Chocolate Powdered Drinks Market Size (2024 – 2030)

The global chocolate powdered drinks market was valued at USD 2.92 billion and is projected to reach a market size of USD 5.28 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 8.84%. 

Cocoa powder and other components, including sugar, milk, hydrocolloids, and stabilizers, are used to make beverages using chocolate powder. In the food and beverage sector, cocoa drinks are quite popular, especially for non-confectionary products. Cocoa drinks are manufactured from cocoa beans, which are fermented and dried after harvest. In the past, this market had a notable presence. However, there were limited varieties. Presently, the market has seen a significant expansion owing to consumer demand and diverse offerings. In the future, with a focus on innovation and e-commerce, considerable growth is anticipated.

Key Market Insights:

35% of individuals use cocoa powder, and 53% use chocolate powder while making hot chocolate at home. In the US, 34% of respondents stated they often drink hot chocolate with cocoa powder when they are out and about. By 2028, the domestic cocoa market is anticipated to grow to a volume of 37.6 million kg. In 2022, Canada had an estimated 4.36 liters of chocolate drink accessible per person. The extra sugars in chocolate milk have the potential to cause weight gain. 11 to 17 grams of sugar are contained in a 240-ml cup of chocolate milk. To tackle this, the nutritional profile of these drinks is being enhanced by adding functional ingredients. Additionally, sugar-free and reduced-sugar options are being released by many companies.

Chocolate Powdered Drinks Market Drivers:

Product diversification has been enabling the development.

To meet changing customer tastes, companies of chocolate powdered drinks are constantly developing new flavors, formulas, and packaging choices. This market is characterized by constant innovation and diversity. Variations like sugar-free, organic, vitamin- and mineral-fortified options are in high demand. Additionally, catering to certain dietary requirements, like gluten-free or vegan, is part of this variety. Antioxidants are also being added to enhance the nutritional profile. Creative marketing techniques, such as celebrity endorsements or tie-ins with well-known media properties, can help to increase customer interest and grow the market. By following these strategies, a broader consumer base is achieved.

The convenience of making these drinks has been boosting the market.

Drinks with chocolate powder provide customers with a quick and easy beverage alternative that they may make at home or on the move. Economic progress has been prevalent in many nations. There have been many changes in the standard of living due to urbanization. Dual income has become the new normal. Families and working people are looking for easy and quick beverage options that are ready to consume. This is usually consumed by kids in the evening. In addition to having a longer shelf life than ready-to-drink options, powdered drink mixes are ideal for storing at home or taking on trips. Besides, these drinks are affordable. This makes them a popular option.

Chocolate Powdered Drinks Market Restraints and Challenges:

Health concerns, intense competition, and recycling challenges are the main issues that the market is currently facing.

Chocolate drinks have a lot of added sugar. The calorie intake is pretty high. In addition, cocoa is associated with allergic skin responses and aggravates migraines. It may result in gas, constipation, nausea, and stomach pain. Health-conscious customers avoid these options, which can hinder market growth. Secondly, there are a lot of beverages that are well-known in the market. Juice, flavored drinks, milk, and other energy drinks are a few examples. Consumers have a wide range of options. As such, there is a lot of competition. Thirdly, a lot of companies use plastic and non-biodegradable options for packaging. This results in a lot of landfill and soil pollution. Even though few companies have adopted recycling practices, many of them have yet to adhere to this rule.

Chocolate Powdered Drinks Market Opportunities:

Offering healthier formulations is highly beneficial for market growth. Natural sweeteners are being prioritized due to their nutritional profile. Preservatives, colorants, and other additives are being avoided to commercialize organic options. Dark chocolate has gained a lot of prominence over the years. This is because it can lower the risk of heart disease, lead to good hair growth, and nourish our skin. Manufacturers are capitalizing on this trend by combining dark chocolates in their drinks. This helps in elevating sales. Besides this, online retail has been facilitating expansion into new markets. Digitalization has become a new trend. People are opting for this channel due to their convenience. Digital marketing strategies are being made to differentiate the brand. Social media is playing a vital role in enhancing brand visibility.

CHOCOLATE POWDERED DRINKS MARKET REPORT COVERAGE:

Chocolate Powdered Drinks Market Segmentation: By Type

• Dark Chocolate

• White Chocolate

• Milk Chocolate

Milk chocolate is the most dominant type. Milk chocolate's mellow and sweet flavor profile makes it a popular choice for chocolate beverages. Milk chocolate has a smoother texture and a simpler flavor than dark chocolate since it includes more sugar and cocoa butter. Additionally, milk's fat lubricates the lips, giving chocolate's rich, velvety flavor more intensity. Another reason milk chocolate is well-liked is that it has long been marketed as a nutritious meal, especially for kids. Dairy products offer a lot of vital elements that are necessary for children's development, and chocolate milk may be an inexpensive and delicious method for them to receive those nutrients. Dark chocolate is the fastest-growing segment. This type includes flavonoids, which are antioxidants that may help prevent free radical damage and decrease inflammation. Other substances with antioxidant qualities found in dark chocolate include polyphenols, which scavenge free radicals and stop oxidative damage. The body's tissues and cells can sustain damage from oxidative stress. With its contents of soluble fiber, iron, magnesium, copper, manganese, potassium, phosphorus, zinc, and selenium, dark chocolate is also nutrient-dense. Furthermore, it has more cacao and less sugar and milk than milk chocolate, making it healthier.

