Chocolate is one of the most profitable components of the confectionary industry globally. The chocolate industry has been representing a multibillion dollar market since the past decade and is expected to reach new levels of growth within the next few years. Rising awareness about health benefits of consuming a chocolate on a daily basis, will remain a key booster to the global chocolate market over the next few years.
The chocolate market registered a value of US$ XX Bn in 2016. During a five-year forecast period 2016-2024, the global market for chocolate is expected to witness a robust CAGR. A host of trends and opportunities that are currently driving the market are slated to shape up the market condition during the forecast period.
Global Chocolate Market: Drivers and Restraints
While developed countries represent established and thriving markets for chocolate, a shift in consumer taste preferences and rising spending on chocolate and other confectionary products are identified to be the major drivers to market growth, prominently in developing countries. Increasing urbanization and widespread availability of chocolate and derived products will remain another key factor fueling the market for chocolate globally.
Antioxidants-enrichment, blood pressure-suppressing character, and supposedly anti-aging properties of chocolate will remain the key factors propelling adoption of chocolate and chocolate products. Dark chocolate that contains a larger proportion of cocoa is especially recommended to prevent or slow down aging and certain diseases, such as CVDs. These and more similar perceived benefits of chocolate will continue to drive demand for chocolate in the global market.
A few recent research findings indicate that chocolate consumption aids in looking younger as well as relieving stress, which are expected to further push the demand for chocolate. A sweeping range of new applications of chocolate in food and confectionary products are anticipated to escalate the demand, whereas wide acceptance of chocolate-flavored milk, drinks, bakery products, ice creams, functional foods, and liquor chocolates will sustain the demand throughout the next four years.
Chocolates are still largely considered as an affordable luxury in some regions of the globe. Price-sensitivity may detain the penetration of chocolate market in some of the underdeveloped parts of the world. Moreover, the uncertain economy of the cocoa supply is likely to raise chocolate prices, which is foreseen to be a major challenge to market growth.
Global Chocolate Market: Trends and Opportunities
Seasonal and festive sales of chocolate are projected to surge in the next few years. Gifting chocolate hampers and bouquets are among some popular consumer trends in market, which will strongly favor the market over the forecast period. In addition, lucrative growth opportunities lie in handmade chocolates and signature chocolate-based products.
Some niche products, such as chocolate drinks, fudge, mousse, rolls, and sandwich are identified to be attractive revenue generators. Moreover, a variety in gourmet chocolate is also expected to present significant opportunities in the global chocolate market. Development of organic and fair-trade chocolate may completely change the market dynamics over 2016-2024
Global Chocolate Market: Segment Analysis
The global chocolate market is segmented on the basis of type and sale frequency.
By chocolate type, the market is classified as milk chocolate, dark chocolate, and white chocolate. Milk chocolate segment registered the largest market share in 2013, followed by dark chocolate.
Based on frequency of sale, the market is categorized as daily chocolate, premium chocolate, and seasonal chocolate. Daily chocolate, attributed to affordable price, has been a major segment over the years.
Global Chocolate Market: Regional Outlook
The global chocolate market is segmented on the basis of geography, into key four regions viz. North America, Europe, Asia Pacific, and rest of the world (RoW).
Presence of a large number of leading international chocolate brands and higher chocolate consumption will continue to account for the top market position of North America, especially the U.S. Europe will be another major market, led by the U.K. and Germany.
APAC, predominantly China and India, is however expected to emerge at the fastest rate over 2016-2024. This growth is attributed to soaring influence of the Western lifestyle and awareness about health benefits of chocolate. Seasonal and festive sales are likely to hold a strong foothold in developing Asian economies, such as India.
Global Chocolate Market: Key Players
Some of the key players participating in the global chocolate market, include Nestle SA, Fererro Group, Hershey Foods Corporation, Mondelez International (Cadbury), Mars Inc, Meiji Co Ltd, August Storck KG, Ezaki Glico Co. Ltd. and Arcor. A few other notable companies are Kraft Foods, Moonstruck Chocolatier Co., and Ghirardelli Chocolate Co.