The U.S. Market for Chocolate: Chocolate Bars, Bagged/Boxed Chocolates and Gourmet/Premium Chocolate

Feb 1, 2005
222 Pages - Pub ID: LA1037709
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With candy universally popular, endlessly varied, and ubiquitously available, the overall U.S. market is largely mature. Moreover, ever-growing consumer health and obesity concerns have kept consumption levels generally flat, even as marketer competition and innovation have been dampened by a sluggish economy, by market consolidation, and by rising costs.

Difficult times can drive consumers to comfort foods such as candy: the University of Michigan’s American Customer Satisfaction Index for third quarter 2004 shows Hershey and Mars products garnering the greatest increases in customer satisfaction ratings over the past year. Along with caloric and carb concerns, nonetheless, demographics conspire against any near-future surge in market growth.

The competitive response? An ongoing free-for-all whereby marketers are stretching beyond former class, retail, segment, and product boundaries to grab sales and share from competitors. Simultaneously, marketers are updating marketing, tweaking offerings, and launching new products to target candy consumers of all stripes.

Within the chocolate category, competition is centering on gourmet and premium chocolates. IRI-tracked sales of premium brands in the mass market have grown at a compound annual growth rate of about 16%, while sales of organic chocolates are growing at a 30% clip, compared with 3%-4% growth rates for chocolate candy overall. Most notably, IRI-tracked chocolate candy sales for Lindt and its acquired subsidiary Ghirardelli have risen at a 36% compound annual growth rate, from $22.0 million in 2000 to $75.6 million in 2004. Thus, while Hershey ranks first by dollar gains in chocolate candy over the 2000-2004 period, Lindt ranks second, outpacing Mars and Nestlé.

Productscan data on package tags for chocolate candy introductions reveal gourmet/upscale products as the key market driver, with total package tags rising from 89 in 2000 to 187 in 2004, compared with a rise from 13 to 107 for low carbohydrate/sugar package tags. Within the premium arena of gourmet, upscale, natural, and organic products, dark chocolate (with 91 tags) is nipping at the heels of milk chocolate (104 tags), with a growing number of players marketing dark chocolate products on the basis of specified cocoa content and cocoa bean origins and varietals.

At the same time that premium marketers are adopting mass-market habits such as candy bar formats and frequent-snacker packaging, mass marketers are stretching into the premium chocolate category. Bracketing out novelty chocolate candies, the candy weighing in most expensively in IRI sales tracking is not Scharffen Berger candy bars or Lindt Valentine’s chocolates or Newman’s Own Organics, but Mars’ Dove Time Past Nine ($27.74/pound). With Mars pushing Double Chocolate Truffles and Scharffen Berger selling in Safeway, the caste system in chocolate candy is a thing of the past.

Packaged Facts’ new report, The U.S. Market for Chocolate: Chocolate Bars, Bagged/Boxed Chocolates and Gourmet/Premium Chocolates, analyzes sales and growth potential for the chocolate category within the confectionery market (a companion volume covers non-chocolate candy), including gourmet and low-carb/sugar-free products; surveys marketing and new product trends; and dissects consumer demographics for chocolate candy overall and for leading brands, along with variations in food- and health-related attitudes among chocolate candy consumers, heavy users of chocolates, users of premium brand chocolates, and non-chocolate candy consumers.

Report Methodology
The information in The U.S. Market for Chocolate: Chocolate Bars, Bagged/Boxed Chocolates and Gourmet/Premium Chocolates based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the chocolate market and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived mass merchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. Figures provided on national consumer advertising expenditures are based primarily on data (copyright 2004) compiled by TNS Media Intelligence/CMR, the leading provider of strategic advertising and marketing communications intelligence. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for spring 2004. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Datamonitor.

