Chocolate Milk Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Chocolate Milk Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global chocolate milk market is projected to register a CAGR of 4.67% during the forecast period (2022-2027).

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 United States, 27% said that they were snacking more (as per Food Insight), further supporting the market studied.

Over the medium term, 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.

The rise in health consciousness among consumers and the resulting increase in awareness about the disadvantages of consuming artificial ingredients is fueling the sales of organic chocolate milk and sugar-free chocolate milk in the global market. Also, a shift in the food consumption pattern of consumers and increasing demand for chocolate drinks is supporting the growth of organic chocolate drinks across the region.

Due to the rising demand for vegan and sugar-free chocolate milk, leading players are launching innovative organic chocolates to sustain themselves in the long run. For instance, in 2017, Nestle altered the sugar level and revamped its chocolate drink in order to fulfill the consumers’ demand for low-sugar chocolate drinks. Also, in 2019, Nestle launched a low sugar product, Nesquik All Natural, in specially made recyclable paper packaging, with more cocoa.

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.

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. Similarly, major players, such as Mars, extensively focus on providing consumers with innovative and exotic flavors, while including functional benefits in each of the products.

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