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Premium Chocolate Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global premium chocolate products market was valued at USD 56.68 billion in 2022 and is expected to register a CAGR of 6.2% from 2023 to 2030. Increasing consumer disposable income in emerging countries has led to an increase in demand for premium chocolate products. The rising trend of gifting premium chocolates has also resulted in the growth of the market. Furthermore, the development of innovative products, such as organic premium chocolate, has also been a key factor in driving the market.
The emergence of various new flavors and ingredients has also been driving the market. For instance, in 2020, Lindt & Sprüngli launched a limited-edition Easter range, which included a combination of fruits, nuts, flavors, and textures. The company also launched a range of premium chocolate bars with a mixture of flavors, including dark chocolate with pink salt and white chocolate with crispy pieces of coconut. Furthermore, the growing demand for dark chocolate is gaining traction among health-conscious consumers, which is expected to boost sales of premium chocolate products.
In addition to that, the increasing popularity of customization among consumers is likely to drive the market. Consumers are increasingly preferring customization options, such as personalized messages and shapes. For instance, in 2020, Godiva launched an online customization platform, which offers personalized messages and shapes. The platform allows customers to customize their gifts with a variety of messages, shapes, and colors.
The growing demand for organic and vegan premium chocolate is also one of the key factors driving the market. Companies are introducing new organic and vegan products to cater to the growing consumer demand. For instance, in 2020, Hershey launched a line of organic chocolate bars using organic ingredients, such as cocoa butter, cocoa, sugar, and vanilla. The company also launched vegan dark chocolate bars, which are free from dairy, gluten, nuts, and soy.
Moreover, the rising awareness about health benefits associated with cocoa is expected to drive the market. According to a study published in 2019, cocoa contains high levels of flavonoids, which are beneficial for cardiovascular health. This factor is expected to drive the demand for premium chocolate products. Furthermore, the increasing penetration of e-commerce is expected to boost the sales of premium chocolate products.
Product Insights
The dark chocolate segment held the leading share in the market in 2019 and is expected to remain dominant over the forecast period. Dark chocolate is rich in flavonoids, which have potential health benefits such as improved heart health, lower blood pressure, improved blood flow, and improved cholesterol. According to a study published in the United States National Library of Medicine, in May 2018, consumption of dark chocolate was found to reduce levels of stress and depression. Furthermore, its complex flavor, intense aroma, and health benefits are contributing to the segment’s growth.
The milk chocolate segment is projected to expand at the highest CAGR of 5.2% during the forecast period. Milk chocolate is widely preferred by the consumers owing to its smooth and creamy texture, which makes it a popular choice among kids and adults. Furthermore, the introduction of various novel flavors and increasing demand for premium and personalized chocolates are augmenting the growth of the market. According to an article published by the International Food Information Council, in March 2020, nearly 50% of consumers prefer milk chocolate over dark chocolate.
Distribution Channel Insights
The supermarkets and hypermarkets segment dominated the market in 2022 and is estimated to maintain its leading position over the forecast period. This is due to the presence of a large number of supermarkets and hypermarkets across the globe, owing to the increasing number of working-class adults and their rising disposable incomes. Furthermore, the presence of a wide range of premium chocolates in supermarkets and hypermarkets assists in creating brand awareness among consumers, which further boosts the segment growth.
The online segment is estimated to expand at the highest CAGR of 15.3% during the forecast period. The growing trend of online shopping is the major factor driving the segment growth. Moreover, the presence of several e-commerce websites, such as Amazon and Walmart, offering premium chocolate products is boosting the segment growth. Furthermore, the increasing number of smartphone users, coupled with the increasing penetration of the internet, is propelling the demand for premium chocolates through online stores.
Type Insights
The premium segment accounted for the largest revenue share of 44.7% in the year 2022. The increasing trend of gifting premium chocolates as a token of appreciation is driving the market for premium chocolates. Further, the increasing demand for premium chocolates for special occasions and festivals is also likely to boost the market for premium chocolates. Companies such as Ferrero and Hershey are launching new premium products to meet customer needs. For instance, in October 2020, Ferrero launched Tic Tac Chocolate Premium in the U.S. to target the premium chocolate segment.
