The global chocolate confectionery market is growing, driven by evolving consumer preferences and new product launches.
Innova’s latest trends and insights release delves into how brands are responding to the demand for healthier options, sustainable practices, and exciting new flavours.
The global chocolate confectionery market has shown steady growth, with a compound annual growth rate (CAGR) of 3 percent in sales and 2 percent in product launches over the past five years.
Innova’s research supports these growth projections. The United States leads in sales, more than doubling the market size of the next largest country, Germany.
Pakistan, Ukraine, and the USA are expected to experience the fastest growth in chocolate sales over
the next five years.
Europe boasts the highest per capita consumption of chocolate, with Switzerland leading the
pack, followed by Estonia, Ireland, Finland, Austria, Singapore, and Germany.
Top Companies and Brands
Key players like Mondelēz, Nestlé, and Lindt & Sprüngli dominate the global chocolate confectionery market.
Mondelēz accounts for 7 percent of global launches, Nestlé 6 percent, and Lindt & Sprüngli 6 percent.
Mondelēz focuses on consumer-centric growth and sustainable practices, aiming to expand its presence in underrepresented markets.
Nestlé emphasizes responsible sourcing and regenerative agriculture, aligning with its mission of “good food, good life.”
Lindt & Sprüngli is committed to sustainable cocoa sourcing and achieving net-zero greenhouse gas emissions by 2050.
These companies offer diverse brand portfolios: Mondelēz with Cadbury, Milka, and Toblerone; Nestlé with KitKat, Aero, and Smarties; and Lindt & Sprüngli with Lindor, Ghirardelli, and Russell Stover.
Despite their dominance, the market remains fragmented, with the top 10 companies accounting for only 37 percent of product launches, highlighting the significant presence of smaller players.
Consumer Insights
Globally, 65 percent of consumers purchased chocolate confectionery in the past year, with one-third consuming it weekly.
While two-thirds maintained their consumption levels compared to the previous year, 18 percent reported an increase driven by taste, happiness, and self-treating.
Consumers prioritise real ingredients and product safety, with 22 percent influenced by these claims.
Milk chocolate remains the most popular, but dark chocolate is gaining traction, accounting for one-third of launches.
Hazelnut, almond, and caramel are favoured added flavours.
Taste drives chocolate consumption, with 55 percent of consumers citing it as a key factor.
Indulgence and relaxation are also important, with 40 percent and 35 percent of consumers highlighting these reasons, respectively.
Ethical and sustainable claims increasingly influence purchasing decisions, reflecting the growing demand for responsible and plant-based options.
New Product Launch Trends
The global chocolate confectionery market saw an average 2 percent growth in product launches over the past five years, rebounding in 2022 and 2023, following a dip in 2020 and 2021 due to the COVID-19 pandemic.
Western Europe leads in product launches, contributing 40 percent of global activity.
Australasia and Africa have seen significant increases, with CAGR’s of 17 percent and 8 percent, respectively, over the past five years.
Chocolate blocks dominate the market, while individually wrapped pieces are growing in popularity.
Ethical claims related to human welfare and the environment are on the rise, along with vegetarian and vegan claims.
Plant-based and palm oil-free claims are also emerging, driven by consumer demand for sustainable and ethical options.
Hazelnut is the most popular added flavour, followed by almond and caramel.
Milk chocolate remains the dominant base, with dark chocolate accounting for one-third of launches and white chocolate increasing from 10 percent to 15 percent over the past five years.
Seasonal and limited edition launches are also on the rise, with Easter, Christmas, Valentine’s Day, and Halloween being top occasions.
Future Outlook
The global chocolate confectionery market is expected to grow moderately, driven by demand for premium products and sustainable practices.
However, rising cocoa prices present a challenge. Key innovation opportunities lie in adding sustainability, functional ingredients, and sensory experiences while focusing on affordability.
Consumers seek everyday moments of happiness and relaxation, making indulgence and delicious flavours key purchase drivers.
Natural, healthy ingredients and safety are top priorities, with palm oil-free emerging as a significant claim.
Vegetarian, vegan, and plant-based options are growing, and planetary concerns are increasing, with consumers demanding sustainable and transparent ingredient sourcing.
Brands can connect with consumers by sharing their ingredients’ stories and commitment to restoring and regenerating the environment.
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