Chocolate Market

Chocolate is the most popular and widely consumed product across North America and has also undergone many transformations to meet changing market demand. It is broadly categorized on the basis of the amount of cocoa it contains. Milk chocolate captures more than 50% of overall chocolate consumption in the region but may contain as little as 10% cocoa. On the other hand, chocolates are considered "dark" if they contain more than 60% cocoa. The market growth is mainly driven by the popularity of chocolate for gifting purposes. Moreover, the growing demand for premium or healthy ingredients in chocolate products and creative packaging are also fueling the market growth. However, the rising incidence of obesity and other health concerns followed by fluctuating raw material prices are slowing down the market growth. Market players are witnessing several growth opportunities due to the growing demand for health & wellness products and promotional activities.

Market players are constantly introducing premium chocolate products because of rising consumer inclination towards superior quality and healthy ingredients. Major manufacturers are investing in new product development and launching various product variants such as fruits, macadamia nuts, innovative rice-based snacks, and chocolate truffles. Multinational companies such as Mars (Dove) and Ferrero invested in various surveys and case studies to develop an exclusive product line. Premium fruits covered with chocolate are one of the highest selling products across North America and European region. These fruits include cranberry, blueberry, pomegranate, and many others. Premium chocolates are easily accessible at several convenience stores and in some international supermarkets. Sugar-free chocolates and dark chocolates is another category that had huge demand among consumers that lack a sweet tooth. Vegetable-based chocolate, such as edamame covered with chocolate and wasabi-covered chocolate, is popular among the consumers. Salty chocolate snacks, such as potato chips and popcorn, are also preferred by the consumers of emerging economies. Such healthy trends and innovative chocolate products are expected to drive the global chocolate market during the forecast period.

Increasing consumer preference for fat-free and healthy food products has encouraged chocolate manufacturers to include healthy ingredients in chocolates in addition to the traditional cocoa as the main ingredient. Food items containing transfat are losing market share to low calorie & low-fat products as transfat is linked to cardiovascular diseases. Considering the facts, the major chocolate companies are tapping into consumers' growing health and wellness concerns by improving the nutritional profile of their chocolate portfolio. For instance, Antidote 100%, a chocolate bar, contains 100% cacao and also raw beans. Cacao beans contain high amounts of phytonutrients, including sulfur, magnesium, and phenylethylamine. Also, Aloha Superfood Chocolate includes 60% cacao, organic ingredients infused with Aloha powder, and nutrients from foods such as spinach, raspberries, and spirulina. Similarly, Sweet Riot Dark Chocolate with Fabulous Flax, a 70% dark chocolate bar is packed with organic flax seed, rich in omega-3 fatty acids, and fiber. Chocolates with numerous nutrition content is likely to have a high demand and is one of the important factors driving the sales at present and is expected in the future.

The US food industries are concerned about the health issues cropping up due to excessive chocolate consumption. For instance, according to Mr. Tracey Massey, president of Mars North America, the food industry is witnessing challenges due to rising health concerns related to overconsumption of calories, fat, and sugar. As per the Centre for Disease Control and Prevention, about 43.64% of adults in the age gap of 20 years and above suffered from obesity from 2019 to 2020. A 100 gm. of any chocolate, be it dark, white, or milk, contains more than 250 calories. The US ranks fifth in chocolate consumption at 5.5 kgs annually, followed by Switzerland at 8.8 kgs, Germany at 8.4 kgs, Russia at 7.3 kgs, and the UK at 6.8 kgs.

Growing health awareness and a proper dietary regime have alarmed the consumers to reduce their intake of chocolate which is directly impacting its sales in North America.

Other health concerns related to chocolate consumption include high blood pressure, diabetes, and heart disease. High sugar consumption can cause dental problems. In general, over 16 million children in America have untreated tooth decay. According to the International Diabetes Federation (IDF), one out of eight adults have diabetes in the US. The number of simple sugars vary depending on the chocolate type. For instance, milk chocolate contains 15 grams of sugar per ounce of chocolate, white chocolate contains 14.8 grams per ounce, and dark chocolate contains around 12.5 grams per ounce. Excessive chocolate consumption may lead to health gain, which ultimately leads to type 2 diabetes.

Consumers are becoming increasingly health-conscious and particular about their dietary preferences. The prevalence of dietary conditions such as diabetes, hypertension, and obesity has led to a focus on food choices. Thus, the number of people adopting healthy food practices and avoiding sugar-based and high sugar content foods has increased. The bakery, confectionery, and dairy industries promote food products with natural ingredients. The health consciousness has extended to the choice of sweet dishes, with consumers opting for healthier fruits, nuts, and honey-based products over chocolate products and products with high sugar content. This poses a serious challenge to chocolate manufacturers across the globe, owing to the changing consumer preferences in the application industry