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The industrial chocolate market is witnessing a focus on sustainable cocoa production practices due to the growing challenges in sourcing cocoa beans. Barry, a key player in this market, prioritizes sustainable cocoa as one of its corporate strategy pillars. The company's efforts include farmer prosperity, zero child labor, sustainable chocolate production, and environmental protection. A substantial portion of Barry's cocoa beans comes from sustainable sources. The company invests in and collaborates with farmers to implement sustainability programs. Similarly, Cargill is also committed to minimizing its carbon footprint and sustainable production in the industrial chocolate sector.

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Market Challenges

• The industrial chocolate market faces several challenges in today's business landscape. Organic chocolate production is on the rise, driven by consumer consciousness. Serotonin and endorphins in chocolate are attracting consumers looking for stress relief. However, sales of chocolate products have been affected by consumer awareness of health issues like anxiety, depression, and the negative effects of processed foods. The distribution chain for high-quality chocolate, including premium, dark, sugar-free, single-origin, and artisanal varieties, requires careful management. The COVID-19 pandemic and resulting lockdowns have disrupted food service channels, impacting sales of chocolate confectionery. Major players like Barry Callebaut and Puratos Group dominate the market with their offerings of cocoa powder, liquid chocolate, milk powder, and other chocolate products. Consumer demand for health benefits and sustainable chocolate production is driving innovation, with bean-to-bar chocolate and sustainable cocoa farming gaining popularity. Challenges in the chocolate industry also include managing the distribution of milk chocolate, white chocolate, and specialty chocolate, as well as addressing the increasing demand for sugar-free and low-sugar options. The market is constantly evolving, requiring flexibility and innovation to meet consumer preferences and demands.

• Industrial chocolate is produced using cocoa beans as the primary ingredient, along with sugar and milk powder. The global market for industrial chocolate has been affected by the volatile pricing of cocoa beans. In the US, cocoa prices increased by 21% until Q3 2023. The primary reason for this price hike is the supply constraints caused by insufficient rainfall in major cocoa-producing countries like Ghana and the Ivory Coast, which account for around 75% of global cocoa production. This reduction in cocoa yield is expected to widen the supply-demand gap, leading to higher procurement costs for vendors in the market.

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Segment Overview

This industrial chocolate market report extensively covers market segmentation by

1. Application

• 1.1 Milk chocolate

• 1.2 Dark chocolate

• 1.3 White chocolate

End-user

• 2.1 Confectionery

• 2.2 Biscuits and bakery products

• 2.3 Dairy and desserts

• 2.4 Ice creams and frozen items

• 2.5 Others

Geography

• 3.1 Europe

• 3.2 North America

• 3.3 APAC

• 3.4 South America

• 3.5 Middle East and Africa

1.1 Milk chocolate- Milk chocolate, a popular type of chocolate made with milk and cocoa solids, accounts for a significant share in the industrial chocolate market. With a smoother and creamier taste due to the addition of milk solids and sugar, it is widely consumed. However, health concerns have led to a decrease in demand, as a pound of milk chocolate contains approximately 2,300 calories, 140 grams of fat, and 100 mg of cholesterol. To maintain market share, vendors are introducing innovative product variants and flavors. This trend is expected to drive the growth of the milk chocolate segment in the global industrial chocolate market.

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Research Analysis

The industrial chocolate market is a dynamic and growing sector in the packaged foods industry. Chocolate's unique flavor and health benefits continue to drive consumer demand. Chocolate's flavonoids are known to improve mood and act as antioxidants, making it a popular choice for mental health and stress relief. Sustainable and ethical sourcing practices are increasingly important to consumers, as is the availability of gluten-free, vegan, and reduced sugar options. Innovation in chocolate production includes the use of premium ingredients, new flavors, and packaging designs to enhance brand positioning and awareness. The supply chain is a critical component of the chocolate industry, ensuring timely and cost-effective distribution to meet consumer demand. Chocolate's health benefits, including its potential impact on mental health, have led to an increase in e-commerce sales. Consumer behavior and brand loyalty are influenced by various factors, including nutrition, advertising campaigns, and the manufacturing process. Chocolate's health risks, such as caffeine content and potential allergens, are also important considerations for consumers. Organic and fair trade chocolate options are becoming increasingly popular due to their sustainability and ethical production practices. Chocolate varieties continue to expand, with new flavors and ingredients offering unique experiences for consumers. Overall, the industrial chocolate market is a complex and evolving industry, driven by consumer demand for high-quality, sustainable, and healthy chocolate products.

Market Research Overview

The industrial chocolate market is experiencing in demand due to the growing awareness of the health benefits of chocolate. Organic chocolate, made from ethically sourced cocoa beans, is gaining popularity among consumers seeking healthier options. Chocolate is known to produce serotonin and endorphins, which help combat stress hormones and improve mood. Chocolate sales have seen a significant increase during the Covid-19 pandemic as people turn to comfort foods during lockdowns. Dark chocolate, with its high cocoa content, is a favorite among health-conscious consumers. The distribution chain for chocolate products includes food service, chocolatiers, and confectionery manufacturers. Premium and high-quality chocolate, including single-origin and bean-to-bar varieties, are driving growth in the market. Consumer consciousness towards sustainable and ethical production practices is also influencing chocolate sales. Chocolate comes in various forms, such as milk, white, and specialty chocolate, and can be used as ingredients in processed foods or as standalone products. Companies like Barry Callebaut and Puratos Group dominate the market with their wide range of chocolate offerings, from cocoa powder to liquid chocolate. Chocolate is not just a sweet treat but also has potential health benefits for mental illnesses like anxiety and depression. The market for chocolate products is expected to continue growing as consumers seek comfort and indulgence in these uncertain times.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application

• End-user

• Geography

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio