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

The Chocolate Market is segmented by Type (Milk/White Chocolate and Dark Chocolate), Product Type (Softlines/ Selflines, Countlines, Molded Chocolates, and Other Products), Distribution Channel (Supermarkets/ Hypermarkets, Specialist Retailers, Convenience Stores, Online Channels, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The report offers market size and forecasts for the chocolate market in value (USD million) for all the above segments.

Market Snapshot

chocolate market
Study Period: 2016 -2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 4.5 %
chocolate market trends

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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).

By Type
Dark Chocolate
Milk and White Chocolate
By Product Type
Softlines/Selflines
Countlines
Molded Chocolates
Other Product Types
By Distribution Channel
Supermarkets/ Hypermarkets
Specialist Retailers
Convenience Stores
Online Channel
Other Distribution Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Spain
United Kingdom
Germany
France
Italy
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
South Africa
United Arab Emirates
Rest of Middle East & Africa

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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.

market segmentation for chocolate industry

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.

chocolate market segmentation

Competitive Landscape

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.

Recent Developments

  • 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. INTRODUCTION

    1. 1.1 Study Deliverables and Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Dark Chocolate

      2. 5.1.2 Milk and White Chocolate

    2. 5.2 By Product Type

      1. 5.2.1 Softlines/Selflines

      2. 5.2.2 Countlines

      3. 5.2.3 Molded Chocolates

      4. 5.2.4 Other Product Types

    3. 5.3 By Distribution Channel

      1. 5.3.1 Supermarkets/ Hypermarkets

      2. 5.3.2 Specialist Retailers

      3. 5.3.3 Convenience Stores

      4. 5.3.4 Online Channel

      5. 5.3.5 Other Distribution Channels

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Spain

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 Germany

        4. 5.4.2.4 France

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Russia

        7. 5.4.2.7 Rest of Europe

      3. 5.4.3 Asia Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle East & Africa

        1. 5.4.5.1 South Africa

        2. 5.4.5.2 United Arab Emirates

        3. 5.4.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Share Analysis

    2. 6.2 Most Active Companies

    3. 6.3 Most Adopted Strategies

    4. 6.4 Company Profiles

      1. 6.4.1 Mars Incorporated

      2. 6.4.2 Ferrero International SA

      3. 6.4.3 Mondalez International

      4. 6.4.4 The Hershey Company

      5. 6.4.5 Nestle SA

      6. 6.4.6 Yıldız Holding

      7. 6.4.7 Chocoladenfabriken Lindt & Sprungli AG

      8. 6.4.8 Grupo Arcor

      9. 6.4.9 Meiji Holdings Co. Ltd

      10. 6.4.10 Lake Champlain Chocolates

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Chocolate Market market is studied from 2016 - 2027.

The Chocolate Market is growing at a CAGR of 4.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

Mars, Incorporated, The Hershey Company, Mondelez International, Nestle SA, Ferrero International S.A. are the major companies operating in Chocolate Market.

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