Chocolate Retail is a business where chocolate and chocolate products are sold via stores including supermarkets, hypermarkets, convenience stores, and specialty shops and boutiques. Different stores sell different products that target a certain audience. Some chocolate manufacturers sell their products to companies that are their ideal clients in revenue.
The Chocolate Retail market showcased growth at a CAGR of 2.47 % during 2018-2021. The market was valued at USD 119.67 Billion in 2021 which is expected to reach USD 176.20 Billion in 2028. As per European Union estimates, the world’s average chocolate consumption amounts to an estimated 0.9 kg per capita per year. Chocolate retail has grown to be a multibillion-dollar industry, backed by rising per capita consumption of chocolate and chocolate products among all age groups.
The Global Chocolate Retail Market is expected to grow in the forecast period and register a market value of USD 176.20 billion in 2028 at a CAGR of 6.5.86% during the forecast period. Moreover, chocolate confectionery is a consolidated market dominated by a handful of global companies such as Nestle, Lindt, and Hershey, with profitable oligopolies in different regions. Customer experience represents every touchpoint with a brand, including accessing them via physical stores, customer support, and direct product interaction.
Further, the rising trend of sustainably sourced chocolates has contributed to new product developments in the chocolate Confectionery industry. For instance, Tony’s Chocolonely’s dark almond and sea salt is a vegan bar in addition to the dark milk pretzel toffee and caramel sea salt milk varieties. Chocolate companies are now seeing some consumer behavior change, preferring candy bars instead of multipacks. Chocolate candy category innovation is booming, offering convenience store retailers an opportunity to grow chocolate sales by stocking limited-time offers alongside tried-and-true customer favorites.
Increasing consumption of chocolate-based confectionery products
Chocolate Confectionery has become a favorite dessert for religious and other occasions such as Christmas, New Year, and Valentine's. Chocolate-filled assorted packaging, product-targeted holiday and festival seasons, and "healthy snack-sized" products are all popular among both parents and kids. Also, young consumers are looking for newer formats and flavors in confectioneries, and brands and packagers are equally cashing in on this demand. To capture the increased demand, manufacturers are heavily investing in providing more affordable gifting brands and expanding their presence by selling their products via supermarkets, hypermarkets, and nearby grocery stores, thereby generating revenue for retail stores.
Increase in price of raw materials and supply shortage
Chocolate is typically made of cocoa beans, cocoa butter, milk, and sugar. Chocolate retail manufacturers face the challenge of the increased price of raw materials. Cocoa a key ingredient in making chocolates face price fluctuations due to unfavorable weather conditions in producer countries, combined with a surge in global demand for chocolate products. When price increases, consumers may not be willing to pay the higher prices and may turn to cheaper alternatives instead, declining demand for chocolates, resulting in low retail revenue.
Milk Chocolate accounts for USD 5034.24 Million in 2021
Milk Chocolate holds a major share in the Chocolate Retail market backed by factors such as sugar-free and vegan milk and improving the immune system are raising the consumption of milk chocolate confectionery. Retail stores offer numerous brands and types of milk chocolate products to consumers in one place.
Bars contribute the maximum share in Chocolate Retail Market
Bars acquire a larger share by the form in the Chocolate Retail market as these products are easily available in grocery stores and supermarkets. Moreover, consumers are willing to pay for bars with different flavors, textures,s and packaging and manufacturers are expanding their product reach. For instance, The 'Oat Made' Plant-Based Chocolate Bars launched by Hershey are available in United States retail stores.
Europe accounts for almost half of the chocolate market. In the UK, France, Germany, Switzerland, Belgium, the Netherlands, and Italy, the "dark chocolate revolution" has been gaining traction. In addition to driving the market for dark chocolate in Europe, the rising number of new vendors entering the market for dark chocolate and the rising number of innovative products containing dark chocolate will also boost the region's overall chocolate market.
The Global Chocolate Retail Market is highly fragmented, with leading companies accounting for approximately 60% of market revenue. with Mars and Mondelez being the leaders in chocolate retailers. The retailers are focusing on mergers and acquisitions to expand sales. For instance. Mars Inc owns some of the most famous sweets brands in the world, including M&Ms, Galaxy, Snickers, Skittles, and Mars bars. Mars Retail Group is expanding retail stores in new locations. These include Disney Springs® in Orlando, Fla., Mall of America in Minneapolis, Minn., and the first store in continental Europe in Berlin, Germany.
Leading companies in the Global Chocolate Retail Market include:
Recent Developments in the Chocolate Retail Market
In February. In 2023, Mondelez International, Inc. completed a USD 23 million expansion of its Oreo cookies production line in Cikarang, Indonesia, to meet growing local and export demand in 35 countries across Southeast Asia and the broader Asia Pacific and Middle East region.
Segmentations in the Report
By Product Type
By Distribution Channel
Frequently Asked Questions
1. What is the expected market value of the Chocolate Retail Market in 2028?
Ans: The global Chocolate Retail Market is expected to be valued at USD 176.20 Billion in 2028.
2. At what growth rate is Chocolate Retail Market expected to grow in the forecast period?
Ans: During 2023-2028, Chocolate Retail Market is expected to grow at a CAGR of 5.86 %.
3. Which Region dominates the Chocolate Retail Market?
Ans: Europe contributes the largest revenue share in the Chocolate Retail Market.
4. Which are the leading companies in the Chocolate Retail Market?
Ans: The leading companies in Chocolate Retail Market are Mondelez International, Inc., Hershey Company, Ferrero International S.A., Mars Incorporated, Nestle S.A., Chocoladefabriken Lindt & Sprüngli AG, Meiji Holdings Co., Ezaki Glico Co. Ltd., Orion Corporation, Yildiz Holding
5. At what rate will Germany's Chocolate Retail Market Grow?
Ans: During 2023-2028, German Chocolate Retail Market is expected to grow at a CAGR of 6.00%.
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