|Base Year Market Size
|USD 8,074.07 Million
|Forecast Year Market Size
|USD 12175.67 Million
|Fastest Growing Market
The global chocolate milk market size was valued at USD 8,074.07 million in 2021. It is projected to reach USD 12,175.67 million by 2030, growing at a CAGR of 4.67% during the forecast period (2022-2030).
Milk flavored with cocoa and sugar is known as chocolate milk. When aiming to enhance children's calcium and vitamin D intake, it is frequently marketed as a terrific way to recuperate from a workout and as a good substitute for traditional cow's milk. Typically, cow's milk, cocoa, and sweeteners like sugar or high-fructose corn syrup are combined to make chocolate milk. Compared to unsweetened milk, it has more calories and carbohydrates but otherwise equivalent amounts of nutrients. Vitamins A, B1, B6, and B12, as well as trace levels of zinc, selenium, iodine, and magnesium, are also present in chocolate milk.
Milk beverages are associated with the contemporary urban lifestyle, encouraging more consumers to eat snacks outside the home and seek out easy and healthful substitutes. Additionally, the segment of beverages consumed on the go is expanding at a time when consumers and merchants are placing a premium on fortified dairy products and convenience. As a result, there is an increase in demand for portable beverages worldwide. Consumers are becoming more aware of the different valuable qualities of chocolate milk, such as its high vitamin, calcium, and carbohydrate content, which is promoting market expansion globally.
The market for chocolate milk is being pushed by shifting consumer preferences, a tendency toward handy beverage packaging, and rising demand from children, teenagers, and sports. Additionally, most milk beverages fortified with vitamin D are a great source of calcium and a good source of potassium. Chocolate milk has become very popular in the dairy section thanks to its numerous unique flavors, textures, and forms and its multiple health benefits.
The high sugar content of flavored milk, the rising rates of obesity and diabetes, and the preference for powdered milk chocolates (which contain high sugar) over dark chocolates in these chocolate-based milks are some of the main factors restricting the global milk chocolate market. The consumption of low-fat, low-sodium and low-sugar beverages is rising, reducing the need for traditional chocolate milk (made of sugar). Another factor impeding the development of the market is the proliferation of different international and regional functional beverages that continually emphasize product innovation in terms of flavor and packaging, followed by a robust media campaign and commercialization. The active elements added to ready-to-drink beverages, such as vitamins, minerals, omega-3 fatty acids, carotenoids, and plant extracts, assist customers in meeting on-the-go demands and support daily needs and health maintenance.
The global market for organic and sugar-free chocolate milk is driven by the rise in health consciousness among consumers and the ensuing increase in awareness about the risks of ingesting artificial chemicals. Additionally, a change in consumer food consumption habits and rising demand for chocolate drinks are promoting the expansion of organic chocolate drinks throughout the region. Leading companies are introducing cutting-edge organic chocolates to sustain themselves over the long term in response to the increased demand for vegan and sugar-free chocolate milk. The popularity of these organic chocolate milk is opening up lucrative opportunities for manufacturers of chocolate milk to tap into untapped markets and doors for new entrants to enter the market with novel and inventive organic, flavored chocolate drinks and increase their revenue by outpacing rivals
The global chocolate milk market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant global chocolate milk market shareholder and is expected to grow at a CAGR of 10% during the forecast period. Owing to favorable economic factors in China, the key vendors are continuously trying to make their products differ in terms of quality, ingredients, flavors, and packaging to gain competitive advantages. Furthermore, the market is anticipated to grow due to China's rising chocolate and related product consumption. For instance, the Association of Chinese Chocolate Manufacturers estimates that China consumes 70 g of chocolate per person annually. The average European person consumes 7 kg of chocolate annually, compared to 2 kilograms in Japan and South Korea. One of China's most popular chocolate milk brands, Dove, uses imported cocoa powder, New Zealand milk, and other ingredients that surpass EU standards. The natural components used in their food and beverage items and the unique tastes of Japanese customers are well-known. Increasing the consumption of this kind of milk across the nation broadens the potential for ingredient innovation in the chocolate milk industry.
North America is expected to grow at a CAGR of 4.65%, generating USD 2,731.86 million during the forecast period. The United States declining milk consumption is a result of people's shifting nutritional preferences. The USDA reports that daily fluid milk intake per person has decreased from almost one cup to 0.6 cups. This has caused businesses to strategically represent their product in the market as organic milk enriched with necessary nutrients rather than just flavored milk to increase consumer consumption. Despite intense competition from protein shakes and non-dairy beverages, the American dairy industry's persistent marketing campaigns have convinced adults and athletes to choose chocolate milk, who previously disregarded the beverage as a beverage for kids. International companies like the Coca-Cola Company have expanded and diversified their offering of beverages in Canada by including fairlife Ultrafiltered Milk. Market expansion in Mexico has been made possible by foreign competitors supplying chocolate milk there, such as Nestlé SA.
