The typically sweet chocolate, made out of cocoa beans has varied applications and universal appeal. The hearty flavor and wide range of culinary applications are attracting new investors as well. The growing demand for various types of chocolate is fueling the global chocolate market. Its growing applications as a functional food are also set to create great business prospects for the industry during the next few years to come. Rising demand from emerging markets like Asia Pacific are set to help the industry maintain its healthy growth, which is equally supported by the innovative applications and seasonal sales.
Segments in Chocolate Industry
The global chocolate industry is segmented on the basis of the types of chocolates, which include white, milk and dark chocolates. On the basis of the categories of sales, the global chocolate market is divided into premium, everyday and seasonal chocolate. On the basis of the geographic regions, the market is divided into North America, Asia Pacific, Europe and rest of the world. Analysis of all these segments provides details about the prevailing trends, drivers and hindrances in the industry. They also reveal competitive analysis and growth prospects as far as new investments are concerned. It also helps the companies to get the added information about the recent mergers, acquisitions and new investments in the emerging as well as developed markets.
Drivers and & Restraints
The global chocolate market is strongly driven by a large verity of applications that these products have. New scientific discoveries about the health benefits of chocolates are also driving the demand for the market products. Growth in the seasonal sales and festival related rise in demand is also a significant trend to observe as far as the global market is concerned. Emerging markets like India and China are contributing to the strong demand for chocolates in terms of seasonal sales. Changing investment patterns and growth in the development of new business opportunities in these markets are equal contributors. However, sky-high prices of raw materials and unstable economies in the cocoa producing markets are the major restraints for the market.
The global chocolate market is expected to grow at a CAGR of over 2% to reach past $98.3 billion by the end of the year 2016. During the forecasting period of the next two three years, Asia Pacific segment is expected to witness highest growth at a CAGR of over 4%. Lower penetration and rising sales in the region are set to drive the demand in this region. Asian market is dominated by Japan. United States of America is dominating the North American region. Within the European market United Kingdom witnesses the rising demand, which is followed by Germany.