Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

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).

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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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