Chocolate Confectionery - UK - May 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Values supported by inflation as volumes stagnate
Limited scope to grow volumes
Figure 1: Forecast of UK retail value sales of chocolate, 2012-22
Chocolate confectionery sales slip as seasonal and assortments grow
Figure 2: UK retail value sales of chocolate, by segment, 2015-17
Sugar remains in the spotlight
Cocoa prices surge in 2018, inflation slows
Companies and brands
Cadbury Dairy Milk posts growth
Figure 3: Leading manufacturers’ value shares in the UK retail chocolate confectionery market, 2017*
Ferrero performs strongly in chocolate assortments
Figure 4: Leading manufacturers’ value shares in the UK retail chocolate assortment market, 2017*
Figure 5: Leading manufacturers’ value shares in the UK retail seasonal chocolate market, 2017*
Premiumisation remains a focus in NPD
Nestlé unveils reduced-sugar Milkybar Wowsomes
Advertising support falls in 2017
Galaxy and Cadbury Dairy Milk get new campaign
Cadbury Dairy Milk is the most trusted brand
The consumer
Most Brits eat chocolate more than once a week
Figure 6: Frequency of eating chocolate, April 2018
Single-serve bars are most popular
Figure 7: Types of chocolate eaten, April 2018
Emotional links are key drivers for chocolate eating
Chocolate has a more functional role in the morning and afternoon
Figure 8: Reasons for eating chocolate, by time of day, April 2018
Ingredients are key indicator of premium qualities
One in three associates high cocoa content with being premium
Figure 9: Important qualities that denote a premium chocolate, April 2018
Chocolate with energy-boosting ingredients appeals to a fifth of users
Chocolate with plant-based sweeteners appeals most to older people
Figure 10: Interest in product concepts in chocolate, April 2018
Budding connoisseur interest among chocolate eaters
Figure 11: Behaviours relating to chocolate, April 2018
Dark chocolate is widely seen as healthier than milk chocolate
Figure 12: Attitudes towards chocolate, April 2018
What we think
ISSUES AND INSIGHTS
Tapping into the connoisseur spirit can build engagement
The facts
The implications
Recommendations for pairing chocolate with drinks can unlock new and engaging usage occasions
The facts
The implications
Scope for chocolate to capitalise on the strong appeal of energy-boosting ingredients
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Values supported by inflation as volumes stagnate
Limited scope to grow volumes
Chocolate confectionery sales slip as seasonal and assortments grow
Sugar remains in the spotlight
Cocoa prices surge in 2018, inflation slows
MARKET SIZE AND FORECAST
Inflation supports value sales as volumes stagnate
Figure 13: UK retail value and volume sales of chocolate, 2012-22
Volumes sales are expected to remain flat
Figure 14: Forecast of UK retail value sales of chocolate, 2012-22
Figure 15: Forecast of UK retail value sales of chocolate, 2012-22
Forecast methodology
MARKET SEGMENTATION
Chocolate confectionery is losing share to seasonal and assortments
Figure 16: UK retail value and volume sales of chocolate, by segment, 2015-17
MARKET DRIVERS
Sugar remains in the spotlight
The Childhood Obesity Plan puts onus on industry to cut sugar
PHE launches campaigns targeting kids’ snacking and adults’ calorie consumption
Stricter rules on kids’ non-broadcast advertising come into play
Competition for the snacking occasion remains fierce
Cocoa prices surge in 2018
Wage growth catches up with inflation eases
Plastic waste debate is gaining momentum
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Cadbury Dairy Milk posts growth
Ferrero performs strongly in chocolate assortments
Premiumisation remains a focus in NPD
Nestlé unveils reduced-sugar Milkybar Wowsomes
Advertising support falls in 2017
Galaxy and Cadbury Dairy Milk get new campaign
Cadbury Dairy Milk is the most trusted brand
MARKET SHARE
Cadbury Dairy Milk grows sales in declining chocolate market
Mars brands struggle
Figure 17: Leading brands’ sales and shares in the UK retail chocolate confectionery market, by value and volume, 2016 and 2017
Ferrero performs strongly in chocolate assortments
Mars’s Celebrations further mine the gifting occasion
Figure 18: Leading brands’ sales and shares in the UK retail chocolate assortments market, by value and volume, 2016 and 2017
Mixed results for Cadbury brands in seasonal chocolates
Figure 19: Leading brands’ sales and shares in the UK retail seasonal chocolate market, by value and volume, 2016 and 2017
LAUNCH ACTIVITY AND INNOVATION
Brands continue to dominate chocolate NPD
Figure 20: Share of new product launches in the UK chocolate confectionery market, by company, 2014-17
Premiumisation remains a focus in NPD
Nestlé brings Les Recettes de L’Atelier to the UK and launches premium KitKat
Godiva makes supermarket debut
Green & Black’s launches new Velvet Edition range
Brands and own-label build premium image through single origin
Barry Callebaut creates fourth type of chocolate: ruby
Sharing formats continue to attract NPD
Nestlé focuses on sugar reduction
Nestlé unveils reduced-sugar Milkybar Wowsomes
KitKat reformulation replaces sugar with milk and cocoa
Avocado makes first appearance in chocolate confectionery
Brands get flavour extensions
Cadbury caters for the nostalgic
ADVERTISING AND MARKETING ACTIVITY
Advertising support falls in 2017
Figure 21: Total above-the-line, online display and direct mail advertising expenditure on chocolate confectionery, by sub-category, 2014-17
Mondelēz claims spot as top advertiser
Cadbury focuses on taste sensations in ‘Singles Sensations’ campaign
Cadbury “goes back to its roots” with new 2018 campaign
Cadbury support Easter range
Green & Black’s focuses on taste profile in first TV campaign
Figure 22: Total above-the-line, online display and direct mail advertising expenditure on chocolate confectionery, by top 10 advertisers (sorted by 2017), 2014-17
Mars encourages consumers to disconnect with new Galaxy advert
Diversity remains at the centre of Maltesers’ advertising
Snickers campaign continues to cement hunger-busting message
Ferrero ups support for Thorntons
Kinder Bueno online campaign celebrates mundane adult tasks
Nestlé spotlights reformulations for Milkybar and KitKat…
…and continues focus on breaks for KitKat…
KitKat Senses supported with new campaign
Chocolate brands embrace pop-up experiences as marketing concept
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 23: Attitudes towards and usage of selected brands, April 2018
Key brand metrics
Figure 24: Key metrics for selected brands, April 2018
Brand attitudes: Cadbury Dairy Milk is the most trusted brand
Figure 25: Attitudes, by brand, April 2018
Brand personality: Cadbury Dairy Milk and KitKat are widely seen as accessible
Figure 26: Brand personality – Macro image, April 2018
Lindt Excellence as a lead as indulgent and special
Figure 27: Brand personality – Micro image, April 2018
Brand analysis
Cadbury Dairy Milk’s lead underpinned by trust, accessibility and tradition
Figure 28: User profile of Cadbury Dairy Milk, April 2018
Lindt Excellence enjoys a premium image
Figure 29: User profile of Lindt Excellence, April 2018
KitKat scores well on the fun factor
Figure 30: User profile of KitKat, April 2018
Galaxy is widely seen as comforting
Figure 31: User profile of Galaxy, April 2018
Thorntons’ enjoys an indulgent image
Figure 32: User profile of Thorntons, April 2018
Toblerone’s unique shapes give differentiation
Figure 33: User profile of Toblerone, April 2018
Kinder Bueno has a fun, family image
Figure 34: User profile of Kinder Bueno, April 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Most Brits eat chocolate more than once a week
Single-serve bars are most popular
Emotional links are key drivers for chocolate eating
Chocolate has a more functional role in the morning and afternoon
Ingredients are key indicator of premium qualities
One in three associates high cocoa content with premium
Chocolate with energy-boosting ingredients appeals to a fifth of users
Chocolate with plant-based sweeteners appeals most to older people
Budding connoisseur interest among chocolate eaters
Dark chocolate is widely seen as healthier than milk chocolate
FREQUENCY OF EATING CHOCOLATE AND TYPES EATEN
Most Brits eat chocolate more than once a week
Women and young consumers are core users
Figure 35: Frequency of eating chocolate, April 2018
Single-serve bars are most popular
Figure 36: Types of chocolate eaten, April 2018
TIME OF DAY CHOCOLATE IS EATEN AND REASONS FOR EATING CHOCOLATE
Evening is peak time for eating chocolate
Figure 37: Time of day that chocolate is eaten, April 2018
Emotional links are key drivers for chocolate eating
Cravings are the main reason for eating chocolate
Self-rewarding sees many turn to chocolate
Chocolate helps many de-stress
Figure 38: Reasons for eating chocolate, by time of day, April 2018
Chocolate has a more functional role in the morning and afternoon
QUALITIES THAT DENOTE A PREMIUM CHOCOLATE
Ingredients are key indicators of premium qualities
Figure 39: Important qualities that denote a premium chocolate, April 2018
One in three associates high cocoa content with premium
Artisanship of handmade chocolate recognised by one in four
The young place greater emphasis on packaging
INTEREST IN CHOCOLATE CONCEPTS
Chocolate with energy-boosting ingredients appeals to a fifth of users
Figure 40: Interest in product concepts in chocolate, April 2018
Chocolate with plant-based sweeteners appeals especially to older people
Londoners are particularly interested in health-boosting herbs/spices
Smaller brands explore spice flavours
Chocolate with non-dairy milk appeals most to young women
Plant-based milk chocolate remains rare
BEHAVIOURS RELATING TO CHOCOLATE
Budding connoisseur interest among chocolate eaters
Coffee category can provide inspiration
Figure 41: Behaviours relating to chocolate, April 2018
Adult drinks pairings interest 18-34-year-olds
Pairing recommendations in focus by smaller brands…
…but is also being mined by mainstream brands
ATTITUDES TOWARDS CHOCOLATE
Dark chocolate is widely seen as healthier than milk chocolate
Raw chocolate has a heathier image among younger
Figure 42: Attitudes towards chocolate, April 2018
Interesting textures adds appeal to many
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 43: UK retail value sales of chocolate, best- and worst-case forecast, 2017-22
Figure 44: UK retail volume sales of chocolate, best- and worst-case forecast, 2017-22
APPENDIX – MARKET SHARE
Figure 45: Leading manufacturers’ sales and shares in the UK retail chocolate confectionery market, by value and volume, 2016 and 2017
Figure 46: Leading manufacturers’ sales and shares in the UK retail chocolate assortments market, by value and volume, 2016 and 2017
Figure 47: Leading manufacturers’ sales and shares in the UK retail seasonal chocolate market, by value and volume, 2016 and 2017
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 48: Share of new product launches in the UK chocolate confectionery market, by brands and private label, 2014-17
Figure 49: Share of new product launches in the UK chocolate confectionery market, by launch type, 2014-17
Figure 50: Share of new product launches in the UK chocolate confectionery market, by sub-category, 2014-17
Figure 51: Share of new product launches in the UK chocolate confectionery market, by top 20 claims, 2014-17