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The Industrial Chocolate Market size is projected to increase by USD 2.85 billion at a CAGR (Compound Annual Growth Rate) of 5.08% between 2023 and 2028. The industrial chocolate market is experiencing significant growth due to several key factors. Firstly, there is a rising consumer awareness regarding the health benefits associated with dark chocolate. This trend is driving demand for high-quality, health-conscious chocolate products. Additionally, the emergence of new chocolate varieties, such as ruby chocolates, is adding to the market's dynamism. Ruby chocolate, which is naturally colored and derived from the ruby cocoa bean, offers a unique taste and texture that sets it apart from traditional chocolate types. Moreover, technological innovations in the industrial chocolate supply chain are also contributing to market growth. Advanced manufacturing processes, automation, and the integration of digital technologies are streamlining production, improving efficiency, and reducing costs. These developments are enabling chocolate manufacturers to meet the increasing demand for high-quality, affordable chocolate products while maintaining consistent product quality and safety standards. Overall, the industrial chocolate market is poised for continued growth, driven by consumer preferences, new product innovations, and technological advancements.
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Technological innovations in the supply chain are notably driving the market growth. Recent technological developments in the industry are a major factor driving the growth of the market. Some of the latest technologies are blockchain and traceable cocoa. Logistics is one of the major challenges faced by companies operating in the market.
Additionally, blockchain technology tracks information at each checkpoint, from harvesting, packaging, and storing in warehouses to placement in shops and other points of purchase. Information can be recorded on the blockchain, making it available for anyone to track. Thus, the introduction of blockchain in industrial chocolate logistics will improve food traceability and ensure food safety. Therefore, the introduction of such technologies will help manufacturers build strong trust among customers at different levels of the value chain.
Personalization and mass customization of industrial chocolate is an emerging trend shaping the market growth. The trend of personalization and mass customization in the market has risen in popularity over the last few years. Owing to advances in artificial intelligence (AI) and printing technology, companies such as Barry and Hershey's Chocolate allow the mass personalization of packaged chocolates, baked goods, and ice cream with real chocolate. Barry, in collaboration with FoodJet BV, has introduced a chocolate solution in the market that can be used for printing with a food 2D+ printer. The printer can be connected to a computer to enable the personalization of designs and is capable of printing on food products, such as chocolate, at industrial speed.
However, the company offers a range of chocolate types for printing, which includes family milk, milk couverture, white, gianduja, vermicelli, and chocolate flakes. Hence, personalization and mass customization are expected to provide the market players with added opportunities, which, in turn, is expected to positively impact the growth of the market trends during the forecast period.
Fluctuations in the prices of cocoa and sugar are a significant challenge hindering market growth. Cocoa beans are the primary ingredients used in the formulation of industrial chocolate, and the other key ingredients include sugar and milk powder. Rapid fluctuations in the prices of cocoa worldwide have hampered the growth of the market over the last two years. In the US, the price of cocoa witnessed an increase of 21% until Q3 2023. Supply constraints, owing to the lack of adequate rainfall in key cacao-growing countries, including West African countries such as Ghana and the Ivory Coast, have been key to fluctuations in cocoa prices during the aforementioned period.
Moreover, with Europe being a key consumer market for sugar, sugar producers in the EU are increasingly adjusting their production capacities to explore new export markets outside Europe. Price fluctuations of ingredients such as cocoa and sugar are likely to remain serious challenges to market growth during the forecast period.
In the market, confectionery is a prominent end-user that is propelling the expansion of the market in focus. The popularity of chocolate-based products, including bars, candies, and filled chocolates, drives up the demand in confectionery. The market in the confectionery industry is dynamic because of innovations, including new flavour profiles, textures, and shapes, which represent a constant evolution to suit shifting customer tastes and preferences. Owing to such factors, the demand is expected to increase from the confectionery end-user segment, which, in turn, will drive the growth market during the forecast period.
The market share growth by the milk chocolate segment will be significant during the forecast period. Milk chocolate is made with milk and generally contains 10%-20% cocoa solids and dried milk solids in the form of milk powder. It is one of the most popular and common types of chocolate. The mixing of cocoa solids with milk solids, sugar, and cream during manufacturing gives milk chocolates a smoother and creamier taste than dark chocolates.
