October 31, 2024 – Chocolate is a go-to treat for indulgence and staple food in the US. Consumers in the US prefer chocolate confectionery for its taste, variety, and availability in different formats. Innova’s 360 research into chocolate confectionery market helps to analyse the latest market insights, product launches, top flavors, and what is likely to develop in the future.
Chocolate Confectionery Market Size and Trends
The sales and volume of the US chocolate market have been steadily rising throughout the past five years, by 9% and 1% CAGR, respectively. Chocolate confectionery market research predicts a projected growth rate of 8% CAGR in sales and 1% CAGR in volume in the next five years. The US is the largest chocolate market globally based on market value.
The per capita consumption of chocolate is highest in Europe. Out of 70 monitored countries, the US ranked 22 in terms of per capita chocolate consumption in the past year.
Top Companies and Brands
Chocolate confectionery market research shows that Hershey leads the US chocolate market in both sales and product launches, followed by Mars, Lindt & Sprüngli, and Ferrero. Unlike other categories, chocolate innovation is less fragmented, with the top three companies accounting for 27% of new product launches over the past year.
Hershey’s vision is to be a snacking powerhouse. Some of its top brands are 5th Avenue, Almond Joy, Cadbury, KitKat, Whoppers, etc. The company has introduced plant-based offerings under its Hershey’s and Reese’s brands, using oats and no dairy. The company also continues to innovate with new flavors, shapes, sizes, and seasonal offerings.
Mars, a key competitor, is a family-owned company focused on delivering everyday happiness. In 2017, Mars launched its Sustainable in a Generation plan, with goals for a healthy planet, thriving people, nourishing well-being, and transforming packaging. The company’s top brands include Bounty, Dove, Galaxy, 3 Musketeers, Milky Way, and Snickers. In 2024, Mars completed the acquisition of premium UK chocolate brand Hotel Chocolat, indicating potential future expansion into other geographical markets.
Consumer Chocolate Confectionery Preferences
In the US, more than 60% of consumers purchased chocolate in the past year, with 4 in 10 consuming it more than once a week. While most have maintained their consumption levels, 22% have increased their intake. Consumers eat chocolate because it tastes good, to indulge themselves, or to make themselves happy. Several key factors influencing their purchasing decisions include claims such as “made with real ingredients,” “premium quality,” and “no artificial flavors.” Chocolate confectionery market research displays that taste and flavor attributes influence chocolate purchasing, and milk chocolate is the preferred type.
Chocolate Confectionery Product Launch Trends
Chocolate confectionery launches in the US have been waning over the past five years, with the country contributing just over 8% of global launches in the past year. Despite this, there has been a 3% rise in unwrapped chocolate pieces and a 1% increase in chocolate blocks launches during the same period.
Ethical claims, especially those related to the environment, humans, and animals, have grown significantly over the past five years. Vegan and plant-based claims are on the rise. While cocoa is gluten-free, many chocolate confectionery products contain ingredients with gluten. Gluten-free claims and clean label claims, such as no additives or preservatives, GMO-free, and organic, are also growing in the US. Seasonal and limited edition products have increased from 32% to 36% of launches since 2019.
Chocolate Confectionery Flavors and Ingredient Trends
Almond is the top flavor, followed by caramel, peanut butter, hazelnut, and peanut. Flavors like salted caramel, sea salt, and strawberry have experienced growth in launches. Orange, peppermint, and red raspberry flavors are growing strongly in the space.
Milk chocolate is the most used product base for chocolate confectionery products. There has been a significant rise in dark and white chocolate product base launches over the past year. The addition of nuts and seeds, essential oils/plant extracts, fruits, and grains is rising.
What’s next in the US Chocolate Confectionery Trends?
In the US, chocolate is consumed for happiness and as a treat or reward. The expectation of indulgence and delicious flavor are purchase drivers. Brands can focus on all aspects, from advertising to packaging and product formulation, to boost sales and consumption frequency.
Consumers are increasingly seeking vegan and plant-based options for both personal health and environmental reasons. Brands can tap into this by combining cocoa with other vegan elements. While cocoa beans are inherently plant-based, the fusion with dairy alternatives such as oat milk and other vegan/plant-based ingredients in chocolate confectionery products may likely grow if the flavor and texture of the product don’t suffer.
The demand for real ingredients and products free from artificial ingredients is rising. The fusion of cocoa with superfoods is an emerging trend. Though sugar claims haven’t significantly increased, brands can explore natural sweeteners, such as fruit, for future innovations. As consumer preferences evolve, the future of the chocolate confectionery market is likely to witness more experimentation with health-forward ingredients while maintaining indulgence as a core appeal.
This article is based on Innova’s Now & Next in Chocolate Confectionery in the US report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
