Market Research Logo

Chocolate Confectionery - UK - April 2016

Chocolate Confectionery - UK - April 2016

“Flat volume sales in chocolate confectionery show the continuing need for brands to use innovation to encourage trading up, both when buying chocolate as a treat for oneself and when gift purchasing. With the majority of people thinking it is OK to eat small amounts of chocolate every day as part of a balanced diet, an increased emphasis can be placed on eating smaller amounts of more premium or luxury products as a daily treat.”

– Richard Caines, Senior Food & Drink Analyst

This report discusses the following key topics:

Opportunities presented by different reasons for purchasing
Ways of encouraging trading up to compensate for stagnating volumes
Risk posed to sales by war on sugar and portion control


OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
Resilience of market shows strong appeal of chocolate
Figure 1: Best- and worst-case forecast of total UK retail value sales of chocolate, 2010-20
Concerns about sugar only having limited impact on chocolate
Ageing population unlikely to benefit chocolate sales
Big lead for Cadbury Dairy Milk in chocolate confectionery
Figure 2: Leading brands in the chocolate confectionery market, % share by value, 2014/15*
Dairy Milk stands outs as most trusted chocolate brand
Branded products dominate launch activity in chocolate
Chocolate has enduring appeal as an affordable treat
Increase in proportion of people eating blocks of chocolate
Self-treating the biggest reason for buying chocolate
Figure 3: Reasons for buying chocolate confectionery, February 2016
Strong incentive for brands to tap into gifting market
Figure 4: Factors that would encourage people to pay more for chocolate when buying it either for themselves or as a gift, February 2016.12
Impulse buying a key feature of purchasing behaviour
Figure 5: Shopping behaviour when buying chocolate, February 2016
Eating chocolate daily seen as OK as part of a balanced diet
Figure 6: Attitudes towards chocolate confectionery, February 2016
What we think
ISSUES & INSIGHTS
Opportunities presented by different reasons for purchasing
Ways of encouraging trading up to compensate for stagnating volumes
Risk posed to sales by war on sugar and portion control
THE MARKET
What you need to know
Growth in value sales but flat volumes
NPD and marketing activity helps sales
Decline in growth for chocolate assortments
War on sugar having limited impact on chocolate so far
Growth in number of over-55s who eat chocolate less frequently
Market size and forecast
Value growth for chocolate despite war on sugar
Figure 7: Total UK retail volume and value sales of chocolate*, 2010-20
Premium launches important for future growth
Figure 8: Best- and worst-case forecast of total UK retail value sales of chocolate*, 2010-20
Figure 9: Best- and worst-case forecast of UK retail volume sales of chocolate*, 2010-20
Segment performance
Innovation helps boost chocolate confectionery sales
Figure 10: Total UK retail volume and value sales of chocolate confectionery, 2010-20
Figure 11: Best- and worst-case forecast of total UK retail value sales of chocolate confectionery, 2010-20
Figure 12: Best- and worst-case forecast of UK retail volume sales of chocolate confectionery, 2010-20
Slowed growth for chocolate assortments
Figure 13: Total UK retail volume and value sales of chocolate assortments, 2010-20
Figure 14: Best- and worst-case forecast of total UK retail value sales of chocolate assortments, 2010-20
Figure 15: Best- and worst-case forecast of UK retail volume sales of chocolate assortments, 2010-20
Market drivers
Media coverage and new initiatives focus on reducing sugar intake
Low sugar seen as most important element of healthy food
Figure 16: Factors deemed important when looking for healthy food, November 2015
Chocolate one of a number of permissible treats
Figure 17: Snacks eaten between meals, December 2015
An ageing population unlikely to benefit chocolate sales
Figure 18: Trends in the age structure of the UK population, 2010-20
KEY PLAYERS
What you need to know
Cadbury Dairy Milk leads in chocolate confectionery
Leading companies drive big increase in 2015 advertising
New launches receive strong advertising support
Dairy Milk the most trusted chocolate brand
Lindt Lindor has strong association with indulgence
Branded products dominate NPD activity in chocolate
Cadbury Dairy Milk a big focus of new launches by Mondelēz
Galaxy focuses on new flavour combinations
Ethical claims important in chocolate confectionery
Market share
Dairy Milk maintains strong lead in chocolate confectionery
Figure 19: Leading brands in the chocolate confectionery market, by value and volume, 2013/14 and 2014/15
Celebrations and Lindt see big increases in sales in assortments
Figure 20: Leading brands in the chocolate assortments market, by value and volume, 2013/14 and 2014/15
Brand communication and promotion
Big increase in chocolate advertising in 2015
Figure 21: Recorded above-the-line, online display and direct mail total advertising expenditure on chocolate confectionery, 2012-15
Figure 22: Recorded above-the-line, online display and direct mail total advertising expenditure on chocolate confectionery, by
sub-category, 2012-15
Mars the biggest advertiser by some distance
Figure 23: Recorded above-the-line, online display and direct mail total advertising expenditure on chocolate confectionery, by
advertiser (top 10), 2012-15
Galaxy the most heavily advertised brand
Figure 24: Recorded above-the-line, online display and direct mail total advertising expenditure on chocolate confectionery, by
