Asia-Pacific Chocolate Market - Growth, Trends, and Forecasts (2023-2028)

Key Highlights

• The Asia-Pacific Chocolate Market is projected to register a CAGR of 6.7% over the next five years.
• The market is primarily driven by emerging trends such as the healthy indulgence of low-fat and sugar-free chocolates due to consumers' growing health consciousness.
• According to the United States Drug Administration, a 101-gram (g) bar of dark chocolate with 70-85% cocoa solids provide 12.02 milligrams (mg) of iron, 230.00 mg of magnesium, 3.34 mg of zinc, which indeed gives protects against iron deficiency, anemia and the magnesium in chocolate helps prevent type II diabetes and high blood pressure. Due to these benefits, consumers gravitate toward products that claim to be made with dark chocolate. This is driving up the demand for chocolates and expanding their regional market.
• Additionally, due to rising consumer spending power and escalating marketing and promotional efforts, there has been an increase in demand for premium chocolates. Also, because of the growing tendency to give gifts sometimes, boxed assortment sales are increasing more quickly. Moreover, premium ranges are combined with other ingredients, such as almonds, raspberry chunks, or alcohol, and their packaging describes a more sophisticated feel.
• For instance, in June 2021, Mondelez International launched two Cadbury Chocolate Gift Cards. Available in two varieties and four designs, each pack contains a gift card with 20 Cadbury chocolate pralines, including Hazelnut Crème Hearts and White Chocolate Truffle Flowers.
• Furthermore, the market's trending drivers include the rising demand for sugar-free, gluten-free, organic, and vegan chocolates. Most health-conscious and knowledgeable consumers have started purchasing organic products due to growing awareness of synthetic products' harmful effects on human health and the environment.

APAC Chocolate Market Trends

Increase in the Demand for Premium Chocolates

• Consumers across Asian countries, such as China, India, Japan, and others, consider chocolate an exotic delicacy, which is also brought as a luxury gift or an extravagant treat. Premium chocolate is now an area for innovation. Some noteworthy trends, such as the transparent sourcing of rare ingredients to chocolate that suits lifestyle needs, give premium chocolate its competitive advantage.
• Helping drive the premium chocolate category is the greater number of producers making distinctive premium chocolate products, coupled with an increased consumer desire to try new products. There is an increase in demand for super-premium chocolate in retail stores, which are being increasingly marketed and bought globally.
• As part of this launch, companies take the strategic partnership approach with selected airport retailers, where travelers expect to find and discover super luxury brands.
• The developing region has boosted the demand for super-premium chocolate products, such as ruby chocolate, which are gradually being introduced in countries like China and India. Moreover, intense competition exists in the limited-edition premium chocolate space, leading to more innovative packaging formats and a variety of premium and healthy chocolates that gain popularity due to seasonal demand.
• Furthermore, artisanal chocolate makers focus on premium categories to create their niche in the developing market. For instance, In July 2021, Kokoma, an artisanal chocolate brand, was launched in India by Harbinger Foods. The increased sales of regular chocolate are expected to fuel the premium chocolate market.

India is the Fastest Growing Chocolate Market in the Region

Chocolate confectionery in India has one of the major shares of the total confectionery market. In India, the demand for dark and sugar-free chocolates is increasing. Indian consumers are aware of the benefits of dark chocolates and thus, they have developed a taste for them. Chocolate manufacturers are now introducing organic ingredients in their products. Milk and white chocolates with the inclusion of natural and organic ingredients are witnessing an increasing demand in the market among the growing health-conscious population. This has led to the launch of new products, often labeled as vegan, organic, and low-calorie, among others. Leading companies in the Indian chocolate market, such as Mars, Nestlé, Ferrero, and Amul, are focusing on new and eye-catching innovative packaging solutions and ingredients to attract more consumers to purchase their chocolates. The competition in the chocolate industry is likely to build up the country’s cold chain structure, as more investments are expected to be drawn in favor of reshaping and introducing refrigeration and distribution channels. For instance, In April 2022, CARRA, an Indian manufacturer of plant-based chocolate launched its first dairy-free white chocolate bar, featuring lemon and cranberry flavors. Similarly, Amul is reviving its chocolate business with new products and renewed packaging. The company offers its Chocozoo brand of chocolates, with children as its target consumer group.

APAC Chocolate Market Competitor Analysis

The Asia-Pacific chocolate market is highly competitive, with the major players in the Asia-Pacific chocolate market adopting key strategies, such as product innovation, mergers and acquisitions, expansions, e-commerce marketing, and partnerships. Nestle SA, Mondelez International, Ferrero International SA, and Hershey Company are the most active companies operating in this space. The expertise and experience of the companies in chocolate have made the companies focus on constant product innovation and new product launches. Consequently, the companies are focused on product innovation to gain an edge over the competitors in the market. The expansion of the product portfolio under the different categories of products offered by these companies can enhance the market share of the companies in the Asia Pacific chocolate market.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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