Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources and methodology
- Sales data
- Consumer survey data
- Abbreviations
- Terms
Executive Summary
-
- Total sales holding at about $16.3 billion
- The competitive landscape is challenging
- Box/bag/bar more than 3.5oz is the biggest segment, with a 40% share
- The majority of chocolate sales take place outside FDMx channels
- But interest in premium chocolate may be waning
- Medical news is good and bad
- Increasing commodity prices affect industry
- The Hershey Co. is the market leader…for now
- Innovations from many countries
- Advertising constrained by childhood obesity concerns
- More than three quarters of adults buy chocolate
- Chocolate cravings are strong for more than two thirds of purchases
- Premium and organic
- Types of chocolate purchased
- Preferred brands
- Spouses and kids most likely to receive chocolate
Insights and Opportunities
-
- Key points
- Is premium losing its power?
- Natural and organic still can’t find an audience
-
- Figure 1: New product launches of organic chocolate, by region, 2002-08
Fast Forward Trends
-
- Trend: Customization
- What’s it about?
- Your [name, message] here
- Mars takes customization up a notch: your [name, message and photo] here
- Expanding customization beyond M&Ms
- Trend: Play ethic
- What’s it about?
- Chocolate = happiness
- Playing with your food
- Beyond Candyland
- It’s not necessary to strip
Market Size and Forecast
-
- Key points
- Chocolate sales continue to grow, but more slowly
- Chocolate sales and forecast
-
- Figure 2: Total U.S. sales and forecast of chocolate confectionery, at current prices, 2002-12
- Figure 3: Total U.S. sales and forecast of chocolate confectionery, at inflation-adjusted prices, 2002-12
- Wal-Mart sales
Competitive Context
-
- Key points
- Chocolate is a popular sweet
-
- Figure 4: Foods chosen to satisfy craving for sweets, April 2008
- Seasonal chocolate and non-chocolate confectionery
-
- Figure 5: Seasonal sales of chocolate and non-chocolate confectionery (FDMx), by holiday, 2005 and 2007
Segment Performance
-
- Key points
- Box/bag/bar more than 3.5oz is best-performing segment
- Smaller segments see declining sales
- FDMx is only part of the story
-
- Figure 6: U.S. sales of chocolate confectionery, by segment (FDMx), 2005 and 2007
- Figure 7: U.S. sales and forecast of chocolate confectionery, at current prices, top five segments (FDMx), 2002-12
Segment Performance—Bar/Bag/Box more than 3.5oz
-
- Key points
- Premium products challenge mainstream players
-
- Figure 8: U.S. sales and forecast of chocolate confectionery bar/bag/box less than 3.5oz, at current prices (FDMx), 2002-12
Segment Performance—Seasonal Chocolate Confectionery
-
- Key points
- Seasonal chocolate sales depend on the calendar
-
- Figure 9: U.S. sales and forecast of seasonal chocolate confectionery, at current prices (FDMx), 2002-12
- Easter is top chocolate holiday
-
- Figure 10: Sales of chocolate, by holiday (FDMx), 2005 and 2007
Segment Performance—Bar/Bag/Box less than 3.5oz
-
- Key points
- Impulse sales strong, as is competition
-
- Figure 11: U.S. sales and forecast of chocolate bar/bag/box less than 3.5oz, at current prices (FDMx), 2002-12
Segment Performance—Snack-size Chocolate
-
- Key points
- Majority of snack-size products appeal to kids and teens
-
- Figure 12: U.S. sales and forecast of snack-size chocolate, at current prices (FDMx), 2002-12
Segment Performance—Gift Box Chocolate
-
- Key points
- Gift boxes lose ground in FDMx channels
-
- Figure 13: U.S. sales and forecast of gift box chocolate, at current prices (FDMx), 2002-12
Segment Performance—Sugar-free Chocolate
-
- Key points
- Sugar-free chocolate was popular during the low carb fad
-
- Figure 14: U.S. sales and forecast of sugar-free chocolate, at current prices (FDMx), 2002-12
Retail Channels
-
- Key points
- The majority of chocolate purchases are outside traditional channels
- Multiple tiers of chocolate
-
- Figure 15: Total U.S. sales of chocolate confectionery, by retail channel, 2005 and 2007
Retail Channels—Supermarkets
-
- Stiff competition requires imaginative merchandising
-
- Figure 16: U.S. sales of chocolate confectionery at food stores, at current prices, 2002-07
Market Drivers
-
- Interest in premium remains strong but it may be fading
- Medical news: Good and bad
- Good news on chocolate
- Bad news on health
- Commodity prices are taking a toll
- Is confectionery “recession proof”?
