ID: MRFR/F-B & N/9463-CR | 100 Pages | Author: Snehal Singh | October 2022
The global Chocolate Market is projected to register a CAGR of 4.79% and reach a value of USD 1,96,523.34 million by 2028. Chocolate is one of the popular confectioneries among the consumers of North America. It is produced from cocoa seeds, cocoa liquor, cocoa butter, sugar, and milk. Chocolate is rich in carbohydrates, and it is an excellent source of instant energy. The high sugar content in chocolate is accelerating the demand for low sugar content chocolate among the population of the US owing to the increasing obesity over the last few years. There are three different types of chocolate available in the market, which include milk, dark, and white. Among that, milk is the popular type among consumers.
The global chocolate market is projected to record a CAGR of 4.79% during the forecast period. Chocolate is the most popular and widely consumed product across North America and has also undergone many transformations to meet changing market demand. It is broadly categorized on the basis of the amount of cocoa it contains. Milk chocolate captures more than 50% of overall chocolate consumption in the region but may contain as little as 10% cocoa. On the other hand, chocolates are considered "dark" if they contain more than 60% cocoa. The market growth is mainly driven by the popularity of chocolate for gifting purposes. Moreover, the growing demand for premium or healthy ingredients in chocolate products and creative packaging are also fueling the market growth. However, the rising incidence of obesity and other health concerns followed by fluctuating raw material prices are slowing down the market growth. Market players are witnessing several growth opportunities due to the growing demand for health & wellness products and promotional activities.
Market players are constantly introducing premium chocolate products because of rising consumer inclination towards superior quality and healthy ingredients. Major manufacturers are investing in new product development and launching various product variants such as fruits, macadamia nuts, innovative rice-based snacks, and chocolate truffles. Multinational companies such as Mars (Dove) and Ferrero invested in various surveys and case studies to develop an exclusive product line. Premium fruits covered with chocolate are one of the highest selling products across North America and European region. These fruits include cranberry, blueberry, pomegranate, and many others. Premium chocolates are easily accessible at several convenience stores and in some international supermarkets. Sugar-free chocolates and dark chocolates is another category that had huge demand among consumers that lack a sweet tooth. Vegetable-based chocolate, such as edamame covered with chocolate and wasabi-covered chocolate, is popular among the consumers. Salty chocolate snacks, such as potato chips and popcorn, are also preferred by the consumers of emerging economies. Such healthy trends and innovative chocolate products are expected to drive the global chocolate market during the forecast period.
The US food industries are concerned about the health issues cropping up due to excessive chocolate consumption. For instance, according to Mr. Tracey Massey, president of Mars North America, the food industry is witnessing challenges due to rising health concerns related to overconsumption of calories, fat, and sugar. As per the Centre for Disease Control and Prevention, about 43.64% of adults in the age gap of 20 years and above suffered from obesity from 2019 to 2020. A 100 gm. of any chocolate, be it dark, white, or milk, contains more than 250 calories. The US ranks fifth in chocolate consumption at 5.5 kgs annually, followed by Switzerland at 8.8 kgs, Germany at 8.4 kgs, Russia at 7.3 kgs, and the UK at 6.8 kgs. Growing health awareness and a proper dietary regime have alarmed the consumers to reduce their intake of chocolate which is directly impacting its sales in North America.
Other health concerns related to chocolate consumption include high blood pressure, diabetes, and heart disease. High sugar consumption can cause dental problems. In general, over 16 million children in America have untreated tooth decay. According to the International Diabetes Federation (IDF), one out of eight adults has diabetes in the US. The number of simple sugars varies depending on the chocolate type. For instance, milk chocolate contains 15 grams of sugar per ounce of chocolate, white chocolate contains 14.8 grams per ounce, and dark chocolate contains around 12.5 grams per ounce. Excessive chocolate consumption may lead to health gain, which ultimately leads to type 2 diabetes.
Increasing consumer preference for fat-free and healthy food products has encouraged chocolate manufacturers to include healthy ingredients in chocolates in addition to traditional cocoa as the main ingredient. Food items containing transfat are losing market share to low calorie & low-fat products as transfat is linked to cardiovascular diseases. Considering the facts, the major chocolate companies are tapping into consumers' growing health and wellness concerns by improving the nutritional profile of their chocolate portfolio. For instance, Antidote 100%, a chocolate bar, contains 100% cacao and also raw beans. Cacao beans contain high amounts of phytonutrients, including sulfur, magnesium, and phenylethylamine. Also, Aloha Superfood Chocolate includes 60% cacao, organic ingredients infused with Aloha powder, and nutrients from foods such as spinach, raspberries, and spirulina. Similarly, Sweet Riot Dark Chocolate with Fabulous Flax, a 70% dark chocolate bar is packed with organic flax seed, rich in omega-3 fatty acids, and fiber. Chocolates with numerous nutrition content are likely to have a high demand and are one of the important factors driving sales at present and is expected in the future.
By Product Type
Based on product type the global chocolate market has been segmented into dark chocolate, milk chocolate, white chocolate, and cocoa powder. The milk chocolate segment accounted for the largest market share of 50.18% in 2020 whereas, the dark chocolate segment is projected to record the highest CAGR of 5.21% during the forecast period.
Based on form, the global chocolate market has been segmented into chocolate bars, liquid chocolate, truffles chocolate, and others. The chocolate bars segment accounted for a larger market share of 48.84% in 2020 and is expected to exhibit a CAGR of 5.36% during the review period.