Germany's chocolate milk industry is primarily driven by the country's expanding demand for healthy beverages and consumers' enthusiasm to try new beverages. Since chocolate milk contains water, protein, and simple carbs that restore the body after strenuous physical exercise, people who are actively involved in physical activity choose it over typical sports beverages. Health professionals also advise people who exercise intensely to drink fluids heavy in protein and carbs, like chocolate milk. In order to concentrate on plant-based beverages and cater to the expanding veganism trend, the vegan chocolate milk market is gradually being introduced in Germany, primarily by multinational companies. The UK Upper Tribunal Tax Court rejected the claim that chocolate milkshakes are VAT-free. As a result, goods like Nestlé's Nesquik chocolate powder milkshake were no longer subject to VAT. This factor gives the already-existing market more drive to expand.
Brazilian customers are finding a greater need for ergonomic, simple-to-open, and convenient on-the-go food and beverages. Furthermore, people are unwilling to give up their desire for practical and nutritious things. Local firms like Laticnios Latco Ltda are supplying chocolate milk in Brazil to support the market expansion. For instance, the business provides two distinct flavors of chocolate milk: "chocolate with coconut flakes" and "chocolate and tropical strawberry with coconut flakes." Due to this, global firms like Nestlé SA are investing strategically to increase their footprint in value-added dairy products while geographically expanding throughout South American nations like Colombia. As a result, it is anticipated that this element will boost the nation's production and sales of chocolate milk.
|By Distribution Channels
|Nestle SA Arla Foods amba Dairy Farmers of America Inc. Saputo Inc. Royal FrieslandCampina NV Maryland & Virginia Milk Producers Cooperative Association Inc. Inner Mongolia Yili Industrial Group Co. Ltd Danone SA The Hershey Company The Coca-Cola Company Unternehmensgruppe Theo Müller Mars Incorporated.
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global chocolate milk market is segmented by type and distribution channel.
Based on type, the global chocolate milk market is bifurcated into dairy-based chocolate milk and non-dairy-based chocolate milk.
The dairy-based chocolate milk segment is the highest contributor to the market and is expected to grow at a CAGR of 4.47% during the forecast period. Markets for protein shakes and non-dairy beverages are fierce competitors worldwide for the dairy-based chocolate milk business. Adults and athletes who had previously dismissed dairy-based chocolate milk as a beverage for kids are now choosing it due to dairy industry marketing campaigns. Leading enterprises are developing organic and sugar-free chocolate drinks to maintain their market position in light of the growing worries regarding the sugar content of dairy drinks and the rising obesity rate worldwide. Companies are aggressively building their fortified food and company due to the escalating health issues caused by aging, indigestion, and other disorders, which are predicted to propel market expansion. Chocolate is one of the most well-liked flavors in the dairy beverage market since consumers are aware of the advantages of dairy products. This fact affects the market for dairy-based chocolate milk as well and offers the makers of such products a chance to expand their businesses.
The non-dairy beverage sector is one of the fastest-growing segments in the whole food and beverage industry, and over one-third of customers worldwide identify milk chocolate as the product they would most like to see produced using plant-based ingredients. However, there is still a lot of untapped potential in the segment. In the US, 14% of the retail milk and the milk-analog market is made up of plant-based goods, which reflects rising consumer worries about their health and how their diets affect the environment. This media source survey suggests a possible market expansion for non-dairy beverages, which will undoubtedly boost the market expansion for non-dairy chocolate milk. Additionally, innovation is the primary strategy in this category that can help the market and the producers.
Based on distribution channels, the global chocolate milk market is bifurcated into supermarkets/hypermarkets, convenience stores, and others.
The supermarket/hypermarkets segment owns the highest market share and is expected to grow at a CAGR of 4.47% during the forecast period. Supermarkets and hypermarkets have consistently held a commanding advantage in the market share for chocolate milk sales. These channels have the added benefit of persuading consumers to choose one of the many different brands on the market by their closeness, particularly in large cities and metropolitan areas. Additionally, the extensive retail visibility of products has increased the percentage of supermarkets and hypermarkets. Further, corporate growth and the increase in supermarkets and hypermarkets boost these retail formats' sales and significantly impact the chocolate milk market. Due to the substantial discounts, deals, and programs that customers can take advantage of when making a large purchase, shopping at hypermarkets and supermarkets is also helpful.
A sizeable amount of chocolate milk sales come from independent local grocery and convenience stores. It is one of those categories that retailers worldwide cannot ignore since chocolate-flavored drinks continue to rank in the top four convenience channel sales, just below the staples of bread, milk, and soft drinks. Therefore, the manufacturers are lowering the size of their packaging to fit more chocolate milk goods on the retail shelves of these c-stores after analyzing the possible benefits of selling a larger volume of chocolate milk drinks and other items through convenience stores. In addition, compared to regular retailers, convenience stores are open till late hours. The company's manufacturing of chocolate milk can reach a broader consumer base through an expanded product variety thanks to the high penetration rate of convenience store patrons.