Asia Pacific Chocolate Market Analysis

Chocolate is prepared with roasted and ground cacao seeds that made in the form of paste, block, and liquid. Chocolate can be used as a flavoring agent in various food applications. It has numerous health benefits and has a unique and sweet taste. Its consumption reduces the risk of various diseases such as coronary heart disease and hypertension. Moreover, studies reveal that it has a high level of antioxidants.

The Asia Pacific chocolate market is estimated to account for US$ 17,968.3 Mn in terms of value by the end of 2019.

Drivers:

The presence of a large youth population in the Asia Pacific region is predominantly fueling the market growth of the chocolates. According to the United Nations World Population, over 60% of the world’s youth live in Asia-Pacific. This translates into more than 750 million young women and men aged 15 to 24 years. The increasing population in the region is also contributing to the market growth of the chocolate over the forecast period.

Increasing per capita income of consumers in the Asia Pacific region due to overall economic growth is projected to foster the market growth of chocolate. Increasing disposable income of the consumer leading to an increase in the sale of the premium chocolates which is again propelling the market growth. Thus, the rise in per capita income of the consumer is expected to positively impact the market of the chocolates over the forecast period.

Figure 1 Asia Pacific Chocolate Market Share (%) in terms of Value, By Countries, in 2019

Japan dominated the Asia Pacific chocolate market in 2019, accounting for 26 % share in terms of value, followed by China and Australia, respectively

Market Restraints

The high cost of the raw materials used in the production of chocolate increase the overall price of the chocolates. Harsh weather condition is affecting the production of cocoa. This is expected to hamper the market growth of the chocolates.

Poor economic scenario across the Asia Pacific region due to unstable rules and regulations affects the supply of cocoa to manufacturers. This factor negatively affects the market growth of the chocolates.

Asia Pacific Chocolate Market Report Coverage

Report Coverage	Details
Base Year:	2019	Market Size in 2019:	US$ 17,968.3 Mn
Historical Data for:	2016 to 2019	Forecast Period:	2020 to 2027
Forecast Period 2020 to 2027 CAGR:	5%	2027 Value Projection:	US$ 27,067.2 Mn
Geographies covered:	Asia Pacific: Australia, New Zealand, China, Japan, India, South Korea, Malaysia, Singapore, and Rest of APAC
Segments covered:	By Product Type: Boxed Chocolates, Straightlines Chocolates, Molded Bars, Chocolate Novelties, and Other Chocolates
Companies covered:	Ferrero S.p.A, MARS Inc., Mondelez International, Inc., (Kraft), The Hershey Company, Lotte Co., Ltd, and Nestle S.A.
Growth Drivers:	Increasing per capita income of consumers in the Asia Pacific region The presence of a large youth population in the Asia Pacific region
Restraints & Challenges:	The high cost of the raw materials used in the production of chocolate increase the overall price of the chocolates.

Market Opportunities

The growing consumption of dark chocolates due to growing awareness regarding the health benefits of dark chocolate is expected to provide potential market opportunities. For instance, in November 2019, Nestle has launched 70% dark chocolate made entirely from the cocoa fruit. The chocolate has cocoa beans and pulp as the only ingredients that deliver natural sweetness and subtle acidity without added refined sugar.

Increasing application of chocolates in various food products as an ingredients is projected to provide profitable market opportunities over the forecast period. Nowadays chocolates are widely used in confectionery, desserts, beverages, and bakeries. Increasing consumer spending on food products is fueling the food and beverage industry growth which is further augmenting the market growth of chocolates. Thus, expanding applications of chocolates is expected to bolster the market growth of chocolates. 

Figure 2. Asia Pacific Chocolate Market– Opportunity Analysis

Market Trends/Key Takeaways

The increasing trend of gifting chocolates during festivals and other occasions is expected to propel the market growth of the chocolates. Moreover, increasing consumption of the chocolates for relaxing the mind and inducing happiness during mood swings is again contributing to the market growth of the chocolates. All these factors are increasing demand for chocolates and are projected to remain high during the forecast period.

Growing usage of e-commerce platforms by millennial and generation X due to the growing trend of digitalization is expected to spur the market growth. Ecommerce platforms offer various value-added services, such as cash-on-delivery, paybacks, and discounted prices which is further augmenting the market growth of chocolate over the forecast period.

Figure 3. Asia Pacific Chocolate Market Share (%) in terms of Value, By Product Type, in 2019

On the basis of product type in 2019, the molded chocolates segment has accounted the largest market share of 31% in terms of value, followed by countline and boxed respectively.

Asia Pacific Chocolate Market - Impact of Coronavirus (Covid-19) Pandemic

Coronavirus is expected to have a significant impact the manufacturing sector as due to the pandemic situation the global sales of the many products including chocolate products have come down to a grinding halt. Due to the lockdown, all sorts of chocolate-manufacturing factories are closed. On the other hand, major manufacturers of chocolate globally are moving towards online sales channel to provide convenience delivery to the customers thereby, increasing their sales.

Value Chain Analysis

Competitive Section:

Company Names 

1. Ferrero S.p.A
2. MARS Inc.
3. Mondelez International, Inc. (Kraft)
4. The Hershey Company
5. Lotte Co., Ltd.
6. Nestle SA

Few Recent Developments

In February 2019, Mars Inc., a confectionery, chocolate, and pet food makers, has announced that it is planning to develop more local products for the Indian market.