Chocolate Confectionery Market: Analysis By Category, By Product Type, By Price Point, By Age Group, By Distribution Channel, By Region Size and Trends and Forecast up to 2029

Chocolate confectionery encompasses sweets mainly made from chocolate or cocoa, like chocolate bars, truffles, and pralines. The chocolate confectionery market refers to the global industry involved in the production, distribution, and sale of chocolate-based products. The global chocolate confectionery market value stood at US$148.54 billion in 2023, and is expected to reach US$213.22 billion by 2029.

The global chocolate confectionery market remains a growing and attractive part of the food industry. Whilst developed markets continue to benefit from premiumization and market depth, 'newer' chocolate markets provide significant opportunity for expansion. The growth of the chocolate confectionery industry in recent years has been fueled by various interconnected dynamics. Paramount among these is the rising consumer demand for premium and dark chocolates, driven by their perceived health benefits and increasing recognition as comfort food. Rising urbanization and disposable incomes in developing economies have amplified spending on chocolate, fostering growth in the premium sector.

With growing health-consciousness, consumers are prompting the market to offer specific lifestyle choice products, like reduced sugar and dairy-free options. The shift towards unique flavors, textures, and ethically-sourced ingredients has also boosted artisanal and organic chocolate demand. The global chocolate confectionery market is expected to grow at a CAGR of 6.21% over the projected period of 2024-2029.

Market Segmentation Analysis:

By Category: The report provides the bifurcation of the global chocolate confectionery market into seven segments on the basis of category, namely, tablets/molded bars, countlines, boxed assortments, chocolates pouches and bags, seasonal chocolates, chocolates with toys, and others. Tablets/molded bars is the largest segment of chocolate confectionery market owing to rising disposable income in emerging markets, increasing consumer preference for convenience and portion-controlled sized chocolates, wide availability of chocolate bars across various retail channels, increased focus on local and artisanal chocolate, a sense of nostalgia and comfort associated with traditional format of tablets and molded bars, and increased spending on indulgent products post-COVID.

Chocolates with toys is the fastest growing segment of global chocolate confectionary market as a result of strong appeal to children, increased focus on interactive and educational toys, rising gifting and occasional purchases, growing demand for novelty and experiential products, increasing number of well-targeted marketing and brand partnerships, and parental willingness to spend on small luxuries.

By Product Type: The report provides the bifurcation of the global chocolate confectionery market into three segments on the basis of product type: milk chocolates, dark chocolates, and white chocolates. Milk chocolates segment dominated the market share due to its versatile application in various products, appealing creamy texture, and innovation in flavors and fillings, all strengthened by a commitment to ethical sourcing. Over recent years, inventive developments such as the incorporation of assorted fillings, the introduction of novel flavors, and adherence to sustainable and ethical sourcing principles have rekindled consumer interest, fortifying the prominence of milk chocolate. Dark chocolate is the fastest growing segment of global chocolate confectionery market owing to growing awareness of the health benefits of dark chocolate, increasing popularity of plant-based and vegan diets, rise in premiumization and the availability of artisanal dark chocolate, growing demand for sugar-free and low-sugar alternatives, rising demand for premium chocolate in the gifting market, expanding consumer awareness of cocoa content, and rising purchasing power in emerging markets.

By Price Point: The global chocolate confectionery market can be divided into three segments, on the basis of price point, namely, economy, mid-range, and luxury. Economy is the largest segment of global chocolate confectionery market owing to broader consumer base, growing demand for budget-friendly treats, increasing availability of chocolate in mass retail channels like supermarkets and convenience stores, strong recognition and customer loyalty, increasing popularity of private-label or store-brand chocolate confectionery, and provision of frequent promotions, discounts, and seasonal offers. Mid-range segment of the chocolate confectionery market is expected to be the fastest-growing segment, due to its universal appeal, perceived quality, affordability, and alignment with the trend of chocolate as a comfort food and snack.

