Premium Chocolate Market share value in 2022 was 29.2 billion, and it is expected to grow at a CAGR of 8.8% during the forecast period 2023-2028 to reach USD 48.43 billion by 2028.
Premium chocolates are chocolates that contain cocoa butter as a main ingredient. These chocolates require tempering to make sure their quality appearance also increases their shelf life. These chocolates include exquisite, luxury, and artisanal chocolates. These premium chocolates are infused with various flavors like mint, honey, beer, espresso, blueberry, raspberry, pomegranate, and peanut nutter. These premium chocolates are made from various types of chocolates, like dark, white, and milk chocolates. The dark and white chocolates give a more elegant taste to the premium chocolates. These chocolates are different from regular chocolates as they are high in price, taste, and texture. Additionally, the premium chocolates are packed.
The increase in demand for premium chocolates across the globe is one of the major driving factors in the premium chocolate market. Also, the increase in the consumption of chocolates related to emotional reasons like their likes and joyfulness fuels the market demand. Additionally, the increase in the consumer's interest in quality and handmade products with elegant packaging drives the premium chocolate market growth rate. The increase in consumers' preference for the consumption of premium chocolates increases the demand for premium chocolates. This is due to these chocolates being made with fine ingredients. The key market players are increasing their launch of premium chocolates, such as new chocolate bars. These chocolates are made by selecting fine ingredients, such as a combination of crunchy hazelnut pieces. The combination of these flavored chocolates with the unique shape increases the demand for premium chocolates, driving the premium chocolates market.The increase in awareness about the health benefits associated with the consumption of premium chocolates drives the premium chocolate market growth. This is due to these chocolates being rich in antioxidants, stress boosters, lower cholesterol, etc. Additionally, the increase in popularity of these chocolates increases the demand for premium chocolates. These chocolates have proper labeling, hence increasing the transparency of the product manufacturing. The increase in demand from various countries such as France, England, Italy, Spain, and Germany across the globe drives the premium chocolate market. This is due to an increase in disposal income across the globe; hence, these countries are willing to pay more for organic products. The consumer's love for premium chocolates increases the demand for premium chocolates.
Premium Chocolate Market Restraints:
Despite the advantages, there are some issues related to the overconsumption of chocolates, which is the major restraining factor in the premium chocolate market. There are various adverse events associated with the overconsumption of chocolates, such as weight gain, obesity, diabetes, heart disease, and other chronic diseases. Additionally, the variation in the prices of raw materials associated with the production of premium chocolates hampers the market growth. The main ingredient required in the production of premium chocolate is cocoa. The cocoa powder and butter are very costly. Additionally, the increase in the cost of dairy products required in the production of chocolates restricts the market growth. This results in an increase in the cost of the final product, which is premium chocolate. In addition, the cost associated with the supply and demand level increases the volatility of the cost, decreasing the demand for premium chocolates. These are the restraining factors to the premium chocolates market growth.
The increase in the use of e-commerce over the forecasting period is creating opportunities in the premium chocolate market growth. This is due to the rise in internet usage; earlier, the only distribution channels were shops that operated mostly without the use of digital media. E-commerce is essential for any market's growth since the internet continues to have an impact on daily life. It also helps a company grow outside of its physical presence. The manufacturer profits from the online distribution channel by taking advantage of online consumers' interest to test out new products. Strong internet marketing and promotion efforts for low-sugar, gluten-free, and vegan chocolates will increase sales of the products due to the numerous promotions offered by online shops for special occasions, frequent customers, and even large purchases.
The increase in the launch of new flavored chocolates and improved textures of chocolates is creating opportunities in the premium chocolate market growth over the forecasting period. Additionally, the increase in demand for seasonal chocolates during festivals such as Christmas, Easter, Valentine’s Day, and Halloween drives the premium chocolate market value. During holidays like Christmas and New Year's and other occasions, several chocolate manufacturers launch a variety of premium and luxury chocolate variants with new flavors and packaging modifications. For instance, Purdy's Chocolatier introduced the limited-edition new maple sweet Georgia browns dessert in June 2022.
