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Chocolate Candy Market in the U.S.: Trends and Opportunities in Premium, Gourmet and Mass Market Products

The U.S. chocolate market is a mature, differentiated and exacting market. Gaining notoriety is a difficult endeavor for producers of products, as marketing chocolate products is competitive. Packaged Facts’ new report, The Chocolate Candy Market in the U.S.: Trends and Opportunities in Premium, Gourmet and Mass Market Products examines the current state of the industry and how the market will evolve over the next five years.

Chocolate marketers today are drawing inspiration from other segments of the food and beverage industry in an effort to boost sales. Newer chocolate products feature super fruits, functional ingredients, savory touches and ethnic flavors. Additionally, chocolate product trends that worked in the past such as single-source cocoa and high cocoa content, for example are seemingly ineffective techniques for driving sales in the present economic climate.

Written by veteran chocolate market analyst Curtis Vreeland, The Chocolate Candy Market in the U.S. looks at the myriad of factors affecting chocolate retailing and consumption. The report examines:

  • What impact has the recession had on this $17.3 billion industry?
  • How has product development changed to reflect evolving consumer taste buds and budgets?
  • What constitutes “premium” and “gourmet” products in the chocolate market today?
  • Have consumers changed their buying habits in the face of economic uncertainty?
Report Methodology

The Chocolate Candy Market in the U.S. measures the size and overall growth factors of the U.S. chocolate market, based upon the latest IRI, SPINS and UNFI sales volume data. The report discusses in detail how major chocolate manufacturers are structuring their new product development and marketing initiatives to stay competitive. The report also describes specific trends and opportunities that support continued market growth, drawing on the latest Product Launch Analytics data on new product claims. Other topics discussed include retail trends and consumer buying behavior. Detailed consumer profiles of key demographics, including breakouts by gender, race/ethnicity, and household composition, are provided. This information is based on proprietary online consumer surveys and Experian Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for chocolate.
  • Research and development professionals stay on top of competitor initiatives and explore demand for products in the chocolate arena.
  • Advertising agencies working with clients in the food industry better understand the product buyer. This in turn, will help advertisers develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and, other key stakeholders with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


Packaged Facts identified eleven active trends in the premium chocolate market:

  • Craft chocolate making: This segment has several names: craft, bean-to-bar or micro-batch chocolate. In a sense, this trend follows precedents established
    elsewhere in the gourmet food world, where craft beers and specialty coffees helped jolt a commoditized product into another dimension of exciting differentiation.
  • Savory-inspired flavors: Savory flavors, a cross-over from the culinary scene, started appearing in chocolate several years ago. Now, chocolatiers are experimenting with adding such kitchen cabinet ingredients as olive oil, bacon, cheese, curry and chipotle into their bonbons and truffles.
  • Exotic flavors: Premium chocolatiers are setting off on culinary adventures, discovering new layers of flavor and textures. Some are experimenting with umami flavors; others are developing products to match consumers’ moods. Why? As Bissinger’s chocolatier Terry Wakefield explained, “People are wild about ‘experiences’ rather than...

Distribution Channel Issues

Chocolate is sold in dozens of venues from push cart peddlers clustered around tourist attractions to exclusive Madison Avenue boutiques. Not surprisingly, the traditional IRItracked FDM channels, whose figures are widely quoted in the press, account for only 30% of retail sales. Nearly 43% of chocolate sales occur in the non-traditional channel, the largest component of which is specialty chocolatiers (e.g., Godiva, Sees, etc.), estimated James Corcoran, NCA’s former VP of Trade Relations in an interview with Packaged Facts. The next largest component is cash-and-carry vendors (e.g., bodegas, wholesalers, fund raisers, etc.). Chocolate is also merchandised at military PXs and on the Internet.

Chocolate Market Size & Growth

Chocolate’s recession-resilience may be due to its “lipstick factor.” Economists have noted that lipstick sales tend to rise during economic recessions, as the relatively inexpensive purchase goes a long way to cheer women up. Eating chocolate might have the same affect. When times get tough and household budgets turn frugal, spending a few dollars on a good bar of chocolate becomes a terrific way to leverage a piece of indulgence. Packaged Facts forecasts the U.S. chocolate market will increase an average 3.0% per annum through 2015, when sales will top $19 billion, up 10.4% from $17.3 billion in 2009. Below the surface, however, there will be sales currents that will favor some categories over others.

