Chocolate Market to Grow at CAGR of Nearly 7% by 2023
According to the "Global Chocolate Market 2019-2023" report by ResearchandMarkets.com, the chocolate market will see a CAGR of close to 7% by 2023.
Vendors in the chocolate market are introducing a range of new and creative packaging and branding to attract customer attention in order to increase shelf life and revive customer interest. It helps in capturing interest and curiosity of consumers and is often considered an extension of the brand value.
Brands must realize that there are ways to innovate and yet there are challenges.
Increase Premiumization of Chocolates
Globally, the demand for premium chocolates is growing, especially in emerging economies such as China, India and Brazil. Vendors including Mars, Barry Callebaut and Mondelēz International are increasing efforts to improve premiumization, personalization and differentiation in their chocolate segments with new premium offerings.
Volatility in Price of Raw Materials
One of the primary challenges impacting the growth of the chocolate market is the volatility in the price range of major ingredients such as cocoa and sugar. The increase in the prices of raw material forces players to increase the final product price.
The chocolate market appears to be fragmented due to the presence of a considerable number of companies and the competitive environment. Factors such as increasing premiumization of chocolates and increasing packaging innovations will spur the growth of the market.