Chocolate Confectionery Market size is set to grow by USD 31 billion from 2024-2028, Frequent product launches to boost the market growth, Technavio

NEW YORK, July 8, 2024 /PRNewswire/ -- The global chocolate confectionery market size is estimated to grow by USD 31 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.36% during the forecast period. Frequent product launches is driving market growth, with a trend towards packaging innovations in global chocolate confectionery market. However, increase in number of product recalls poses a challenge. Key market players include Boutique and Workshop, Barry Callebaut AG, Cargill Inc., Cemoi, Chocoladefabriken Lindt and Sprungli AG, Chukar Cherry Co. Inc., Divine Chocolate Ltd., Ezaki Glico Co. Ltd., Ferrero International S.A., Firetree Chocolate Ltd., Lotte Corp., Mars Inc., Mast Brothers Inc., Meiji Holdings Co. Ltd., Mondelez International Inc., Moo Free Ltd., Nestle SA, Neuhaus NV, Peeps and Co. Inc., and The Hershey Co..

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Key Market Trends Fueling Growth

Vendors in the chocolate confectionery market introduce innovative packaging to make their products more appealing and increase their shelf life. Consumers prefer products with strong brand appeal and identity, which is delivered through attractive packaging formats. Advanced packaging techniques protect packaged chocolates from external agents such as moisture and contaminated air. In the premium chocolate category, there is a significant demand, leading many players to adopt luxurious packaging variants. For instance, a recent collaboration between a chocolate company and Bulletproof, a US-based packaging design agency, resulted in new packaging featuring a quality seal highlighting ethically sourced cocoa and high-quality ingredients. Innovative packaging formats include plastic film and aluminum foil by Chocoladefabriken Lindt, interactive chocolate packaging for kids by Choco bites, and handcrafted textured packaging by 9th and Larkin. Symmetrical chocolate packaging by BEAU CACAO is another example of unique design in the industry.

The chocolate confectionery market is thriving with trends like gifting traditions, novel chocolate flavors, and innovative formulations. Seasonal chocolates and consumer packs are popular choices for various occasions. However, consumer reticence towards added sugar content is driving the demand for sugar-free chocolates. Dark chocolate, fair-traded cocoa, and luxury indulgence continue to be favorites. Exotic spices, herbs, and floral notes add distinct flavors. Chocolatiers experiment with rare cocoa varieties and single-origin chocolates, offering unexpected textures. Chocolate lovers and health-conscious individuals seek higher cocoa content and sugar-free options. Home bakers, cooks, and specialty chocolatiers use chocolate as a fundamental ingredient for cakes, brownies, cookies, pastries, and decorative purposes. Visual appeal and desserts are essential for consumer preferences. Gourmet chocolate products and high-quality chocolate confectioneries cater to diverse tastes.

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Market Challenges

• The chocolate confectionery market faces a significant challenge with the rising number of product recalls. These recalls negatively impact the industry's reputation and impose increased operational costs and financial burdens on companies. In 2022, Euphoria Chocolate Company voluntarily recalled their traditional peanut butter truffles, dark chocolate peanut butter meltaways, and milk chocolate peanut butter meltaways due to potential health hazards. Similarly, Strauss Israel recalled various Elite-branded goods, including chocolates, cakes, wafers, energy snacks, chewing gum, and toffee candies, due to potential Salmonella contamination. These recalls pose a serious concern, as Salmonella can cause severe infections, particularly in vulnerable populations. Companies must prioritize food safety to mitigate the risks and protect their brand reputation.
• The chocolate confectionery market faces several challenges. Micro-organisms like Salmonella pose food safety risks, requiring stringent production processes. Heavy metals, such as cadmium, in chocolate can raise health concerns. Consumers demand organic and sustainably sourced chocolate, prioritizing sensorial appeal and ethical production. Mainstream chocolates compete with premium and specialty chocolate products, gifting items, and traveling or festival-related offerings. Health-conscious consumers seek out natural flavors, sugar reduction, and healthy ingredients. Premiumization, luxury chocolates, and innovative varieties are popular in developed economies. Antioxidants, minerals, and sugar content are key considerations for health-focused consumers. Mushroom-infused chocolates and sugar-free snacks cater to niche markets. Stress-relieving characteristics and seasonal festive occasions, such as Christmas and Easter, drive demand. Dessert and religious events, as well as special occasions, also boost sales. Milk and white chocolate segments dominate the market, with ongoing research on reducing sugar content and exploring new natural ingredients. Lifestyle-related health conditions, like obesity, diabetes, and cardiovascular diseases, necessitate sugar reduction and healthier options.

