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The organic chocolate market size is projected to increase by USD 345.01 million, at a CAGR of 6.05% between 2023 and 2028.
Furthermore, the European manufacturing sector is witnessing significant demand for fine-flavored cocoa due to its reliance on high cocoa bean volumes. Product innovations and launches are poised to drive growth in the competitive and fragmented market across Europe. These factors, combined with increasing consumer demand, underline the region's dynamic market trends and forecasted growth trajectory in the industry. Additionally, Barry Callebaut AG company offers organic chocolate under brands such as American Almond, Barry Callebaut, Cabosse Naturals, Cacao Barry, Callebaut, Caprimo, Carma, and Chocovic.
The market shows an accelerated CAGR during the forecast period.
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Increasing premiumization of organic chocolates is the key factor driving the market. The global demand for premium organic chocolates is growing, particularly in emerging economies such as China, India, and Brazil. The cocoa industry has seen a surge in demand for the product confectioneries as consumers increasingly prioritize healthy eating, opting for organic food products over conventional ones, driving growth in the organic products market, including cocoa powder and other cocoa-derived products.
Further, in the confectionery industry, market players are increasingly offering organic goods sourced from cocoa beans grown without the use of artificial fertilizers and pesticides, promoting soil preservation and plant protection practices for sustainable cocoa production. Additionally, the improving lifestyle of consumers, owing to rising disposable income and growing health consciousness, is driving the demand for premium and luxurious confectionery items. Various food and beverage manufacturers are increasingly focusing on niche products such as sugar-free organic chocolates in a bid to earn more profits. Premiumization strategies enable companies to differentiate their products in terms of pricing. Hence, increasing premiumization will drive market growth during the forecast period.
Growing demand for organic vegan chocolates is the primary trend shaping the market. Market players are trying to increase their sales and market share by offering differentiated product portfolios. One of the variants of organic chocolates is organic vegan chocolates. Companies offer organic vegan chocolates to meet the rising demand from the growing vegan population. Vegan foods are considered to be healthy diet options, and individuals who follow a vegan diet avoid dairy, meat, and egg products. These foods provide essential nutrients such as vitamins A, vitamin C, vitamin E, fiber, antioxidants, magnesium, folate, and potassium.
Moreover, veganism is becoming popular among the youth owing to the health and food safety concerns associated with animal-based food products. High preference for such diets led to an increase in the number of consumers following a vegan diet across various countries, including the US and the UK, in 2022. Government agencies in various countries are trying to promote vegan food in their diets. Therefore, the growing demand for organic vegan chocolates will drive market growth during the forecast period.
Growing competition from conventional chocolate is the major challenge that affects the market expansion. Conventional chocolate brands often have larger marketing budgets, wider distribution networks, and lower production costs, allowing them to offer competitive pricing and promotional strategies that may undercut brands. One of the main advantages conventional chocolate brands have is their ability to leverage economies of scale in production. Large-scale cocoa cultivation and processing operations enable conventional chocolate manufacturers to achieve cost efficiencies that organic producers may struggle to match.
As a result, conventional chocolates are often priced more competitively, making them more accessible to price-sensitive consumers and posing a challenge to organic chocolate brands that face higher production costs due to organic farming practices and certification requirements. Further, consumers may be more familiar with conventional chocolate brands and perceive them as reliable choices, making it challenging for the brands to differentiate themselves and capture market share. Thus, such factors may impede market growth during the forecast period.
The offline?segment will account for the largest share of this segment.?Offline distribution channels for organic chocolates include supermarkets, health food stores, and convenience stores. Supermarkets and hypermarkets, such as Walmart and ALDI, offer a wide selection of organic chocolates, including private-label brands. Health food stores like Whole Foods Market and Sprouts Farmers Market cater to health-conscious consumers with specialized products and knowledgeable staff. Convenience stores, though smaller and with limited product range, are increasing in key markets, contributing to the sales boost and driving market growth during the forecast period.
The market share growth by the organic dark chocolate segment will be significant during the forecast period. Organic dark chocolate is mainly made from the seeds (organically produced) of the cocoa tree. Organic dark chocolate also contains more nutrients than other types of organic chocolate varieties. The higher nutrient level in organic dark chocolate compared with other chocolate varieties makes it an ideal option for health-conscious consumers.