What You’ll Get in this Report
The U.S. Market for Chocolate: Chocolate Bars, Bagged/Boxed Chocolates and Gourmet/Premium Chocolates is a brand-new report that offers a unique perspective on the changing market for chocolate candy, from gourmet to the everyday. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Market for Chocolate: Chocolate Bars, Bagged/Boxed Chocolates and Gourmet/Premium Chocolates offers. The report addresses the following segments:

  • The Market (including market size and composition, and projected market growth)
  • The Marketers (including discussions of specific marketer brand and market shares)
  • The Consumer (who’s buying what, and where)
  • The Products
  • Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

How You Will Benefit from this Report
If your company is already competing in the chocolate market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for chocolate bars, bagged/boxed chocolates and gourmet/premium chocolates, as well as projected sales and trends through 2009. Contributing to that understanding will be a complete analysis of sales data from IRI and other published and trade sources, a detailed discussion of the consumer for chocolate based on Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for chocolate.
  • Research and development professionals stay on top of competitor initiatives and explore demand for products in the chocolate arena.
  • Advertising agencies working with clients in the food industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary
  • Scope and Methodology
  • Market Scope
  • Report Methodology

  • The Competitive Situation
    • Wholesale Dollar Shipments Top $9 Billion
    • Overall Retail Sales at $14.6 Billion
    • Figure 1-1: U.S. Retail Sales of Chocolate Candy, 2000-2004 (in millions of dollars)
    • Factors to Market Growth
    • The Top Marketers
    • Figure 1-2: Top Four Marketers of Chocolate Candy by IRI-Tracked Share, 2004 (percent)
    • The Dollar Gain Leaders
    • 358 New Product Lines in 2004
    • Three Key Trends: Gourmet, Low-Carb, and Natural
    • Figure 1-3: Key Chocolate Candy Trends by Number of New Product Introduction Package Tags, 2000 vs. 2004
    • Grab-and-Go Chocolates
    • Extending into Snacks
    • Sea Legs for Sugar-Free?

  • The Consumer
    • 67% of Adults Eat Chocolate Candy
    • Homemakers and Part-Timers as Heavy Users
    • 51% of Adults Eat Hershey Chocolate Candy
    • M&M’s the Top Brand at 19% Usage Rate

  • Spotlight on Premium Chocolates
    • Premium Market Approaches $1.5 Billion in 2004
    • 36% Growth Rate for Lindt
    • Godiva Goes Diva
    • Overview of Flavor Trends
    • Pushing the Dark Chocolate Envelope
    • Growth in Organics
    • Frontiers in Flavor: Raiding the Pantry
    • The Holy Grail: Frequency of Consumption
    • Premium Consumer Demographics

  • Looking Ahead
    • Brand Churning
    • Candy with a Conscience
    • Beyond the Caste System
    • The Future of the Past

    Chapter 2: Competitive Situation

    • Market Size and Growth
      • Note on Information Resources, Inc. Market Share Data
      • Wholesale Dollar Shipments Top $9 Billion
      • Wholesale Per Capita Consumption at $32
      • Overall Retail Sales at $14.6 Billion
      • Figure 2-1: U.S. Retail Sales of Chocolate Candy, 2000-2004 (in millions of dollars)
      • IRI-Tracked Sales at $4.4 Billion
      • Standard Assortment Chocolates at 70% of Mass Market
      • Solid Chocolate at 13% of Market
      • Figure 2-2: Share of Wholesale Dollar Value of Chocolate Confectionery by Product Type, 2003 (percent)
      • Supermarkets and Grocery Stores at 29% of Market
      • Factors to Market Growth
      • Figure 2-3: Share of U.S. Population Growth for Selected Racial/Ethnic Populations, 2005-2010 (percent)
      • Figure 2-4: Share of Selected U.S. Racial/Ethnic Populations Who Frequently Eat Sweets, 2004 (percent)
      • Figure 2-5: Share of Selected U.S. Racial/Ethnic Populations Who Frequently Snack, 2004 (percent)
      • Figure 2-6: Share of U.S. Population Growth for Selected Age Brackets, 2005-2010 (percent)
      • Sales Projected at $17.8 Billion in 2009
      • Table 2-1: U.S. Manufacturers’ Pound and Dollar Shipments of Chocolate Confectionery, 1999-2003 (in millions of pounds and dollars)
      • Table 2-2: Manufacturers’ Pound and Dollar Shipments of Chocolate Confectionery by Product Type, 1999-2003 (in millions of pounds and dollars)
      • Table 2-3: U.S. Per Capita Consumption of Chocolate Confectionery: Pounds and Wholesale Dollar Value, 1999-2003
      • Table 2-4: Per Capita Consumption of Chocolate Confectionery in Selected Countries, 2000 vs. 2002 (in pounds)
      • Table 2-5: U.S. Retail Sales of Chocolate Candy, 2000-2004 (in millions of dollars)
      • Table 2-6: IRI-Tracked Sales of Chocolate Candy, 2000-2004 (in millions of dollars)
      • Table 2-7: IRI-Tracked Sales of Standard Assortment Chocolate Candy, 2000-2004 (in millions of dollars)
      • Table 2-8: IRI-Tracked Sales of Seasonal Chocolate Candy, 2000-2004 (in millions of dollars)
      • Table 2-9: IRI-Tracked Sales of Gift Box Candy, 2000-2004 (in millions of dollars)
      • Table 2-10: Share of Chocolate Candy Sales Through IRI-Tracked Outlets: By Category, 2000 vs. 2004 (percent)
      • Table 2-11: Share of Standard Assortment Chocolate Candy Sales Through IRI-Tracked Outlets: By Segment, 2004 (percent)
      • Table 2-12: Population Projections for Selected U.S. Racial/Ethnic Populations, 2000-2020 (in thousands)
      • Table 2-13: Projected U.S. Population by Age Bracket, 2000-2010 (in thousands)
      • Table 2-14: Share of U.S. Population Growth for Selected Age Brackets, 2005-2010 (percent)
      • Table 2-15: Projected U.S. Retail Sales of Chocolate Candy, 2004-2009 (in millions of dollars)