brand (top 15), 2012-15
Coverage/methodology clarification
Brand research
What you need to know
Brand map
Figure 25: Attitudes towards and usage of selected brands, January 2016
Key brand metrics
Figure 26: Key metrics for selected brands, January 2016
Figure 27: Attitudes, by brand, January 2016
Figure 28: Brand personality – Macro image, January 2016
Lindor has strong association with indulgence
Figure 29: Brand personality – Micro image, January 2016
Brand analysis
Figure 30: User profile of Cadbury Dairy Milk, January 2016
Figure 31: User profile of Galaxy, January 2016
Figure 32: User profile of KitKat, January 2016
Figure 33: User profile of Lindt Lindor, January 2016
Figure 34: User profile of Thorntons, January 2016
Figure 35: User profile of Hotel Chocolat, January 2016
Figure 36: User profile of M&M’s, January 2016
Figure 37: User profile of Kinder, January 2016
Launch activity and innovation
Branded products dominate launch activity
Figure 38: New product launches in the UK chocolate confectionery, share by branded products vs. private label, January 2011-
December 2015
Seasonal chocolate accounts for a third of launches
Figure 39: New product launches in the UK chocolate confectionery market, share by sub-category, January 2011-December 2015
Mondelēz and Nestlé lead 2015 launch activity
Figure 40: Examples of launches by Galaxy in the UK chocolate confectionery market, 2015
Figure 41: New product launches in the UK chocolate confectionery market, share by company (top 10), January 2011-December 2015...50
Figure 42: Examples of launches by Cadbury Dairy Milk in the UK chocolate confectionery market, 2016
Figure 43: Examples of Easter confectionery launches in the UK chocolate confectionery market, 2016
Ethical claims increase in prominence
Figure 44: New product launches in the UK chocolate confectionery market, share by claim (top 20), January 2011-December 2015
Figure 45: Examples of launches in the UK chocolate confectionery market making premium claims, 2016
Fewer completely new products being launched
Figure 46: New product launches in the UK chocolate confectionery market, share by launch type, January 2011-December 2015
THE CONSUMER
What you need to know
Enduring appeal of chocolate as an affordable treat
Increase in proportion of people eating blocks of chocolate
Six in 10 people buy chocolate to treat themselves
Putting an emphasis on luxury and novelty for the gifts market
Trading up in self-treating more about the chocolate itself
High in-store visibility important for new products
Getting a good deal on price also important to chocolate buyers
Room for chocolate as part of a balanced diet
Consumer perception that dark chocolate healthier
Frequency of eating chocolate and types eaten
No change in frequency of eating chocolate
Figure 47: Frequency of eating chocolate in the last 3 months, February 2015 and February 2016
More people eating blocks of chocolate
Figure 48: Types of chocolate confectionery eaten in the last three months, February 2015 and 2016
Reasons for buying chocolate confectionery
Self-treating the biggest reason for buying chocolate
Figure 49: Reasons for buying chocolate confectionery, February 2016
Evening snacking on chocolate confectionery at home
Sharing and special occasions important for chocolate
Factors encouraging buyers to pay more for chocolate
Being seen as a luxury brand important for gifts
Figure 50: Factors that would encourage people to pay more for chocolate when buying it either for themselves or as a gift,
February 2016
Trading up in self-treating more about trying unusual flavours
Specialist chocolate stores more likely to command a price premium
Combining personalisation and limited edition products
Novelty element also important in the gift market
Shopping behaviour when buying chocolate
New flavours a big trigger for buying chocolate
Figure 51: Shopping behaviour when buying chocolate, February 2016
Social media has a strong influence
Saving money an important element to buying chocolate
Four in 10 people limiting their chocolate buying
Attitudes towards chocolate
Chocolate a permissible everyday treat
Figure 52: Attitudes towards chocolate confectionery, February 2016
Re-sealable packaging can help with portion control
Dark chocolate seen as healthier than milk chocolate
Emotional benefits provide a strong defence against health concerns
APPENDIX
Data sources, abbreviations and supporting information
Abbreviations
Fan chart forecast
The market
Figure 53: Best- and worst-case forecast of total UK retail value sales of chocolate*, 2010-20
Figure 54: Best- and worst-case forecast of total UK retail value sales of chocolate confectionery, 2010-20
Figure 55: Best- and worst-case forecast of total UK retail value sales of chocolate assortments, 2010-20
Figure 56: Best- and worst-case forecast of total UK retail volume sales of chocolate*, 2010-20
Figure 57: Best- and worst-case forecast of total UK retail volume sales of chocolate confectionery, 2010-20
Figure 58: Best- and worst-case forecast of total UK retail volume sales of chocolate assortments, 2010-20
Key players
Figure 59: Leading manufacturers’ sales in the UK chocolate confectionery market, by value and volume, 2013/14 and 2014/15
Figure 60: Leading manufacturers’ sales in the UK chocolate assortments market, by value and volume, 2013/14 and 2014/15
Figure 61: New product launches in the UK chocolate confectionery market, branded vs private label share by category,
January-December 2015
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report