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Chocolate Confectionery Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global chocolate confectionery products market was valued at USD 135.7 billion in 2022 and is expected to grow at a CAGR of 6.3% from 2023 to 2030. Chocolate confectionery products have always been popular among consumers, and the rising demand for premium chocolates is driving the market growth. Increasing health consciousness among consumers due to the rising awareness of the nutritional benefits of dark chocolate is also driving the demand for chocolate confectionery products. Furthermore, rising demand for convenience foods due to time constraints and the increasing disposable income of consumers have been propelling the market growth.
Furthermore, manufacturers are introducing innovative product offerings to cater to the needs of consumers and expand their customer base. For instance, in October 2021, Hershey’s launched Hershey’s Kisses Deluxe, a premium version of the classic Hershey’s Kisses brand. The new product comes in three flavors: almond, mocha, and raspberry crème. Moreover, the rising trend of gifting and the increasing popularity of chocolates as gifts for special occasions and festivals are further propelling the demand for chocolate confectionery products. Additionally, the growing popularity of online platforms for purchasing chocolates is supporting market growth.
In addition, manufacturers are focusing on product packaging to increase their market share. For instance, in October 2021, Ferrero launched Kinder Joy, a product combining chocolate-coated wafer bites and a surprise toy in an innovative dual-compartment egg-shaped packaging. Additionally, the rising popularity of personalized chocolates is also driving market growth. For instance, in October 2021, Lindt launched a personalized chocolate bar that enables consumers to print their own photo or message on the packaging.
Furthermore, manufacturers are increasingly focusing on developing products with natural, clean label, and organic ingredients to meet the rising demand for healthy products. For instance, in August 2021, Nestlé launched its premium plant-based chocolate bar range, Nesquik Organic. This product range is made from certified organic ingredients, such as cocoa, sugar, and rice, and does not contain artificial flavors, colors, or preservatives. Moreover, the rising trend of premiumization in demand for chocolates is also driving the market growth.
Product Insights
The chocolate confectionery segment accounted for the highest market share in 2022 and is expected to continue its dominance over the forecast period. The increasing demand for chocolates due to its rich flavor and texture, and health benefits associated with its consumption are some of the major factors driving the growth of the market. According to an article published by the National Institutes of Health (NIH), in 2019, dark chocolate is rich in antioxidants and has been associated with health benefits such as reduced risk of heart disease, improved cholesterol levels, and improved blood sugar control. Furthermore, factors such as changing lifestyle, rising disposable income, and increasing popularity of chocolates among various age groups are driving the growth of the market.
The sugar confectionery segment is expected to expand at the fastest CAGR of 5.7% over the forecast period. Growing preference for sugar-free and low-sugar confectionery products, rising demand for novelty products, and increasing availability of organic and natural products are some of the key factors driving the market growth. According to an article published by the American Heart Association (AHA), in 2020, sugar-free products are seen as a healthier option and are gaining popularity among health-conscious consumers. In addition, the increasing demand for low-calorie sweets, which are made from natural sweeteners such as stevia, is further propelling the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest share of over 35.1% in 2022. Consumers are increasingly choosing supermarkets and hypermarkets over other retail formats due to their wide range of products, reasonable prices, and convenient locations. Moreover, supermarkets and hypermarkets offer ease of access and convenience to customers, who prefer to purchase the products all at once. Furthermore, these stores feature attractive in-store displays that help to attract customers towards the product.
Online sales are expected to grow at the highest CAGR of 13.2% over the forecast period. The rising penetration of internet and smartphones has enabled companies to expand their presence through online retail platforms, such as Amazon, Flipkart, and Myntra. These e-commerce websites are providing lucrative offers and discounts to attract consumers and thereby increase their customer base. In addition, the presence of online marketplaces has enabled companies to expand their geographical reach, thereby driving the segment growth.