The organic dark chocolate segment was valued at USD 353.31 million in 2018.
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Additionally, some major companies offering organic dark chocolate in the market are Barry Callebaut AG, Divine Chocolate, and Mondelez International. The companies also offer certified variants of organic dark chocolates, which are recommended for consumers with celiac disease. Further, owing to the expansion of product lines by several companies and the increase in the adoption of organic dark chocolates for health reasons, the segment will positively influence the market growth during the forecast period.
Europe is estimated to contribute 39% 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. Consumers prefer organic chocolates in most countries in the region. In Europe, the demand for organic dark chocolates, organic milk chocolates, and organic white chocolate is high. Europe is the prominent region driving market growth. France, Switzerland, Germany, and the UK are some major markets in the region. Further, certain market players launching new variants of organic chocolates. Some companies are also focusing on expanding the production of organic chocolates through new facilities. Thus, an increase in the presence of retail stores offering organic chocolates will fuel the growth of the market in focus in the region 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 10 market companies, including:
Chocolat Bernrain AG, Compartes Chocolatier, Endangered Species Chocolate LLC, Fortissimo Chocolates Ltd., Giddy Yoyo Inc., HOFER KG, Ludwig Weinrich GmbH and Co. KG, Mason and Co., Mondelez International Inc., Montezumas Direct Ltd., Newmans Own Inc., Nibmor Inc., Pronatec AG, Rococo Chocolates London Ltd., Stern Wywiol Gruppe GmbH and Co. KG, Taza Chocolate, The Grenada Chocolate Co. Ltd., The Hershey Co., and Theobroma Chocolat
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 research report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
In the realm of confectionery, the market is experiencing a significant upsurge. Shops now offer a diverse array of organic chocolate spreads, including dark chocolate spread and milk chocolate spread, catering to discerning consumers. Leading brands like Valeo Foods and ChocoBee are driving innovation in this sector, showcasing their products at events like the Organic Food Fair. Hazelnut chocolate spread emerges as a popular choice among fruit spread, jam, and marmalade enthusiasts. This shift towards organic options marks a departure from conventional products, as consumers seek healthier alternatives in their chocolate confectionery and beverages.
Additionally, in response to growing demand, cocoa farmers are increasingly focusing on organically produced cocoa. This trend extends to vegan/paleo chocolate, particularly in the hazelnut segment. Emphasizing clean-label principles, the organic cocoa industry ensures the purity of cocoa butter, cocoa liquor, and chocolate couverture used in various applications like bakery and dairy industry products. From cocoa butter blocks to chips and liquid cocoa butter, the market caters to diverse preferences, enhancing the cocoa flavor in cakes, pastries, biscuits, and dairy beverages.
Further, the rising demand for this product reflects a broader trend towards clean-label products. Emphasizing sustainability, organic farming eschews artificial fertilizers and pesticides, prioritizing soil preservation and plant protection. This ethos extends to chocolate production, with cocoa beans sourced organically for a variety of products including organic chocolate spreads, dark chocolate spread, milk chocolate spread, and hazelnut chocolate spread. Companies like Valeo Foods and ChocoBee showcase their offerings at events like the Organic Food Fair. As consumers seek healthier options, organic chocolate confectioneries gain traction, reshaping the cocoa industry towards sustainable practices and organic products over conventional ones.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.05% |
Market Growth 2024-2028 |
USD 345.01 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.45 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 39% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alter Eco, American Licorice Co., Barry Callebaut AG, Chocolat Bernrain AG, Compartes Chocolatier, Endangered Species Chocolate LLC, Fortissimo Chocolates Ltd., Giddy Yoyo Inc., HOFER KG, Ludwig Weinrich GmbH and Co. KG, Mason and Co., Mondelez International Inc., Montezumas Direct Ltd., Newmans Own Inc., Nibmor Inc., Pronatec AG, Rococo Chocolates London Ltd., Stern Wywiol Gruppe GmbH and Co. KG, Taza Chocolate, The Grenada Chocolate Co. Ltd., The Hershey Co., and Theobroma Chocolat |
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, and market condition analysis for the forecast period. |
Customization purview |
If our 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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