Premium Chocolate Market Forecasts to 2028 – Global Analysis By Product Type (Milk Premium Chocolate, Dark Premium Chocolate and Other Product Types), Distribution Channel (Convenience Stores, Online Channel and Other Distribution Channels), Packaging Typ

Premium Chocolate Market Forecasts to 2028 – Global Analysis By Product Type (Milk Premium Chocolate, Dark Premium Chocolate and Other Product Types), Distribution Channel (Convenience Stores, Online Channel and Other Distribution Channels), Packaging Types and By Geography

According to Stratistics MRC, the Global Premium Chocolate Market is accounted for $83.83 billion in 2022 and is expected to reach $159.35 billion by 2028 growing at a CAGR of 11.3% during the forecast period. A variety of unusual flavours, such as peanut butter, caramel, mint, honey, tropical fruits, espresso, and others are blended into premium chocolates, which are high-quality chocolate varieties made from extremely fine components. Premium chocolates are progressively being accepted across the world owing to the growing awareness about the benefits of premium chocolates and the growth in the branding of premium chocolates as presents by the main players. The rise in popularity of gourmet chocolates made from ultra-fine cocoa beans, the rise in demand for dark chocolates made with cocoa powder, the growing adoption of skimmed milk chocolate among young people, and the growing investment by key players in the development of premium chocolates of higher quality and health benefits.

According to the Agriculture and Horticulture Development Board, United Kingdom, the free-from food market is expected to record an average growth of 10% every year for the next three years, and the share of bakery products and cookies in the free-from food category is around 35%.

Market Dynamics:

Driver:

Rise in the demand for dark premium chocolates

The demand for dark premium chocolates manufactured with cocoa powder and cocoa beans has increased due to the growing popularity of organic and clean label movements. One of the key factors propelling the growth of the Premium Chocolate Market is the fact that consumers in developed countries are more aware of the health advantages of dark chocolate and are increasingly inclined to choose it as a dessert option.

Restraint:

Fluctuating price of cocoa beans

The major market participants are expanding their expenditure in various R&D projects to produce premium chocolates that are of high quality and are healthier. However, one of the key elements thought to be limiting the expansion of the premium chocolate market is the fluctuating price of cocoa beans. Therefore, the above factors are hindering the market growth.

Opportunity:

Demand for premium ranges

The debut of numerous new premium flavours by major businesses to boost their market position has increased demand for premium ranges. This is giving market participants the chance to grow and increase their share. Key players are also concentrating on releasing seasonal flavours and packaging, such as unique gift boxes for holidays like Valentine's Day. Long-term market benefits are also anticipated from this. Additionally, during the projected period, the market would see expansion due to the stockpiling of premium goods with cutting-edge fillings and flavours, such as grains or cereals.

Threat:

Effects of over consumption

In addition to a host of benefits, overindulging in quality chocolates can also lead to certain issues. Overindulging in sugary foods like chocolate or other meals can eventually cause weight gain, obesity, diabetes, heart disease, and other chronic illnesses. The high price of luxury chocolates, which makes them more popular during festivals and special occasions, is another reason that is impeding market growth. Therefore, the foundation market for the sales of premium ranges is solely the millennial generation. As a result, the industry's expansion is restricted to a small group of customers, which is limiting the market's growth.

Covid-19 Impact

The market has seen an increase in sales during the COVID-19 pandemic. The National Confectioners Association reports that compared to the prior year, sales of premium ranges climbed by about 13%. All distribution channels combined saw an almost 21.4% increase in grocery sales. Consumers' growing awareness about eating healthier foods has fueled the market's expansion during the pandemic. New Chocó Logic research from Cargill shows that during COVID-19, one-third of customers increased their consumption.

The dark premium chocolate segment is expected to be the largest during the forecast period

The dark premium chocolate segment is estimated to have a lucrative growth, due to the substantial antioxidant content of dark chocolate, which helps postpone or prevent certain ailments like cardiac disease and high cholesterol levels. Dark chocolate contains a lot of fibre and is also a good source of healthy minerals like magnesium, copper, iron, and zinc. These chocolates are created with 70% or more dark cocoa, which is a highly sought-after ingredient in the market today. After that, these minerals can boost immunity and support strong bones and teeth, which will further push the segment's expansion. Additionally, when consumed in moderation, dark chocolate can help lower blood pressure, improve mood naturally, and support heart health. Hence, these factors are driving the sales for the segment during the forecast period.

The online channel segment is expected to have the highest CAGR during the forecast period

The online channel segment is anticipated to witness the fastest CAGR growth during the forecast period. During the coronavirus epidemic, when consumers were at home and preferred to shop online, there was a significant increase in demand for the internet channel. Additionally, for the entire year, online retailers provide steep discounts on combo products, which help to support online sales channels. After then, e-commerce channels make small and big brands accessible. Additionally, people were increasingly interested in buying necessities online because it allowed them to save time and effort and have the things delivered to their homes with just one click. Therefore, it is anticipated that in the upcoming years, sales of luxury chocolate through online distribution channels will continue to rise at the quickest rate.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Due to the region's increasingly health-conscious population, the global industry in the Asia Pacific is expanding. Additionally, the middle-class populations' increased disposable incomes are contributing to the market's growth in the Asia Pacific area. Additionally, the growing urbanisation and rising consumer spending on high-end goods and lifestyles are boosting this region's industry's sales.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to consumers' growing knowledge of the health benefits of quality dark chocolates, which include critical nutrients and vitamins. Additionally, customers in this area make more careful product choices due to their high health consciousness. As a result, the luxurious packaging of such products motivates people to buy them throughout the holiday season. Therefore, it is anticipated that the European market for luxury chocolates would continue to rule during the projection period.

Key players in the market

Some of the key players profiled in the Premium Chocolate Market include Ferrero International S.A., Endangered Species Chocolate, The Hershey Company, Yildiz Holding Inc., Chocoladefabriken Lindt & Sprüngli AG, Godiva, Mondelez International, Mars, Inc., Champlain Chocolate Co., CEMOI Group, Nestle SA and Lake Champlain Chocolates

Key Developments:

In May 2020, Chocoladefabriken Lindt & Sprüngli AG company has announced their new product launch with salted caramel truffle in European along with other regions. The product is made with smooth textured made with milk chocolate along with a silky caramel-flavoured filling into it.

In September 2021, Ferrero International S.A. partnered exclusively with Lagardère Travel Retail for pre-launching the new premium tablet range. The new product is available in three flavors milk, dark 55% cocoa, and white, with crafted only with the highest-quality ingredients.

In October 2020, The Hershey Company has launched Hershey’s Exotic Dark Chocolate to strengthen the premium chocolate portfolio and to make customers experience the exotic and indulgent taste of Dark Chocolates under the Hershey’s brand name.

In January 2019, Nestle Japan announces volcanic Kit Kat in advance of Valentine's Day. Nestle revealed the Kit Kat Chocolatory Sublime Volcanic made with volcanic chocolate made with a rare type of cacao. Sublime Volcanic Kit Kat comes with a series of three flavors namely, Vanuatu, Papua New Guinea, and The Philippines each bringing its personality to proceedings.

Product Types Covered:
• Milk Premium Chocolate
• Dark Premium Chocolate
• White Premium Chocolate
• Crunchy Premium Chocolate
• Sugar Free Premium Chocolate
• Nutty Premium Chocolate
• Other Product Types

Distribution Channels Covered:
• Convenience Stores
• Online Channel
• Specialty Stores
• Hypermarket/Supermarket
• Other Distribution Channels

Packaging Types Covered:
• Gift Packaging
• Standard Packaging

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements