Abstract
Consumers are enthusiastic about chocolate. More than 80% of Mintel' s survey respondents buy chocolate for themselves, and more than half buy it for others. Chocolate for personal consumption is up against a few obstacles, however. Given health and weight concerns, consumers have to work harder to rationalize a chocolate purchase for themselves. And, the competition is tough for "share of sweet tooth."
This report addresses the status of the chocolate market, its challenges and the opportunities for meaningful and successful brand differentiation. Following are some-but not all-of the questions answered in this report:
- What are manufacturers doing with regard to new product development and advertising to help consumers rationalize a chocolate purchase?
- How can makers of large chocolate bars use packaging and shape to differentiate their brands?
- Who tends to see more reasons to buy chocolate: women or men? What does that mean for the category?
- Which ethnic group is most apt to eat and prefer organic brands of chocolate?
- How are self-checkout lines at the grocery store affecting chocolate sales?
- How might a chocolate brand become a more active part of holiday family traditions without seeming like an intrusive commercial presence?
- How might the chocolate industry consolidate in the near future? Who is most apt to buy a company? Who is most apt to be bought?
- From department stores to smoking lounges, what types of retail options might chocolate companies consider in the future?
- What evidence is there that the market is calling for a decidedly “unpremium” brand of chocolate, and what might that product look like?
- How might the use of humor close the gap between chocolate sales for Mother' s Day and chocolate sales for Father' s Day?
This analysis includes a comprehensive market size constructed from several sources including the government' s Consumer Expenditure Survey and data from the National Confectioners Association. Consumer research conducted for this report aimed to reveal the specific attitudes and behaviors regarding both personal consumption of chocolate, as well as the purchase of chocolate for others-with a special focus on chocolate as part of holiday shopping and giving.
This report covers chocolate candy products, including those sold in bars, bags, and boxes.
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Sources of consumer research
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- The bottom line
- New products and marketing messages help consumers rationalize chocolate purchase
- Larger boxes, bags and bars (over 3.5oz) have been the most successful segment
- Consolidation might be on the horizon
- Supermarket self-checkouts affecting chocolate sales
- Opportunity to increase chocolate gifting
- Need to close the Mother' s Day and Father' s Day chocolate gap
- Is there a place for chocolate in cigar bars?
- Forecast
- Market Drivers
- In general, consumption of sweets declining
- Figure 1: Whether frequently eat sweets and whether feel guilty after eating sweets, 2001-06
- Other chocolaty categories pose competition...and opportunity
- Figure 2: Items eaten when craving something sweet, March 2007
- Competition from baked goods
- Figure 3: Total U.S. sales of brownie mixes, at current and constant prices, 2001-06
- Figure 4: Hershey' s Brownies n' Chocolate bar, 2006
- Figure 5: Betty Crocker' s Already Baked, single-serve dessert line, 2007
- Figure 6: Pillsbury' s ready-to-eat chocolate chunk fudge brownies, 2007
- Figure 7: Kraft' s Oreo Cakesters, soft snack cakes, to be released August 2007
- Competition from ice cream and frozen novelties
- Figure 8: Total U.S. retail sales of ice cream and frozen novelties, at current and constant prices, 2001-06
- Competition from other chocolaty snacks
- Figure 9: Total U.S. sales of nutrition/energy bars, at current and constant prices, 2001-06
- Figure 10: PowerBar' s Triple Threat in chocolate toffee almond, 2007
