Europe Premium Chocolate Market - Growth, Trends, and Forecasts (2023 - 2028)

Europe Premium Chocolate Market - Growth, Trends, and Forecasts (2023 - 2028)

The European premium chocolate market is projected to witness a CAGR of 8.66% over the next five years.

The European premium chocolate market is majorly driven by growing consumer interest in premium chocolates to gift and consume. Additionally, the growing popularity of gourmet chocolates prepared from ultra-fine cocoa beans and the attractive and luxury packaging offered by the players for gifting premium chocolates on special occasions is further augmenting the market growth. Moreover, several manufacturers also launch a wide range of premium chocolate varieties with specific shapes, patterns, and sizes customized for Christmas, Halloween, and Easter. For instance, in December 2022, Cadbury placed 36 items on sale with offers of up to 66%. One of those deals included the Cadbury retro selection box, which was a special Christmas treat that contained a classic collection of Dairy Milk, Dairy Milk Whole Nut, Dairy Milk Caramel, and Dairy Milk Fruit & Nut in Cadbury heritage bar wraps.

Moreover, the emergence of organic, vegan, sugar-free, and gluten-free premium chocolates is also catalyzing the product demand in Europe. The growing popularity of veganism and increasing health consciousness among consumers in the region, especially among millennials, is a major factor driving this segment of the market. For instance, according to YouGov, in the United Kingdom, as of December 2021, 89% of polled consumers in Great Britain stated that they were vegan due to an ethical motivation. Such instances, along with the growing awareness about the health benefits of dark chocolate, are boosting the market’s growth.

The demand for fine-flavor cocoa in Europe is experiencing substantial growth, as ultra and high-end beans are used for gourmet chocolates, and regular and low-fine beans are used for traditional premium chocolates. High-end cocoa beans include various health benefits when consumed in recommended quantities. Dark chocolate or cocoa powder both have the potential to lower blood pressure. The first people to experience this effect were the cocoa-drinking islands of Central America, who had lower blood pressure than their non-coco-drinking mainland relatives. Nitric oxide levels in the blood are raised by the flavanols in cocoa, which also enhance blood vessel health and lower blood pressure.

Increased awareness of people regarding the health benefits of dark premium chocolates, which have antioxidants, many essential nutrients, vitamins, etc., and mass media promotions like social media, Facebook, Twitter, Instagram, and many other online and offline promotions are fueling the demand in the region. Growing import of cocoa beans into the region to address the demand is a clear sign of the market’s growth. For instance, according to International Trade Center, in 2021, Europe imported almost 2.273 thousand tons of cocoa beans, an increase compared to 2020 imports, which accounted for about 2.108 thousand tons. Moreover, the growing popularity among premium chocolates as a token of love, happiness, and appreciation, which are given as presents during the festive season, primarily attracts consumers who are influenced by the price, packaging, ingredients, authenticity, or product, and the buying experience is anticipated to boost the demand for chocolates.

The German premium chocolate market is growing at a faster rate as dark chocolate with high-quality cocoa content, mixed with assorted nuts, has become a gourmet product in the country. The country has large cocoa and chocolate manufacturing industry with high production volumes which are supporting the growth of the market. Local players, such as Bremer Hachez ChocoladeGmbH & 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 authentic taste, coupled with additional nutritional value, to its premium to an ultra-premium range of chocolates. Additionally, consumers try to control the quantity of chocolate intake in Germany by opting for bite-sized chocolate. These factors have helped to boost the demand for premium chocolates in the country and have created new opportunities for the players to offer innovative products.

Moreover, consumers have gradually started purchasing premium chocolates in boxes as gifts, owing to the variety in flavors and textures. The trend of premium textured chocolate, added with grains or cereals, is growing among chocolate consumers in Germany. In addition, the packaging is also playing a prominent role. Hence, manufacturers are wrapping their premium chocolates in innovative wraps, such as ecological packaging, especially to attract younger consumers who are highly aware of sustainability.

The German premium chocolate market for bio-organic chocolate tablets is rapidly growing, and tablets are the main products in this market. The phenomenon of organic premium chocolates is no more a niche, and the supply of organic products is expanding. Hence, consumers favoring dark chocolates, premium ingredients, and high-quality cocoa in the country are expected to further boost the market’s growth in the region.

The European Premium Chocolate Market is moderately consolidated, with a significant presence of global players as well as regional players. Product innovation and expansion have been the crucial strategies behind the development of these companies in the European market. Major players in the market have been aiming to offer higher-priced chocolates among young consumers by increasing accessibility and innovative products. Renowned players who held a prominent share in the market include Chocoladefabriken Lindt & Sprungli AG, Ferrero Group, Mondelez International, and Nestle.

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