By Age Group: The global chocolate confectionery market can be divided into three segments, on the basis of age group, namely, adult, children, and geriatrics. Adult is the largest and fastest growing segment of global chocolate confectionery market as a result of high disposable income, rising demand for premium, artisanal & gourmet chocolate products, increased awareness about the origins and benefits of cocoa, popular choice for gifts and special occasions among adults, increasing perception of chocolates as a form of indulgence or self-reward, and heightened interest in gourmet chocolate experiences, trends in flavor profiles, and global chocolate trends shared through online platforms and social media.

By Distribution Channel: The global chocolate confectionery market can be divided into six segments, on the basis of distribution channel, namely, convenience stores, supermarkets/hypermarkets, specialty stores, e-commerce, duty-free stores, and others. Supermarkets/Hypermarkets is the largest segment of global chocolate confectionery market owing to diverse product offerings, wide demographic reach, frequent promotional discounts & loyalty programs, competitive pricing, provision of in-store sampling, increase in bulk purchasing, and opportunity for customers to inspect product quality firsthand. The e-commerce segment of the chocolate confectionery market is expected to be the fastest-growing due to the increasing consumer preference for online shopping, the convenience of home delivery, and the ability to easily compare products and prices. Additionally, the proliferation of digital platforms and the growth of mobile commerce have expanded the reach of e-commerce, enabling consumers to access a wide variety of chocolate confectionery from different brands and regions, often at competitive prices.

By Region: The report provides insight into the global chocolate confectionery market based on regions namely, North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Europe is the largest market for chocolate confectionery. Europe has a deep-rooted tradition and love for chocolate, with some of the world's most famous chocolate brands, like Cadbury, Ferrero, and Lindt originating here. Factors such as a mature market, high disposable income, and a culture that appreciates fine chocolate, contribute to Europe's significant share in the global market. In Europe, the chocolate confectionery market thrives on the indulgence factor of chocolates and their association with luxury. Continuous innovation in flavors, such as the introduction of exotic ingredients like chili, sea salt, and matcha, keeps consumers intrigued and fuels market growth. Alongside, growing health awareness has spiked demand for healthier options like high-cocoa, low-sugar chocolates. Dark chocolates, in particular, have garnered interest due to their antioxidant properties.

The Asia Pacific chocolate confectionery market is the fastest-growing region of global chocolate confectionery market, owing to a combination of cultural, demographic, and trend-based factors. With a significant population and increasing disposable incomes, particularly in countries like China and India, the region presents vast potential for growth. Traditionally, consumers across Asian countries have perceived chocolate as an exotic delicacy and a luxurious gift item, which has fueled its demand. However, consumption patterns have evolved, and chocolate is now an everyday indulgence for many. This shift is primarily due to increased exposure to global cultures, marketing efforts by major chocolate manufacturers, and the development of local chocolate production. The burgeoning children population in the region significantly influences the market dynamics. Children, naturally drawn towards the sweet taste of chocolates, constitute a large consumer base for chocolate confectioneries.

Market Dynamics:

Growth Drivers: The global chocolate confectionery market has been rapidly growing over the past few years, due to factors such as rapid urbanization, growth of e-commerce, health and wellness trends, rising disposable income, gifting culture and festive celebrations, marketing and branding initiatives, etc. Urban dwellers often lead busy lifestyles, leading to an increased demand for convenient and ready-to-eat food items such as chocolates. Moreover, the exposure to a wider variety of products and the presence of numerous retail outlets in urban areas have made chocolates more accessible to consumers. Also, the heightened consumer consciousness regarding health and nutritional intake has instigated a demand surge for healthier chocolate options. In response, manufacturers are innovating their product lines, offering dark chocolates with higher cocoa content known for their heart-healthy antioxidants. Moreover, the persistent gifting culture and festive celebrations are powerful growth drivers in the global chocolate confectionery market.

