Chocolate confectionery is expected to be worth over $128 billion in global retail sales by the end of 2023, with a volume of 1.9% CAGR over the next 3 years to 2025, according to Euromonitor 2022 research. Innovation plays a key role in that growth projection to meet the latest needs of consumers, the study revealed.
Another analysis from ResearchAndMarkets.com noted that among the key factors for a strong period of trading were an increasing global population, together with changing tastes and preferences in developing nations. Furthermore, the category remains a top flavour in treating, so manufacturers and brands are taking cocoa into new formats and categories to meet this new demand. As a result, chocolate categories continue to mutate while snacking and gifting are going through a little revolution.
The research also found that among product type, dark chocolate is the fastest growing segment, which was attributed to factors including strong antioxidant content protecting against disease-causing free radicals, while flavonoids included in these chocolates aid in cancer prevention, heart health, and cognitive abilities.
“If you look at the remarkable growth trajectory of chocolate and candy over the last two years – it is absolutely quite a story. No one in my opionion in the modern history of the [chocolate] business has seen growth like this.” John Downs, NCA President and CEO.
Record surge for chocolate by American consumers has pushed sales to $29bn, with retail chocolate sales climbing more than 5% a quarter, according to data in January 2022 from Chicago-based researcher IRI.
According to Dawn Foods 2022 Flavor trends, “We didn’t think it is possible for consumer to love chocolate more but turns out that they do! In in times of high stress it is not uncommon to turn to things that make us most happy.”
- North America sales of chocolate is $20.7 billion annually and the #2 flavor in the market globally
- 71% of North American consumers want to try new & exciting chocolate experiences.
- 86% of Consumers claim to LOVE chocolate!
The North American (US, Canada, Mexico) chocolate market is anticipated to increase 4.7 percent by 2025, with growing demand for confectionery, particularly around seasons, and other products categories leveraging chocolate, according to Grand View Research, Inc. Rising demand for organic and high-cocoa content products are also expected to boost chocolate sales. Grand View expects dark chocolate sales to expand 7.5 percent in terms of revenue, while the gourmet sector is anticipated to increase 4.8 percent during the forecast period.
“Increased sales in Europe, the Middle East and Africa will drive $7 billion in worldwide sales growth for premium chocolate by 2022″, according to a report by Technavio. Their analysts have identified “the increasing premiumization of chocolates as one of the major factors driving the growth of the chocolate market. Vendors, especially in China, India, and Brazil are offering new variety of chocolates to improve differentiation, personalization, and premiumization of chocolates. They are trying to attract customers who are influenced by ingredients, exclusivity, price, provenance, and packaging.” Widening consumer interest in gluten- and sugar-free, vegan and organic varieties will also contribute to the increase.
According to Research and Markets, “The Europe confectionery market is expected to reach USD 83 billion by 2023, witnessing a stable CAGR of 3 %, during the forecast period. Confectionery consumption volume in the region surpassed 5,875 million Kg in 2017, moving at steady volume growth rate. Western Europe dominates the chocolate sale followed by central and Eastern Europe. Increased demand for higher quality cocoa products and premium chocolate accelerated confectionery sale in Europe.”
Notably, their 2022 study highlighted the Asia Pacific region as anticipated as having the fastest growth rate in the coming years of 5.72% – with the Chinese market estimated to grow at a CAGR of 6.39%.
For example, in Japan, the percieved health benefits of cocoa among Japanese consumers continues to drive the domestic chocolate market, according to Euromonitor International,”The growing dark chocolate consumption by elderly Japanese consumers reflects the country’s aging population.”
The Indian chocolate market is projected to register a CAGR of 8.12% during the forecast period (2022-2027) according to MordorIntellegence. The Indian chocolate market is witnessing a high demand for dark chocolates. The low sugar content in the dark chocolates is a major factor propelling the demand for them, as consumers have become aware of high sugar intake and its link with chronic diseases like diabetes. Another major factor driving the Indian chocolate market is the increase in the population of younger persons, who are the key consumers of chocolates. Currently, around half the total population of India is aged below 25 years, and two-thirds are aged below 35 years. Hence, chocolates are replacing traditional sweets in the country.
According to MarketDataForecast the Middle East and Aftrica confectionary market is growing at a CAGR of 1.91% to reach $15.63 billion by 2026. The cocoa and chocolate market has been growing at a slow but steady pace.
Post time: Jun-19-2023