Leading Companies
-
- Key points
- The candy world is in a state of flux
- Mergers, acquisitions, and questions
-
- Figure 17: Sales of leading chocolate manufacturers, FDMx sales, 2007 and 2008
Brand Share—Box/Bar/Bag >3/5 oz.
-
- Key points
- Hershey leads, but doesn’t gain
-
- Figure 18: Company and brand sales of chocolate bar/bag/box more than 3.5oz, FDMx, 2007 and 2008
Brand Share—Seasonal Chocolate
-
- Key points
- Holiday candy sales dependent on the calendar
-
- Figure 19: Company and brand sales of seasonal chocolate, FDMx, 2007 and 2008
Brand Share—Box/Bar/Bag <3/5 oz.
-
- Key points
- Hershey leads the segment, but has made insubstantial gains
- Nestlé sales decline
-
- Figure 20: Company and brand sales of chocolate box/bar/bag less than 3.5oz, FDMx, 2007 and 2008
Brand Share—Snack-size Chocolate
-
- Key points
- Sales decline in segment aimed primarily at kids
-
- Figure 21: Company and brand sales of snack-size chocolate, FDMx, 2007 and 2008
Brand Share—Gift Box Chocolate
-
- Key points
- FDMx gift box sales do not include seasonal products
- Russell Stover leads, but only Ferrero sees increases
-
- Figure 22: Company and brand sales of gift box chocolate, FDMx, 2007 and 2008
Brand Share—Sugar-free Chocolate
-
- Key points
- After low carb, sales decline
-
- Figure 23: Company and brand sales of sugar-free chocolate, FDMx, 2007 and 2008
Brand Qualities
-
- Key points
- Finding new seasons for seasonal chocolate
-
- Figure 24: Gifting of chocolate, by holiday and recipient, May 2008
- Even more imaginative seasons and holidays
Innovation and Innovators
-
- Key point
- International new product launches on the rise
-
- Figure 25: International new product launches, chocolate confectionery, 2002-08
- Top North American trends
- International trends
- Organic and natural
- Seasonal chocolate is a guaranteed winner
- Ethical and fair trade
- Premium launches decline: is the market saturated?
- More healthful chocolate?
- Children’s new product launches limited
- Chocolate just for women and just for men
- Vintage and retro packaging tap into nostalgia trend
- Chocolate as medicine
- GNPD’s forecast for new launches
Advertising and Promotion
-
- Overview
- Diet chocolate?
-
- Figure 26: 3 Musketeers television ad, 2007
- Seasonal advertising
-
- Figure 27: Hershey’s Kisses television ad, 2007
-
- Figure 28: Hershey’s Reese’s television ad, 2007
-
- Figure 29: M&Ms television ad, 2007
-
- Figure 30: Russell Stover television ad, 2007
- Figure 31: Whitman’s Sampler television ad, 2007
- Personalized chocolate
-
- Figure 32: Hershey’s M&Ms television ad, 2007
-
- Figure 33: Hershey’s Kisses television ad, 2007
Who Buys Chocolate and for Whom?
-
- Key point
-
- Figure 34: Purchase incidence of chocolate candy, by gender, age, household income, race/ethnicity and presence of children, April 2008
Craving Chocolate
-
- Key points
-
- Figure 35: Reasons for purchasing chocolate for personal consumption, by age, May 2008
Premium and Organic Chocolate
-
- Key points
-
- Figure 36: Opinions regarding premium chocolate, by household income, May 2008
Types of Chocolate Purchased
-
- Key points
-
- Figure 37: Types of chocolate purchased for personal consumption, by age, May 2008
-
- Figure 38: Types of chocolate purchased for personal consumption, by household income, May 2008
Brands
-
- Key points
- Adults’ preferences are more limited
-
- Figure 39: Brands of chocolate candy preferred by adults, January 2007-November 2007
- Teenagers more likely to choose a wide array of candy
-
- Figure 40: Brands of non-chocolate candy preferred by teenagers, January 2007-November 2007
- Kids’ brand choices more limited than those of teens
-
- Figure 41: Children’s chocolate preferences, January 2007-November 2007
Purchases for Others
-
- Key point
-
- Figure 42: Chocolate purchased for others, by gender, May 2008
-
- Figure 43: Chocolate purchased for others, by age, May 2008
-
- Figure 44: Chocolate purchased for others, by household income, May 2008
Chocolate for Spouses/Significant Others
-
- Key points
-
- Figure 45: Reasons for giving chocolate to spouse/signficant other, by household income, May 2008
- Which holidays?
