The global chocolate market size is expected to reach USD 187.08 billion by 2027, expanding at a CAGR of 4.6% over the forecast period, according to a new report by Grand View Research, Inc. Growing awareness about health benefits of chocolate among consumers as a result of increased number of advertising campaigns on social websites and satellite television channels is expected to have a positive impact on the market growth. Chocolates are associated as the token of appreciation, love, happiness, and celebration owing to which increasing number of consumers are gifting such confectioneries on special occasions, including Thanksgiving, Easter, and Christmas.
Fluctuating price of raw material is a key factor influencing the cost of production of the chocolate industry, thereby influencing the profitability of the manufacturers. The cocoa plantation requires specific weather conditions. Cocoa is a sensitive plant that grows in the tropical climate and needs proper vegetation shades to yield better quality seeds owing to which its planation is concentrated in West Africa.
Traditional chocolate held the largest share of 99.4% in 2019. Artificial products are expected to expand at the highest CAGR of 11.9% from 2020 to 2027. Carob bars are similar to chocolate bars in terms of the number of calories, fat, cholesterol, and carbohydrates. The absence of caffeine is a factor that makes it different from cocoa, which makes it suitable for people sensitive or intolerant to caffeine. Carob is also naturally sweet and hence requires a low amount of sugar for preparing the final product.
Europe held a leading share of 39.8% in 2019. Growing consumption of dark chocolate owing to associated health benefits is a main factor fueling the chocolate market growth in the region. Middle East and Africa is expected to witness the fastest growth owing to increasing number of specialty retail stores in countries, such as UAE and South Africa.
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Further key findings from the report suggest:
- By product, the artificial segment is expected to expand at the highest CAGR of 11.9% from 2020 to 2027. Growing importance of carob as a healthy alternative to cocoa-based chocolate is expected to remain a key factor for the segment growth over the next few years
- In terms of distribution channel, the supermarket and hypermarket segment accounted for the largest share of more than 65% in 2019. This is attributed to high product visibility, coupled with, increasing number of department and specialty stores in emerging economies, such as China and India
- Online distribution channel is expected to register the fastest CAGR of 5.6% from 2020 to 2027. This is attributed to increased importance of such channels for providing extra-convenience features, including doorstep delivery and coupon benefits
- Europe held the largest share of 39.8% in 2019. Growing popularity of dark chocolate among consumers in developed countries, including Germany, U.K., and France, is expected to be a major factor contributing to the regional market growth.