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The chocolate confectionery market size is projected to increase by USD 31 billion at a CAGR of 4.36% between 2023 and 2028. Market expansion hinges on diverse factors like regular product introductions, the elevation of chocolate confectionery through premium offerings, and the surging desire for organic, functional, vegan, and gluten-free chocolate treats. This trend signifies a shift towards healthier and ethically conscious consumption patterns. Frequent launches keep the market dynamic and responsive to evolving consumer preferences, driving innovation in flavors, textures, and nutritional profiles. Premiumization caters to discerning consumers seeking indulgence and quality, willing to pay a premium for unique experiences. The demand for organic, functional, vegan, and gluten-free options reflects a broader societal shift towards healthier lifestyles and sustainable food choices, encouraging chocolatiers to diversify their product portfolios and cater to a wider audience base.
The market shows an Accelerate CAGR during the forecast period.
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The market is driven by a multitude of factors. Consumers are increasingly gravitating towards premium confectionery products that boast premium quality and cater to their healthy eating lifestyles, including options like trans-fat-free and dark chocolate confectionery. This trend towards healthier choices is also reflected in the demand for organic chocolate and sustainably sourced chocolate. Additionally, the market is seeing a rise in sensorial appeal with offerings such as Exotic spices, Herbs, and Floral notes incorporated into artisanal chocolates and distinct flavor combinations found in premium chocolates and single-origin chocolates. However, challenges persist, including concerns over micro-organisms like salmonella, issues related to cadmium levels in cocoa, and the need to balance luxury indulgence with health-conscious trends.
The global demand for premium chocolates is growing due to the increasing premiumization of chocolates as it quality and taste are too high. Many players are launching premium chocolates to attract consumers who are influenced by price, packaging, ingredients, exclusivity, and provenance, particularly in emerging economies such as China, India, and Brazil.
Moreover, companies such as Mars, Barry Callebaut, and Mondelez International are increasing efforts to improve differentiation, premiumization, and personalization in their chocolate segments with new premium offerings. Hence, such factors are positively impacting the market which in turn drives the market growth during the forecast period.
Expansions and promotions by companies through various strategies are emerging trends in the market. To develop a strong customer base, both regional and global companies across the world, design various marketing strategies. These strategies include entering distribution deals with retailers, acquiring small players, setting up exclusive chocolate stores, and undertaking marketing campaigns frequently.
To increase product visibility many brands launch marketing and promotional campaigns. Such moves are aimed at attracting consumers to explore their pleasure profiles. For instance, there were multiple rooms featuring white chocolate and milk chocolate, one of which included a poster bed that depicted strawberries dipped in white chocolate, and the other one featured a large bed filled with bubble balls containing white chocolate. Furthermore, there was also a room featuring silk bedsheets in Milk Chocolate Suite. Therefore, such factors will increase the demand for these products and drive market growth during the forecast period.
Fluctuating prices of raw materials are a major challenge impeding the market growth. Raw materials like cocoa, milk, and sugar are used for manufacturing chocolate confectioneries. The major players' production volumes are hampered by high raw material price volatility, which also negatively impacts their profit margins.
Cocoa prices depend on the production volume of cocoa beans. The cultivation of these beans depends on various environmental factors, such as epidemics, and socio-economic factors, such as civil and political unrest. Therefore, changes in these factors will also impact the product cost and, in turn, increase the costs of the final products. Hence, these factors will hinder the market growth during the forecast period.
The market is experiencing a surge in demand for premium confectionery products that prioritize premium quality and cater to diverse tastes. Consumers are drawn to bars with innovative flavors like milk mousse and creamy caramel, while also seeking healthier options such as trans-fat-free varieties to align with healthy eating lifestyles. There's a notable preference for dark chocolate confectionery due to its perceived health benefits and unique sensorial appeal. The market also embraces luxury indulgence through offerings like artisanal chocolates with exotic spices, herbs, and floral notes, creating distinct flavor combinations that appeal to chocolate lovers seeking premium chocolates from Chocolatiers.
