The chocolate market size was valued at USD 133.38 billion in 2022. It is projected to reach USD 181.78 billion by 2031, growing at a CAGR of 3.50% during the forecast period 2023-2031. Factors like the rising popularity of chocolate and its health benefits drive market growth.
Chocolate, for many millennia, has undoubtedly been the most popular and favored sweet in the world. The main ingredient in chocolate is cocoa, mainly grown in parts of Africa, Latin America, and Indonesia. The global chocolate market has been segmented into white chocolate, milk chocolate, dark chocolate, and other chocolates, including unsweetened and semi-sweet chocolates. Cocoa, in butter or liquor, is used to produce chocolates. The variety in chocolates depends primarily on the percentage of cocoa used. According to FDA, the percentage of cocoa in white chocolate should be at least 20% in white chocolate, at least 10% of cocoa liquor in milk chocolate, and at least 35% for dark chocolates.
The chocolate market has been evolving for decades and has adhered to regional trends. The global chocolate market has witnessed a substantial rise owing to factors such as demand for premium products, product innovation, and branding.
The rising popularity of chocolate confectionery primarily drives the global market for cocoa and chocolate. The increased consumer spending on indulgent confectionery products, particularly chocolate confectioneries, has been attributed to the upward demand for chocolate confectioneries in emerging economies in recent years. The market for chocolate confectionery is anticipated to benefit from the rising demand for molded and countline chocolates in developed nations.
Including new varieties of black and ruby chocolate in the product lines of important manufacturers is anticipated to promote the industry's expansion. During the projected period, it is anticipated that the growing practice of giving chocolates as gifts during the holiday season will significantly contribute to the growth of the chocolate confectionery market.
Because dark chocolate aids in preventing heart disorders and offers potential for other uses like chocolate cake and chocolate milk in the global chocolate industry, its popularity is predicted to increase over the following years. Among the most consumed foods worldwide are chocolate and high-end chocolate products. Serotonin, a neurotransmitter that calms the brain and functions as an antidepressant, is found to rise when chocolate is consumed in moderation. In addition, it enhances mood by expelling pollutants. Chocolates come in various shapes, sizes, and packaging to best fit the occasion. Chocolate is continually growing in an industry worth billions of dollars as new goods are created and promoted.
Due to their affordability and ease of availability, the products above palm oil, soybean oil, shea, rapeseed oil, and others—are increasingly in demand as cocoa component substitutions and equivalents. This has a detrimental effect on the market for cocoa butter. Their development rate is driven by the resulting chocolate products' enhanced fat stab and fat composition profile, which was made possible by employing substitutes for cocoa butter.
In recent years, there has been a noticeable increase in the demand for a premium or specialty chocolates, particularly in developed markets like the United States, France, Belgium, and Germany. In the upcoming years, an increase in trend is anticipated. A prominent primary driver is consumers' growing interest in knowing the provenance of the materials used in chocolate. There are many causes for this, including allergies to certain ingredients like lactose and preferences for vegan diets. Additionally, there is a significant market for goods produced from specialized cocoa beans. Specialty chocolates are expected to grow as a result of these factors.
Demand for dark and sugar-free chocolate has surged due to the growing popularity of clean-label and organic products for maintaining general health and wellness.
| Study Period | 2019-2031 | CAGR | 3.5% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 133.38 Billion |
| Forecast Year | 2031 | Forecast Year Market Size | USD 181.78 Billion |
| Largest Market | North America | Fastest Growing Market | Europe |
Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.
The North American market for sugar confectionery still holds the lion's share in the global chocolate market. According to the National Confectioners Association, chocolate sales accounted for USD 21,100 million in 2018. Due to rising consumer demand for low-sugar sweets, North America's bakery and confectionery sectors are anticipated to rise throughout the projected period. The region is projected to be dominated by chocolate products due to the rise in demand for organic and bakery goods that are high in cocoa content. High-end bakers use chocolate cups to improve the aesthetic appeal of their goods. These businesses offer puddings, mousse, custards, and other chocolate-based sweets to affluent consumers. This trend will likely fuel demand in North America throughout the projected period.