Type Insights
The chocolate segment accounted for the largest revenue share of 43.5% in the year 2022. The high demand for chocolate confectionery products is attributed to the growing popularity of chocolates as a gift item, particularly during celebrations and festivals. Moreover, the rising trend of gifting chocolates on special occasions, such as Valentine’s Day, Mother’s Day, and Easter, is also driving the demand for chocolate confectionery products. Furthermore, the increasing trend of gifting chocolates among family members and friends is expected to supplement the growth of the chocolate segment.
The sugar confectionery segment is anticipated to expand at the highest CAGR of 6.2% over the forecast period. The growing demand for sugar confectionery products is mainly driven by the increasing consumption of hard-boiled candies and lollipops. Moreover, the rising demand for sugar confectionery products, such as gums, jellies, and fruits, is expected to supplement the growth of the sugar confectionery segment. Additionally, the rising demand for sugar confectionery products, such as toffees and chews, is also contributing to the growth of the segment.
Regional Insights
Europe accounted for the largest revenue share of over 35.2% in 2022. This can be attributed to the presence of major players such as Mars Wrigley, Nestle, and Ferrero that are continuously focusing on product innovation to meet the preference of consumers. For instance, in December 2021, Nestle launched its new Dark Chocolate Bar, which is made with ethically sourced cocoa beans.
Asia Pacific is expected to witness the fastest growth in the coming years. An increase in disposable income and the rising trend of gifting premium chocolates are the major factors driving the growth of the market in this region. The premiumization trend is also contributing to the growth of the market as consumers are opting for higher-priced, different, and innovative flavors. For instance, in May 2021, Cadbury launched a special edition of chocolate, which contains flavors such as Tiramisu, Orange, and Salted Caramel.
Financial Projections
In this part of the chocolate confectionery products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your chocolate business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a chocolate confectionery products business comes from the sale of chocolates, confections, and other sweet treats. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and leasing the place for parties and corporate events.
Projecting Expenses
In this section, all the regular expenses related to keeping the chocolate business running will be described. The list of operating expenses includes ingredients, packaging, wages, marketing costs, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the chocolate confectionery market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In October 2022, Mondelēz International Inc. launched a new range of Cadbury chocolates with innovative flavors like mango, strawberry, and orange.
– In November 2022, Nestlé S.A. launched the Kit Kat Chocolatory, a range of premium chocolate bars with exclusive flavors such as red velvet, salted caramel, and cookies & cream.
– In December 2022, Mars, Inc. launched its premium range of chocolate bars, including the Milky Way Midnight, Snickers White, and Twix White.
Some of the prominent players in the chocolate confectionery market include:
– Mondelēz International Inc.
– Nestlé S.A.
– Mars, Inc.
– The Hershey Company
– Ferrero SpA
– Lindt & Sprüngli AG
– Meiji Co., Ltd.
– Godiva Chocolatier
– Pladis Global
– Yamazaki Baking Co., Ltd.
Global Chocolate Confectionery Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global chocolate confectionery products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Chocolate Bars
– Countlines
– Boxed Chocolate
– Novelties
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What Factors are Influencing the Chocolate Confectionery Products Market?
[A]: The chocolate confectionery products market is being influenced by factors such as the rise in the demand for premium and indulgent chocolate products, increased health consciousness among consumers, and changing consumer lifestyles. Moreover, the demand for innovative flavors, textures, and shapes of chocolate confectionery products are expected to boost market growth over the forecast period.
[Q]: Who are the Key Players in the Chocolate Confectionery Products Market?
[A]: Key players operating in the global chocolate confectionery products market include Mondelēz International, Inc., Nestlé S.A., The Hershey Company, Mars Inc., Lindt & Sprüngli AG, and Ferrero Group.
[Q]: What are the Different Types of Products in the Chocolate Confectionery Products Market?
[A]: The chocolate confectionery products market includes various types of products such as chocolate bars, chocolate flakes, chocolate chips, chocolate truffles, and chocolate tablets.
[Q]: What are the Different Distribution Channels for Chocolate Confectionery Products?
[A]: Chocolate confectionery products are available through various distribution channels such as supermarkets/hypermarkets, convenience stores, specialty stores, online stores, and other retail outlets.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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