July 18, 2024 – Here we explore the global chocolate confectionery market, highlighting key trends and opportunities. We will highlight key consumer insights and preferences, analyze the latest product launches, and explore how brands are responding to consumer demands for healthier options, sustainable practices, and exciting new flavors.
Chocolate Confectionery Market Size and Trends
The global chocolate confectionery market is growing, with a CAGR of 3% in sales and 2% in launches over the past five years. Additionally, Innova’s chocolate confectionery market research projects similar growth rates. The US is the largest chocolate market regarding sales, more than doubling the market size of the next largest country, Germany. Pakistan, Ukraine, and the US are projected to grow fastest over the next five years in chocolate sales.
Per capita consumption of chocolate is highest in Europe, with Switzerland taking the top spot. This is followed by Estonia, Ireland, Finland, Austria, Singapore, and Germany.
Top Companies and Brands in the Chocolate Confectionery Market
The global chocolate confectionery market has a few key players; Mondelēz (7% of global launches), Nestlé (6%), and Lindt & Sprüngli (6%). Mondelēz, with a focus on consumer-centric growth and sustainable practices, aims to expand its presence in under-represented markets and price tiers. Nestlé, with its mission of “good food, good life,” emphasizes responsible sourcing and regenerative agriculture practices. Lindt & Sprüngli, known for its premium quality, is committed to sustainable cocoa sourcing and achieving net-zero greenhouse gas emissions by 2050.
These companies have a diverse portfolio of brands, each catering to specific consumer preferences. Mondelēz boasts popular brands like Cadbury, Milka, and Toblerone, while Nestlé features iconic names like KitKat, Aero, and Smarties. Lindt & Sprüngli’s portfolio includes Lindor, Ghirardelli, and Russell Stover.
While these companies represent a large portion of launches in the category, the category is fragmented in terms of NPD activity. The top 10 companies account for only 37% of product launches, indicating a significant presence of smaller players and a dynamic landscape for innovation.
Chocolate Confectionery Consumer Insights
Globally, 65% of consumers purchased chocolate confectionery in the past year, with one-third consuming it weekly. While two-thirds maintained their consumption levels compared to the previous year, 18% reported an increase, driven by factors like taste, happiness, and treating themselves.
Consumer preferences lean towards real ingredients and product safety, with 22% of buyers influenced by these claims. Milk chocolate remains the most popular base, but dark chocolate is gaining ground, accounting for one-third of launches. Hazelnut is the most popular added flavor, followed by almond and caramel.
Taste is the primary reason for consuming chocolate, with 55% of consumers citing it as a key factor. Indulgence and relaxation are also important, with 40% and 35% of consumers respectively citing these reasons.
Flavor influences purchasing decisions, with milk chocolate being the preferred type. Consumers are increasingly seeking out ethical and sustainable claims, with human welfare and environmental claims growing in popularity. Vegetarian and vegan claims are also on the rise, reflecting the growing demand for plant-based options.
Chocolate Confectionery New Product Launch Trends
The global chocolate confectionery market saw a 2% average growth in product launches over the past five years, with a rebound in 2022 and 2023 following a dip in 2020 and 2021 due to the COVID-19 pandemic.
West Europe is the leading region for chocolate product launches, contributing 40% of the activity. Australasia and Africa experienced significant increases in launch counts, with CAGR’s of 17% and 8% respectively over the past five years.
Globally, chocolate blocks contribute to one-third of launches in the category, while pieces wrapped in individual portions are showing growth in their share of launches.
Ethical claims related to human welfare and the environment are growing in their share of launches. Vegetarian and vegan claims are also increasing, coupled with ethical sourcing and sustainable agriculture programs.
Plant-based and palm oil-free claims are emerging globally, reflecting consumer demand for more sustainable and ethical options.
Hazelnut is the most popular added flavor, followed by almond and caramel. Milk chocolate remains the dominant base, with dark chocolate accounting for one-third of launches and white chocolate seeing a rise from 10% to 15% over the past five years.
Seasonal and limited edition launches are increasing globally, with Easter, Christmas, Valentine’s Day, and Halloween being the top occasions.
What’s Next in the Global Chocolate Confectionery Market?
The global chocolate confectionery market is expected to continue growing moderately, driven by demand for premium products and sustainable practices. However, the recent spike in cocoa prices is affecting production costs, presenting a challenge.
Key innovation opportunities lie in adding sustainability, functional ingredients, and sensorial experiences while focusing on affordability alternatives. Consumers are seeking everyday moments of happiness and relaxation, making indulgence and delicious flavors key drivers of purchase.
Real, healthy ingredients and safety are top of mind for consumers, with palm oil-free emerging as a significant claim. Vegetarian, vegan, and plant-based options are growing, as cocoa beans are inherently vegan and dairy alternatives are becoming increasingly popular.
Finally, planetary concerns are on the rise, with consumers demanding sustainable and transparent ingredient sourcing. Brands can connect with potential consumers by telling the story of their ingredients and how they are produced in a way that restores and regenerates the environment.
This article is based on our report, “Now & Next in Global Chocolate Confectionery
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