Chocolate Market Size, Share & Trends Analysis Report By Product (Traditional, Artificial), By Distribution Channel (Supermarket & Hypermarket, Convenience Store, Online), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global chocolate market size was estimated at USD 113.16 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.7% from 2022 to 2030. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. Another factor driving product demand in the coming years is the growing demand for vegan, organic, gluten-free, and sugar-free chocolates. The COVID-19 pandemic moderately impacted the global market. Governments across the globe were forced to impose lockdowns due to the rapid spread of infection, forcing many businesses and production facilities to shut down temporarily. This affected the global supply and distribution chain thereby negatively impacting the market growth. However, the demand for chocolates increased during the pandemic as people stocked up on packaged and processed foods. According to the State of Treating Report 2021 by the National Confectioners Association (NCA), chocolate rose by 4.2% during the pandemic period in 2020.

Moreover, consumers preferred eating these during the pandemic to reduce stress and elevate their mood. This ensured a stable demand for chocolates during the pandemic. Consumers' increased belief in the superiority of bean and single-origin chocolates over bar chocolates is anticipated to motivate market participants to invest in the trend to increase their profitsThe growing emphasis on the bean-to-bar concept has resulted in a significant increase in demand for premium and specialty chocolate products in recent years. The single-origin cocoa trend is still fueling new product development and innovation. This is expected to contribute to the overall market growth in the coming years.

According to health experts, moderate chocolate consumption increases serotonin, which calms the brain and works as an antidepressant. It also causes the release of endorphins in the body, which quickly improves mood. As per World Population Review data, almost 3.4% or 251-310 million of the global population suffers from depression. Therefore, the rising prevalence of mental illnesses such as anxiety and depression may promote product demand during the forecast period.

Chocolate consumption also reduces the release of the stress hormone named cortisol. Regular inclusion of these elements in a regular diet can mitigate health issues and help avoid reliance on medication. Chocolate sales are expected to increase in the coming years due to its ability to relax the mind and induce happiness. Increasing awareness regarding preventive healthcare is anticipated to further fuel the market growth during the projected timeframe.

Another factor influencing the global market is the growing awareness of the health benefits of dark chocolate consumption. According to the Cleveland Clinic, dark chocolate is known to enhance blood circulation in the body, reduce blood pressure, improve brain function, and lower the risk of heart disease when consumed in moderation as it has vital minerals such as zinc, magnesium, phosphorus, copper, and iron. Moreover, some of the factors expected to drive the market growth include the premiumization of chocolate-based products and the use of visually appealing packaging to attract consumers' attention.

Product Insights

In terms of product, the traditional segment dominated the global chocolate market in 2021. This can be attributed to cocoa's greater popularity, ease of availability, and penetration when compared to carob which is the raw material for artificial chocolate. The milk chocolate segment held the largest share in the traditional segment. It contains a high concentration of flavonoids, which are antioxidants that remove free radicals from the bloodstream and improve blood flow. The demand for milk chocolate has increased globally as a result of these advantages, as well as rising consumer purchasing power.

Artificial chocolates are projected to have a CAGR of 9.5% during the forecast period of 2022-2030. Carob confectionery is caffeine-free, making it ideal for caffeine-intolerant consumers. According to Caffeine Informer, almost 10% of the global population has hyposensitivity towards caffeine. Furthermore, the calcium composition of carob is almost three times that of cocoa. This makes it especially prevalent among people suffering from calcium deficiency and women.

Despite having to be imported, Nutella from Ferrero India continues to dominate the Indian chocolate spreads market with a share of around 85%. Globally, they continue to pursue a dominant position in the chocolate confectionery market, as indicated by their launch of Nutella biscuits in 2020, witnessing sales of over 45 million.

Distribution Channel Insights

The online distribution channel is expected to register the fastest CAGR of 4.6% from 2022-2030. The online channel has gained traction in the last few years due to increased internet penetration in countries globally. The growing internet user population, availability of a variety of brands, and convenience of buying from home are the major factors promoting the use of online distribution channels. Furthermore, features provided by online retailers including cash on delivery, discounts, and cashback are anticipated to boost the growth of online distribution channels.

Supermarkets and hypermarkets led the distribution channel segment with a revenue share of over 47% in 2021. Higher brand and product availability in such stores is a key factor in the segment's growth. Furthermore, consumers prefer physical stores to get immediate access to the product as well as select the products in person for a better experience. Additionally, due to increasing consumer demand, manufacturers are opening stores in malls, which will increase sales of chocolate in supermarkets and hypermarkets in the upcoming years.

Regional Insights

Europe dominated the global market with a share of over 47% in 2021. Rising consumer demand for dark chocolate in the region is a major driver of regional market growth. According to ITC Trade Map 2020 data, Europe imported almost 1,521 thousand tons of chocolate products. Furthermore, Europe was also the largest chocolate-producing region with the highest per capita consumption estimated to be 5.0 kilograms as per CBI, Ministry of Foreign Affairs. These factors are predicted to boost the regional market in the coming years.

Middle East and Africa is estimated to be the fastest-growing region with a CAGR of 6.7% over the forecast period of 2022-2030. This growth is attributable to the increased availability of products in retail stores in the region. Additionally, the region should have more access to products owing to supportive government policies such as tax benefits for chocolate producers and grinders. Increasing demand for artisanal chocolates is another factor contributing to regional growth. Moreover, rising consumer awareness, product innovation, disposable incomes among middle-class consumers, and channel development by manufacturers to reach a wider consumer base are some of the major factors expected to boost the region's chocolate sales.

Key Companies & Market Share Insights

Major companies in the global market focus on new product development to cater to the changing preferences of consumers. Furthermore, industry participants engage in strategic partnerships, mergers, joint ventures, and geographic expansion to gain a competitive edge in the market.

For instance, in January 2021, Mars Inc. launched two new vegan chocolates terming the month as ‘Veganuary’ wherein most people commit to consuming only a vegan diet. The two new chocolate bars are the vegan versions of Topic and Bounty and are named Topic Vegan and Bounty Vegan. The company had also launched a vegan version of Galaxy chocolate previously. Some prominent players in the global chocolate market include:

• Barry Callebaut

• Chocoladefabriken Lindt & Sprüngli AG

• Mondelēz International, Inc.

• Nestlé

• The Hershey Company

• Ferrero Group

• Mars, Incorporated

• The Australian Carob Co.

• Meiji Holdings Co., Ltd.

• Arcor

Chocolate Market Report Scope

Global Chocolate Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global chocolate market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Traditional

    • Dark

    • Milk

    • White

  • Artificial

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Supermarket & Hypermarket

  • Convenience Store

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Switzerland

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE