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North America Chocolate Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The North American chocolate products market is estimated to be valued at USD 20.3 billion in 2022 and is expected to grow at a CAGR of 7.9% from 2023 to 2030. A shift in the consumer preference towards premium and indulgent chocolates has been observed in the region. Consumers in this region are increasingly opting for dark chocolates, owing to their rich taste and health benefits. Furthermore, the rising trend of gifting chocolates for special occasions is also driving the demand for chocolate products in the region.
Manufacturers are focusing on introducing new product offerings to attract consumers. For instance, in April 2021, Ferrero launched a limited edition of chocolates called Ferrero Rocher Diwali collection. The chocolates are available in four variants of nut, crunchy, hazelnut, and almond. Moreover, the rising demand for organic and natural chocolates is expected to fuel the market growth. For instance, in March 2021, Nestlé launched a new organic dark chocolate bar under the brand name Raisinets. The product is free from artificial colours, flavours, and preservatives.
Furthermore, the increasing demand for chocolate confectionery is driving the growth of the market. Manufacturers are introducing innovative and unique flavoured chocolates to capture the attention of the consumers. For instance, in August 2021, Hershey’s launched a new range of chocolates called Hershey’s Chocolate Candy Cane Pieces. The product is a mix of white chocolate and peppermint candy pieces.
Additionally, the growing demand for vegan and sugar-free chocolates is also boosting the market growth. Manufacturers are introducing sugar-free chocolates to cater to the health-conscious consumers. For instance, in July 2021, Lindt & Sprüngli launched a new sugar-free chocolate range intended for diabetics. The product is made of lactose-free and gluten-free ingredients.
Moreover, the increasing trend of online shopping is expected to propel the market growth. The online platform offers convenience to consumers, allowing them to shop from anywhere and at any time. In addition, attractive discounts and free delivery offered on online platforms are projected to drive online sales of chocolate products.
Product Insights
The dark chocolate segment led the market and accounted for a share of around 44.2% in 2022. Increasing awareness regarding the health benefits associated with dark chocolate has been driving the demand for dark chocolate products over the years. According to an article published by Healthline, in March 2020, dark chocolate is rich in fiber, iron, magnesium, copper, manganese, and other essential nutrients. Furthermore, macro-level factors such as rising disposable income among consumers and growing demand for premium chocolates are also driving the growth of the market.
The milk chocolate segment is anticipated to expand at the fastest CAGR of 5.2% over the forecast period. Growing adoption of dairy-based confectionary products and rising consumer preference for milk chocolate products are some of the key factors driving the North America chocolate products market growth revenue. According to an article published by The Atlantic, in April 2020, milk chocolate is still the most popular type of chocolate among shoppers in North America. In addition, increasing consumer perception about the health benefits of dark chocolate is another factor driving the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest market share in 2022. The segment is expected to remain dominant throughout the forecast period. The presence of supermarkets and hypermarkets in developed countries, such as the US and Canada, has increased significantly in recent years. Supermarkets/hypermarkets provide consumers with a wide variety of chocolate products at reasonable prices. Moreover, the development of private label brands by supermarkets and hypermarkets makes them a preferred choice for consumers.
The online segment is expected to witness the fastest growth over the forecast period. The increasing access to internet in North America, along with the rise in mobile users, is driving the demand for online chocolate products. Moreover, the introduction of online-exclusive brands and discounts offered by e-commerce websites further increases their demand. Furthermore, the launch of various applications, such as ChocZero, that offer sugar-free and keto-friendly chocolate, is estimated to fuel the segment’s growth.
Type Insights
The North America chocolate products market is bifurcated into milk and dark chocolate. The milk chocolate segment is estimated to account for the largest revenue share of 77.9% in the year 2022. Milk chocolate has been a preferred choice among consumers due to its sweetness and creamy texture. Companies such as Mars, Inc. and Hershey have been focusing on introducing new flavors and expanding their product portfolio to capture a larger market share. For instance, in August 2022, Mars, Inc. launched a new flavor called Milky Way Caramel Apple in the U.S. market.
