According to FMI's latest research, the chocolate confectionery market is projected to grow from US$ 156 billion in 2024 to US$ 303 billion by 2034, with a CAGR of 6.9 percent. This growth is underpinned by increased consumer interest in health and nutrition, leading to a demand for premium and artisanal chocolates.
The global love of chocolate dramatically influences the market, making it one of the largest consumer pools in the FMCG industry. It is a renowned popular indulgence, reinforced across generations, and a favoured gift for various occasions.
Economic conditions, income, and employment rates significantly impact chocolate confectionery sales. The market experienced challenges during the pandemic, but the industry quickly adapted to e-commerce platforms to promote and increase at-home consumption and accessibility. Post-pandemic, as restrictions lifted, luxury and premium chocolate sales picked up, reflecting stable economic conditions.
Consumer preferences for high-quality and sophisticated chocolate experiences have driven the demand for premium offerings. Chocolate bars, especially milk chocolate, dominate the market, constituting a significant share. The bakery and pastry industry and social gifting culture further contribute to the market's growth.
Contrary to the old beliefs, health-conscious individuals are also becoming a significant part of this market as they look for chocolates with health-oriented attributes, such as dark chocolate with higher cocoa content and sugar-free or reduced-sugar options. Sugarless chocolate is expected to grow at a CAGR of six percent, while low-calorie chocolate is projected to grow at 9.9 percent.
These trends align with the increasing awareness of health-conscious consumers and the global movement towards healthier dietary habits.
Country-wise, China leads in market growth with a CAGR of 9.1 percent, followed by India at 8.6, Brazil at 7.8, Indonesia at 7.2, and Mexico at 6.3. These growth rates reflect urbanisation, exposure to Western lifestyles, cultural heritage, and economic conditions.
The competitive landscape is dominated by a few international companies that have reached global markets. New entrants into the market must utilise the locality of ingredients and premium quality attributed to artisanal chocolates to meet consumer demand and have a competitive market edge.
Recent developments include Bühler's food innovation hub, DS Group's acquisition of The Good Stuff, and Nestle's deal with Grupo CRM in Brazil, strengthening their positions in the market.