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Segment Overview

This chocolate confectionery market report extensively covers market segmentation by

1. Product
• 1.1 Chocolate bars
• 1.2 Boxed assortments and seasonal variants
• 1.3 Others
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Chocolate bars- The chocolate bars segment dominates the global chocolate confectionery market, holding the largest share in 2023 and projected to remain so through 2028. This segment consists of countlines and molded bars. Countlines are individually wrapped, chocolate-coated bars, while molded bars are small chocolate pieces cut from larger blocks. Brands like Snickers, Milky Bar, Milka, Galaxy, 5 Star, Dove, and Cadbury Dairy Milk lead this category. Unique chocolate flavors and attractive packaging drive demand. Innovations include smooth-textured dark chocolate, protein bars, vegan varieties, and quinoa, sugar-free, and single-origin chocolate bars. Retail expansion and product launches positively impact sales during the forecast period.

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Research Analysis

The chocolate confectionery market is experiencing a surge in demand due to the increasing popularity of premium quality chocolate products. Consumers are now more inclined towards chocolate bars made with milk mousse, creamy caramel, and trans-fat-free formulations, aligning with healthy eating lifestyles. Dark chocolate confectionery, known for its rich antioxidant properties derived from cocoa, is a favorite among health-conscious individuals. However, concerns over label claims, such as micro-organisms like salmonella, heavy metals like cadmium, and other contaminants, continue to pose challenges for manufacturers. Organic chocolate, sustainably sourced chocolate, and rare cocoa varieties are gaining traction as consumers seek ethical and authentic chocolate experiences. The market also caters to chocolate lovers with luxury indulgence, artisanal chocolates, and unexpected textures, exotic spices, herbs, and floral notes. Chocolatiers continue to innovate with distinct flavor combinations and single-origin chocolates, offering a sensorial appeal that appeals to a broad consumer base.

Market Research Overview

The chocolate confectionery market is experiencing significant growth due to the increasing popularity of premium quality chocolate products. Consumers are seeking out chocolate bars made with simple ingredients, trans-fat-free, and aligned with healthy eating lifestyles. Dark chocolate confectionery, known for its health benefits, is a popular choice, with flavors ranging from creamy caramel and milk mousse to peanut butter and vegan options. Premium chocolate brands are innovating constantly, offering vegan milk bars, cruelty-free, organic, and sustainably sourced chocolate. Label claims such as 'clean-label' and 'paleo-friendly' are also gaining traction. Chocolate is consumed in various forms, from grocery stores and supermarkets to e-commerce platforms, festivals, small occasions, home cooking, bakeries, and restaurants. Millennials and centennials are driving demand for less sugar, less processed, and natural chocolate products. Chocolate is not just a dessert but also a stress-reliever, making it a popular choice for seasonal festive occasions, religious events, and special occasions like Christmas and Easter. Innovative varieties, attractive packaging, and sustainable production methods are key trends in the chocolate market. However, concerns around micro-organisms like salmonella and heavy metals like cadmium persist, making it essential for chocolate manufacturers to maintain high standards of hygiene and sustainability.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Chocolate Bars
• Boxed Assortments And Seasonal Variants
• Others
• Distribution Channel
• Offline
• Online
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

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SOURCE Technavio