The dark chocolate segment is anticipated to expand at the highest CAGR of 8.4% over the forecast period. Increasing awareness about the health benefits of dark chocolate such as antioxidants, iron, and calcium is projected to propel segment growth. Companies such as Mondelēz International and The Hershey Company have been focusing on introducing new flavors and products to expand their product portfolio. For instance, in August 2022, The Hershey Company launched a new flavor called Hershey’s Special Dark Chocolate with Almonds in the U.S. market.
Regional Insights
North America dominated the market and accounted for the largest revenue share of over 45.7% in 2022. The increasing demand for premium and organic products is expected to drive the growth of the market. A significant rise in the number of working women, busy lifestyle, and hectic work-life balance are some of the key factors behind the growth of the market in the region. The presence of major players such as Hershey’s and Mars, Inc. is also expected to further drive the growth of the market. For instance, in February 2021, Hershey’s launched a range of new premium products, such as Hershey’s Dark Chocolate and Hershey’s Milk Chocolate, in the U.S.
Central & South America is expected to witness the second-fastest growth in the coming years. The growing population, along with the increasing purchasing power of the people in the region, is expected to drive the market growth. Moreover, the rising trend of gifting chocolates is further expected to aid the market growth. For instance, in June 2021, ChocoRite launched its new range of premium chocolates in Brazil.
Financial Projections
In this part of the North America Chocolate 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 business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a North America Chocolate Products business comes from product sales, subscriptions, online sales, retail sales, and wholesale sales. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, food & beverage, 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 North America Chocolate Products business running will be described. The list of operating expenses includes labor costs, supplies, packaging, shipping, marketing and advertising, administrative costs, taxes, and others.
Key companies & market share insights
Some of the key companies operating in the North American chocolate 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, Mars Inc. launched the M&M’s Dark Chocolate line of products in the United States.
– In December 2022, Hershey’s launched their new range of vegan chocolates.
– In February 2022, Nestle SA launched their new range of organic chocolate products.
Some of the prominent players in the North American chocolate market include:
– Mars Inc.
– Hershey’s
– Nestle SA
– Mondelez International, Inc.
– Ferrero SpA
– The Lindt & Sprungli Group
– Ghirardelli Chocolate Company
– Godiva Chocolatier
– Rocky Mountain Chocolate Factory
– Chocolove
Global North America Chocolate 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 North America chocolate products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Dark Chocolate
– Milk Chocolate
– White Chocolate
– 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
– Canada
– Mexico
– U.S.
Frequently Asked Questions
[Q]: What is the Potential of Product Innovation in the North America Chocolate Products Market?
[A]: Product innovation is a key factor driving the North America chocolate products market. Manufacturers are focusing on developing new and innovative products to attract new customers and increase market share. For example, the introduction of healthy and organic chocolates, as well as chocolates with unique flavors, are key strategies adopted by leading players in the market.
[Q]: Who are the Key Players in the North America Chocolate Products Market?
[A]: Nestlé S.A., The Hershey Company, Mars Inc., Mondelēz International, Inc., Ghirardelli Chocolate Company, Lindt & Sprüngli AG, and Ferrero Group are some of the leading players in the North America chocolate products market.
[Q]: What are the Factors Driving the North America Chocolate Products Market?
[A]: Factors such as the increasing disposable income, changing consumer preferences, and the growing demand for convenience food products are driving the growth of the North America chocolate products market.
[Q]: Which Region Offers the Largest Opportunity for Sales of North America Chocolate Products?
[A]: The United States is expected to offer the largest opportunity for sales of North America chocolate products. The country is expected to account for over 70% of the market’s total revenue in 2020.
[Q]: What are the Opportunities for New Market Entrants?
[A]: New market entrants can capitalize on the increasing demand for organic and healthy chocolates, as well as chocolates with unique flavors. They can also focus on developing innovative packaging solutions to attract new customers.
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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