Based on category, the global chocolate market has been segmented into conventional, organic, lactose-free, gluten-free, reduced sugar, zero sugar, and multi-claim. The conventional segment accounted for the largest market share of 52.83% in 2020 whereas zero sugar is projected to register the highest CAGR of 6.1% during the forecast period.
By Distribution Channel
Based on distribution channels, the global chocolate market has been segmented into food production, food service, and food retail. The food production segment accounted for the largest market share of 38.64% in 2020, whereas the bakery products segment is estimated to register the highest growth rate of 6.36% during the forecast period.
Global Chocolate Market Share, by Region, 2020 (%)Sources: MRFR Analysis
By region, the global Chocolate Market has been divided into North America, Europe, and Rest of the World. Europe accounted for the highest market share of 39.65% in 2020 and is expected to exhibit a CAGR of 3.91% during the forecast period. The market in Rest of the World is expected to register the highest CAGR of 5.90% during the forecast period.
Europe accounted for a market share of 39.65% of the chocolate market in 2020. The chocolate market in the region is expected to register a 3.91% CAGR during the forecast period. Europe is the world's largest manufacturer of chocolate. This region houses confectionery production plants of several multinational companies such as Nestle S.A., Mondelez International, Inc., Mars, Incorporated, Lindt & Sprüngli AG, and Ferrero SA. These large confectionery companies majorly drive the consumption of chocolate in the Europe region. Also, rising consumer demand for natural ingredients in the food application for flavoring boosts the sales of chocolate. The rise in popularity of specialty chocolate among Europeans is projected to fuel the demand of the European market during the forecast period. Moreover, innovation in new flavors and blends of different types of nuts in the chocolate is expected to create huge opportunities for the manufacturers operating in the chocolate market in the European region. Additionally, demand for organic cocoa products is significantly increasing among the consumers, creating an opportunistic market for the chocolate suppliers to grow and expand in this region. Germany is the major contributor to the market in this region as it is among the Europe's largest chocolate manufacturing industry. A large share of the chocolate produced in Germany is exported again, making Germany the world's largest exporter of chocolate.
Rest of the World
The Rest of the world accounted for a market share of 39.65% of the chocolate market in 2020. The rest of the World includes Asia-Pacific, South America, and the Middle East & Africa. Asia-Pacific is the most attractive market for chocolate manufacturers, with rapid expansions and innovations taking the place of the application industries in the region's emerging economies. China is one of the leading markets in the region, accounting for the largest market share during the review period. However, India is projected to grow at an impressive growth rate during the review period. There is a strong demand for cocoa powder from countries such as China, India, Japan, and the Philippines, which supports the growth of the overall chocolate market in the region. Increasing the use of cocoa in snack food and beverages in Asia-Pacific boosts the market growth. Indonesia is also among the key contributor to the growth of chocolate in this region. Many cocoa companies such as Olam, Musim Mas, and Barry Callebaut have significant acreage plantations in Indonesia. The key players take several initiatives to boost the market growth. For instance, in April 2021, Mondelēz International, Inc. and Olam Food Ingredients collaborated in Indonesia to create the world's single largest sustainable commercial cocoa farm. Many end-use manufacturers are launching chocolate-flavored products in the market owing to high consumer demand.
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Mondelez International, Inc. (US), Nestlé S.A. (Switzerland), Blommer Chocolate Company (US), Barry Callebaut (Switzerland), Puratos Group (Belgium) dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
Prominent players in the global Chocolate Market include Mondelez International, Inc. (US), Nestlé S.A. (Switzerland), Blommer Chocolate Company (US), Barry Callebaut (Switzerland), Puratos Group (Belgium), Lindt & Sprüngli AG (Switzerland), Ferrero Group (Luxembourg), Mars Incorporated (US), Ezaki Glico Co., Ltd. (Japan), Pladis Global (London), Orion Corp. (South Korea), Meiji Holding Co. Ltd. (Japan), General Mills Inc. (US), Guittard Chocolate Company (US), and The Hershey Company (US).
Few developments that occurred in recent times influencing the market growth of gardening tools are listed below:
Scope of the Report
Global Chocolate Market, by Product Type
Global Chocolate Market, by Form
Global Chocolate Market, by Categoryss
Global Chocolate Market, by Distribution Channel
Global Chocolate Market, by Region
|Market Size||USD 1,96,523.34 million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Product, Form, Category, Distribution Channel, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Mondelez International, Inc. (US), Nestlé S.A. (Switzerland), Blommer Chocolate Company (US), Barry Callebaut (Switzerland), Puratos Group (Belgium), Lindt & Sprüngli AG (Switzerland), Ferrero Group (Luxembourg), Mars Incorporated (US), Ezaki Glico Co., Ltd. (Japan), Pladis Global (London), Orion Corp. (South Korea), Meiji Holding Co. Ltd. (Japan), General Mills Inc. (US), Guittard Chocolate Company (US), and The Hershey Company (US).|
|Key Market Opportunities||Growing Demand For Health & Wellness Products|
|Key Market Drivers||
The Chocolate Market is expected to have a CAGR of 4.79% through 2028.
Key players profiled in the Chocolate Market include Mondelez International, Inc. (US), Nestlé S.A. (Switzerland), Blommer Chocolate Company (US), Barry Callebaut (Switzerland), Puratos Group (Belgium), Lindt & Sprüngli AG (Switzerland), Ferrero Group (Luxembourg), Mars Incorporated (US), Ezaki Glico Co., Ltd. (Japan), Pladis Global (London)
Europe is expected to lead the Chocolate Market.
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