Global Industrial Chocolate Industry

Global Industrial Chocolate Industry

  • September 2020 •
  • 332 pages •
  • Report ID: 5798839 •
  • Format: PDF
The global Industrial Chocolate market is projected to reach US$62 billion by 2025, driven by the robust popularity of affordable, mass-produced confections. Industrial chocolates have made chocolates an affordable luxury. Chocolates have emerged to be one of the most successful foods in human history. Humans and chocolates have a long and serious history that dates back 5000 years to the Mayo-Chinchipe culture. Today, chocolates have evolved from being the food of the rich to the masses, a modest luxury for all to enjoy. Industrialization of chocolates has largely helped achieve this. Economies of scale stemming from large scale procurement of cocoa and automation of the manufacturing process from cacao bean to the final chocolate bar have helped reduce price of chocolates. Unlike boutique chocolates, industrial chocolates are manufactured with quality that is consistent and repeatable. Today, demand for cheap yet high quality chocolate continues to be high with chocolate making giants continuously innovating with portion controlled packaging, sugar-free variants, heart-healthy dark chocolate and fortified chocolates of unbelievable variety. With a dizzying array of beautifully packaged bars, industrial chocolate giants such as Hershey Company, Nestle S.A., Blommer Chocolate Company & Cargill hold a mind share in the chocolate market despite the rising competition from emerging chocolate categories.

Growth in the market is benefiting from the emerging trend of chocoholism supported by the growing body of medical evidence that links chocolate to a variety of health benefits such as source of antioxidants which are vital for cell-protection; cocoa beans are rich in polyphenol and elevates mood; reduced heart disease risk; improved blood flow and lower blood pressure; improves brain function; helps with cognitive decline and memory loss associated with Alzheimer`s disease; protects skin from the sun related damage; reduces inflammation and improves cholesterol levels; reduces fatigue and helps the body produce more endorphins. As this once indulgent treat becomes a functional food, the affordability advantage offered by industrial chocolates will only grow in importance in the coming years. Although specialty chocolates are evolving, the category is still defining itself and poses no immediate threat to the industrial chocolate market. Apart from being expensive, specialty chocolates such as craft, artisanal and small batch suffer from lack of transparency in food labelling. The United States and Europe represent large markets worldwide with a combined share of 64.2%. China ranks as the fastest growing market with a 6.8% CAGR over the analysis period. After decades of resistance, the Chinese are finally developing a taste for chocolates supported by economic reforms, increase in domestic consumption, and opening up of the country to global cuisines.

As the countrys appetite for imported food increases, chocolates with their Latin American and European origin have ample scope for growth. Industrial chocolates have helped chocolates emerge from being an exotic delicacy and extravagant treat to an everyday foodstuff. Growing disposable income and growing consumption of coffee are pushing up demand for chocolate in the country. Asia-Pacific excluding China follows next with a 6.2% CAGR led by India, Singapore and other Southeast Asian countries.