Technavio analysts forecast that the global chocolate market is set to grow at a CAGR of close to 5% through 2020.
The research study covers the present scenario and growth prospects of the global chocolate market for 2016-2020. In addition, the report provides an analysis of the key competitors in the market. It also discusses the major drivers that influence the growth of the market, the challenges faced by the vendors and the market as a whole, and the key trends emerging in the market.
The number of new product launches, particularly those targeted at the health and wellness category, has been growing significantly. Chocolates are now available with low sugar content, fortified with proteins, and made from organic ingredients.
Technavio food and beverage analysts point to three factors that are contributing to the growth of the global chocolate market:
- Introduction of new varieties of chocolate
- Innovations in packaging
Introduction of new varieties of chocolate
Market players are coming up with new and innovative flavors and launching different products to cater to the changing consumer demands. Products like low and reduced sugar chocolates and those that use organic ingredients are gaining considerable consumer interest. In July 2016, Milkboy Swiss Chocolate introduced three new flavors. In October 2015, Cadbury launched the new Dairy Milk bar with seven different kinds of fillings. In March 2016, Nestlé launched a new variant, combining milk and white chocolate, for its popular KitKat chocolate in India.
In January 2016, Von Geusau Chocolates launched its artisanal range of sugar-free chocolates, available in both milk and dark chocolate. In November 2015, Chocologic introduced its no-added sugar range of chocolates in the UK, which are sweetened using stevia. To cater to the needs of consumers who are concerned about the ingredients used in their chocolate, players in the market are coming up with organic chocolates. In June 2016, Madécasse introduced its new range of USDA certified organic chocolate bars.
Innovations in packaging
According to Manjunath Reddy, a lead analyst at Technavio for food research, “Players in the market are introducing new packaging for their product offerings to increase the shelf life of the products and also to revive consumer interest in their products.” In 2015, Cacao Barry introduced new packaging that allows for easier storage, reclosing, and recyclability. In April 2016, rlc Packaging introduced packaging using iriodi pigment for Nestlé. The boxes are designed with 14 UV printing inks and uses iriodi pigment for a sparkling finish. Vendors are also selling chocolates in small packs as these packs attract price-sensitive consumers due to their low cost. Also, small packs are ideal for calorie-conscious consumers who prefer consuming smaller quantities of chocolate.
With the governments of many countries implementing regulations to ensure the protection of the environment, vendors in the chocolate market are also packaging their products in biodegradable materials. For example, Barry Callebaut has collaborated with paper manufacturer James Cropper to make environment-friendly wrappers using cocoa husks. In June 2016, Barkeater Chocolates upgraded the packaging of its chocolate bar range from plastic sleeves to paperboard boxes.
The demand for premium chocolates is growing around the world, particularly in countries such as the U.S. and Brazil. Players are positioning their premium chocolates as gifting options. For instance, In India, Mondelēz has positioned its Toblerone and Bournville brands as suitable for gifting.
“As part of the drive toward premiumization, players are also offering single-origin chocolate products. These chocolates are made from one variety of cocoa harvested in one region,” said Manjunath. In July 2015, Harald and Nugali, two Brazilian chocolate companies, launched their single origin chocolate products in the U.S. market. In May 2016, Haigh’s Chocolates launched four new single-origin chocolates from Ecuador, Madagascar, Papua New Guinea, and the Dominican Republic.