    • Marketer and Brand Shares
      • The Top Marketers
      • Figure 2-7: Top Four Marketers of Chocolate Candy by IRI-Tracked Share, 2004 (percent)
      • At Marketer Level, Hershey Leads in Dollar Gains
      • M&M’s Brand at 11.6% Market Share
      • Figure 2-8: Top Ten Brands of Chocolate Candy by IRI-Tracked Share, 2004 (percent)
      • By Product Line, Russell Stover Diet Leads in Dollar Gains
      • Table 2-16: Top Marketers of Chocolate Candy by IRI-Tracked Share, 2000-2004 (percent)
      • Table 2-17: Top Marketers of Chocolate Candy by IRI-Tracked Share: Standard Assortment, Seasonal, Gift Box, and Overall, 2004 (percent)
      • Table 2-18: IRI-Tracked Sales of Top Chocolate Candy Mass Marketers, 2000-2004 (millions of dollars)
      • Table 2-19: Increase/Decline in IRI-Tracked Sales of Top Chocolate Candy Mass Marketers, 2000-2004 (millions of dollars)
      • Table 2-20: Top Brands of Chocolate Candy by IRI-Tracked Share, 2000-2004 (percent)
      • Table 2-21: IRI-Tracked Sales of Top Mass-Market Chocolate Candy Brands, 2000-2004 (millions of dollars)
      • Table 2-22: Top Mass-Market Chocolate Candy Brands by 4-Year Dollar Growth, 2000-2004 (millions of dollars)

    • Marketing and New Product Trends
      • $415 Million in Advertising for Mars
      • 358 New Product Lines in 2004
      • The Key Trends: Gourmet, Low-Carb, and Natural
      • Figure 2-9: Key Chocolate Candy Trends by Number of New Product Introduction Package Tags, 2000 vs. 2004
      • Grab-and-Go Chocolates
      • Extending into Snacks
      • Sea Legs for Sugar-Free?
      • Chocolate as Health and Beauty Care
      • Marketing to Women: It’s the Emotions
      • Targeting Hispanics: Flavors and Packaging
      • Targeting Children: Long-Term Licenses
      • Newness and Name Brands for Seasonal Chocolates
      • Table 2-23: Number of New Chocolate Candy Introductions by Package Tags, 2000-2004
      • Table 2-24: Top Mass-Market Chocolate Product Lines by 52-Week Increase in IRI-Tracked Sales, 2004 (millions of dollars)
      • Table 2-25: Selected Chocolate Candy New Product Introductions, 2004 - January 2005

      Chapter 3: The Consumer

      • Consumer Overview
        • Note on Simmons Market Research Bureau Consumer Data
        • 67% of Adults Eat Chocolate Candy
        • Figure 3-1: Candy Usage Rates: Overall, Chocolate Candy, and Non-Chocolate Candy, 2004 (U.S. adults)
        • Homemakers and Part-Timers as Heavy Users
        • Attitude Variations in Users and Heavy Users
        • Table 3-1: Purchasing Indexes by Demographic Breakout: Consumers of Chocolate Candy Brands vs. Consumers of Non-Chocolate Candy Brands, 2004 (U.S. adults)
        • Table 3-2: Purchasing Indexes by Demographic Breakout: Consumers of Chocolate Candy Brands vs. Heavy Users of Chocolate Candy Brands, 2004 (U.S. adults)
        • Table 3-3: Indexes for Food- and Diet-Related Attitudes and Behaviors: Consumers of Chocolate Candy Brands, Consumers of Non-Chocolate Candy Brands, and Heavy Users of Chocolate Candy Brands, 2004 (U.S. adults)

