The global chocolate confectionery market size is projected to reach USD 136.42 billion by 2027, exhibiting a CAGR of 2.3% during the forecast period. Widespread awareness regarding the potential health benefits of chocolate is expected to play a central role in driving the growth of this market, states Fortune Business Insights™ in its report, titled “Chocolate Confectionery Market Size, Share & Industry Analysis, By Type (Dark, Milk, and White), Category (Premium, Seasonal, and Everyday), and Regional Forecast, 2020-2027”.

Information Source - https://www.fortunebusinessinsights.com/industry-reports/chocolate-confectionery-market-100539

The health benefits associated with chocolate products, particularly dark chocolate, are driving their popularity worldwide. Dark chocolate and cocoa are rich in flavanols, polyphenols, and antioxidants, surpassing even acai berries and blueberries in their nutritional value. Additionally, dark chocolate contains significant amounts of iron, copper, fiber, and various other essential nutrients. Studies, such as those conducted by the National Institutes of Health, have shown that consuming dark chocolate can effectively regulate blood pressure by activating the arterial lining, thus improving blood flow and reducing the risk of heart disorders. These health advantages are fueling the increasing consumption of dark chocolate and contributing to the growth of the global market.

The report states that the global market value stood at USD 114.33 billion in 2019 and shares the following:

• Thorough analysis of the short-term and long-term impact of the COVID-19 pandemic on the market;
• Actionable insights into the upcoming opportunities in the market;
• Tangible research into the market, drivers, restraints, and segments; and
• In-depth examination of the regional developments, competitive landscape, and upcoming investment pockets for the market.

Market Restraints

Shrinking Sales amid COVID-19 Pandemic to Stall Market Growth

The chocolate confectionery market has faced significant challenges due to the COVID-19 pandemic. Lockdowns and social distancing measures have limited consumer mobility and led to the temporary closure of retail outlets, impacting chocolate sales. Additionally, the global economic downturn has resulted in job losses and reduced disposable income, leading to decreased spending on non-essential items like chocolate. Major players in the industry, such as The Hershey Company and Lindt & Spruengli, have reported declines in sales due to these factors. For instance, The Hershey Company experienced an 8.1% decrease in international net sales, while Lindt & Spruengli reported a decline in organic sales by 5-7% due to store closures caused by the pandemic.

Regional Insights

North America to Have Dominating Lead in the Market Backed by High Demand for Premium Chocolates

North America, with a market size of USD 19.50 billion in 2019, is poised to maintain its lead in the chocolate confectionery market share, driven by robust demand for premium chocolate snacks and products. However, in the US, which recorded a market volume of 1,410.20 thousand tons in 2019, growth prospects may be constrained by growing resistance to high-sugar chocolate confectioneries and a rising preference for low-sugar alternatives.

In Europe, chocolate items play a central role in regional festivals, bolstering market growth. Meanwhile, in Asia-Pacific, increasing disposable income is driving up per capita consumption of chocolate products. The region's large proportion of young consumers and evolving taste preferences are significant factors influencing market growth.

Competitive Landscape

Heavy Investments in R&D by Key Players to Create Healthy Competitive Atmosphere

The market for chocolate confectioneries is characterized by a healthy competitive climate as top companies are directing their energies towards elevating their R&D capabilities. Moreover, some players in this market are also engaging in efforts towards establishing sustainable agriculture practices in key cocoa producing regions.

Industry Developments:

• July 2020: Mars, Incorporated announced its collaboration with World Agroforestry and the International Fund for Agricultural Development to initiate a 5-year-long research project called Sustainable Farming in Tropical Asian Landscapes. The project will be directed towards sustainably connecting small-scale cocoa and palm oil producers in Indonesia and the Philippines to global supply chains.
• October 2019: India-based ITC Limited released the world’s most expensive chocolate under its Fabelle brand. Priced at INR 4.3lakh per kilogram, the limited edition luxury chocolate dubbed ‘Trinity – Truffles Extraordinaire’ entered into the Guinness Book of World Records as the world’s costliest chocolate product.

List of Key Players Covered in the Chocolate Confectionery Market Report:

• Mars Inc. (Virginia, U.S.)
• The Hershey Company (Pennsylvania, U.S.)
• Mondelez International (Illinois, U.S.)
• Ferrero SpA (Alba, Italy)
• Nestle S.A. (Vevey, Switzerland)
• Ezaki Glico Co., Ltd. (Osaka, Japan)
• Meiji Holdings Co., Ltd. (Tokyo, Japan)
• HARIBO GmbH & Co. KG (Bonn, Germany)
• Chocoladefabriken Lindt & Sprungli AG (Zürich, Switzerland)
• Barry Callebaut (Zürich, Switzerland)