Global chocolate market projected to show $45 billion growth over five years
A sustained pattern of growth has been projected for the global chocolate market, which is expected to deliver a total of $45.78 billion increase in value between 2022 and 2027, with premium brands leading the pack for delivering its enhanced performance, reports Neill Barston.
The study from research group, Technavio, shows a period of consolidated growth, with the organisation rating the present international value of the category at over $150 billion, with compound annual increases of 4.97% predicted led by major players including Barry Callebaut, Mars, Lind & Sprungli, Mondelez International, Ferrero, Cargill, Hershey, Nestle, Meiji Holdings and Ghirardelli among others.
As the research found, in addition to greater levels of premiumisation of product ranges, an enhanced array of new launches and prominent marketing is also a major contributing factor, demonstrating that innovation within the sector has continued apace. This is despite a number of background challenges including inflation pressures impacting on ingredients costs, as well wider supply chain challenges impacted by the ongoing war in Ukraine.
Significantly, the study noted an increasing preference for organic, sugar-free, vegan, and gluten-free chocolates by health-conscious consumers is also significantly adding to the increasing demand for premium chocolates. Hence, such factors are expected to positively impact the market growth, which, in turn, will drive the chocolate market growth during the forecast period.
As the report continued, several vendors in the market are offering various healthy variants of their chocolate products, such as chocolates with low-sugar content and increased fortification of nutrients. Furthermore, there is an increasing preference for organic raw chocolates that contain vitamins, minerals, and antioxidants. Hence, such factors are expected to drive the chocolate market growth during the forecast period.
Notably, while healthier options have at gained significant media attention in recent years, there have been high-profile instances of such sugar-reduced variants performing with some degree of inconsistency. For example, in the UK, Nestle withdrew its Wowsome bars that had been designed with less sugar, and within the past month, Mondelez International has also confirmed that its much-heralded 30% reduced Dairy Milk chocolate bar is in fact being removed from the market amid reduced sales.
Moreover, as the research explored, there have been other factors influencing the market in recent years, including fluctuations in cocoa prices, as well as declining per capita consumption in some markets, proving a barrier to growth, and described as a ‘significant hinderance’ to overall sector development.
As Technavio’s findings acknowledged, the comparatively volatile price of cocoa in the past couple of years – which reached near record highs this year, can also significantly increase the cost of manufacturing chocolate. This in turn has complicated estimates for overall costs of production, leading to strong variations in results regionally.