In The News


Recession-Resilient U.S. Chocolate Market Reaches Record Sales in 2009 as Premium and Innovative Ingredients Pique Consumer Interest

New York, August 26, 2010 — The U.S. market for chocolate products displayed its recession resiliency, as retail sales increased 3% from 2008 to reach a record $17 billion in 2009, according to Chocolate Market in the U.S.: Trends and Opportunities in Premium, Gourmet and Mass Chocolate Products by market research publisher Packaged Facts. The growth was attributed to the 75% of Americans who have purchased chocolate products since 2008 and increases in manufacturer prices, which didn’t discourage budget-conscious households from buying quality chocolate as an affordable indulgence.

Global demand for chocolate is expected to rise over the next several years, as the market capitalizes on chocolate’s incredible ability to shapeshift into an array of products suitable for the confectionery, beverage, restaurant, hospitality and personal care industries. Packaged Facts forecasts the U.S. chocolate market will exceed $19 billion in 2014. The demand for premium chocolate will persist as a leading growth trend, especially when the economy recovers. The healthy chocolate trend, featuring “better-for-you” ingredients such as lavender and blueberry, is likewise expected to fuel the market as a subset of product premiumization.

“For many chocolate-loving Americans it’s more about the experience than it is about mere consumption. To meet this demand, premium chocolatiers are setting off on culinary adventures, discovering new layers of flavor and textures by experimenting with umami flavors or developing products to match consumers’ moods,” says Don Montuori, publisher of Packaged Facts. “This may be a mature market, but it’s also a market that isn’t afraid to innovate, whether that means using savory influences such as bacon and cheese or ethnic flavors such as curry and chipotle. This bold creativity effectively provides chocolate products that satisfy diverse consumer palates at reasonable prices.”

Creativity is particularly important when marketing to notoriously brand-averse and highly skeptical consumer segments such as the Millennials, for whom product preference is a moving target and eating is all about culinary experimentation with limited-edition flavor items and internationally inspired twists. Not only must marketers realize the potential of online social networks as vehicles of influence comparable to conventional media channels, but chocolate manufactures must provide this cohort with confectionery products featuring fresh, seasonal and natural ingredients and out-of-this-world flavor combinations, such as those developed by the beverage and restaurant trades.

Chocolate Market in the U.S., written by veteran chocolate market analyst Curtis Vreeland, examines the myriad factors affecting chocolate retailing and consumption. The report measures the size and overall growth factors of the U.S. chocolate market and discusses in detail how major chocolate manufacturers are structuring their new product development and marketing initiatives to stay on top of this market. In addition, the report describes specific trends and opportunities that support continued market growth. Detailed consumer profiles of key demographics, including breakouts by gender, race/ethnicity, and household composition are also provided.

About Packaged Facts - Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.

