Premium Chocolate Market Size (2023 - 2030)

The Global Premium Chocolate Market is valued at USD 34.84 Billion in 2023 and is projected to reach a market size of USD 66.61 Billion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 9.7%.

INDUSTRY OVERVIEW

Chocolate is a sweet, generally dark comfort food made from the cocoa tree and available in blocks, liquid, or paste form. Chocolate is used as a flavouring element in a variety of meals, including brownies, cakes, cookies, bars, and sweets. Cocoa, the principal component, contains phytochemicals, which are antioxidants. Dark chocolates have a high phytochemical content. Chocolate boosts serotonin levels in the brain and intestines while also boosting the immune system. The growing understanding of chocolate's health advantages is a primary driver of industry expansion. Chocolate has several health advantages, including blood pressure control, antioxidant enrichment, and anti-ageing properties. Moreover, rising demand for chocolate and chocolate-based goods during holiday and festival seasons adds considerably to the chocolate market's expansion. The market's expansion is fueled by a high demand for chocolate in the confectionery sector.

Premium chocolates are high-quality chocolates made with ultra-fine ingredients and flavoured with a variety of exotic flavours like peanut butter, caramel, mint, honey, tropical fruits, espresso, and more. Premium chocolates are becoming increasingly popular around the world as consumers become more aware of their benefits and important players begin to brand premium chocolates as gifts. The rising demand for dark chocolates made with cocoa powder, the growing adoption of skimmed milk chocolate among the young population, the growing popularity of gourmet chocolates made from ultra-fine cocoa beans, and growing investment by key players to develop quality and healthier premium chocolates are all factors that are expected to propel the industry forward.

COVID-19 IMPACT ON THE PREMIUM CHOCOLATE MARKET

COVID-19 has had a negative impact on the market for premium chocolate. Low sales volumes as a result of the COVID-19 epidemic, as well as supply-side concerns with quality and certification, hampered the premium chocolate market. Beverage sales and production were restricted due to low investment and a lack of workers. Key market players, on the other hand, have implemented new safety measures in the product development process. The internet distribution channel is changing people's buying patterns since it delivers benefits such as convenient payment options, availability of a large selection of items, doorstep delivery, and substantial savings. This aided the market's growth during the pandemic, and it will continue to do so post-pandemic. The government is aiding in the building of alliances and links between fine cocoa growers and premium chocolate firms to boost the robustness of the marketing infrastructure. This is likely to be a major source of assistance in the sector's revival.

MARKET DRIVERS: 

One of the primary factors fueling the growth of the premium chocolate industry is the rise in health consciousness among the people and the growing Demand for Dark Premium Chocolates

Chocolate eating has been shown to enhance cognitive function as well as immunological and cardiovascular health. Chocolate has been shown to help with memory, focus, blood circulation in the brain, stress relief, and anxiety reduction. One of the main drivers of worldwide premium chocolate market share growth is the increased demand for organic, vegan, gluten-free, and sugar-free chocolates. Organic items, especially premium chocolate, are becoming more popular as customers become more aware of the negative impacts of synthetic materials on their health and the environment. Organic foods are getting more popular in the market as consumers become more concerned about the ingredients used in chocolates due to their health benefits. As a result of changing consumer preferences, prominent businesses have responded by developing a wide range of organic chocolates to attract health-conscious customers.

Premium Chocolates as Gifts are becoming a trend among the general population which is eventually propelling the market expansion

Premium chocolates, such as skimmed milk chocolate and dark chocolate, are becoming increasingly popular as gifts among youths all around the world. Due to increased customer demand, prominent businesses all across the world are increasingly supplying dark and milk premium chocolates as presents, thereby strengthening the Premium Chocolate Market.

MARKET RESTRAINTS:

The premium chocolate category faces tough competition from other snacks and is also not widely available

A key challenge to the premium chocolate market is that, in comparison to other snacks, premium chocolate is out of reach for many in regions like India, China, and the Middle East, and this is unlikely to change very soon. Premium chocolate is largely popular with middle and upper-class audiences in China, Europe, and the United States. To increase market share, players with a modest presence will need to target second-and third-tier cities, where newly formed middle classes have arisen. Manufacturers will also need to address this issue by establishing local manufacturing facilities and cutting product unit prices.

Market expansion is projected to be hampered by the fluctuating price of cocoa beans

The fluctuating price of essential raw materials like sugar, milk powder, and cocoa beans is one of the most significant barriers to the market's growth. Premium chocolates are more expensive than regular chocolates, and the rising cost of these raw materials will drive up the cost of production even more. This is passed on to consumers by either lowering the size of chocolate portions or increasing the price of chocolates. Furthermore, diseases, extreme weather, and other bad conditions reduce crop productivity, resulting in a spike in crop costs and eventually affecting the productivity of the premium chocolates.

PREMIUM CHOCOLATE MARKET REPORT COVERAGE:

This research report on the Premium Chocolate Market has been segmented and sub-segmented based on By Product Type, By Distribution Channel and By Region.