The chocolate bars segment by product consists of chocolate bars, boxed assortments and seasonal variants, and others. The boxed assortments and seasonal varieties segment accounted for the overall revenue generated by the market in 2022. The increasing number of product launches and heavy investments by chocolate confectionery companies is expected to drive the market's growth during the forecast period.
The chocolate bars segment was valued at USD 50.50 billion in 2018.
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The major factors driving the segment growth are the launch of unique chocolate flavors and textures in chocolate confectionery products and the use of attractive packaging. Product innovations in the chocolate bars category include the development of smooth-textured dark chocolate bars, protein bars, and vegan chocolate bars, including varieties such as quinoa, sugar-free chocolate bars, and single-origin chocolate bars. Furthermore, the increasing number of organized retail outlets globally that stock a wide variety of chocolate bars will also attract more customers to purchase these products. Therefore, factors like these will boost segment growth during the forecast period.
APAC is estimated to contribute 33% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The demand for premium chocolate confectionery has been growing in Europe, particularly during festivals and special occasions like Easter, Christmas, and Valentine's Day. These chocolates are often given as gifts, and popular confectioneries include chocolate truffles, chocolate-dipped marshmallows, and Easter eggs filled with chocolate. The major countries in the region that exhibit a high demand for chocolate confectionery products include the UK, Germany, France, Switzerland, Italy, Russia, the Netherlands, Poland, Belgium, and Spain. The market is highly fragmented, with many regional and international players, which has led to intense competition. The above-mentioned factors, such as the demand for premium chocolate, the popularity of gifting, and the presence of many players in the market, are expected to drive the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about Key companies, including:
Boutique and Workshop, Barry Callebaut AG, Cargill Inc., Cemoi, Chocoladefabriken Lindt and Sprungli AG, Chukar Cherry Co. Inc., Divine Chocolate Ltd., Ezaki Glico Co. Ltd., Ferrero International S.A., Firetree Chocolate Ltd., Lotte Corp., Mars Inc., Mast Brothers Inc., Meiji Holdings Co. Ltd., Mondelez International Inc., Moo Free Ltd., Nestle SA, Neuhaus NV, Peeps and Co. Inc., and The Hershey Co.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Confectionery Market: Confectionery Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast
US Confectionery Market: US Confectionery Market by Distribution Channel, Product, and Type - Forecast and Analysis
Organic Chocolate Market: Organic Chocolate Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
The market is marked by a growing preference for premium confectionery products, emphasizing premium quality and diverse flavors like peanut butter, milk mousse, and creamy caramel. Consumers are increasingly inclined towards trans-fat-free options, aligning with healthy eating lifestyles. There's a notable rise in demand for dark chocolate confectionery due to its perceived health benefits and various label claims such as cruelty-free and vegan. Premium chocolate brands are focusing on using simple ingredients and catering to specific dietary preferences like paleo-friendly and clean-label options.
Furthermore, this market sees constant innovations in products, marketing, and distribution channels, including e-commerce platforms and in-store promotions targeting millennial and centennial populations. The market landscape depends on imported chocolate products, Social media sites, Social media influencers, International chocolate brands, domestic chocolate brands, and the Younger generation. The industry is also adapting to concerns such as sugar reduction, offering sugar-free, organic, and fair-trade choices. Despite challenges like addressing lifestyle-related health conditions and managing sugar intake, the market remains dynamic, driven by consumer preferences and health-conscious trends.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 31 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.14 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
Germany, US, UK, China, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Boutique and Workshop, Barry Callebaut AG, Cargill Inc., Cemoi, Chocoladefabriken Lindt and Sprungli AG, Chukar Cherry Co. Inc., Divine Chocolate Ltd., Ezaki Glico Co. Ltd., Ferrero International S.A., Firetree Chocolate Ltd., Lotte Corp., Mars Inc., Mast Brothers Inc., Meiji Holdings Co. Ltd., Mondelez International Inc., Moo Free Ltd., Nestle SA, Neuhaus NV, Peeps and Co. Inc., and The Hershey Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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