-
- Figure 46: Holidays for giving chocolate to spouses/significant others, May 2008
Chocolate for Children
-
- Key points
-
- Figure 47: Reasons for buying chocolate for children, May 2008
- Which holidays?
-
- Figure 48: Holidays for giving chocolate to children, May 2008
Chocolate for Family Members
-
- Key points
-
- Figure 49: Reasons for giving chocolate to family members, May 2008
- Which holidays?
-
- Figure 50: Holidays for which chocolate is given to family members, May 2008
Chocolate for Friends
-
- Key points
-
- Figure 51: Reasons for giving chocolate to friends, May 2008
- Which holidays?
-
- Figure 52: Holidays for which chocolate is given to friends, May 2008
Chocolate for Co-workers
-
- Key points
-
- Figure 53: Reasons for giving gifts to co-workers, May 2008
- Which holidays?
-
- Figure 54: Holidays for which chocolate is given to co-workers, May 2008
Custom Consumer Groups
-
- Focus on moms
- Moms buy chocolate for themselves for many reasons
-
- Figure 55: Reasons for buying chocolate—moms, May 2008
- Moms buy chocolate for their kids
-
- Figure 56: People for whom chocolate has been purchased in the past year—moms, May 2008
- Moms use chocolate as a reward for kids
-
- Figure 57: Reasons for buying chocolate for children—moms, May 2008
- Moms need no incentive to buy chocolate for their spouses/significant others
-
- Figure 58: Reasons for buying chocolate for spouses/significant others—moms, May 2008
- Easter and Christmas are prime holidays for kids
-
- Figure 59: Holidays for which moms buy chocolate for children, May 2008
Cluster Analysis
-
- Chocolate champions
- Impulse buyer
- Drug store craver
- Cluster characteristics
-
- Figure 60: Chocolate clusters, May 2008
- Figure 61: Reasons for buying chocolate for self in the past year, by clusters, May 2008
- Figure 62: Types of chocolate purchases for self in the past year, by clusters, May 2008
-
- Figure 63: Opinions regarding premium chocolate, by clusters, May 2008
- Figure 64: Chocolate purchased for self or others, by clusters, May 2008
-
- Figure 65: Buying chocolate for someone else, by clusters, May 2008
- Cluster demographics
-
- Figure 66: Chocolate clusters, by gender, May 2008
- Figure 67: Chocolate clusters, by age, May 2008
- Figure 68: Chocolate clusters, by income, May 2008
-
- Figure 69: Chocolate clusters, by race, May 2008
- Figure 70: Chocolate clusters, by Hispanic origin, May 2008
- Methodology
Key Purchase Measures
-
- Consumer insights—seasonal chocolate candy
-
- Figure 71: Key purchase measures for seasonal chocolate candy, by household penetration, 2007*
- Valentine’s Day chocolate candy
- Brand leaders by penetration
-
- Figure 72: Key purchase measures for the top Valentine’s Day chocolate candy brands, by household penetration, 2007*
- Easter chocolate candy
- Brand leaders by penetration
-
- Figure 73: Key purchase measures for the top Easter chocolate candy brands, by household penetration, 2007*
- Halloween chocolate candy
- Brand leaders by penetration
-
- Figure 74: Key purrchase measures for the top Halloween chocolate candy brands, by household penetration, 2007*
- Christmas chocolate candy
- Brand leaders by penetration
-
- Figure 75: Key purchase measures for the top Christmas chocolate candy brands, by household penetration 2007*
Appendix: Other Useful Consumer Tables
-
-
- Figure 76: Reasons for buying chocolate for personal consumption in past year, by gender, May 2008
-
- Figure 77: Reasons for buying chocolate for personal consumption in past year, by income, May 2008
-
- Figure 78: Reasons for purchasing chocolate for personal consumption, by race/ethnicity, May 2008
-
- Figure 79: Types of chocolate purchased, by race/ethnicity, May 2008
-
Appendix: Trade Associations
Back to top