Chocolate Market by Product, Distribution Channel, and Geography - Forecast and Analysis 2023-2027

The Chocolate Market is projected to increase by USD 45.78 million from 2022 to 2027. The market is estimated to grow at a CAGR of 4.97% between 2022 and 2027. In 2017 the market size was valued at USD 151.8 million.

The global demand for premium chocolates is growing due to the increasing premiumization of chocolates as their quality and taste are also high. Vendors 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. Currently, many players are launching premium chocolates to attract consumers who are influenced by price, packaging, ingredients, exclusivity, and provenance. Hence, the demand for premium chocolates experiences growth as seasonal offerings.

The market is segmented by product as milk chocolate, dark chocolate, and white chocolate. The milk chocolate segment shows significant growth in the forecast period. The chocolate is made with milk and generally contains 10%- 20% cocoa solids and dried milk solids which make it creamier taste in comparison with dark chocolates.

Chocolate Market Market: Overview

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Key Trend and Challenge

The increasing packaging innovative features and user interfaces are notably driving the market growth, although factors such as unstable cocoa prices is impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Trend

Growing demand for healthier chocolates is an emerging trend in the market. The demand for healthier chocolates, such as vegan, organic, and sugar-free chocolates, 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 chocolates is leading vendors to offer new healthy chocolates with low-sugar content and increased fortification of nutrients. According to Nestle, its low-calorie chocolate line launched in 2011 was one of its snack divisions' best-ever debuts. Furthermore, organic raw chocolates are healthy chocolates that comprise vitamins, minerals, and antioxidants. More than 300 minerals and properties have been identified in raw organic chocolate. Some of the health benefits of consuming organic chocolate include lowering blood pressure; increased energy, alertness, and creativity; and increased longevity. Therefore, these factors will boost the market growth during the forecast period. 

Challenge 

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 chocolate production cost more volatile and prevents marketers from estimating their production costs on a yearly basis.

As chocolates are 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. 

Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Chocolate Market Customer Landscape

Vendor Overview

Vendors 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.

• Key Offering - Arcor company offers confectionary and chocolates.
• Key Offering - Storck company offers chocolate products such as Bendicks Bittermints.
• Key Offering - Barry Callebaut company offers chocolate products such as Caramel Dore.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• 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
• 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.
• Yildiz Holding AS

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Chocolate Market Segmentation by Distribution Channel

Organized retailing such as hypermarkets, supermarkets, and grocery stores provide consumers with a convenient way to purchase chocolate by offering a wide variety of options in one location. These stores also make it easy for consumers to compare different brands and products, and they often have a larger selection than smaller stores or convenience stores. Additionally, they may offer discounts and promotions, further increasing the convenience of shopping for chocolate. Tesco Plc (Tesco), Carrefour Group, and Target Brands Corp. (Target) are some of the major hypermarkets and supermarkets that offer various brands of chocolate.

Chocolate Market Segmentation by Product

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 of chocolate. 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 chocolates.

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The milk chocolate segment was valued at USD 64.5 million in 2017 and continued to grow until 2021. However, the increasing health consciousness of people and raising 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, vendors 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 India. Thus, the estimated growth for milk chocolate will be quite moderate during the forecast period.

Key Regions for the Chocolate Confectionery Market

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Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Europe is one of the largest chocolate manufacturers in the world. Consumers prefer premium chocolates in most of the countries in the region. Europe's chocolate manufacturing industry is heavily dependent on cocoa beans, and as such, there is a high demand for fine flavour cocoa in the region. The major markets contributing to the growth of the European chocolate 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 chocolate 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 behaviour.

The market in Europe has been affected by the outbreak of the COVID-19 pandemic, as the major economies of the region have been the worst affected by the disease. However, in 2021, the mass vaccination drive and other government initiatives resulted in the removal of the lockdown and the resumption of business operations. Additionally, the consumption of chocolate-infused nutrition bars as a convenient and healthful snack has also increased as a result of consumers' busier lifestyles. Therefore, the abovementioned factors will drive the regional market during the forecast period.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook (USD Million, 2017 - 2027)
  • Milk chocolate
  • Dark chocolate
  • White chocolate
• Distribution Channel Outlook (USD Million, 2017 - 2027)
  • Offline
  • Online
• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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What are the Key Data Covered in this Chocolate Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the chocolate market between 2023 and 2027
• Precise estimation of the size of the chocolate market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of chocolate market vendors

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