|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global chocolate market is projected to witness a CAGR of 4.5% during the forecast period (2021 - 2026).
The chocolate market was impacted by COVID-19 during its onset in 2020. However, the market became more stable post the ease of restrictions across both importing and exporting countries. Consumers’ in-home consumption of chocolates witnessed a steep rise during the lockdown; Chocolates, among other consumables, were bought in bulk, which led to higher volume sales through supermarkets and hypermarkets.
On the other hand, the premium sector of the global chocolate market was severely affected by low sales volume due to the COVID-19 pandemic, partly due to supply-side issues linked to quality and certification. Consequently, varied public sectors provided support to the strengthening partnership between fine cocoa producers and chocolate companies to enhance the resilience of marketing infrastructure. This is expected to provide an important means of assistance to the recovery of the market.
In 2020, the chocolate market witnessed an inclination toward the darker varieties of chocolate, as consumers showed preference for them over other varieties, on account of better health benefits, lower in calories, and altering perception toward premiumization.
Over the medium term, the global chocolate market will become highly competitive, with the presence of numerous leading players accounting for the major share. The increasing demand and growing popularity of dark and organic chocolates are fueling the market’s growth. Europe holds the largest share of the global chocolate market. In Europe, Russia is the largest market for chocolate, followed by Germany, the United Kingdom, and France.
Scope of the Report
In the market studied, consumers have shown an inclination toward premium chocolates in most of the countries. Premium chocolates are mostly purchased from the supermarkets and hypermarkets, owing to the unique variety of attractive products being offered in such places, ready packaging of products, appealing in-store promotions, and consistent quality. Additionally, consumers are willing to pay for high-end chocolates. In Europe, the sales of chocolate has been hindered by attempts to fight against health concerns (caused by over consumption of chocolates) such as obesity and dietary issues, and greater cost and commodity prices. Hence, chocolate manufacturers are increasingly turning toward premium chocolates.
The global chocolate market is segmented by type into white/milk chocolateand dark chocolate. By product 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 and Africa.
|Milk and White Chocolate|
|Other Product Types|
|By Distribution Channel|
|Other Distribution Channels|
Key Market Trends
Impulse Purchasing Behaviour of Consumers
The phenomenon of impulse buying is boosting the sales of chocolates across the world. An impulse purchase is a sudden and unplanned decision to buy a certain product or service. While shopping for groceries, consumers mostly do not intend to purchase confectionaries such as chocolates. However, confectionery items displayed at prominent places in shops and supermarkets attract buyers’ attention and cause them to indulge in impulse purchases. Besides attractive display mechanisms adopted by stores, rising income levels of consumers and their changing lifestyle are the key factors increasing impulse purchase. Both children and grown-ups want chocolates irrespective of their economic situation as clever marketing and advertising have correlated chocolates with rewards and moments of happiness. Over the years, the color and packaging of chocolates have played important roles in their purchase. Witnessing the change in perception toward products, manufacturers have invested heavily into product designing and labeling. This has further led manufacturers to gain a prompt and spontaneous response from consumers. Purple was ranked as the most influential color, followed by red and blue, in stimulating the purchase of chocolates.
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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.
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. Although major manufacturers dominate the European chocolate industry, the possibilities for high-quality and artisanal chocolates are increasing. One of the main drivers for the market studied is product innovation, which promotes awareness and customer involvement and attracts more customers.
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Mars Incorporated, Ferrero, Hershey’s, Modelez International, and Nestle are a few of the prominent players in the global chocolate market. Nestle and Mars are also the most active companies in terms of product launches, which is the most preferred strategy of the key players. The development of new products to enhance their portfolio and to capture untapped markets has driven the growth of the chocolate market. Owing to the changing tastes and preferences of consumers, there have been considerable developments of products by various market players. The leading players in the chocolate market enjoy a dominant presence worldwide. Brand loyalty among the consumers gives these companies an upper edge.
- In November 2020, Mars GCC launched premium chocolate market in the countires of the Middle East like United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain, with its Galaxy Kenz offering. It is launching five variants, namely dark(55%), dark(70%), dark (55%) with almonds, dark (55%) with hazelnut, and milk with hazelnut.
- In October 2019 Neste SA launched a limited edition green tea matcha KitKat in the United Arab Emirates, Saudi Arabia, and Kuwait. It was made available in across major retailers. Moreover, it is available in the United Kingdom.
- In January 2018, Lindt & Sprüngli Schweiz AG made significant investments in its production facility in Olten, and thus, strengthened Switzerland as its long term business location. In 2018, more than CHF 30 million was allocated for the expansion and capacity increases of the Lindt Cocoa Center. The plant in Olten was responsible for producing cocoa mass for the European Lindt plants within the global production network.
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
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 By Geography
5.4.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.4.3 Asia Pacific
220.127.116.11 Rest of Asia-Pacific
5.4.4 South America
18.104.22.168 Rest of South America
5.4.5 Middle East and Africa
22.214.171.124 South Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Rest of Middle East and 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 Group
6.4.3 Mondalez International
6.4.4 Hershey Co.
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 Van Houten Chocolates
6.4.10 Brookside 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 - 2026.
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 2020.
Who are the key players in Chocolate Market?
Mars, Incorporated, Ferrero Group, The Hershey Company, Mondelez International, Nestle SA are the major companies operating in Chocolate Market.