- Figure 11: PowerBar' s Pria ad, 2006
- The bright side: Turning competition into opportunity
- Figure 12: Nestlé' s Chocolatier premium baking chocolate ad, 2007Figure 13: Masterfoods Dove ice cream with chocolate ganache, 2005
- Prevalence of diabetes and chocolate consumption
- The popularity of premium
- Figure 14: Total U.S. retail sales of chocolate vs. premium chocolate confectionery, 2002-07
- Dark chocolate sales boosted by its well-publicized health benefits
- Figure 15: Total U.S. retail sales of dark chocolate, at current and constant prices, 2003-06
- Figure 16: Snickers Limited Edition Dark mix, 2007
- Price of sugar and high-fructose corn syrup (HFCS) has an impact
- Market Size and Trends
- Market size
- Figure 17: Total U.S. retail sales of chocolate and seasonal chocolate confectionery, at current and constant prices, 2002-07
- Market trends
- Figure 18: New chocolate confectionery product releases (international), 2002-07
- Figure 19: Torn Ranch' s Splendid Specialties Wine Truffles, 2007
- Figure 20: Hershey' s Nuggets Truffles, 2007
- Figure 21: Whoppers mini robin eggs for Easter, 2007
- Figure 22: Franco holiday chocolates from Macy' s, 2006
- Figure 23: Hershey' s Reese' s holiday trees, 2006
- Figure 24: Love Stinks milk chocolate bar from Galerie, 2007
- Figure 25: Russell Stover organic chocolate, 2007
- Figure 26: Endangered Species Organic dark chocolate, 2007
- Figure 27: Hershey' s Whole Bean and Antioxidant Milk Chocolates, 2007
- Figure 28: Hershey' s Reese' s Whipps!, 2007
- Figure 29: Masterfoods/Mars' Three Musketeers Mint Dark Chocolate bar, 2007
- Figure 30: Chocolate Mocha KitKat, 2007
- Figure 31: Andes Mocha Mint, 2006
- Figure 32: Nestlé Crunch with coconut, 2007
- Figure 33: Target' s dark chocolate tasting kit, 2007
- Figure 34: Snickers with Shrek movie tie-in, 2007
- Market Segmentation
- Introduction
- Figure 35: FDM sales of chocolate confectionery market, segmented by type, 2005 and 2007
- Chocolate candy box, bag and bar 3.5oz or more
- Figure 36: FDM sales of chocolate candy box, bag and bar 3.5oz or more, at current and constant prices,
- Figure 37: FDM sales of premium and non-premium chocolate candy box, bag and bar 3.5oz or more, 2002-07
- Seasonal chocolate
- Figure 38: FDM sales of seasonal chocolate, at current and constant prices, 2002-07
- Figure 39: FDM sales of premium and non-premium seasonal chocolate, 2002-07
- Chocolate candy box, bag and bar less than 3.5oz
- Figure 40: FDM sales of chocolate candy box, bag and bar less than 3.5oz, at current and constant prices, 2002-07
- Figure 41: Nestlé' s 100 Grand in super size for 89 cents, 2007
- Figure 42: FDM sales of premium and non-premium chocolate candy box, bag, and bar less than 3.5oz, 2002-07
- Snack-sized chocolate candy
- Figure 43: FDM sales of snack-sized chocolate candy, at current and constant prices, 2002-07
- Supply Structure
- Companies and brands
- Figure 44: Manufacturer FDM sales of chocolate in the U.S., 2004 and 2006
- Chocolate candy box, bag and bar 3.5oz or more
- Figure 45: Manufacturer brand FDM sales of chocolate candy box, bag and bar 3.5oz or more in the U.S., 2004 and 2006
- Seasonal chocolate candy
- Figure 46: Manufacturer brand FDM sales of seasonal chocolate candy in the U.S., 2004 and 2006
- Figure 47: Manufacturer FDM sales of seasonal chocolate candy in the U.S., by season, 2004 and 2006
- Figure 48: Hershey' s Cadbury Crème Egg, Easter 2007Chocolate candy less than 3.5oz
- Figure 49: Manufacturer brand FDM sales of chocolate candy less than 3.5oz in the U.S., 2004 and 2006
- Snack-sized chocolate candy
- Figure 50: Manufacturer brand FDM sales of snack-sized chocolate candy in the U.S., 2004 and 2006
- Advertising and Promotion
- Hershey Co.
- Figure 51: Hershey' s Kisses ad, Special messages, 2007
- Figure 52: Hershey' s Kisses ad, Holiday bells, 2007
- Figure 53: Reese' s Peanut butter cups ad, "ever since peanut butter hooked up with chocolate," 2007
- Figure 54: Hershey' s Take 5, 2007
- Mars Co.
