Chocolate Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Dark Chocolate, Milk And White Chocolate, Artificial), By Distribution Channel (Online. Offline, Convenience Stores, Others), And By Geography - Forecasts From 2022 To 2027
- Published : Nov 2022
- Report Code : KSI061610617
- Pages : 145
The global chocolate market is expected to grow at a CAGR of 4.95% over the forecast period to reach a total market size of US$170.232 billion by 2027, increasing from US$121.385 billion in 2020.
One of the most popular culinary items consumed worldwide is chocolate. Chocolates are often presented with a variety of flavours and are manufactured from cocoa seeds, cocoa liquor, cocoa butter, milk, and sugar. Additionally, to entice clients into purchasing their variety of chocolate products and to survive the fierce rivalry in the market, chocolate vendors utilize a variety of flavours including ginger, lavender, and hibiscus, among others. Chocolates with organic ingredients are gaining friction in the market and are offered at a very premium price.
Chocolates must be stored in an environment that is extremely sensitive to temperatures and humidity. Chocolates cannot be stored in high temperatures as they can melt down, and fluctuating temperatures can cause fat to bloom. Moreover, chocolates are stocked in a place away from other food items as these could absorb different aromas. Hence, chocolates should be wrapped and kept in a proper place that has the correct humidity and temperature conditions. The global market for chocolates is driven by the extensive utilization of chocolate in confectionery items and flavoured food products. Moreover, chocolates are being used as functional goods owing to their nutritional value and aid in relieving stress, leading to increased consumption over the forecast period. However, fluctuations in raw material prices and excessive reliance on unstable economies for the supply of cocoa are restraining market growth.
Dark chocolate is anticipated to witness significant growth over the forecast period
Dark chocolate has several health benefits, like consumption of it reducing anxiety, and improving symptoms of clinical depression. Growing awareness regarding dark chocolate as a healthier product is expected to drive the growth of the segment during the forecast period. In addition, various health experts around the globe also recommend that moderate consumption of chocolate boosts serotonin, which calms the brain and acts as an anti-depressant. According to the World Health Organization, depression is a common mental disorder that affects more than 264 million people of all ages globally, and close to 800 thousand people die every year due to suicide, and depression is one of the major causes of it. Furthermore, dark chocolate also reduces the risk of cardiovascular diseases on account of the presence of high flavonoid content.
Growing middle-class population
The middle-class population in developing countries like China, India, and Brazil is growing, which is increasing the demand for chocolate, especially among millennials and the younger population. Rapid urbanization and growing disposable income have also attracted major market players to invest in new product launches, thus propelling market growth opportunities over the forecast period. Furthermore, chocolate is often considered a token of appreciation and is used in giving gifts during the festive seasons which also boosts the demand for chocolate. Major market players frequently launch new chocolate gift packs, which are popular among the developing economies' middle-class population. Besides, a growing trend in consumer behaviour toward an appreciation for good-quality chocolate and a desire for a sophisticated taste profile is further helping the chocolate manufacturers and vendors to grow during the forecast period.
Expanding e-retail business
In recent years, the e-retail business has witnessed a significant increase in sales. The development and growth of online shopping are causally related to economic growth and the speed of urbanization which are projected to propel the market growth opportunities over the forecast period. Besides, with the growing number of smartphone users, time spent on the internet is also increased, which is driving the growth of e-commerce platforms, which is also expanding the scope of distribution of chocolate. Furthermore, the diversity of features, including value-added services, such as discounted prices, cash-on-delivery, and cashback offers, offered by e-retailers are expected to promote the growth of the online channels over the forecast period.
In June 2019, the Government of Ghana announced a partnership deal with China for the construction of a nearly US$100 million chocolate factory in the Sefwi-Wiaso district of the North-Western region of Ghana.
The Asia Pacific is holding a significant share of the market
By geography, the chocolate market is segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The Asia Pacific is expected to hold a significant share of the market owing to the presence of major players coupled with the growing number of product launches in the region. In addition, rising disposable income coupled with the growing awareness regarding the health benefits of chocolates is further anticipated to boost the growth of the market in the region. The European region is home to a major dark chocolate-consuming population and, with the increasing product launches, the market is expected to witness significant growth in the coming years.
- February 2022: As per the press release by Hershey Chocolate Company in February 2022, a chocolate bar was made by Hershey's to honor all women and girls. The "Celebrate SHE" bars in this limited edition were so named. In the middle of the milk chocolate bar, the brand highlighted SHE.
- January 2022: As per the press release by Mondelez in January 2022, the Twist Wrap packaging solution was introduced by Mondelez International's Cadbury for its Duos line, enabling customers to snack in little pieces by twisting and sealing the container after ingesting half of the chocolate bar.
- July 2019: As per the press release by Barry Callebaut in July 2019, Chocolate and Cocoa company Barry Callebaut announced the investment in a new factory in Baramati, India with an annual production capacity of more than 30,000 tonnes of chocolate. It was the biggest investment by Barry Callebaut in India and was expected to start its operations by the end of 2020.
Impact of COVID-19 on Chocolate Market
Around the world, the COVID-19 pandemic had an impact on several businesses. To slow down the pandemic's rapid spread, governments all around the world enacted stringent lockdown procedures and social distancing norms. During the pandemic, manufacturing plants all across the world were shut down. Additionally, the economic downturn that followed the pandemic caused a large delay in the commercial launch of the food and beverage sector. As a result of the supply chain disruptions, market players faced several difficulties. The Fine Cacao & Chocolate Institute (FCCI) undertook a study on the COVID-19 pandemic's effects on exports, and the findings were pretty alarming. In the Dominican Republic, sources stated that the strict lockdown prevented farmers and producers from visiting the plantations for a number of weeks before the government authorized exceptions. A growing number of specialized stores stayed closed for a longer amount of time as a result of the interruption in the raw material supply chain, which was followed by a lockdown, and the volume consumption of chocolates declined. However, as more supply orders came online in 2022, things started to get better. Low sales volumes brought on by the COVID-19 pandemic as well as supply-side problems with quality and certification had an effect on the cocoa market. However, the market is anticipated to grow in the future owing to the demand for chocolates in the world.
Chocolate Market Scope:
|Market Size Value in 2020||US$121.385 billion|
|Market Size Value in 2027||US$170.232 billion|
|Growth Rate||CAGR of 4.95% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Product, Distribution Channel, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Nestle, Barry Callebaut, The Hershey Company, Chocoladefabriken Lindt & Sprüngli AG, The Australian Carob Co., Ferrero, Mars, Incorporated and its Affiliates, Meiji Holdings Co., Ltd., Arcor, Mondelez International|
|Customization Scope||Free report customization with purchase|
- By Product
- Dark Chocolate
- Milk and White Chocolate
- By Distribution Channel
- Convenience stores
- By Geography
- North America
- United States
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Global Chocolate Market Analysis, By Product
5.2. Dark Chocolate
5.3. Milk and White Chocolate
6. Global Chocolate Market Analysis, By Distribution Channel
6.3.1. Convenience stores
7. Global Chocolate Analysis, by Geography
7.2. North America
7.2.1. United States
7.3. South America
7.4.3. United Kingdom
7.5. The Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.4. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.2. Barry Callebaut
9.3. The Hershey Company
9.4. Chocoladefabriken Lindt & Sprüngli AG
9.5. The Australian Carob Co.
9.7. Mars, Incorporated and its Affiliates
9.8. Meiji Holdings Co., Ltd.
9.10. Mondelez International
The Hershey Company
Chocoladefabriken Lindt & Sprüngli AG
Mars, Incorporated and its Affiliates
Meiji Holdings Co., Ltd.
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