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The Global Chocolate Market size is projected to increase by USD 45.78 million at a Compound annual growth rate (CAGR) of 4.97% between 2022 to 2027. In 2017 the market size was valued at USD 151.8 million. The market is a global industry that involves the production, distribution, and consumption of chocolate products. Flavonoids, natural compounds found in cocoa beans, enhance the appeal and health benefits of it in the market.
The global demand for premium chocolates is growing due to the increasing premiumization of chocolates. The global market is dominated by major multinational companies like Mars, Barry Callebaut, and Mondelez International. They are increasing efforts to improve differentiation, premiumization, and personalization in their segments with new premium offerings. Currently, many players are launching premium and specialty products to attract consumers who are influenced by price, packaging, ingredients, exclusivity, and provenance. Hence, the demand for premium chocolates experiences growth as seasonal offerings.
Amidst lockdowns and shifts in consumer behavior, the chocolate market has witnessed significant changes, with a surge in demand for packaged and processed foods, particularly chocolates. Brands like Mars (Dove) have capitalized on this trend, offering a diverse range of products to cater to evolving consumer preferences. 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.
The market is experiencing a dynamic shift towards premium and specialty chocolate, driven by evolving consumer tastes and preferences. This trend is underscored by the rising popularity of single-origin cocoa, emphasizing quality and uniqueness. Moreover, the market intersects with mental health, with studies linking chocolate consumption to improved brain function due to its zinc, magnesium, and iron content. Amid concerns about obesity and health, there's a growing demand for sustainable, low-sugar, and health-focused options like vegetable-based and superfood chocolate. Major manufacturers are responding with innovative products like chocolate truffles and wasabi-covered chocolate, catering to diverse dietary regimes and health-conscious consumers across food retail and food service sectors. The market growth and forecasting 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.
Various types of offline channels are hypermarkets, supermarkets, and grocery and convenience stores. Organized retailing such as Supermarkets and hypermarkets provides consumers with a convenient way to purchase 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.
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.
The milk chocolate segment was valued at USD 64.51 million in 2017.
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.
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 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 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 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, to enhance their presence in the market.
The market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 chocolate 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.
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. 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, 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.
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 growth analysis report includes the adoption lifecycle, 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 research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
The market is experiencing a notable shift driven by increasing consumer consciousness. The State of Treating Report 2021, by the National Confectioners Association (NCA), indicates a rising demand for specialty chocolates. Vegan, organic, gluten-free, and sugar-free are gaining prominence. Bean and single-origin chocolates, known for their distinct flavors, are on the rise. Mental health awareness is influencing dark chocolate consumption, supported by studies from institutions like the Cleveland Clinic linking it to improved blood circulation. The premiumization of chocolate-based products is evident, emphasizing visually appealing packaging. The market also sees competition between traditional and artificial chocolate segments, with carob confectionery and popular brands like Nutella and Ferrero India making strides.
The popularity for single-origin cocoa, reflecting consumer demand for premium and distinctive flavors. Alongside, there's growing awareness about mental health, with consumers seeking comfort from anxiety and depression through indulgence in chocolate. Recognizing the importance of preventive healthcare, chocolate is appreciated for its nutrient-rich profile, containing essential minerals like phosphorus and copper. In response to changing preferences, manufacturers are innovating with sustainable chocolates and vegetable-based options, catering to diverse dietary needs and fostering a gifting culture. Amid rising health concerns and the prevalence of obesity, there's a shift towards low-sugar and superfood chocolates, aligning with evolving consumer lifestyles and dietary regimes. For instance, Stevia is increasingly being used as a natural sweetener in chocolate products to provide a lower-calorie alternative while maintaining the rich flavor.
This market encompasses a wide array of products, ranging from traditional chocolate market options like sweets and bars to newer options like spreads. A recent study has shed light on the growing consumer preference for premium and specialty products, indicating a shift away from the artificial chocolate market. It is not just a snack; it's an indulgence and a beloved dessert for many, driving the growth of the chocolate industry. Artisanal truffles and pralines cater to discerning chocolate lovers, with makers and shops constantly innovating to meet evolving trends. In-depth analysis reveals promising opportunities for growth, reflecting the enduring appeal of this beloved treat.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2022 |
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Historic period |
2017 - 2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.97% |
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Market growth 2023-2027 |
USD 45.78 billion |
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Market structure |
USD Fragmented |
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YoY growth 2022-2023(%) |
4.57 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 35% |
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Key countries |
US, China, Germany, France, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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, 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., and Yildiz Holding AS |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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