- Figure 55: Three Musketeers ad, the movie theatre, 2007
- Figure 56: Dove ad, The train, 2007
- Figure 57: M&Ms ad, personalized messages, 2007
- Figure 58: M&Ms Dark ad, the Addams Family, 2007
- Figure 59: M&Ms ad, "There' s an M&M in Everyone," 2007
- Figure 60: Twix ad, "Need a moment?," 2007
- Nestlé
- Figure 61: Baby Ruth ad, Take me out to the ballgame, 2006Figure 62: Butterfinger Crisp ad, proposal at the game, 2006
- Figure 63: Nestlé crunch ad, "For the kid in everyone," 2006
- Lindt & Sprüngli
- Figure 64: Ghirardelli ad, "Very slowly," 2007
- Retail Distribution
- Introduction
- Figure 65: U.S. retail sales of chocolate confectionery, by channel, 2005 and 2007
- Supermarkets
- Figure 66: U.S. supermarket sales of chocolate confectionery, at current and constant prices, 2002-07
- Convenience stores
- Figure 67: U.S. convenience store sales of chocolate confectionery, at current and constant prices, 2002-07
- The Consumer: Buying Chocolate for Self and Personal Consumption of Chocolate
- Section highlights
- Purchase of chocolate for self
- Figure 68: Purchase of chocolate candy products, for self or for others, by gender, age, household income and race/ethnicity, April 2007
- Reasons for buying chocolate for personal consumption
- Figure 69: Reasons for buying chocolate for personal consumption, by gender, April 2007
- Figure 70: Reasons for buying chocolate for personal consumption, by age, April 2007
- Figure 71: Reasons for buying chocolate for personal consumption, by household income, April 2007
- Brands of chocolate for personal consumption
- Figure 72: Brands of chocolate used, by age, January-October 2006
- Opinions about different types of chocolate
- Figure 73: Opinions about types of chocolate/chocolate experiences, by age, April 2007
- Figure 74: Opinions about types of chocolate/chocolate experiences, by race/Hispanic origin, April 2007
- Purchase of specific types of chocolate
- Figure 75: Types of chocolate purchased for own consumption, April 2007
- Holiday chocolate: healthy or indulgent
- Figure 76: Healthy or indlgent holiday chocolate, April 2007
- The Consumer: Buying Chocolate for Others
- Section highlights
- Who is buying chocolate for others?
- Figure 77: Purchase of chocolate candy products, for self or for others, by gender, age, household income and race/ethnicity, April 2007
- For whom chocolate is bought
- Figure 78: For whom chocolate is bought, by gender, April 2007
- Figure 79: For whom chocolate is bought, by age, April 2007
- Figure 80: For whom chocolate is bought, by household income, April 2007
- Different chocolate recipients, different motivations for giving
- Figure 81: Reasons for giving chocolate, by person for whom chocolate is bought, April 2007
- Celebrating a holiday with chocolate
- Figure 82: Holidays for which chocolate is given, by person for whom chocolate is bought, April 2007
- A gift of chocolate: Premium or "regular"?
- Figure 83: Type of chocolate given for holidays, by for whom chocolate is bought, April 2007
- Presentation of holiday gift chocolate
- Figure 84: Presentation of holiday chocolate, April 2007
- Future and Forecast
- Future trends
- The future of healthy chocolate: Calcium-enriched? An acquired taste for bitter?
- Unpremium chocolate?
- Figure 85: Bourbon' s Chotos, Japan, 2007
- The future of chocolate moves from taste to texture
- A most unusual pairing: Chocolate and tobacco
- Market forecast
- Chocolate market
- Figure 86: Forecast of total U.S. retail sales of chocolate and seasonal chocolate confectionery, at current and constant prices, 2007-12
- Chocolate candy box, bag and bar 3.5oz or more
- Figure 87: Forecast of U.S. FDM sales of chocolate candy box, bag and bar 3.5oz or more, at current and constant prices, 2007-12
- Seasonal chocolate
- Figure 88: Forecast of U.S. FDM sales of seasonal chocolate, at current and constant prices, 2007-12
- Chocolate candy box, bag and bar less than 3.5oz
- Figure 89: Forecast of U.S. FDM sales of chocolate candy box, bag and bar less than 3.5oz, at current and constant prices, 2007-12
- Snack-sized chocolate candy
- Figure 90: Forecast of U.S. FDM sales of snack-sized chocolate candy, at current and constant prices, 2007-12
- Forecast factors
- Appendix: Trade Associations
