Table of Contents
Executive Summary
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- The market
- Volume growth returns in 2018
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- Figure 1: Forecast of UK retail value sales of chocolate, 2013-23
- Chocolate confectionery continues to dominate sales
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- Figure 2: UK retail value sales of chocolate, by segment, 2016-18
- Rising prices affect the market
- Improved household incomes give opportunities for premium products
- Companies and brands
- Brands dominate NPD, with Nestlé taking the lead
- Chocolate brands look to cater to health trends through NPD
- Vegan claim rises in 2018
- Advertisers maintain support in 2018, with Cadbury Dairy Milk the top-spending brand
- Cadbury Dairy Milk leads on trust
- The consumer
- 92% of Brits eat chocolate; 59% do so daily
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- Figure 3: Frequency of eating chocolate, March 2019
- Single-serve bars remain the most popular format
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- Figure 4: Types of chocolate eaten, March 2019
- Supermarkets are the most popular place for buying chocolate
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- Figure 5: Retailers from which chocolate confectionery is purchased, March 2019
- People are prepared to pay for a luxury brand when buying a gift
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- Figure 6: Attributes consumers are willing to pay more for in chocolate bought as a gift and for themselves, March 2019
- 68% would rather have less of regular chocolate than a larger amount of low-sugar
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- Figure 7: Behaviours related to chocolate, March 2019
- Taste is important to 87%
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- Figure 8: Attitudes towards chocolate, March 2019
- What we think
Issues and Insights
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- Manufacturers face opposing demands regarding sugar reduction
- The facts
- The implications
- ‘Less but better’ trend is driving premiumisation in chocolate
- The facts
- The implications
- Ethical/environmental issues spark mixed reactions
- The facts
- The implications
The Market – What You Need to Know
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- Volume growth returns in 2018
- Value and volume growth predicted over 2018-23
- Chocolate confectionery continues to dominate sales
- Rising prices affect the market
- Improved household incomes give opportunities for premium products
- Decline in 25-34s and children could adversely impact the market
Market Size and Forecast
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- Volume growth returns in 2018
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- Figure 9: UK retail value and volume sales of chocolate, 2013-23
- Value and volume growth predicted over 2018-23
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- Figure 10: Forecast of UK retail value sales of chocolate, 2013-23
- Figure 11: Forecast of UK retail volume sales of chocolate, 2013-23
- Forecast methodology
Market Segmentation
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- Chocolate confectionery continues to dominate sales
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- Figure 12: UK retail value and volume sales of chocolate, by segment, 2016-18
Market Drivers
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- Rising prices affect the market
- Improved household incomes give opportunities for premium products
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- Figure 13: CPI vs average weekly earnings, 2013-18
- Uncertainties surround consumer finances post-Brexit
- War on sugar continues
- Manufacturers are tasked with cutting sugar
- Calls grow for stronger action to be taken to tackle sugar
- Progress made on sugar reduction technologies
- Parents under pressure to reduce their children’s sugar intake
- Snacking should boost chocolate
- Pressure grows on the food industry to reduce packaging waste
- Decline in number of 25-34s and children could adversely impact market
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- Figure 14: Change in age structure of the UK population, 2013-18 and 2018-23
Companies and Brands – What You Need to Know
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- Cadbury Dairy Milk retains top position in chocolate confectionery, but sees sales fall
- Lindt continues to lead in chocolate assortments
- Cadbury Dairy Milk takes the top position in seasonal chocolate
- Brands dominate NPD, with Nestlé taking the lead
- Chocolate brands look to cater to health trends through NPD
- Vegan claims rise in 2018
- Advertisers maintain support in 2018, spending almost £95 million
- Cadbury Dairy Milk leads on trust
Market Share
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- Cadbury Dairy Milk retains top position, but sees sales fall
- NPD boosts Maltesers, but other Mars brands struggle
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- Figure 15: Leading brands’ sales and shares in the UK retail chocolate confectionery market, by value and volume, 2018 and 2019
- Lindt continues to lead in chocolate assortments
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- Figure 16: Leading brands’ sales and shares in the UK retail chocolate assortments market, by value and volume, 2018 and 2019
- Cadbury Dairy Milk takes the top position in seasonal chocolate
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- Figure 17: Leading brands’ sales and shares in the UK retail seasonal chocolate market, by value and volume, 2018 and 2019
Start-ups and Disruptors Case Study – MIA Chocolate
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- Company overview
- What is it?