Chapter 1 Executive Summary
Methodology & Scope
Chocolate Market Size & Growth
Figure 1-1 Retail Chocolate Sales, 2003-2009
Figure 1-2 Chocolate Sales Forecast, 2010-2014 ($ millions)
Chocolate Manufacturers and Marketers
Figure 1-3 Top 5 U.S. Chocolate Companies by Market Share, 2004 vs. 2009 (percent)
New Product Development
Figure 1-4 New Chocolate Introductions, 2005-2009 (SKUs)
Figure 1-5 Chocolate Segment Evolution
Consumer Trends
Figure 1-6 Chocolate Brand Preference Trends, 2008-2010 (Percent)
Chapter 2 Market Size and Growth
Introduction
Methodology and Scope
Confectionery Industry
Global Confectionery Industry
U.S. Confectionery Industry
U.S. Chocolate Industry
Historic Trends
Table 2-1 Confectionery Sales and Category Market Share, 2009 ($ billions and percent)
Figure 2-1 Confectionery Sales Market Share by Category, 2004 & 2009 (Percent)
Figure 2-2 Food Categories Ranked by Sales, 2009 ($ billions)
Figure 2-3 Food Categories Ranked by Sales Growth, 2009
Figure 2-4 Retail Chocolate Sales, 2003-2009
Table 2-2 Retail Chocolate Sales by Volume & Value, 2002-2009 (Millions pounds & dollars)
Figure 2-5 Retail Chocolate Sales Growth by Value & Volume, 2002-2009 (Percentage)
Export and Import Trends
Table 2-3 Top 15 Chocolate Export Destinations by Country, 2008-2009 ($ Millions & percent)
Figure 2-6 Top 10 Chocolate Export Destination Market Share by Country, 2009
Table 2-4 Top 15 Chocolate Import Originations by Country, 2008-2009 ($ Millions & percent)
Figure 2-7 Top 10 Chocolate Import Origination Market Share by Country, 2009
Chocolate Category Trends
Figure 2-8 Chocolate Market Share by Category and Value, 2009 (percent)
Figure 2-9 Chocolate Market Share by Category & Volume, 2009 (percent)
Figure 2-10 Chocolate Market Share Change by Category & Value, 2004 vs. 2009 (Percent)
Figure 2-11 Chocolate Market Share by Product Category, 2009 (Percent)
Table 2-5 Chocolate Sales Growth by Dollar and Volume, 2009 ($ million & percent)
Table 2-6 Chocolate by Dollar and Product Category, 2005-2009 ($ millions)
Figure 2-12 Chocolate Sales Growth by Dollar and Product Category, 2005-2009 (Percent)
Per Capita Consumption
Distribution Channel Issues
Table 2-7 Chocolate Per capita Consumption by Country, 2008 (Pounds)
Figure 2-13 Chocolate Per Capita Consumption in U.S., 2002-2009 (Pounds and Dollars)
Projected Market Growth
Figure 2-14 Chocolate Sales Forecast, 2010-2014 ($ millions)
Chocolate Category Analysis
Everyday Chocolate
Gift Box Chocolate
Novelty Chocolate
Seasonal Chocolate
Table 2-8 Seasonal Chocolate Sold Through FDM Channels by Holiday, 2009 ($ millions and percent)
Figure 2-15 Seasonal Chocolate Sold Through FDM Channels by Holiday, 2004-2009 (percent)
Sugarfree/Sugarless Chocolate
Figure 2-16 Sugar-free Chocolate Sold Through FDM Channels by Sales and Growth Rate, 2004-2009 ($ million & percent)
Private Label Chocolate
Table 2-9 Private Label Chocolate Sold Through FDM Channels by Sales & Growth Rate, 2004-2009 ($ million & percent)
Table 2-10 Private Label Chocolate Sold Through FDM Channels by Category, 2004-2009 ($ million)
Table 2-11 Private Label Chocolate Sold Through FDM Channels by Growth & Category, 2004-2009 (Percent)
Figure 2-17 Private Label Chocolate Sold Through FDM Channels by Growth & Category, 2004-2009 (Percent)
Chapter 3 The Marketers
Introduction
Methodology & Scope
Leading Global Chocolate Companies
Figure 3-1 Top 10 Global Confectioners That Manufacturer Chocolate by Market Share, 2010 (percent)
Table 3-1 Top Global Confectioners That Manufacturer Chocolate, 2010
Leading U.S. Chocolate Companies
Sales by Brand
Table 3-2 Top 5 Chocolate Companies by Sales and Percent Growth, 2004-2009 ($ millions & percent)
Figure 3-2 Top 5 U.S. Chocolate Companies by Market Share, 2004 vs. 2009 (percent)
Figure 3-3 Top 20 Chocolate Companies Ranked by Sales Growth Through FDM Channels, 2008-2009 (percent)
Table 3-3 Top 10 Chocolate Candy Brands Box/Bag/Bars <3.5-oz, 2009 ($ million & percent)
Table 3-4 Top 10 Chocolate Candy Brands Box/Bag/Bars >3.5-oz, 2009 ($ million & percent)
