. For instance, GodessiLimited offers premium chocolates in different flavors, such as walnut and cinnamon, orange and cinnamon, peppermint, and raspberry and almonds. The chocolates are gluten-free, dairy-free, soy-free, and vegan and thus, meet the special dietary needs of the consumers.
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The chocolate market is fragmented with the presence of both regional and international players such as Mars Incorporated, Yildiz Holdings, and Ferrero International SA. The major players are continuously focusing on product innovation with the launch of premium chocolates across the world. For instance, in October 2020, Ferrero India, part of Ferrero Group, announced the launch of ‘Ferrero Rocher Moments’ – an affordable premium gifting brand inspired by Ferrero Rocher. Furthermore, manufacturers in the market studied have been largely focusing on chocolates for special occasions, such as Valentine's Day, Easter, and Christmas, by offering special chocolates in different colors and shapes, matching the theme of the celebration.
- In February 2022, Hershey’s created a chocolate bar to celebrate All Women and Girls. This limited-edition is called "Celebrate SHE" bars. The brand highlighted SHE at the center of the milk chocolate bar.
- In January 2022, Mondelēz International’s brand Cadbury launched the Twist Wrap packaging solution for its Duos range, allowing consumers to snack in small portions by twisting and sealing the package after consuming half of the chocolate bar.
- In September 2021, Ferrero pre-launched the new Ferrero Rocher Tablets into the travel-retail channel in partnership with Lagardère. The new product introduces Ferrero into the chocolate tablet category, available in three flavors: milk, dark 55% cocoa, and white.
- In January 2021, Mars expanded its vegan range with two brand new chocolate bars just in time for Veganuary. After launching its first free-from chocolate with Galaxy Vegan in 2019, it has released a vegan version of two of its most iconic chocolate bars, Bounty and Topic.
Table of Contents
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Dark Chocolate
5.1.2 Milk and White Chocolate
5.2 By Product Type
5.2.3 Molded Chocolates
5.2.4 Other Product Types
5.3 By Distribution Channel
5.3.1 Supermarkets/ Hypermarkets
5.3.2 Specialist Retailers
5.3.3 Convenience Stores
5.3.4 Online Channel
5.3.5 Other Distribution Channels
5.4.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.4.3 Asia Pacific
184.108.40.206 Rest of Asia-Pacific
5.4.4 South America
220.127.116.11 Rest of South America
5.4.5 Middle East & Africa
18.104.22.168 South Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Share Analysis
6.2 Most Active Companies
6.3 Most Adopted Strategies
6.4 Company Profiles
6.4.1 Mars Incorporated
6.4.2 Ferrero International SA
6.4.3 Mondalez International
6.4.4 The Hershey Company
6.4.5 Nestle SA
6.4.6 Yıldız Holding
6.4.7 Chocoladenfabriken Lindt & Sprungli AG
6.4.8 Grupo Arcor
6.4.9 Meiji Holdings Co. Ltd
6.4.10 Lake Champlain Chocolates
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Chocolate Market market is studied from 2016 - 2027.
What is the growth rate of Chocolate Market?
The Chocolate Market is growing at a CAGR of 4.5% over the next 5 years.
Which region has highest growth rate in Chocolate Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Chocolate Market?
Europe holds highest share in 2021.
Who are the key players in Chocolate Market?
Mars, Incorporated, The Hershey Company, Mondelez International, Nestle SA, Ferrero International S.A. are the major companies operating in Chocolate Market.