Global Chocolate Market – Insights
Chocolate is a typically sweet, usually brown comfort food prepared from cocoa tree in the form of blocks, liquid, or paste. Chocolate is used as flavoring ingredients in several foodstuffs, such as chocolate brownies, cakes, chocolate cookies, bars, and candies. The main ingredient cocoa provides phytochemicals, which is an antioxidant. The content of phytochemicals is high in dark chocolates. Chocolate increases serotonin levels in the brain and the gut and improves immune system.
The increasing awareness of health benefits associated with chocolate is major factor propelling growth of the chocolate market. Consuming chocolate offers health benefits such as blood pressure suppressing property, antioxidant enrichment, and anti-aging. Furthermore, increasing demand for chocolate and chocolate-base products on seasonal and festival occasion significantly contributes to growth of the chocolate market. High demand for chocolate in confectionery market further fuels growth of the market. For instance, according to Coherent Market Insights’ analysis, the confectionery market is expected to witness CAGR of 3.8% during the forecast period of 2017 - 2025.
Europe led the chocolate market and is expected to grow at CAGR of 4.6% during the forecast period, 2017-2025. It is expected to be valued at US$ 43.20 billion by 2025. According to National Confectionary Association (NCA), Germany led one-fourth of the Western European in sales and consumption in 2016. North America is the second largest chocolate market with the U.S being major economy in the region. It has the highest consumption of chocolate and presence of international players such as Mars, Mondelez, etc. Asia Pacific is the fastest growing region in chocolate market, owing to the growth of multinational companies in the region such as Mars, Hershey’s, Ferrero, and Ghirardelli. Also, high consumption of chocolate by growing population is propelling the demand for the growth of chocolate market over the forecast period.
By price range, economy range chocolate has the highest demand. During festivals such as Christmas, Easter, and Diwali demand for economy range and mid-range chocolate is high due to large population of low-income economy. According to World Bank PovcalNet Database, around 56% of global population is low-income and around 13% is middle-income population. Among products type, molded bars have the highest shares and it was valued at US$ 35.34 billion in 2016.
Figure 1. Global Chocolate Market Share, By Flavor, 2016
Source: Coherent Market Insights (2017)
Among flavored chocolates, milk chocolates dominates the global chocolate market, which was valued at US$ 39.49 billion in 2016 and it is growing at a CAGR of 6.0% during the forecast period of 2017 - 2025. Dark chocolates have the second largest market growing with a CAGR of 8.3% during the forecast period of 2017 - 2025. Owing to various health benefits and increased awareness among the peoples regarding dark cocoa chocolates is expected to propel the demand for dark chocolates over forecast period.
According to the International Cocoa Organization, the net sales of the Mars Inc. was at the peak in 2016 with US$ 18000 Million followed by, Mondelez International with US$ 12,900 Million.
Major Players in the Chocolate Market:
Some of the major players in the chocolate market include Mars, Hershey, Nestlé, Barry Callebaut, Kraft Foods, Ferrero, Moonstruck Chocolatier Co., Ghirardelli Chocolate Co., and Mondelez International (Cadbury).