New flavors and ‘low calorie’ chocolates to drive the US chocolate industry
Innovation of new products in dark chocolate and milk chocolate wage not switch new flavours and low-calories options such as sugar-free chocolates will increase the growth of the retail chocolate industry, according to global management consulting and market research firm Lucintel.
The US chocolate industry is expected to experience moderate growth and reach an estimated US$19.3 billion in 2018. Lucintel said occasion and celebration were factors that impact the selling and production of chocolates and ultimately led to increased company revenue, which also boosts industry growth.
Key drivers for US chocolate category
Lucintel’s findings showed that increasing consumer expenditure and per capita income were the primary demand drivers for retail chocolate industry, and we’re likely to drive the industry towards growth.
Increasing personal consumption expenditure should increase the US retail chocolate industry. According to Lucintel, 73.9 per cent of the total US population—some 234 million consumers—love to eat chocolates. Other factors that often contribute to significant market growth include the hectic lifestyle of consumers and innovative chocolate products doubling as health supplements, chocolate for the diet conscious, and low calorie chocolate options.
Based on current economic forecasts, Lucintel said the US retail chocolate industry expected to register decent growth, with consumer awareness of brands, gifting in celebrations and various occasions, and the increasing hectic lifestyle of consumers expected to drive this growth.
Lucintel’s findings also highlighted major challenges likely to be faced by the industry. Rising prices of raw materials, especially cocoa beans, was already affecting the manufacturing cost of chocolates, which can lose a challenge for market growth.
Other factors such as intermittent raw material supply and lack of efficient distribution channels in emerging markets could also create challenges for the chocolate industry.