Chocolate Confectionery Market Introduction
The confectionery industry is broadly segmented into two categories – bakers’ confectionery and sugar confectionery. Chocolate confectionery involves sugar confections, in which the primary ingredient is chocolate. Depending on the types of chocolates, such as dark chocolates, milk chocolates, and white chocolates, various innovative types of chocolate confections are being introduced by leading players in the chocolate confectionery market.
Chocolate Confectionery Market – Notable Developments
Lotte Confectionery Co. Ltd., Nestlé S.A., Grupo Arcor, Ferrero SpA, , The Hershey Company, Lindt & Sprüngli AG, Ezaki Glico Co., Ltd., Mars Incorporated, Delfi Limited, Mondelez International, Inc., and Wm. Wrigley Jr. Company are among the leading companies in the chocolate confectionery market.
- Mars Wrigley Confectionery, world’s leading manufacturer of chocolate confectionery, announced its new cocoa sustainability strategy in September 2018. Company’s new plan – Cocoa for Generations – for overhauling its cocoa supply chain creates a pathway for cocoa-growing communities and smallholder cocoa farmers to thrive. The company also announced an investment of US$1 billion over the span of a decade and its goal to have 100% of its cocoa in chocolate confectionery to be responsibly traceable and sourced globally by 2025.
- Mondelez International, Inc. is another American chocolate confectionery company to have announced that its chocolate brand ‘Milka’ will join sustainable cocoa sourcing program by the company to source all its cocoa sustainably over time. Through the Cocoa Life program, the company aims to reach over 200 thousand farmers and more than one million people by 2022.
- Ferrero Group, another leading player in the chocolate confectionery market – announced in January 2018 that it has entered a definitive agreement to acquire Nestlé’s confectionery business in the United States (U.S.) for US$ 2.8 billion. The company also announced that it will acquire more than twenty chocolate confectionery brands in the U.S., including BabyRuth®, Butterfinger®, Wonka®, Raisinets®, and 100Grand®, and Nestlé’s U.S. chocolate confectionery facilities in Bloomington, Illinois, Franklin Park and Itasca, to expand its presence in the U.S. markets on a greater scale.
Chocolate Confectionery Market Dynamics
Rapid Retail Market Expansion is Powering the Chocolate Confectionery Market
The chocolate confectionery market is gaining momentum as a wide range of chocolate confections are vended through multiple distribution channels, such as supermarkets, grocery stores, hypermarkets, online stores, convenience stores, forecourt retailers, and specialty confectionery stores. The global retail industry is undergoing explosive modernization with increasing investments in developing markets, such as chocolate confectionery market.
Thereby, lucrative opportunities in the retail industry are acting as a marketing tool for chocolate confectionery market players, enabling them to build a premium brand image and increasing brand exposure to a wide consumer base. This is expected to complement growth of the chocolate confectionery market in the upcoming years.
Increasing Use of Unique and Unusual Ingredients – An Emerging Trend in the Chocolate Confectionery Market
Increasing growth of the confectionery industry as well as the chocolate industry is making chocolate confectionery market an intensely competitive market. Leading players in the chocolate confectionery market are adopting product innovation strategies to introduce unique flavors and ingredients in chocolate confections.
Consumers are willing to try new flavors and types of chocolate confections and this is encouraging chocolate confectionery market players to beyond the usual flavors and experiment with unusual ingredients, such as fruits, nuts, vegetables, and cereals. Innovation in the variety of ingredients used in chocolate confections, apart from chocolates, is likely to emerge as a popular trend among a majority of players in the chocolate confectionery market in the coming future.
Innovative Advertising Strategies by Market Leaders Are Giving the Chocolate Confectionery Market a New Direction
While the chocolate confectionery market is witnessing incremental growth with burgeoning demand, the heavy impact of advertising on the target consumer base is encouraging chocolate confectionery market players to come up with innovative promotional strategies. Leading players in the chocolate confectionery market are conducting many product promotional and marketing activities among their target consumer groups to improve the outreach of their products.
Furthermore, a mounting number of players in the chocolate confectionery market are adopting the strategy using appealing packaging to attract a larger consumer base. Moreover, conducting branding activities and innovative promotional events on a large scale is expected to augur well for stakeholders in the chocolate confectionery market. In order to ensure the appropriate impact of their advertising and promotional strategies, leading players in the chocolate confectionery market are closely monitoring changing end-user or consumer behavior patterns, which is giving the chocolate confectionery market a new direction.