PREMIUM CHOCOLATE MARKET - BY PRODUCT TYPE

• Dark Premium Chocolate
• White and Milk Premium Chocolate

Based on product type, the premium chocolate market is segmented into Dark Premium Chocolate and White and Milk Premium Chocolate. In 2020, the Dark Premium Chocolate segment had the greatest market share and is expected to increase at a CAGR of 10.1 per cent over the forecast period of 2023 - 2030. The increased availability of dark premium chocolates and the rising demand for dark chocolates prepared with cocoa powder are both contributing to this trend. The Premium Chocolate Market is growing due to an increase in consumer preference for dark chocolate manufactured with cocoa beans in industrialised countries. Dark chocolate is high in fibre, antioxidants, iron, and magnesium, and is also known as black chocolate or plain chocolate. It can also aid in the improvement of cognitive processes and blood flow, as well as being less harmful to teeth than other types of chocolate. As a result, the numerous health benefits will greatly enhance customer demand for dark premium chocolate, enabling category expansion. Besides this, owing to reasons such as rising demand for skimmed milk chocolate among the youthful population and an increase in product launches of white and milk premium chocolates, the White and Milk Premium Chocolate sector held the second-largest market share in 2021.

PREMIUM CHOCOLATE MARKET - BY DISTRIBUTION CHANNEL

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Stores
• Others

Based on the distribution channel, the premium chocolate market is segmented into Supermarkets/Hypermarkets, Convenience Stores and Online Stores among others. Due to factors such as rising demand for premium chocolates manufactured with cocoa powder at supermarkets and increased investment by key players, the Supermarkets/Hypermarkets segment held the highest share in 2020. The rise of the Premium Chocolate Market is being fueled by the easy availability of a wide range of flavour options and supermarket dependability. With a CAGR of 10.3 per cent between 2022 and 2030, the Online Channels segment is anticipated to be the fastest-growing segment. The surge in demand for skimmed milk chocolate among the youthful population in online channels, technological improvements, and an increased predisposition toward a sedentary lifestyle are all factors contributing to this trend.

PREMIUM CHOCOLATE MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

By region, the cultured meat market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. In 2020, North America had the biggest market share, accounting for 27% of the total market. The increasing demand for dark chocolates prepared with cocoa powder and cocoa beans, as well as a rise in product releases by significant companies, are driving the regional market growth. Fine flavour chocolate is in high demand in places like Europe and North America. Gourmet chocolates are made using ultra- and high-end beans, whereas ordinary and low-fine beans are used in regular premium chocolates, particularly in nations like the United Kingdom, Brazil, the United States, Germany, China, India, the Netherlands and Switzerland. The health trend, as well as the need for more exclusive products, are driving this development. Because of the growing demand for premium textured chocolate with grains or cereals in the region, Europe dominates the premium chocolate market. During the projection period, Europe will account for 36% of the rise in global premium chocolate market share. Premium chocolate is mostly sold in Belgium, Germany, and the United Kingdom. The region's premium chocolate market is predicted to develop in response to rising per capita chocolate consumption and the presence of important vendors in Europe. Because of an increase in packaged food demand in the region, Asia-Pacific (APAC) is predicted to grow significantly from 2023 - 2030.

PREMIUM CHOCOLATE MARKET - BY COMPANIES

The worldwide premium chocolate industry is fiercely competitive, with many international competitors present. Chocoladefabriken Lindt & Sprüngli AG, Ferrero SpA, Hershey Company, Mondelz International, and Yildiz Holding were among the global players with a significant stake. Major market participants have been improving accessibility and developing unique goods to pique the thirst for higher-priced chocolates among youthful customers. Premium chocolates are heavily consumed by tourists and visitors around the region. As a result, firms in the travel retail sector have been extending their presence and offers. Some of the major players operating in the premium chocolate market include:

1.  Cemoi Chocolatier SA
2.  Chocoladefabriken Lindt and Sprungli AG
3.  Fifth Dimension Chocolates
4.  Lake Champlain Chocolates
5.  Lotte Confectionery Co. Ltd
6.  Mars Inc
7.  Mondelez International Inc.
8.  Nestle SA
9.  The Hershey Company
10.  Yildiz Holding

NOTABLE HAPPENING IN THE PREMIUM CHOCOLATE MARKET

• PRODUCT LAUNCH- Cadbury Dairy Milk Silk Mousse was introduced by Mondelez International Inc in January of 2021. These mousses were introduced in the premium chocolate market for customers looking for new and exciting experiences.
• PRODUCT LAUNCH- In October 2020, the Ferrero Group launched the premium gifting brand 'Ferrero Rocher Moments' in India. The launch was started to broaden the company's existing portfolio. These freshly produced chocolates seek to provide consumers with a fun and light-hearted experience.
• PRODUCT LAUNCH- Lindt & Sprüngli launched salted caramel truffle in Europe and other areas of the world in May 2020. The salted caramel chocolate truffle features a silky caramel-flavoured centre and is wrapped in a smooth milk chocolate shell.
• PRODUCT LAUNCH- KitKat Chocolatory Sublime Volcanic, created from volcanic chocolate containing rare cocoa beans, was introduced by Nestle Japan in January 2019. These new products employ cocoa beans grown on volcanic islands, which account for roughly 0.2 per cent of global production.