Challenges: However, the global chocolate confectionery market growth would be negatively impacted by various challenges such as, as fluctuating raw material costs, health concerns, regulatory changes, etc. Chocolate production heavily relies on the costs of raw materials like cocoa, sugar, and milk. Cocoa beans, sourced mainly from specific West African regions, are particularly influenced by factors such as climate, pests, and political instability. Similarly, sugar and milk costs fluctuate due to global supply-demand dynamics and government policies. So, when the prices of these ingredients fluctuate, production costs rises. So, increases in raw material prices impact chocolate manufacturers' production costs and profit margins.

Trends: The global chocolate confectionery market is projected to grow at a fast pace during the forecasted period, owing to artificial intelligence (AI) and data analytics, technological innovations, sustainable practices, continued momentum of 'snacking culture”, increasing demand for premium chocolate confectionery, expansion into new product categories, personalization & customization, and exotic & novel flavors, etc. During the forecasted period, the global chocolate confectionery market is being shaped by emerging consumer preferences for vegan, reduced-sugar, and sugar-free products.

As dietary demands shift, brands are innovating to cater to these new needs. In addition, the market is witness a significant shift towards premium chocolate offerings. Premium chocolates are typically characterized by high cocoa content, exclusive ingredients, fine craftsmanship, and elegant packaging. They are often seen as a symbol of indulgence and sophistication, appealing to consumers who are willing to pay a premium for a heightened sensory experience. Furthermore, premium chocolates often adhere to ethical sourcing and sustainability standards, aligning with the growing consumer demand for responsible consumption.

Impact Analysis of COVID-19 and Way Forward:

COVID-19 brought in many changes in the world in terms of reduced productivity, loss of life, business closures, closing down of factories and organizations, and shift to an online mode of work. The growth of global chocolate confectionery market was positively impacted during the period 2019-2020, as chocolate confectionery was among the sectors that experienced a surge in demand due to the concept of 'comfort eating' during stressful times. Consumers turned to chocolate as an affordable indulgence during the period of uncertainty. Online sales of chocolate confectionery products also saw an upward trend due to consumers' increased preference for online shopping to minimize exposure to the virus. Also, changes in consumer behavior, notably increased health consciousness and a preference for healthier, low-sugar chocolate options, encouraged many companies to accelerate the development and marketing of premium, dark, and healthier chocolate variants

Competitive Landscape:

The global chocolate confectionery market is marked by being a moderately consolidated market, featuring numerous multinational giants and various regional contenders. Market leaders distinguish themselves through brand credibility, product quality, innovation, expansive distribution networks, and effective marketing strategies. These companies compete based on factors such as brand reputation, product quality, innovation, distribution networks, and marketing strategies. They constantly strive to innovate in terms of flavors, packaging, and product formats to attract and retain consumers. The key players of the market are:

• Mondelez International Inc
• Nestlé SA
• Meiji Holdings Co., Ltd.
• Hershey Co
• Chocoladefabriken Lindt & Sprüngli AG
• Ezaki Glico Co., Ltd.
• Barry Callebaut
• Mars Inc
• Ferrero International SA
• Yildiz Holding (Pladis Global)
• CEMOI Group
• Orion Group (Orion Confectionery)
• August Storck KG

The global chocolate confectionery market is characterized by the presence of several prominent players, each contributing a distinct range of brands. On June 13, 2024, Mondelēz International and Lotus Bakeries announced a strategic partnership to expand and grow the Lotus Biscoff cookie brand in India, and to develop exciting new chocolate products combining the unique, caramelized, crunchy Biscoff taste and texture with Mondelēz’s iconic Cadbury, Milka and other key chocolate brands in Europe, with the option to expand globally. Similarly, on May 03, 2024, Lindt & Sprüngli opened the plant extension to the Lindt Cocoa Center in Olten, Switzerland. A total of around 100 million Swiss francs was invested in expanding the plant, which produces cocoa mass for several Lindt & Sprüngli production sites in Europe. The expansion, which began in 2021, includes new production lines, a new loading bay for cocoa mass, a state-of-the-art laboratory, and the redesign of the plant’s administrative offices.