Chocolate Milk Market - Growth, Trends, COVID-19 Impact, and Forecas(2022 - 2027)

Chocolate Milk Market - Growth, Trends, COVID-19 Impact, and Forecas(2022 - 2027)

The global chocolate milk market was valued at USD 7,784.41 million in 2020, and it is projected to register a CAGR of 4.67% during the forecast period (2021-2026).

The COVID-19 pandemic resulted in the generation of opportunities for many dairy snack food and beverage private players to emerge in the markets to cater to the inflated demand. The demand for innovative dairy products, including chocolate milk products, is consistently high in the developed countries, as these beverage snacks are a quick and convenient source of nutrition and energy.

The demand for packed and trusted snack food brands increased during the lockdown, which is likely to impact the chocolate milk market growth in a positive manner. As a result of the coronavirus outbreak in the United States, 27% said that they were snacking more (as per Food Insight), further supporting the market studied.

Health and wellness trends led to the inclination of consumers toward low-fat, lactose-free variants, owing to the rising incidences of lactose intolerance in the world, and calcium-rich variants of chocolate milk, which encourages manufacturers to innovate in the dairy-free chocolate milk category to gain a competitive edge over other market players.

Low fat and fortified chocolate milk, with low sugar and added nutritional benefits, is occupying the retail market shelf, owing to the demand from consumers.

Key Market TrendsDairy-Based Chocolate Milk Holds Major Share Globally

The dairy-based chocolate milk market faces stiff competition from the protein shakes and non-dairy drinks market globally. However, constant marketing efforts from the dairy industry led to adults and athletes opting for dairy-based chocolate milk who previously dismissed chocolate milk as a drink for children. Some of the major factors expected to drive the demand are increasing consumer disposable income and consumer awareness regarding the health benefits of flavored dairy products such as chocolate milk.

Due to the rising concerns over sugar content in dairy drinks and the growing obese population worldwide, the leading players are innovating organic and sugar-free chocolate drinks to sustain their position in the market. For instance, in 2017, Nestle altered the sugar level and revamped its chocolate drink to fulfill the consumers’ demand for low-sugar chocolate drinks. In 2019, Nestle launched a low sugar product, Nesquik All Natural, packaged in recyclable paper packaging, with more cocoa. Such innovations in the product category are attracting more consumers, aiding the market growth.

Asia-Pacific Leading Tte Global Chocolate Milk Market

The consumer demand for convenient, natural, nutritious, and healthy on-the-go snack options is the primary attribute for the sales of chocolate milk across Asia-Pacific. The changing lifestyle of consumers and inclination toward a healthy lifestyle are boosting the growth of the market. Hence, chocolate milk, being the healthier and nutritional option, is witnessing increasing demand. Dairy-based beverages are naturally high in calcium content, and thus, they are perceived as a nutritional beverage option. The health benefits of probiotic drinks, especially their ability to improve digestion and immune system, are attracting consumers across all age groups. A shift in the food consumption pattern of consumers and increasing demand for chocolate drinks are supporting the growth of organic chocolate drinks across Asia-Pacific.

In Asia-Pacific, India is projected to witness the fastest growth during the forecast period due to the growing urban population in the country and the booming demand for convenience food, driving the chocolate milk market in India. However, major consumers, such as China and Japan, witnessed a declining trend in the consumption of chocolate milk, as people are reducing the intake of high sugar-based beverages.

Competitive Landscape

The chocolate milk market is fragmented, comprising of regional/local players and international competitors. The market is dominated by players like Arla Foods, Danone, and Nestle SA. The leading players in the chocolate milk market enjoy a dominant presence globally. Other key players, such as the Hershey Company, Saputo Inc., and Muller, are focusing on social media platforms and online distribution channels for the online marketing and branding of their products to attract more customers. Thus, they are collaborating with the entertainment and sports industries to inculcate a healthy milk-drinking habit, especially among children.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Nestle SA
Arla Foods
Dean Foods
Dairy Farmers of America Inc.
Saputo Inc.
Royal FrieslandCampina
Amul
Maryland & Virginia Milk Producers Cooperative Association Inc.
Inner Mongolia Yili Industrial Group Co.
Groupe Danone

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