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The South Korea Chocolate Market size is projected to increase by USD 155.52 million, at a CAGR of 4.39% between 2023 and 2028
In South Korea, the growth rate of the dark chocolate market is propelled by its perceived benefits, driving consumer preference towards healthier options. Amid global trends favoring health-conscious consumption, dark chocolate stands out for its antioxidant properties and premium appeal. As the market embraces convenience and quality, manufacturers are diversifying offerings to meet consumer demands, ensuring sustained growth in the foreseeable future.
The market shows an Accelerated CAGR during the forecast period.
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Increasing collaboration with celebrities and influencers is the key factor driving market growth. Chocolate brands are leveraging the star power and massive following of celebrities and influencers to amplify their marketing efforts and connect with consumers more engagingly and authentically. Collaborations with celebrities involve partnerships for advertising campaigns, product endorsements, event appearances, and social media promotions, allowing brands to leverage the celebrities popularity and influence to reach a broader audience.
For instance, Mars Inc. and BTS announced their partnership to release limited-edition chocolate bars in August 2022. Additionally, collaborations with celebrity and influencer endorsements play a crucial role in shaping consumer perceptions, driving brand awareness, and influencing purchasing decisions in the competitive South Korea chocolate market. Therefore, increasing collaborations with celebrities and influencers boost market growth during the forecast period.
Increasing demand for plant-based and vegan chocolate is one of the primary market trends shaping growth. South Korean consumers, particularly millennials are increasingly seeking out plant-based and vegan alternatives in response to health, environmental, and ethical considerations. Chocolate manufacturers in South Korea are responding to this trend by introducing a wide range of plant-based and vegan chocolate products, including dark chocolates, chocolate bars, truffles, and bonbons.
For instance, Nestle SA Professional has been expanding its selection of plant-based dairy substitutes for professionals in the food service industry. Furthermore, the trend towards plant-based and vegan chocolate reflects changing consumer preferences and lifestyle choices, driving innovation and diversification in the market. As awareness continues to grow, plant-based and vegan chocolate is expected to become increasingly mainstream in South Korea, thereby driving market growth during the forecast period.
Growing health concerns about diabetes and obesity is a challenge that affects market growth. Chocolate is widely perceived to cause ailments and diseases such as migraines, acne, obesity, tooth cavities, and others. Some common risks of regular consumption of chocolate include dental health, weight gain, and migraine risk. Further, regular chocolate consumption is linked to poor bone structure and osteoporosis, with one having lower bone density and strength.
Consequently, these negative health connotations of chocolate consumption cause consumers to shift toward healthier alternatives and snacking variants. These include energy bars, meat snacks, peanut butter, granola bars, nutella, Carob confectionery nuts, cereals and yogurt, sugar-free confections, and conventional snacks. Therefore, growing health concerns about diabetes and obesity hamper market growth during the forecast period.
The offline distribution channels play a crucial role in reaching consumers across various demographics and locations. These channels encompass traditional retail outlets, specialty stores, and supermarkets such as Costco, E-mart, and Lotte Mart. And others, such as convenience stores and department stores. Specialty stores dedicated to confectionery and imported goods offer consumers a curated selection of premium chocolates, including dark chocolate, artisanal varieties, and international brands. Further, supermarkets and hypermarkets are major players in the offline distribution of chocolate in South Korea, offering a wide assortment of brands, flavors, and packaging options at competitive prices. Also, department stores in urban centers offer upscale chocolate brands and gift-worthy assortments, targeting affluent consumers and gifting occasions. Thus, rising demand and sales for chocolates offline boost market growth during the forecast period.
The market share growth by the dark chocolate segment will be significant during the forecast period. Dark chocolate is a type of chocolate that contains a high percentage of cocoa solids and cocoa butter, with little to no added sugar. It is often favored for its rich flavor profile and potential health benefits attributed to its higher cocoa content. As a byproduct of cocoa bean processing, dark chocolate is created through the fermentation, roasting, and grinding of cocoa beans to produce cocoa mass, which is then combined with cocoa butter and typically a small amount of sugar.
The dark chocolate segment was valued at USD 372.19 million in 2018.
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In the chocolate market in South Korea, dark chocolate has experienced significant growth in recent years, driven by several factors, such as growing awareness of the health benefits associated with dark chocolate, including its antioxidant properties and potential cardiovascular benefits. Furthermore, manufacturers are responding by introducing a wide range of dark chocolate products, including single-origin chocolates, artisanal chocolates, and chocolates with unique flavor profiles. Hence, the rising demand for dark chocolate drives the 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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Lotte Corp., Mars Inc., Nestle SA, Orion Corp., Perfetti Van Melle Group BV, Rocky Mountain Chocolate Factory Inc., The Hershey Co., and Ferrero International S.A.
The market analysis and report of 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.
Market Analyst Overview
The Chocolate Market in South Korea is experiencing a notable transformation fueled by shifting consumer tastes and preferences. While traditional options persist, there's a discernible inclination towards bean and single-origin chocolates, emphasizing unique flavor profiles. Premiumization of chocolate-based products is evident, with a surge in demand for premium and specialty chocolate products. Concurrently, rising awareness about mental illnesses correlates with increased consumption of dark chocolate , perceived for its mood-enhancing properties. Notably, institutions like the Cleveland Clinic contribute to this trend by advocating the health benefits of dark chocolate. Embracing the premiumization trend, chocolate-based products extend to bakery goods, confectionery, and beverages, offering diverse options for consumers. With the rise of online distribution channels, accessibility to a wide array of chocolate products, including truffle chocolates, further propels market growth.
Bakery products, confectionery, and beverages are key sectors driving this trend. In the traditional chocolate market, dark chocolate holds a substantial share, reflecting consumers' increasing preference for healthier options. The milk chocolate segment also remains popular, catering to the broader consumer base. However, the artificial chocolate market faces challenges due to growing consumer awareness and demand for natural and organic products. Overall, the South Korean chocolate market presents lucrative opportunities for manufacturers and retailers, with a focus on high-quality, natural, and innovative chocolate offerings.
The market research and growth report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Chocolate Market in South Korea Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.39% |
Market Growth 2024-2028 |
USD 155.52 million |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
4.14 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
CACAODADA Kakao, Crown Confectionery Co. Ltd, Lotte Corp., Mars Inc., Nestle SA, Orion Corp., Perfetti Van Melle Group BV, Rocky Mountain Chocolate Factory Inc., The Hershey Co., and Ferrero International S.A. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for forecast period. |
Customization purview |
If our 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 Product
7 Market Segmentation by Distribution Channel
8 Market Segmentation by Product Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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