|Study Period:||2016 -2027|
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The US chocolate market is projected to witness a CAGR of 4% during the forecast period (2022 - 2027).
During COVID-19, 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. In 2020, the chocolate market witnessed an inclination toward the darker varieties of chocolates, as consumers showed a preference for them over other varieties on account of better health benefits, lower calories, and altering perception toward premiumization. According to Hershey's annual report, the company reported that it increased its consolidated net sales by 5.7% in 2020.
Chocolate consumption in the region is supported by the high demand, purchasing power, and consumption pattern of the consumers. In the United States, chocolate eaters normally buy chocolate twice a week, and its sale increases on holidays and weekends, as consumers are more likely to treat themselves and others with chocolate. The United States holds the largest market share in North America in terms of chocolate consumption and production volumes.
The overall market is saturated, and it is witnessing a moderate growth rate. Nevertheless, the dark chocolate market segment is growing at a high growth rate due to the awareness of its health benefits among consumers.
Scope of the Report
Chocolate is a food product prepared from roasted and grounded cacao seeds in the form of a paste or a block. It is usually sweetened and is utilized in baked and confectionery goods. The cocoa butter is churned into a usable product during the production process and is finally used as an ingredient in a variety of desserts and also as a finished product. The US Chocolate Market is segmented by Type into Milk/White Chocolate and Dark Chocolate. Based on Product Type, the market is segmented into Softlines/ Selflines, Boxed Assortments, Countlines, Seasonal Chocolates, Molded Chocolates, and Other Product Types. Based on Distribution Channel, the market is segmented into Supermarkets/ Hypermarkets, Specialist Retailers, Convenience Stores, Online Channels, and Other Distribution Channels. The report offers size and forecasts for the chocolate market in value (USD million) for all the above segments.
|Milk and White Chocolate|
|By Product Type|
|Other Product Types|
|By Distribution Channel|
|Online Retail Stores|
|Other Distribution Channels|
Key Market Trends
Increasing Demand for Organic Chocolates
The trend of healthier living to improve the quality of life is increasing the end-user preference for natural and organic products, including chocolates. Factors such as consumer knowledge and an increase in awareness about products and services through digital media and other sources, coupled with the advent of social media, are educating the consumers about the benefits of organic products. This, in turn, is driving the demand for organic products. The trend of organic chocolate bars is creating lucrative opportunities for chocolate manufacturers to tap into the potential markets. Additionally, it is opening doors for new players to enter the market with new, innovative, organic, and flavored chocolates and enhance their revenue mixes by gaining advantages over others.
Organic chocolates are rich in flavonoids, which contain cancer-fighting antioxidants that reduce the effect of free radicals in the body. Moreover, raw organic chocolates are a major source of magnesium and contain very less amount of caffeine. Their consumption promotes healthy blood flow and reduces the risk of stroke, blood clots, and heart attack. These factors will increase the sales of organic chocolates, which will significantly influence the organic chocolate market growth
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Dark Chocolate is the Fastest-growing Segment due to its Health Benefits
The consumption of dark chocolate is increasing in the United States owing to its health benefits. Health awareness is sweeping throughout the country. This trend is very important for consumers, and it has increased the demand for dark chocolate in the country as it has benefits like it can improve stress, memory, immunity, and mood. Although the high prices of these chocolates mean that only a small percentage of consumers currently buy dark chocolate, the penetration is growing at a steady pace. This has also resulted in the leading chocolate companies, such as Lindt and Godiva, positioning their premium dark chocolates as gifting options. Many consumers who are more inclined toward the brand and quality of the chocolate buy these premium dark chocolates.
The US chocolate market is moderately consolidated, with the significant presence of global players as well as regional players. Global players who held a prominent share include The Hershey Company, Ferrero Group, Mondelez International, and Nestle. Key players in the US chocolate market adopt key strategies, such as new product innovation, mergers, and acquisitions, followed by partnerships.
The major players in the market are also adopting marketing campaigns as a key strategy to strengthen their positions in the market. Tourists and travelers are the major consumers of premium chocolates across the regions. Hence, the players in the market studied have been expanding their presence and offerings in the travel retail sector. Manufacturers in the market studied have also been 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.
The Hershey Company
Meiji Holdings Co., Ltd.
- In January 2022, GODIVA expanded its licensing portfolio in the US market with the launch of four new licensing partnerships. The four new licensing partners are Boardwalk Frozen Treats, Jimmy's Gourmet Bakery, Le Vian, and Cookies United.
- In September 2021, Hershey launched Oat Made plant-based chocolate bars in the United States. The new bar, Hershey's Oat Made, comes in two varieties: Extra Creamy Almond and Sea Salt and Classic Dark Chocolate.
- In September 2021, Hershey's released its How the Grinch Stole Hershey's Kisses, wrapped up in 1 of 10 different Grinch-inspired foils. The Kisses cost USD 2.99 for a 7.4-oz. bag or USD 3.49 for a 9.5-oz. bag. The new product was 1 of 13 that Hershey's started selling for the holiday season in the United States.
Table of Contents
1.1 Study Assumptions and Market Definition
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
5.2.2 Boxed Assortments
5.2.4 Seasonal Chocolates
5.2.5 Molded Chocolates
5.2.6 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 Retail Stores
5.3.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 The Hershey Company
6.4.2 Meiji Holdings Co. Ltd
6.4.3 Mars Incorporated
6.4.5 Nestle SA
6.4.6 Mondelez International
6.4.7 August Storck KG
6.4.8 Lindt & Sprungli AG
6.4.9 Reese's Cups
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID 19 ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The United States Chocolate Market market is studied from 2016 - 2027.
What is the growth rate of United States Chocolate Market?
The United States Chocolate Market is growing at a CAGR of 4% over the next 5 years.
Who are the key players in United States Chocolate Market?
The Hershey Company, Meiji Holdings Co., Ltd., Mars, Incorporated, Ferrero, Nestle SA are the major companies operating in United States Chocolate Market.