Premium Chocolate Market Size, Share & Trends Analysis By Product (Dark, Milk, White), By Distribution Channel (Hypermarkets/Supermarkets, Specialty Stores, Online), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global premium chocolate market size was valued at USD 75.32 billion in 2021 and will expand further at a compound annual growth rate (CAGR) of 9.3% from 2022 to 2030. The major factors propelling the growth of premium product ranges are continuous innovation by manufacturers among products which is pushing the envelope towards various new flavors to attract consumers. Moreover, leading companies are adding a touch of "comfort foods" into their premium ranges namely, bacon, cereal, or cookie dough. In addition, the incorporation of various flavors in these products such as a hint of gourmet salt and alcohol are also acting as a booster for the growth of the global market.

During the COVID-19 pandemic, the market saw growth in terms of sales. According to National Confectioners Association, the sales of premium ranges increased by almost 13% as compared to the previous year. Grocery sales among all distribution channels increased by almost 21.4%. The rising concern among consumers regarding the intake of healthy foods has surged the growth of the market during the pandemic. According to Cargill’s new ChocoLogic study, it was found that one-third of consumers increased their consumption during COVID-19. Also, consumers used premium chocolates most of the time for making bakery, candy, salty snacks, beverages, ice cream, and snack/nutrition bars during the coronavirus outbreaks which has directly increased the sales, especially dark flavors. 

The addition of high-quality cocoa in the chocolate bars along with sugar and butter is uplifting the richness of premium chocolates. To give it a sophisticated look manufacturers are also investing in luxury packaging to attract a larger customer base. Moreover, premium ranges are combined with other ingredients, such as almonds, raspberry chunks, or alcohol, and their packaging describes a more sophisticated feel. Moreover, the growing concerns about healthy food intake are increasing sales in the global market. In addition, increased seasonal demand during holidays such as Christmas and New Year are further surging the market growth.

The introduction of innovative flavors by various manufacturers such as the new sophisticated chocolate bars which are made out carefully by selecting ingredients, such as combining crunchy hazelnut pieces, smooth textures, and exquisite creamy fillings into distinctive layers of textures give it a unique shape. Hence, these factors are propelling the growth of premium chocolate demands among consumers. Moreover, rising consumer interest in the health benefits of premium dark chocolate and a desire for innovative flavors are surging the sales of the industry in the long run. However, the demands for premium ranges remain in high demand during the festive seasons such as Valentine’s Day, Christmas, Easter, and Halloween. This is because premium products remain among the most gifted products during such occasions.

Apart from having numerous advantages, there are some problems associated with excessive consumption of premium chocolates. Over time, over-consumption of chocolate or other foods that contain added sugar may lead to weight gain and obesity, diabetes, heart diseases, and other chronic conditions. Another factor that is hampering market growth is the high cost associated with luxury chocolates, hence that are more in demand during festivals and special occasions. Hence, only the millennial population is targeted as the base consumers for the sales of premium ranges. Thereby, the growth of the industry is only limited to a certain number of consumers which is limiting the market expansion.

The demand for premium ranges is rising due to the launch of various new premium flavors by key players to increase their presence in the market. This is creating growth opportunities for market players to capture the maximum share. In addition, key players are focusing on launching occasional-based flavors and packaging such as special gift packs for Valentine’s Day, etc. This is further expected to benefit the market in the long run. Additionally, stocking up premium products with innovative flavors and stuffing such as cereals or grains are creating growth opportunities for the market during the forecast period.

Product Insights

The dark segment led the market in 2021 with a share of around 60%. This can be attributed to the presence of rich antioxidants in dark chocolates, which can delay or prevent certain types of diseases, such as cardiac disease, and cholesterol levels. Dark chocolates are infused with a rich source of fiber, loaded with magnesium, copper, iron, zinc, and other minerals which are known as healthy source. These chocolates are made out of 70% or more dark cocoa which consumers are highly demanding in the current market. Thereafter, these minerals can improve immunity power and can help in keeping bones and teeth healthy further propelling the segment growth. In addition, dark chocolate when consumed in moderation, can promote heart health, acts as a natural mood enhancer, and lower blood pressure. They are also known to have various nutrients and antioxidants, making them a tasty snack.