Chocolate Powdered Drinks Market Segmentation: By Application

• Milk Beverages

• Protein Shakes

• Energy Drinks

• Chocolate Drinks

• Cappuccino Mixes

Chocolate drinks have the largest application. Theobromine and tryptophan, two substances that can elevate mood, are the reasons behind the popularity of chocolate beverages. Tryptophan fosters emotions of well-being and happiness, while theobromine can also deliver an energy and alertness boost. Dark, semisweet, or bittersweet chocolate, cocoa powder, bar chocolate, instant hot chocolate, or hot cocoa mix can all be used to make chocolate beverages. Flavonoids and polyphenols found in cocoa beans can shield cells from harm and lower the chance of developing chronic illnesses like cancer and heart disease. It even enhances brain function. Studies indicate that cocoa beverages may improve cognitive function. Protein shakes are the fastest-growing category. Chocolate protein shakes are well-liked due to their tasty nature, high protein content, and potential advantages for muscle growth and recuperation. Smoothies frequently contain chocolate protein powder since it enhances flavor, fiber, vitamins, and minerals, as well as making an individual feel full. Additionally, it has amino acids, which support the growth of muscle in our body.

Chocolate Powdered Drinks Market Segmentation: By Distribution Channels

• Supermarkets/Hypermarkets

• Specialty Stores

• Online Retail

• Others

Supermarkets & hypermarkets are the most dominant distribution channels. These establishments provide a wide variety of beverages, making it simple for customers to purchase them. Consumers can evaluate the product's quality by looking at it. With the shopkeeper, they may have their questions answered. Bargaining is another option available via this route. The segment with the fastest growth is online retail. E-commerce is gaining popularity due to its convenience, flexibility, and wide selection of products. This enables customers to browse and purchase items from the comfort of their homes. Additionally, the COVID-19 epidemic has accelerated the growth of this channel. A lot of offers and discounts are given to customers for their purchases.

Chocolate Powdered Drinks Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America has the largest market in 2023. The United States and Canada are at the forefront. The widespread availability of chocolate powdered drinks is the primary reason for this. This is attributable to the region's general market penetration, retail presence, and efficient distribution networks. Besides this, the increased knowledge and interest in chocolate powdered drinks that address certain health-related demands is driving the growth. Asia-Pacific is the fastest-growing market. China, Japan, India, and South Korea are in the lead. Rapid urbanization has led to an increasing disposable income and a rising middle class. Moreover, health and wellness trends have created an upsurge in the sales of protein and energy drinks. Consumers’ preference for this flavor is another major reason that is enabling the expansion.

COVID-19 Impact Analysis on the Global Chocolate Powdered Drinks Market:

The market suffered due to the virus epidemic. Lockdowns, movement limitations, and social isolation were some of the new standards. Transportation, logistics, and supply chain management were all impacted by this. As a result, import-export operations deteriorated. To prevent the virus from spreading, all manufacturing units and companies had to close. Production and other operations were halted as a result. To prevent the virus from spreading, remote work was given top priority. Layoffs were frequent due to the uncertainties in the economy. Numerous people experienced job losses. The majority of cash was allocated to applications in the healthcare field. Launches and partnerships were delayed as a result. People started to understand the importance of their health. Diabetes and other heart diseases increased the complexity for patients who were affected by the coronavirus. The European Cocoa Organization reported a decline of 314,108 metric tons of raw cocoa during the start of the pandemic. Sweets, desserts, beverages, and other junk food were avoided. Home-cooked and clean food became more popular. Post-pandemic, the market has begun to recover. The opening of companies has helped with profits. Normal functioning has been made easier by the relaxation of laws and restrictions. Online retail has helped increase market revenue.

Latest Trends/ Developments:

Premiumization is being emphasized as producers launch premium goods with premium cocoa sources, unique flavor profiles, and elegant packaging. Aside from classic chocolate milk, premium chocolate powdered drinks can include unusual and exotic flavor combinations like spicy chocolate, dark chocolate with sea salt, or mixes of single-origin cocoa. These high-end products are in demand because consumers want to experiment with their beverages and try out unique formulations.

Key Players:

1. Nestlé S.A.

2. The Hershey Company

3. Mars, Incorporated

4. Mondelez International, Inc.

5. Ferrero Group

6. Unilever

7. Abbott Laboratories

8. General Mills, Inc.

9. Kraft-Heinz Company

10. Swiss Miss (Conagra Brands)

• In March 2024, at AAHAR 2024, a gathering in New Delhi, Cargill debuted a variety of block chocolates, chocolate chips, and cocoa powder products under its NatureFresh Professional brand. The goods come in four varieties: intense dark, dark, milk, and white. They are chocolate indulgence items that are made based on a study of India's best bakers. One of the goods is an imported cocoa powder that is customized to meet the demands of Indian bakers, who like powders with deeper and richer colors.

• In September 2023, the milk drinks Mars and Galaxy from Mars Chocolate Drinks and Treats (MCD&T) were available in a new 250-ml can size. The action is part of the company's effort to develop more recyclable, environmentally friendly packaging, and if it proves effective, it will probably be extended to other models in the lineup in addition to the 350-ml sports cap bottles that are now in use.

• In May 2022, to diversify its product line beyond chocolate bars, Milkboy Swiss Chocolates launched its first beverage. The firm made its debut at the Specialty Food Association Summer Fancy Food Show in New York with its new Swiss Chocolate Drink. It is a cacao powder that is dairy-free, gluten-free, and genetically modified. It may be added to hot or cold milk.