NCA report reveals chocolate sales continue to rise, as consumers value affordable treats
Demand for flexible packaging within chocolate and wider confectionery markets is set to grow over the next decade. Pic: Shutterstock
A fresh report from the National Confectioners Association has revealed that chocolate sales in the US reached $21.4 billion, representing a new high for the category, with 65% of shoppers considering it an affordable treat, writes Neill Barston.
As Confectionery Production reported earlier this year, the overall value of the market in the region stands at $38 billion for the financial year, which has been achieved despite considerable pressure on household budgets from increased food costs and broader economic uncertainty.
According to the NCA, the core seasonal moments of Valentine’s Day, Easter, Halloween, and the Christmas season still account for 65% of total chocolate sales, and have therefore retained their significance in the calendar in terms of value and the emotional connection that consumers have with these major occasions.
Moreover, as the report noted, chocolate represents 56% of all confectionery sales, making it the largest category for the industry, with candy, gum and mints being the other core pillars, which are experiencing continued growth.
However, challenges remain with the industry, and notably, since 2021, chocolate dollar growth has been driven by inflation, with units and volume down year-over-year, though chocolate sales are forecast to continue to grow over the next five years, reaching $37.6 billion in value across all outlets in the U.S. by 2029.
There were some further encouraging trends with the study, including the finding that more than three-quarters of Americans are enjoying the same amount or a bit more chocolate than last year. Among the one-quarter of Americans who have reduced their chocolate consumption, some cite the cost of chocolate itself is a common reason, though even more consumers point to the cost of life in general.
Notably, the report stated that two-thirds of consumers have made one or more changes to their purchases to mitigate chocolate price increases: one-third buy what is on sale, 28% buy chocolate less often, and 22% buy a little less. Others (17%) do the opposite and buy larger pack sizes to save over time.
Shopping habits
Significantly, the NCA found that most consumers purchase mainstream chocolate items, but they rarely buy it exclusively. Milk chocolate maintains its top position as Americans’ preferred chocolate, with 40% of consumers liking milk chocolate the most. Dark and a bit of everything battle for second, whereas white chocolate remains in the mid-single digits. Most consumers enjoy chocolate one to two times per week.
In terms of shopper preferences, the study found that back in 2021, consumers were forced to make fewer trips out of home due to pandemic restrictions, but three years, on key sales channels have made a comeback, including specialty chocolate shops, farmers’ markets, and festivals.
Consumers who mostly (though not exclusively) consume fine chocolate are reportedly doing so through more independent outlets rather than mainstream supermarkets, that often do not carry finer chocolate ranges.
In pure statistical terms, the report found that 94% of consumers sometimes purchase chocolate just for themselves to enjoy, and 72% feel chocolate belongs in a happy, balanced lifestyle. In fact, owing to its status as a beloved treat, 21% are consuming more chocolate than last year.
Furthermore, milk chocolate remains Americans’ preferred chocolate (40%), followed by dark chocolate (28%) and white chocolate (7%), while 26% of consumers would be happy with any variety.
Some 47% of consumers prefer their chocolate with ingredients such as caramel, peanut butter, almonds, and peanuts. Millennials are most likely to select chocolate with other flavours, while Gen Z is more likely to take their chocolate straight up. Caramel has the largest appeal across generations.
Meanwhile, 72% of consumers occasionally or often gift chocolate to others for special occasions. The top occasions for chocolate gifting are Valentine’s Day, a birthday, and Halloween, and 29% of consumers say they do not need a particular occasion – they give chocolate just because!
John Downs, president and CEO of the National Confectioners Association, reflected on the report. He said: “Chocolate serves a unique role as an affordable and accessible treat. While American families are taking steps to streamline their spending, they continue to seek out their favorite chocolate products to enhance moments of joy and comfort. Whether it’s a cherished holiday tradition or a special occasion to ‘treat yourself,’ consumers are making allowances in their budgets for chocolate.”