Table 3-5 Top 10 Chocolate Candy Brands Snack/Fun Size, 2009 ($ million & percent)
Table 3-6 Top 10 Chocolate Candy Brands Gift Box, 2009 ($ million & percent)
Table 3-7 Top 8 Chocolate Candy Brands Sugarfree/Sugarless, 2009 ($ million & percent)
Chapter 4 Marketing & New Product Trends
Introduction
Methodology & Scope
New Product Development
Product Introductions
New Product Claims
Table 4-1 New Confectionery Product Introductions, 2005-2009 (SKUs)
Figure 4-1 New Confectionery Product Introduction Market Shares, 2005-2009 (SKUs)
Table 4-2 Top 20 New Chocolate Product Claims, 2009 (# Reports & percent)
Figure 4-2 New Chocolate Introductions, 2005-2009 (SKUs)
Table 4-3 Top 10 New Chocolate Product Claims, 2005-2009 (# Reports)
Table 4-4 Select New Chocolate Product Claims, 2005-2009 (# Reports and percent)
New Product Flavors
Table 4-5 Top 20 New Chocolate Product Flavors, 2009 (# Reports)
Market Segment Analysis
Premium Segment
Table 4-6 Premium Chocolate Segments by Price ($/ounce & $/pound)
Figure 4-3 Premium & Conventional Chocolate Sales Growth Through FDM Channels, 2006-2009 (percent)
Figure 4-4 Top 10 Premium Chocolate Marketers sold Through FDM Channels, 2009 (percent)
Ethical Consumerism Segment
Overview
Table 4-7 Top 10 Ethical Chocolate Companies Sold Through Natural Channels, 2008-2009 (Dollars & percent)
Figure 4-5 Ethical Chocolate Company Market Share Sold in Natural Channels, 2009 vs. 2010 (Percent)
Fair Trade
Table 4-8 Organic and Fair Trade Chocolate Sales Sold Through Natural Channels, 2008-2009 (Dollars & percent)
Figure 4-6 Ethical Chocolate New Product Launches, 2001-2010 (# Reports)
Figure 4-7 Certified Organic & Fair Trade and Fair Trade Only Bean Imports, 2003-2009 (Metric Tons)
Table 4-9 Certified Fair Trade & Organic and Fair Trade Only Cocoa Bean Imports, 2002-2009 (Metric tons & percent)
Organic
Sustainability
Healthy/Functional Segment
Table 4-10 Rainforest Alliance Certified Cocoa Value, 2005-2009 ($ millions)
Figure 4-8 Rainforest Alliance Certified Cocoa, 2005-2012 (Thousand Metric Tons)
All-Natural Segment
Figure 4-9 Chocolate Segment Evolution
Trend Analysis
Craft Chocolate Making
Table 4-11 All-Natural Chocolate Sold by Channel, 2008-2009 ($ Millions & percent)
Figure 4-10 Natural Chocolate New Product Launches, 2001-2010 (# Reports)
Savory Inspired Chocolate
Figure 4-11 Savory Chocolate New Product Launches, 2001-2010 (# Reports)
Exotic Flavors
Raw Cacao Products
Vegan Chocolate
Wine Themed Chocolate
Figure 4-12 Vegan Chocolate New Product Launches, 2001-2010 (# Reports)
Figure 4-13 Wine Themed New Product Launches, 2001-2010 (# Reports)
Upscale Chocolate Candy Bars
Exotic Delivery
Beyond Bars
Extreme Milk Chocolate
Alternative Distribution Channels
Waning Trends
Extreme Dark Chocolate Bars
Single Origin Bars
Figure 4-14 Dark, Milk and White Chocolate New Product Launches, 2005-2009 (# Reports)
Figure 4-15 Single Origin New Product Launches 2001-2010 (# Reports)
Chapter 5 The Consumer
Introduction
Methodology & Scope
Brand Preferences
Figure 5-1 Chocolate Brand Preference Trends, 2008-2010 (Percent)
Table 5-1 Chocolate Brand Preference Trends, 2008-2010 (Index & Percent)
Table 5-2 Purchasing Index for Adult Chocolate Buyers by Marketer, 2010 (Index)
Brand Reputation
Table 5-3 Consumer Satisfaction Index for Top Food Manufacturers, 2005-2009 (Index & Percent)
Consumer Demographics & Psychographics
Table 5-4 Purchasing Index for Conventional and Premium Chocolate Adult Buyers, 2010 (Index)
Table 5-5 Food Attitudes & Opinions Index for Conventional and Premium Adult Chocolate Buyers, 2010 (Index)
Table 5-6 Relative Importance of Grocery Store Shopping Attributes (Percent)
Literature Review of Consumer Surveys
Consumer Shopping Behavior
Millennials: A Portrait of Generation Next
Marketing to Millennials
Table 5-7 What Makes Your Generation Unique?
Table 5-8 Use of Technology by Generation
Figure 5-2 Environmentally Conscious Behavior by Generation
Appendix: Addresses
Acronyms
Terms & Definitions

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