Global chocolate market remains robustly defiant
By Daniel Hunter
Despite economic headwinds battering consumer confidence, the global chocolate market remains robustly defiant and is predicted to grow by an average of 2 per cent a year for the next five years.
Yet it is not all plain sailing for manufacturers, who face a rising proliferation of consumer tastes, coupled with volatility in the cocoa markets, warns KPMG in a new report entitled, The Chocolate of Tomorrow.
KPMG believes that a combination of shifting consumer demand and regulatory pressure will reshape the industry and the chocolate bar. Key findings from the report include:
- By 2030 chocolate bars will be sweeter and smaller, as volatility in cocoa prices forces manufacturers to use less cocoa content in their products.
- Increasing regulation and health conscious consumers will demand a healthier product. Additive free chocolate will become the norm in developed economies.
- The growing consumer markets of Latin America, Eastern Europe and Asia Pacific will create a headache for manufacturers trying to scale their operations globally as they grapple with the different buying behaviour of each nation’s consumers.
- Demand for cocoa could spiral out of control: one Latin American manufacturer predicts that China and India increasing average per capita consumption by just 1kg could render manufacturers’ current models unsustainable. Artificial cocoa could become a viable alternative.
“Fast developing countries are rapidly growing a sweet tooth for chocolate, and many producers are battling to stay on top as tastes diverge and empowered consumers demand more from their products," John Morris, head of consumer markets at KPMG said.
"The marketplace for chocolate is shifting rapidly, and spotting and targeting the countries and regions that are likely to grow quickly will make the difference between the winners and losers in a highly competitive environment.”
The report recommends... continued on page two >