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Jul-2019

Chocolate Market Is On A Steady Growth Curve

Chocolate manufacturers become innovative with their offerings. Cocoa lovers do not need a reason to relish on chocolates. It is outstanding feel-good food often linked with love, festivity and quick treatment to bad moods.

This mouthwatering food captivates people of all ages from kids, young to middle age adults, and even the very elderly crowd.

Confectionery manufacturers understand the craze and mindsets of their consumers. They are increasingly transforming the ingredients like cocoa beans, sugar and milk into a range of premium products such as chocolate bars, stuffed chocolates, and much more.

Even flavors in chocolate industry are evolving like use cardamom, saffron, etc., to produce exotic products, as the chocolatiers are quickly answering and adapting to the demands of their consumers. The new trend also seen in the market is the production of small bars to serve the snacking needs of the people, mainly targeting the fast-paced lifestyles of the hard-working individuals.

The visually striking merchandising, bespoke gift boxes, sophisticated chocolate packaging and finely polished marketing campaigns are immensely used these days to target different festive seasons, marking the diverse society’s strong gift-giving culture. These factors are driving the growth of this industry.

According to the report, the Cocoa and Chocolate Market by Market Data Forecast global cocoa and chocolate industry was worth USD 123.32 billion in 2016. The forecast for this segment is growth indicated with a CAGR of 2.28% to USD 138.03 billion by 2021.

The types of ingredients used to produce the chocolates are fragmenting the chocolate industry, thereby creating a diverse range of product markets such as milk, white and dark chocolates. The other market segmentation factors have been the types of cocoa that are used in the making of chocolates including cocoa butter, cocoa liquor and cocoa powder and so on.

The key trends instigating the market growth are primarily health benefits that are often tagged with consumption of chocolate such as for reducing stress, boosting brain function, preventative qualities against heart disease, cancer, etc., and the richness and luxury associated with its premium chocolate range.

Rising awareness among the consumers about the health advantages is pushing up the dark chocolate market share. A steady growth in the market is expected to continue over the next few years in this segment. The highest growth rate within the period of 2016 to 2021 is estimated to be in the milk and white chocolate segment.

Geographically, the global chocolate market is divided into the following region North America, Europe, Asia Pacific, and Middle-East and Africa. Europe is the highest consumer, with demand being high for premium products and unique flavors, mainly coming from Germany, Italy, France, Spain, and the UK. Organic and sugar-free are also among their top preferences, while manufacturers are concentrating on latest techniques to enhance flavors such as roasting of whole beans, etc.

In North America, it is the dark chocolates that have a high demand driven by matured and health conscious consumers that are wanting to take advantage of delicious cocoa products for its abundant, healthy properties like being anti-inflammatory, anti-oxidative, anti-depressant, etc. Additionally, consumers desire more for premium products in a lower value range.

The demand from Asia Pacific countries including India and China is mainly due to the rising influence of western culture and availability of several international chocolate brands in these places, over the recent years. The leading chocolate manufacturers from across the globe are also eyeing on the Asia Pacific region, as an active market for business growth and are producing unique products to meet their taste, flavor, and price.

The chocolate business demand is also at its peak during the festive occasions as the culture of exchanging sweets in the festive seasons is mostly replaced by chocolates in the recent years. The Middle-East and African markets are also to witness a steady growth in the coming years due to changing economic situation and preferences of the people in the region.