Impact of COVID-19 on the Premium Chocolate Market:
Initially, the pandemic adversely affected the growth of premium chocolate market growth. Disruption in the distribution channel of premium chocolates during the pandemic hindered the market shares as the government-imposed travel restrictions and lockdowns consumers were not able to go out. Additionally, the delivery people were not able to deliver chocolates to the customers. But in 2021, after the initial phase of the pandemic, the sales of premium chocolate were increasing. This is due to consumers focusing on eating handmade and healthy food products, as these chocolates are made of natural ingredients. The health benefits associated with the consumption of premium chocolates over normal chocolates drove the market in 2021. The availability of home-delivered chocolates on e-commerce platforms increased the demand for premium chocolates. The coronavirus epidemic leveraged the demand for baked goods, sweets, salty snacks, drinks, ice cream, and snack/nutrition bars, which has boosted sales, particularly of dark flavors.
Key Developments in the Premium Chocolate Market:
By Type,
Dark Chocolate
Milk Chocolate
White Chocolate
Among these, the dark chocolate segment is expected to show its dominance in the premium chocolate market shares due to the presence of rich antioxidants in the dark chocolates. These antioxidants present in dark chocolates delay various types of diseases like cardiac disease and helps to decrease cholesterol level. Dark chocolates are rich in fiber and many minerals like magnesium, copper, iron, zinc, etc. These minerals help to boost immunity power and help keep bones and teeth healthy. The increase in demand for more cocoa-based chocolates increases segmental growth because dark chocolates are made with 70% cocoa. Dark chocolate works as a mood enhancer and helps to reduce blood pressure. These health benefits associated with the consumption of dark chocolates drive the market size. The milk segment is expected to show the fastest CAGR growth in the premium chocolate market over the forecast period, as milk chocolate contains various micronutrients such as Iron, potassium, vitamins, etc. There are various health benefits associated with the consumption of milk chocolates. For instance, according to a University of Aberdeen research, eating 100g of milk chocolate can reduce your risk of having a heart attack or stroke by over 25%, which increases the demand for white chocolates, driving the segmental growth.
By Distribution Channel,
Hypermarkets/Supermarkets
Specialty Stores
Online
Others
Among these, the Online segment dominates the premium chocolate market as there are many offers available on e-commerce platforms. The huge discounts available on the online platform increased the demand for premium chocolates. The availability of various small and large brands of chocolates increases the sales of the chocolates, increasing segmental growth. The specialty store segment is expected to show the fastest CAGR growth in the premium chocolates market over the projected period. The presence of various chocolates available in the specialty store escalates the market growth rate. These stores offer a huge product selection ranging from bars to tablets.
North America
Europe
Asia-pacific
Middle-East and Africa
Latin America
Regionally, the European region dominates the Premium Chocolate Market due to the health benefits associated with the consumption of premium chocolates. The presence of essential nutrients and vitamins is boosting the premium chocolates market growth. The majority of people in the European region are health conscious, hence increasing the demand for premium chocolates. Additionally, the region is home to several chocolate manufacturers, including Ferrero International SA. These elements are a significant contributor to Europe's market dominance. Premium chocolate is more in demand than private-label chocolate in Europe. This is mostly due to customers' willingness to spend more for chocolate that is higher in quality, has nicer packaging, and has a richer flavor than other types of chocolate. The top markets in Europe for premium chocolate include the UK, Belgium, Germany, and Switzerland.
The Asia Pacific segment is expected to show the fastest CAGR growth in the premium chocolate market over the forecast period, owing to the increase in the growth of key market players. Additionally, the increase in the number of health-conscious people in the region increases the demand for premium chocolates. Additionally, the increase in disposal income across the region increases the demand for premium chocolates. The increase in the adoption of luxury lifestyles. This is because demand for skimmed milk chocolate is increasing, and major companies are investing more money to create premium chocolates that are high-quality and healthy.
Chocoladefabriken Lindt & Sprüngli AG
Ferrero International S.A.
Endangered Species Chocolate
The Hershey Company
Mondelez International
Yildiz Holding Inc.
Godiva
Mars, Inc.
CEMOI Group
Champlain Chocolate Co.
Frequently Asked Questions
The main driving factors in the market are an increase in demand for premium chocolates across the globe and an increase in health awareness among consumers, as these chocolates contain micronutrients, minerals, and vitamins.
The estimated market size in 2028 is 48.43 billion.
- The market is estimated to register a CAGR of 8.8% during the forecast period.
The European region dominates the market.
The dark chocolate segment is leading with the highest shares of the market.
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