The mass segment is anticipated to expand at the highest CAGR of 10.3% over the forecast period. The increasing demand for affordable chocolates is driving the growth of the mass segment. Additionally, the increased penetration of modern retail stores and e-commerce platforms have boosted the sales of mass chocolates. Furthermore, the growing popularity of private labels in the mass segment is also boosting the market. For instance, in 2020, Mondelez International launched Cadbury Dairy Milk Marvellous Creations Chocolate Bar in the mass segment as a private label.
Regional Insights
Europe dominated the global market and accounted for a revenue share of over 35.2% in 2022. This growth is attributed to the presence of major players like Lindt & Sprüngli, Ferrero, and Mars, Inc. The growing presence of online retailers and strong distribution networks of these players are expected to support the growth of the market in this region. The growing trend of gifting premium chocolates and the presence of affluent consumers are also expected to drive the demand for premium chocolates in Europe.
North America is expected to witness the second-highest growth over the forecast period. The growing demand for premium chocolates is driven by the presence of affluent consumers and the increasing trend of gifting premium chocolates in the region. For instance, in October 2021, Godiva Chocolatier launched home delivery services in the U.S. and Canada. This move is expected to strengthen the presence of the company in the region. Moreover, the presence of luxury players in the region, such as Ghirardelli and Hershey’s, is expected to drive the growth of the market in North America.
Financial Projections
In this part of the premium 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 the premium chocolate products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a premium chocolate products business comes from direct sales, wholesale orders, and online 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 premium chocolate products business running will be described. The list of operating expenses includes raw materials, packaging, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the premium 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 June 2022, Hershey’s launched a premium dark chocolate bar with a hint of sea salt.
– In August 2022, Lindt & Sprüngli AG launched a range of premium chocolates with a variety of flavors such as hazelnut, raspberry, and orange.
– In October 2022, Godiva Chocolatier launched a new range of premium chocolates with organic ingredients.
Some of the prominent players in the premium chocolate market include:
– Mars Inc.
– The Hershey Company
– Mondelēz International, Inc.
– Lindt & Sprüngli AG
– Nestlé SA
– Ferrero Group
– Godiva Chocolatier
– Ghirardelli Chocolate Company
– Lindt & Sprungli
– Guylian
Global Premium 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 global premium 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
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Drivers of the Global Premium Chocolate Products Market?
[A]: The increasing demand for premium and authentic chocolate products, the growing presence of leading chocolate companies, and the growing focus on organic and sustainable products are some of the major drivers of the global premium chocolate products market. Additionally, the rising demand for dark chocolate and the growing preference for personalization of chocolate products are also driving the market.
[Q]: Which Regions are Expected to be Lucrative for Premium Chocolate Products?
[A]: North America, Europe, Asia-Pacific, and the Rest of the World are expected to be the lucrative regions for premium chocolate products. The increasing demand for dark and organic chocolate products and the growing presence of leading chocolate companies in these regions are expected to drive the premium chocolate products market in these regions.
[Q]: What are the Major Challenges Faced by the Premium Chocolate Products Market?
[A]: The rising costs of cocoa, the increasing competition from local brands, and the availability of counterfeit products are some of the major challenges faced by the premium chocolate products market. Additionally, the rising health concerns due to the consumption of chocolate products is also expected to hamper the growth of the market.
[Q]: Who are the Major Players in the Global Premium Chocolate Products Market?
[A]: Some of the major players in the global premium chocolate products market are Mondelez International, Inc., Mars Inc., Nestlé S.A., The Hershey Company, Ferrero International S.A., and Cargill Incorporated.
[Q]: What are the Trends in the Global Premium Chocolate Products Market?
[A]: Some of the major trends in the global premium chocolate products market include the increasing focus on product innovation and personalization, the growing demand for dark chocolate products, and the increasing focus on organic and sustainable products. Additionally, the increasing use of technology to enhance the customer experience is also expected to have a positive impact on the market.
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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