- Founded
- Company mission statement
- Founder’s story
- Sources of funding and support
- Mintel analyst View
- Mintel Trends
- Why it could succeed
- Why it could fail
- The verdict
- The product
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- Figure 18: Sample of MIA product listing, April 2019
- Figure 19: MIA product range, April 2019
- Purchase Intelligence (PI)
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- Figure 20: Perception map of attribute performance of MIA Dark Chocolate and MIA Cranberry & Hazelnut Dark Chocolate in comparison to Single Origin Chocolate among UK consumers, April 2018- April 2019
- Product stockists
- Social media metrics
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- Figure 21: Social media metrics for Company as of April 2019
Launch Activity and Innovation
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- Brands dominate NPD, with Nestlé taking the lead
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- Figure 22: Share of new product launches in the UK chocolate confectionery market, by company, 2015-19
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- Figure 23: Selected KitKat launches, 2019
- Cadbury and Galaxy launch dark varieties
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- Figure 24: Cadbury and Galaxy launch dark chocolate versions, 2018 and 2019
- Brands and own-label chocolate perform equally on purchase intent
- Brands outperform own-label chocolate on perceptions of quality, excitement and taste, on average
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- Figure 25: Perception map of attribute performance of own-label chocolate in comparison to branded chocolate among UK consumers, April 2018-March 2019
- Sainsbury’s pushes exclusive brand
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- Figure 26: Sainsbury’s launches Cocoa et Co Easter egg, 2019
- Chocolate brands look to cater to health trends through NPD
- Cadbury focuses on sugar reduction through fibre
- Mars Wrigley looks to protein to bring down sugar and calorie content
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- Figure 27: Cadbury unveils Boost + Protein, 2018
- Looking to fruit and grains for better-for-you credentials and texture
- Vegan claim rises in 2018
- Hotel Chocolat launches free-from range …
- … and hosts vegan tasting events
- Sharing remains a key occasion for NPD
- Brands look to larger bags
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- Figure 28: Brands launch bigger sharing bags, 2018 and 2019
- Buttons for Bournville and Maltesers
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- Figure 29: Maltesers moves into buttons, 2018
- Nestlé extends Milkybar with Mix Ups, McVitie’s launches Jaffa Cakes Nibbles
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- Figure 30: Nestlé emphasises shareability in repackaged Aero bar, 2018
- Figure 31: McVitie’s eyes sharing occasion with Jaffa Cakes Nibbles launch, 2019
- Premium launches see a slight rise as manufacturers look to add value
- Maltesers and Aero expand everyday premium with boxed chocolates
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- Figure 32: Maltesers launches Truffles, 2018
- Premium products look to bars and tablets
- Lir returns to the UK
- Quality ingredients, provenance and adult flavours trends continue
- Calling out quality ingredients
- Single origin
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- Figure 33: Premium Easter egg launches, 2019
- Seasonal products aim to offer theatre
- More potential for adventurous flavours
- Ethical/environmental innovation
- Tesco completes move to 100% sustainable chocolate
- Plastic packaging comes under public spotlight
- Tony’s Chocolonely launches with slave-free claim
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- Figure 34: Tony’s Chocolonely launches in the UK, 2019
- Quality Street looks to theatre with John Lewis tie-up
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- Figure 35: Quality Street activation at John Lewis, 2018
Advertising and Marketing Activity
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- Advertisers maintain support in 2018, spending almost £95 million
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- Figure 36: Total above-the line, online display and direct mail advertising expenditure on chocolate, 2015-18
- Mars regains top spot after increasing spend in 2018
- Galaxy sees spend reduced
- Maltesers launches digital-only campaign
- Snickers turns to Elton John for ‘You’re not you when you’re hungry’ campaign
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- Figure 37: Total above-the line, online display and direct mail advertising expenditure on chocolate, by top 10 spending advertisers (sorted by 2018), 2015-19
- Mondelēz cuts spend further
- Cadbury Dairy Milk continues kindness theme
- Cadbury Darkmilk targets grown-ups with nostalgic ads
- Cadbury amends Freddo Treasures campaign following complaints
- Cadbury Creme Egg hacks other brands’ ads for hunting season
- ‘Human charging points’ to beat afternoon slump with Boost
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- Figure 38: Total above-the line, online display and direct mail advertising expenditure on chocolate, by top 10 spending brands (sorted by 2018), 2015-18
- Nestlé increased support for its brands in 2018
- Tesco focuses on sustainability through Food Love Stories
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 39: Attitudes towards and usage of selected brands, April 2019
- Key brand metrics
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- Figure 40: Key metrics for selected brands, April 2019
- Brand attitudes: Cadbury Dairy Milk stands out on trust
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- Figure 41: Attitudes, by brand, April 2019
- Brand personality: Maltesers is seen to be the most fun
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- Figure 42: Brand personality – macro image, April 2019
- Lindt Lindor has a strong image as special and indulgent
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- Figure 43: Brand personality – micro image, April 2019
- Brand analysis