The milk segment is expected to grow with the 2^nd fastest CAGR of 9.1% from 2022 to 2030. Milk chocolate comprises plenty of micronutrients that can provide a small amount of iron, zinc, potassium, vitamin A and K. In a study by the University of Aberdeen, it was found that consuming 100g of milk chocolate can lower the chance of getting heart attacks and strokes by almost 25 percent. Moreover, milk products are known to be the richest natural source of magnesium, which is essential for brain function and can help in boosting alertness and concentration. Hence, these factors are driving the sales for the segment during the forecast period.

Distribution Channel Insights

Online channel is expected to grow at the fastest CAGR of 10.3% from 2022 to 2030. Major demand for the online channel was generated during the coronavirus pandemic when consumers were at home and opted for the online mode of shopping. In addition, online channels offer huge discounts on combo products for the whole year which is again encouraging online sales channels. Thereafter, small, and large brands are easily available through e-commerce channels. Moreover, consumers were more focused on purchasing necessary items through the online channel since they could save both time and energy and get these items delivered at home only in a single click. Hence, premium chocolate sales through online distribution channels are forecasted to remain the fastest growing during the coming years.

The specialty store segment was the largest segment in 2021 with a share of over 45%. The wide availability of premium products in specialty stores is increasing the sales of the industry. Moreover, the growth can be attributed to the wide availability of personalized products, along with customized gifts and cards is one of the key factors driving the growth. Additionally, specialty stores offer a wide product selection ranging from tablets/bars to large packs. These products are also available in different pricing ranges. Moreover, consumers find these stores a convenient option since they get to choose their products under the same roof. Hence, the segment is forecasted to remain the dominating segment among consumers during the forecast period as well.

Regional Insights

Europe held the largest share of over 21% in 2021. The increased awareness of the health benefits of premium dark chocolates among European consumers which have essential nutrients and vitamins is driving the market in this region. Additionally, the consumers in this region are highly health-conscious and choose their products more selectively. Hence, the luxury packaging of such products encourages them to purchase such products during the festive seasons. Hence, the European market for premium chocolates is forecast to remain dominant during the forecast period as well.

On the other hand, Asia Pacific is projected to expand at the fastest CAGR of 10.0% from 2022 to 2030. The growth of the global industry in the Asia Pacific is rising due to the growing health-conscious consumers in this region.

Moreover, the rising disposable incomes among middle-class populations are further attributing the sales of the market in Asia Pacific regions. In addition, the rising urbanization and increasing consumer spending on luxury lifestyles and products are further encouraging the sales of the industry in this region. Moreover, the growth of the industry over the last decade has increased in large part due to the growing awareness of the health benefits of certain types of chocolates and their growing popularity in Asia Pacific countries. Hence, Asia Pacific is forecast to remain the fastest-growing region in terms of CAGR during the forecast period as well.

Key Companies & Market Share Insights

• In May 2020, Chocoladefabriken Lindt & Sprüngli AG company has announced their new product launch with salted caramel truffle in European along with other regions. The product is made with smooth textured made with milk chocolate along with a silky caramel-flavored filling into it.

• In September 2021, Ferrero International S.A. partnered exclusively with Lagardère Travel Retail for pre-launching the new premium tablet range. The new product is available in three flavors milk, dark 55% cocoa, and white, with crafted only with the highest-quality ingredients.

• In January 2019, Nestle Japan announces volcanic KitKat in advance of Valentine's Day. Nestle revealed the KitKat Chocolatory Sublime Volcanic made with volcanic chocolate made with a rare type of cacao. Sublime Volcanic KitKat comes with a series of three flavors namely, Vanuatu, Papua New Guinea, and The Philippines each bringing its personality to proceedings. 

Some of the prominent players operating in the global premium chocolate market include:

• Chocoladefabriken Lindt & Sprüngli AG

• Ferrero International S.A.

• Endangered Species Chocolate

• The Hershey Company

• Mondelez International

• Yildiz Holding Inc.

• Godiva

• Mars, Inc.

• CEMOI Group

• Champlain Chocolate Co.

Premium Chocolate Market Report Scope

Global Premium Chocolate Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segment from 2017 to 2030. Grand View Research has segmented the premium chocolate market based on  product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Dark

  • Milk

  • White

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Hypermarkets/Supermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Belgium

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa