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The chocolate market size is forecast to increase by USD 51.2 billion, at a CAGR of 5.28% between 2023 and 2028. The market's growth is driven by several key factors. Firstly, the rise in premium chocolates chocolate options is attracting consumers seeking high-quality products. Additionally, the introduction of organic chocolate and innovative and unique chocolate varieties is continually sparking interest and expanding the market. Furthermore, there is a growing emphasis on environmental sustainability and ethical sourcing, with consumers increasingly prioritizing brands that demonstrate social responsibility and eco-friendly practices. These trends collectively contribute to the expanding market for chocolates, as they cater to evolving consumer preferences and values.
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The market continues to thrive with consistent chocolate sales bolstered by various factors such as bulk purchases and strategic shelf space allocation in retail outlets worldwide. Derived from the beans of the cacao tree, chocolate production involves several stages, including the processing of cocoa seeds into cocoa liquor and cocoa butter. These primary ingredients serve as the foundation for creating a wide array of chocolate products, ranging from premium bars to delicious confectionery items. Health-conscious consumers are gravitating towards sustainable, organic, and vegan options, driving the market for premium chocolates, dark chocolate, and bean-to-bar offerings. However, concerns surrounding obesity and sugar consumption persist, prompting the rise of sugar-free alternatives. Despite challenges, innovations in texture, flavors, and ingredients continue to shape the market, reflecting the dynamic interplay between tradition and modernity in the chocolate industry.
Increasing premiumization of chocolates is notably driving market growth. The market experiences continuous growth, with a significant focus on premium offerings in emerging economies like China, India, and Brazil. companies such as Mars, Barry Callebaut, and Mondelez International are enhancing their chocolate segments through differentiation, premiumization, and personalization. In response to the increasing demand for high-quality chocolate, Harbinger Foods introduced Kokoma, a premium single-bar chocolate in July 2021. Premium chocolates provide companies with higher profit margins and superior taste and quality. As a result, numerous players are launching new premium chocolate products to cater to consumers influenced by price, packaging, ingredients, exclusivity, and provenance. The gifting culture, driven by the perceived value and taste of premium chocolates, remains strong. In the chocolate market, various product categories include chocolate bars, truffles, and liquid chocolate.
Further, cocoa powder is a crucial ingredient in chocolate production. companies are addressing health concerns by offering lactose-free, reduced sugar, and zero sugar options. Aloha Superfood Chocolate and Riot Dark Chocolate are examples of brands catering to health-conscious consumers. Food production, food service, and food retail sectors utilize chocolate in various applications. Conventional and sustainable production methods are employed in chocolate manufacturing. The market encompasses a wide range of products, from conventional to specialty offerings, catering to diverse consumer preferences. Thus, such factors are driving the growth of the market during the forecast period.
Growing demand for healthier alternatives is an emerging trend in the market. The demand for healthier, such as vegan, gluten free organic, and sugar-free, has witnessed significant growth in recent years. This is due to the high preference for healthy living and awareness of the negative impacts of eating chocolates. The demand for healthier is leading companies to offer new healthy alternatives with low-sugar content and increased fortification of nutrients. According to Nestle, its low-calorie line launched in 2011 was one of its snack divisions' best-ever debuts.
Furthermore, organic raw chocolates are healthy versions that comprise vitamins, minerals, and antioxidants. More than 300 minerals and properties have been identified in raw organic chocolate. Aligning with market trends and analysis some of the health benefits of consuming organic chocolate include lowering blood pressure; increased energy, alertness, and creativity; and increased longevity. They also are known to release hormones like serotonin and endorphin, both of which are known as happy hormones. Therefore, these factors will boost the market growth and trends during the forecast period.
Unstable cocoa prices and declining per capita consumption are major challenges impeding the market. The primary component of chocolate, cocoa has been witnessing a fluctuating price range during the past decade. The fluctuating price of cocoa makes the production cost more volatile and prevents marketers from estimating their production costs every year.
Further, as high-selling confectionery items in the global confectionery market, volatility in cocoa prices has become a major challenge for the regional confectionery market. Cocoa prices depend on growing conditions and can vary largely from month to month. Disease, ageing crops, and political instability are the influencing factors in the volatile cocoa market. Hence, these factors will hinder the market growth during the forecast period.
The market share growth by the milk chocolate segment will be significant during the forecast period. It is one of the most popular and common types. The mixing of cocoa solids with milk solids, sugar, and cream during manufacturing gives milk chocolates a smoother and creamier taste in comparison with dark ones.
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The milk chocolate segment was valued at USD 67.50 million in 2018. However, the increasing health consciousness of people and rising awareness of health problems caused by ailments such as obesity and heart disease have witnessed a slow demand for milk chocolates in recent years. Hence, companies are trying to maintain their share by innovating with new product variants and flavours. For example, in June 2020, Mondelez International announced the launch of a new product called Cadbury Dairy Milk, with 30% less sugar in Indian and the Indian chocolate spreads market. Thus, the estimated growth for milk chocolate will be quite moderate during the forecast period.
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Europe is estimated to contribute 35% to the growth of the global market research and growth during the forecast period. Technavio's analysts have provided an extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Europe is one of the largest manufacturers in the world. Consumers prefer premium chocolates in most of the countries in the region. Europe's manufacturing industry is heavily dependent on cocoa beans, and as such, there is a high demand for fine flavor cocoa in the region. The major markets contributing to the growth of the European market include countries such as the UK, Germany, Italy, Belgium, Switzerland, and Russia. These countries have a strong tradition of chocolate making and consumption. Additionally, the presence of many manufacturers headquartered in Europe, such as Ferrero, also helps to drive growth in the market. These companies have a strong reputation and established brands, which can influence consumer choice and purchase behavior.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, which forecasts to enhance their presence in the market report.
Arcor Group: The company offers chocolate products such as bonbons and bite size chocolates, tablets, sugar-coated, baking chocolate and pastry products, chocolates for children.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Customer Landscape
The market research and growth 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.
The market is evolving rapidly due to rising health consciousness and dietary changes. With increasing health concerns such as high blood pressure, diabetes, and obesity, consumers are turning to gluten-free, reduced sugar, and zero sugar options. Major manufacturers are responding by offering a range of products, including sustainable chocolates, vegetable-based chocolate, and caffeine-free choices. The appeal of traditional chocolate and new innovations like carob confectionery and wasabi-covered chocolate is growing, with emphasis on appealing packaging and flavors such as cranberry, blueberry, and pomegranate. Additionally, products like Nutella biscuits and chocolate truffles are adapting to dietary regimes, addressing needs like lactose-free, reduced sugar, and multi-claim options. As consumer preferences shift, the market sees a rise in both middle-end and low-end chocolates, with an increased focus on preventive healthcare and food service innovations.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.28% |
Market Growth 2024-2028 |
USD 51.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.81 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
US, Germany, China, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arcor Group, AUGUST STORCK KG, Barry Callebaut AG, Chocoladefabriken Lindt and Sprungli AG, Crown Confectionery Co. Ltd, Delfi Ltd., Ezaki Glico Co. Ltd., Ferrero International S.A., Ghirardelli Chocolate Co., Gujarat Cooperative Milk Marketing Federation Ltd., Lotte Corp., Mars Inc., Meiji Holdings Co. Ltd., Mondelez International Inc., Moonstruck Chocolate Co., Nestle SA, Orion Corp., The Australian Carob Co., The Hershey Co., Unreal Brands Inc., and Yildiz Holding AS |
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 the 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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