- Cadbury Dairy Milk leads on trust, comfort and providing good value, and on being seen as the favourite brand
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- Figure 44: User profile of Cadbury Dairy Milk, April 2019
- Maltesers stands out for being fun and family-focused
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- Figure 45: User profile of Maltesers, April 2019
- Lindt Lindor is seen widely to offer consistently high quality, contributing to its special image
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- Figure 46: User profile of Lindt Lindor, April 2019
- KitKat seen widely to be trustworthy, accessible and traditional
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- Figure 47: User profile of KitKat, April 2019
- Galaxy is seen widely as delicious
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- Figure 48: User profile of Galaxy, April 2019
- Hotel Chocolat is seen to be the most exclusive brand
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- Figure 49: User profile of Hotel Chocolat, April 2019
- Kinder seen to have a family focus
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- Figure 50: User profile of Kinder, April 2019
The Consumer – What You Need to Know
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- 92% of Brits eat chocolate; 59% do so daily
- Single-serve bars remain the most popular format
- Supermarkets are the most popular place for buying chocolate
- Many people are prepared to pay for a luxury brand when buying a gift
- 68% would rather have less regular chocolate than a larger amount of low-sugar
- ‘Less but better’ trend is evident
- Taste is important to 87%
- Ethical/environmental issues spark mixed reactions
Usage
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- 92% of Brits eat chocolate; 15% do so daily
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- Figure 51: Frequency of eating chocolate, March 2019
- Single-serve bars remain the most popular format
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- Figure 52: Types of chocolate eaten, March 2019
- Milk chocolate is the most popular type
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- Figure 53: Varieties of chocolate eaten, March 2019
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- Figure 54: Crossover in varieties of chocolate eaten, March 2019
Where Chocolate is Purchased
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- Supermarkets are the most popular place for buying chocolate
- A third buy chocolate from the discounters
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- Figure 55: Retailers from which chocolate confectionery is purchased, March 2019
- Specialist stores are still very niche
Attributes Shoppers Are Prepared to Pay More For
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- People are prepared to pay for a luxury brand when buying a gift
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- Figure 56: Attributes consumers are willing to pay more for in chocolate bought as a gift and for themselves, March 2019
- A minority would pay more for hand-crafted/hand-made chocolate
- Personalisation could boost gifting further
- Mass-market brands look to mass-personalisation
- Niche brands go further
- An exciting flavour is the top factor people would pay more for when buying chocolate for themselves
Behaviours Related to Chocolate
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- 68% would rather have less regular chocolate than a larger amount of low-sugar
- Cadbury looks to fibre to reduce sugar
- Smaller portions aid efforts to limit consumption
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- Figure 57: Behaviours related to chocolate, March 2019
- ‘Less but better’ trend is evident
Attitudes towards Chocolate
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- Taste is important to 87%
- Own-label’s ability to deliver on taste divides chocolate eaters
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- Figure 58: Attitudes towards chocolate, March 2019
- Ethical/environmental issues spark mixed reactions
- Palm oil is seen as off-putting by 49%
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 59: UK value sales of chocolate, best- and worst-case forecast, 2018-23
- Figure 60: UK volume sales of chocolate, best- and worst-case forecast, 2018-23
Appendix – Market Share
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- Figure 61: Leading manufacturers’ sales and shares in the UK retail chocolate confectionery market, by value and volume, 2018 and 2019
- Figure 62: Leading manufacturers’ sales and shares in the UK retail chocolate assortments market, by value and volume, 2018 and 2019
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- Figure 63: Leading manufacturers’ sales and shares in the UK retail seasonal chocolate market, by value and volume, 2018 and 2019
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Appendix – Launch Activity and Innovation
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- Figure 64: Share of new product launches in the UK chocolate confectionery market, by brands vs own-label, 2015-19
- Figure 65: Share of new product launches in the UK chocolate confectionery market, by sub-category, 2015-19
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- Figure 66: Share of new product launches in the UK chocolate confectionery market, by claim category, 2015-19
- Figure 67: Share of new product launches in the UK chocolate confectionery market, by claim, 2015-19
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- Figure 68: Share of new product launches in the UK chocolate confectionery market, by launch type, 2015-19
- Figure 69: Share of new product launches in the UK chocolate confectionery market, by top 10 flavour components, 2015-19
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- Figure 70: Perception map of attribute performance of Cadbury in comparison to branded chocolate among UK consumers, April 2018-March 2019
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Appendix – Usage
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- Figure 71: Repertoire of types of chocolate eaten, March 2019
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