The growing popularity of dark chocolate among consumers is a significant factor contributing to the market growth in the region. According to the CBI, Ministry of Foreign Affairs, in 2019, Europe accounted for about 45% share of the dark chocolate market globally. In Europe, Germany dominated chocolate sales in 2019 owing to increasing per capita consumption. The already mature market in Europe has been observing new trends. On the other hand, the demand for organic chocolates is thriving in Western Europe.
The Asia- Pacific market has witnessed significant growth in recent years. Rising disposable income and strengthening distribution channels in retail and online stores are the critical factors behind the growth. Cocoa cultivation in Indonesia has remarkably bolstered regional market growth. Asia-Pacific houses Companies such as Marou Faiseurs de Chocolat (Vietnam), Krakatoa (Indonesia), and Chocolate Concierge (Malaysia).
The cocoa tree is native to South America and was further propagated to different regions later. Since then, cocoa cultivation has been predominant in African countries such as Côte d'Ivoire, Ghana, Cameroon, Nigeria, and other countries such as Indonesia, Brazil, Dominican Republic, Ecuador, and Peru. To make the overall cocoa industry sustainable, especially regarding socio-economic sense, Voluntary Sustainability Standards (VSS), Fairtrade, and UTZ were put forth. This has assisted in increasing the overall reliability of the cocoa supply and mitigating the risk regarding public perception. Chocolate consumption has witnessed a dynamic change and has a strong inclination toward Western countries in Africa and the Middle East. The rise in the number of expatriate workers in Middle East countries is said to be a key factor responsible for the growth of the chocolate market.
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For better understanding, the market is segmented by type, application, and region.
Based on type, the market is further bifurcated into White, Milk, Dark, and Other, where dark chocolate dominates.
The rise in the trend of health consciousness has tilted the global chocolate market toward dark chocolate. Because of its higher cocoa percentage, dark chocolate has been the most favored chocolate type due to its health benefits. Some of them include cardiovascular effects that regulate blood pressure and insulin resistance. The consumption of dark chocolate is also believed to benefit the immune system. It helps to inhibit the growth of cancer cells. Dark chocolate is also an anti-diabetic agent, which can act against obesity and other illnesses related to glucose homeostasis. According to the World Health Organization, 650 million adults 18 years and above were obese in 2016, and the number is expected to rise in the coming years. Consumption of chocolate as a health enrichment will likely fill the chocolate market.
Based on application, the market is segmented into food and beverages.
Chocolate, for many centuries, has been the most preferred sweet used across diverse applications. Chocolate is primarily produced as a confectionery in many forms, such as powder, liquid, paste, or the conventional block. It has been used in bakeries. Usually, compound chocolate, made up of cocoa vegetable fat and sweeteners, is a low-cost alternative to pure chocolate. Additionally, milk, dark, and white chocolate are used in the preparation of brownies, cakes, creams, and mousses, and even for decoration.
The use of chocolate has also been on the rise in beverages. Hot chocolate and a variety of nutritional chocolate drinks are becoming trendy. Chocolate is mainly used in beverages to enhance taste and richness and to add color. It is also used due to its masking capabilities, clean label, and antioxidant property, which is why many beverage manufacturers choose chocolate as its primary ingredient.
As the COVID-19 pandemic is spreading like wildfire with no signs of slowing down, it has adversely impacted many industries around the world, including the mining and energy industries. The operations and supply chains of leading players in the global market have been drastically affected. For instance, the nationwide lockdown announced by governments of multiple countries, such as Canada, Chad, Colombia, and many others, has led to disruptions in international mobility, transportation, and supply chains.
Glencore's, a leading player in the market, and a wholly owned subsidiary, PetroChad (Mangara) Limited, had to cease production at their Badila and Mangara oil fields. Apart from this, the demand from key importers of cobalt, i.e. China, has witnessed a sharp fall due to the halt in operations, which is affecting the overall supply and demand.
