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

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

South America's chocolate market is expected to grow at a CAGR of 4.2% during the forecast period.

Key Highlights

• Innovation in products and packaging, impulse purchasing, and increased chocolate consumption are driving the market. Growing demand for premium chocolate further accelerated the chocolate market in South America.
• Chocolate confectionery with fruits and seeds, in the Colombian market, are gaining prominence, as Colombian consumers are looking for new taste experiences. Therefore, manufacturers are trying to develop products that are both attractive and unexpected.
• The companies selling their chocolate products in the South American market are experimenting with launching and rebranding of their products, so as to maintain their sales and interest among the consumers.

Key Market TrendsIncreasing Demand of Premium and Healthy Chocolates

The shift in attitudes is forcing global firms, like Mars Inc., Mondelez International, Nestle and other local brands, to rebrand or reformulate their mass-market chocolates to create a healthier image, or sell a more expensive and premium experience. Moreover, the consumers in South America are becoming more sophisticated and are increasingly searching for premium chocolate products, that are differentiated from common brands found in the retail sector. There is a minor market share that is earned by several smaller, premium chocolate companies, including Kopenhagen and Cauca Show. It is only over the past few years that premium chocolate has become desirable for the Brazilian market and other South American countries; only very recently, has organic and fair trade chocolate been introduced in the country.

Brazil is the Largest Market Segment

Brazil’s National Association of the Cocoa Processing Industry (AIPC) expects the surge in cocoa planting to help double the country’s output of the raw material in chocolate by 2028, to 400,000 metric tons a year. This increase would raise global output by about 5 percent. The renewed planting could make Brazil one of the world’s top three cocoa growers. Thus, this factor makes this market profit-oriented, during the future forecast period. Moreover, Brazil dominates the chocolate consumption in the region, which is expected to maintain its position during the forecast period. Moreover, as per data published by Lindt & Sprüngli, in 2017, Brazil was one of the top countries in terms of per capita chocolate consumption, worldwide (in kilograms), thereby occupying the 21st position out of the total 24 countries taken under the scope.

Competitive Landscape

The chocolate market in South America is competitive, with the significant presence of the top five global players, namely, Lindt & Sprungli AG, The Hershey Company, Ferrero Group, Mondelez International, and Nestle SA. The leading players in the South American chocolate market enjoy a dominant presence, worldwide. Brand loyalty among the consumers gives these companies an upper edge.

Additional Benefits:

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

Companies Mentioned

Mars Incorporated
Ferrero Group
Mondalez International
Hershey Co.
Nestle SA
Pladis
Chocoladenfabriken Lindt & Spr�ngli AG
Arcor

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