Mintel last reviewed the market for chocolate confectionery in November 2004. At that time, volume sales were starting to fall but value was steady. Some manufacturers responded by downsizing production, others formed “masterbrands” to bring economies of scale in marketing and create brand blocking at the fixture. Since the Winter of 2004 there is clear evidence that consumers are cutting down on chocolate (presumably for health reasons), but trading up into premium priced sectors in order to maximise their enjoyment of chocolate.

The health debate is having an impact on the industry as Government and lobby groups campaign for restrictions on distribution and advertising. The industry has implemented a number of measures to placate the ‘health police’ such as improving on pack labelling and limiting advertising to children. The future outlook for the market is challenging; as penetration is saturated at 97% of children, and 85% of adults. Consumers are however, beginning to buy less volume, and new usage occasions are unlikely to emerge.