Premiumisation of chocolate market set to drive $45 billion growth by 2027
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A continued trend for premiumisation in chocolate markets is set to fuel its continued growth by a further $45.78 billion by 2027, according to a new industry study, reports Neill Barston.
The research from the Technavio Group projected compound annual rises of 4.97% over the next three years, despite major ongoing market challenges with supply chains, including the rapid increase of cocoa over the past year.
Notably, the new study observed that major companies including Mars, Barry Callebaut and Mondelez International had placed significant resources into developing premium ranges within their respective portfolios, resulting in a surge of luxury product launches in response to consumer demand.
As the group noted, purchasing choses were influenced by price, packaging, ingredients, exclusivity, and origin, as consumers become increasing more savvy of the origins and provenance of confectionery ranges, and have called for greater levels of sustainability and transparency.
Linked to this, as Confectionery Production has also reported, there has also been an upturn in demand for chocolate ranges that are perceived as offering healthier options. This has included vegan, organic and sugar-free varieties, matched by younger consumers seeking a sense of wellbeing and adopting healthier lifestyles post-pandemic. This has also been driven by concerns over obesity and heart disease linked to an unbalanced diet.
As Technavio noted, the industry has responded with new innovations and flavours, with the sector continuing to place a high value on innovation within products to generate sales. This has spanned segments from milk chocolate to more unusual pairings including chili-infused dark chocolate.
Such innovations have been required in a sector that has traditionally thrived on the development of new product novelties. In the research group’s view, such developments within the industry have been a contributing factor to its growth. It also noted a higher demand for ethically sourced products, which have continually come under the microscope as major concerns over child labour, deforestation and wider human rights issues remain within the sector’s core supply chains in West Africa.
Furthermore, the business noted that it has been a combination of unique flavours, strong packaging and sustainable messaging that have proved decisive factors for the market, which requires agility, creativity and recognition of major trends in order to compete successfully.
