Originally published on Technavio:Chocolate Market by Product, Distribution Channel, and Geography - Forecast and Analysis 2023-2027

 

The Global Chocolate Market size is anticipated to witness a growth of USD 45.78 million between 2022 and 2027, exhibiting a Compound Annual Growth Rate (CAGR) of 4.97%. In 2017, the market size reached USD 151.8 million. This global industry encompasses the production, distribution, and consumption of chocolate products, with the added allure and health benefits derived from flavonoids, natural compounds found in cocoa beans.

 

The market is dominated by major multinational corporations such as Mars, Barry Callebaut, and Mondelez International, intensifying their efforts to enhance differentiation, premiumization, and personalization through innovative premium offerings. The surge in demand for premium chocolates, driven by seasonal offerings, contributes to the industry's continued growth.

 

Market Overview

An emerging trend in the market is the growing demand for healthier alternatives, including vegan, organic, and sugar-free chocolates. The heightened preference for healthy living, coupled with increased awareness of the potential negative impacts of chocolate consumption, has spurred significant growth in these segments.

 

Market Challenges

Key challenges facing the market include unstable cocoa prices and a decline in per capita consumption. Cocoa, a primary component of chocolate, has experienced price fluctuations over the past decade, rendering production costs volatile and hindering marketers from accurate annual cost estimations.

 

Market Segmentation by Distribution Channel

Offline channels, encompassing hypermarkets, supermarkets, grocery stores, and convenience stores, present various options for consumers. Organized retailing through supermarkets and hypermarkets provides a convenient one-stop location for consumers, offering diverse options and facilitating easy brand and product comparisons. Additionally, these stores may offer discounts and promotions, enhancing the overall shopping convenience for chocolate enthusiasts. Major players in this category include Tesco Plc (Tesco), Carrefour Group, and Target Brands Corp. (Target).

 

Market Segmentation by Product

The milk chocolate segment is expected to witness significant market share growth during the forecast period, being one of the most popular types. Characterized by the blending of cocoa solids with milk solids, sugar, and cream, milk chocolates offer a smoother and creamier taste compared to their dark counterparts.

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Technavio's analysts have provided detailed explanations of regional trends and drivers shaping the market during the forecast period. Europe, being one of the largest chocolate manufacturers globally, exhibits a consumer preference for premium chocolates in many countries. The European chocolate manufacturing industry heavily relies on cocoa beans, leading to a high demand for fine flavor cocoa in the region. Significant markets contributing to the growth of the European chocolate market include the UK, Germany, Italy, Belgium, Switzerland, and Russia, all of which boast strong traditions of chocolate making and consumption. The presence of major chocolate manufacturers headquartered in Europe, including Ferrero, further fuels market growth by leveraging established brands and consumer trust.

 

Companies are adopting various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to bolster their presence in the market.

 

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