Europe Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe chocolate market was valued at USD 53,762.65 million in 2020, and it is projected to register a CAGR of 2.15% during the forecast period (2021 - 2026).​

The Europe chocolate market was impacted by low sales volumes due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. The public sector is providing support to strengthen partnerships and relationships between fine cocoa producers and chocolate companies to enhance the resilience of marketing infrastructure. This is expected to provide an important means of assistance to the recovery of this sub-sector. For instance, Barry Callebaut, a Switzerland-based manufacturer of premium chocolates and cocoa products, reported a slowdown for the first six months of the year, with the volume declining in the third quarter (ended May 31, 2020) by 143%. The company registered improvement in the sales of its chocolates in June 2020, as lockdowns were easing, thereby increasing its mid-term outlook.

The European chocolate market is highly competitive, with the presence of numerous leading players accounting for the majority of the market share. The increasing demand and growing popularity of dark and organic chocolates are fueling the market growth. Furthermore, seasonal demand plays an important role in chocolate sales. Various companies are launching a wide range of chocolate varieties during occasions, like Easter. Factors such as the shape and packaging of chocolates are the key strategies adopted by companies to attain maximum sales during a festive season.

Health concerns related to high sugar content are restraining the market growth. However, it is providing an opportunity for companies to come up with low-sugar and organic chocolates.

Key Market TrendsComplying with Better-for-you and Free-from Products​

The rise in health consciousness among European consumers and the resulting increase in awareness about the disadvantages of consuming artificial ingredients are fueling the sales of organic chocolate and sugar-free chocolate in the global market.​Also, a shift in the food consumption pattern of consumers and increasing demand for premium chocolates are supporting the growth of organic chocolate across the region.​ In 2019, the annual turnover of organic chocolates in retail shops in Denmark amounted to approximately DKK 165 million, compared to only DKK 105.29 million in 2015.​

Pertaining to the rising demand for vegan and organic chocolates, leading players are launching innovative organic chocolates to sustain themselves in the long run. ​For instance, in October 2017, the luxury chocolate brand, Love Cocoa, introduced its first-ever vegan chocolate with avocado in Europe. It is made from 100% natural freeze-dried avocado powder.​

Domination of Germany in the Europe Chocolate Market

Germany remains one of the leading chocolate markets in Europe, as Germans are most likely to purchase chocolate on impulse. The trend of textured chocolate added with grains or cereals is growing among chocolate eaters in Germany. The introduction of vegan Easter eggs and bunnies reflects the growing popularity of the trend. Local players such as Bremer Hachez Chocolade GmbH & Co. KG are continuously selecting unique ingredients, such as fine cocoa, cocoa butter, genuine bourbon vanilla, and other exquisite raw materials, such as nuts and almonds, to offer an authentic taste, coupled with additional nutritional value, to their premium and ultra-premium ranges of chocolates.

The gifting tradition, especially pertaining to chocolates, is significantly driving the market in Germany due to the large presence of the high-income group and the group’s lavish lifestyle. Nonetheless, the boxed assortment of artisanal chocolates is also widely retailed in the German market due to the demand for variants in one box. Therefore, players like Chocolissimo, Lauenstein Confiserie, and Leonidas Pralines are offering a broad range of assorted premium chocolates in the German market.

Competitive Landscape

The Europe chocolate market is consolidated, with the significant presence of top players, namely, Chocoladefabriken Lindt & Sprungli AG, The Hershey Co., Ferrero Group, Mondelez International, and Nestle SA. The leading players in the market enjoy a dominant presence in both Europe and worldwide operations. Brand loyalty among the consumers gives these companies an upper edge over competitors operating in the market. Major players in the market studied have been building an appetite for higher-priced chocolates among young consumers by increasing accessibility and innovative products. Tourists and travelers are considered to be major consumers of premium chocolates across the region. Hence, players in the market studied have been expanding their presence and offerings in the travel retail sector.

Additional Benefits:

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

Companies Mentioned

Mondelez International Inc.
Ferrero International SA
Mars Incorporated
Chocoladefabriken Lindt & Sprungli AG
Hershey Co.
Arcor
Pladis
Yildiz Holding
Nestle SA
Valrhona Inc.

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