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The milk chocolate segment was valued at USD 3.55 billion in 2018. However, increasing health consciousness among people and rising awareness of health problems caused by conditions such as obesity and heart disease have led to slow demand in recent years. Therefore, health-conscious people are trying to reduce the consumption. This has resulted in many companies trying to maintain their share by coming up with innovative new product variants and flavours. Thus, the growth of the milk segment is estimated to be quite moderate and hence drives the moderate growth of the market during the forecast period.
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Europe is estimated to contribute 37% to the growth of the global market during the forecast period Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Germany, France, and Belgium are among the major markets for industrial chocolate in Europe. Barry and Nestle are among the key companies operating in the market in Europe. Growing consumer awareness about the various health benefits associated with the consumption of chocolate is one of the major factors driving the growth of the market in Europe. As a result, there is an increased demand for an active ingredient in products among various end-user sectors, such as bakery and confectionery. Apart from this, there is an increase in demand as it imparts various health benefits to consumers.
For instance, the consumption of dark chocolate can help improve blood flow and lower blood pressure. Dark chocolate is a rich source of fibre, iron, magnesium, potassium, phosphorus, zinc, and selenium. In 2022, Europe accounted for a significant share of the market, which is still showing positive growth. Such factors are expected to drive the regional market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
Dark Chocolate Market - Dark Chocolate Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, Belgium, France, UK - Size and Forecast\
Organic Chocolate Market - Organic Chocolate Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
Chocolate Market - Chocolate Market by Product, Distribution Channel, and Geography - Forecast and Analysis
The chocolate market is characterized by dynamic market dynamics influenced by factors such as global consumption patterns, emerging markets, and sustainable practices in cocoa production. Chocolate sales and consumption patterns are evolving alongside advancements in processing technologies and product innovation. Market opportunities abound for premium chocolate brands leveraging raw materials and production capacity to meet chocolate demand worldwide.
However, the industry faces market challenges related to cocoa supply fluctuations and distribution channels for chocolate retail. Market expansion initiatives are driven by insights from chocolate market research and strategic market development efforts focused on market segmentation and chocolate packaging innovations. Chocolate manufacturers and market players are adapting to market trends and consumer preferences, driving chocolate market growth through market forecasting and continuous market insights. Navigating the chocolate business landscape requires agility in responding to market competitors and seizing market opportunities, underscoring the resilience and innovation shaping the future chocolate market outlook
Moreover, the chocolate industry within the industrial sector encompasses various facets from cocoa processing to chocolate production and manufacturing. Chocolate consumption and the demand for quality chocolate ingredients drive market trends and dynamics, influencing chocolate market players and their strategies. Understanding chocolate market segmentation is crucial for addressing diverse consumer preferences and optimizing chocolate market expansion opportunities.
However, the industry faces challenges such as fluctuating cocoa market conditions and evolving chocolate market dynamics. Forecasting chocolate market demand requires insights into consumer behavior and emerging chocolate market trends. Strategic foresight and chocolate market insights guide decision-making processes for chocolate market forecasting and navigating competitive landscapes. Innovations in chocolate manufacturing and responses to chocolate market opportunities shape the future trajectory of the industry. Adapting to chocolate market challenges ensures sustainability amidst changing market dynamics, positioning players to capitalize on evolving consumer tastes and preferences in the global chocolate market.
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Industrial Chocolate Market Scope |
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Market Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.08% |
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Market Growth 2024-2028 |
USD 2.85 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.04 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, China, Germany, Belgium, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Barry Callebaut AG, Bonn Nutrients Pvt. Ltd., Cargill Inc., Cemoi, Chocoladefabriken Lindt and Sprungli AG, Dunkin Brands Group Inc., Ferrero International S.A., Fuji Oil Holdings Inc., General Mills Inc., Guittard Chocolate Co., JI NATURALS LLC, Mars Inc., Mondelez International Inc., NATRA SA, Nestle SA, Parle Products Pvt. Ltd., Puratos Group NV, The Hershey Co., UNIBIC Foods India Pvt. Ltd., and Unilever PLC |
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Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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