      • Consumer Patterns by Marketer and Brand
        • 51% of Adults Eat Hershey Chocolate Candy
        • M&M’s the Top Brand at 19% Usage Rate
        • Snickers Claims 2.5 Million Loyalists
        • Bite-Sized Brands Draw Heavy Users
        • Attitude and Behavior Variations by Brand
        • Table 3-4: Purchasing Indexes by Demographic Breakout: Chocolate Candy Overall vs. Hershey, Mars, and Nestlé as Marketers, 2004 (U.S. adults)
        • Table 3-5: Purchasing Rates for Selected Chocolate Candy Brands, 2004 (U.S. adults)
        • Table 3-6: Top Ten Chocolate Candy Brands by Number and Percent of Sole Users, 2004 (U.S. adults)
        • Table 3-7: Heavy Usage Indexes by Chocolate Candy Brand, 2004 (U.S. adults)
        • Table 3-8: Indexes by Chocolate Candy Brand for Agreement with Statement: I Often Snack Between Meals, 2004 (U.S. adults)
        • Table 3-9: Indexes by Chocolate Candy Brand for Agreement with Statement: I Frequently Eat Sweets, 2004 (U.S. adults)
        • Table 3-10: Indexes by Chocolate Candy Brand for Agreement with Statement: I Feel Guilty When I Eat Sweets, 2004 (U.S. adults)
        • Table 3-11: Indexes by Chocolate Candy Brand for Agreement with Statement: Fattening Food Makes Me Feel Guilty, 2004 (U.S. adults)
        • Table 3-12: Indexes by Chocolate Candy Brand for Agreement with Statement: I Normally Count Calories in the Foods I Eat, 2004 (U.S. adults)
        • Table 3-13: Indexes by Chocolate Candy Brand for Agreement with Statement: I Usually Only Snack on Healthy Foods, 2004 (U.S. adults)
        • Table 3-14: Indexes by Chocolate Candy Brand for Agreement with Statement: I Like to Try Out New Food Products, 2004 (U.S. adults)
        • Table 3-15: Indexes by Chocolate Candy Brand for Agreement with Statement: I’m Often Swayed by Coupons to Try New Food, 2004 (U.S. adults)

      • Brand Demographics
        • Women Index High for Chocolate Mints
        • Senior Skew to Classic, Boxed, and Bite-Sized Chocolates
        • Hershey Catching Up to Hispanics
        • Brand Strengths by Region
        • Dove as Exception to Lower-Education Skew
        • Patterns by Household Income and Value of Housing
        • Crunch vs. Creme in Households with Kids
        • Figure 3-2: Purchasing Indexes for Selected Chocolate Candy Brands Among Households With Children Age 12-17, 2004 (U.S. adults)
        • Table 3-16: Purchasing Indexes for Selected Chocolate Candy Brands: By Gender, 2004 (U.S. adults)
        • Table 3-17a: Purchasing Indexes for Selected Chocolate Candy Brands: By Age Bracket, 2004 (U.S. adults)
        • Table 3-17b: Purchasing Indexes for Selected Chocolate Candy Brands: By Age Bracket, 2004 (U.S. adults)
        • Table 3-18: Purchasing Indexes for Selected Chocolate Candy Brands: By Race/Ethnicity, 2004 (U.S. adults)
        • Table 3-19a: Purchasing Indexes for Selected Chocolate Candy Brands: By Region, 2004 (U.S. adults)
        • Table 3-19b: Purchasing Indexes for Selected Chocolate Candy Brands: By Region, 2004 (U.S. adults)
        • Table 3-20: Purchasing Indexes for Selected Chocolate Candy Brands: By Highest Degree of Educational Attainment, 2004 (U.S. adults)
        • Table 3-21: Purchasing Indexes for Selected Chocolate Candy Brands: By Household Income, 2004 (U.S. adults)
        • Table 3-22: Purchasing Indexes for Selected Chocolate Candy Brands: By Type of Residence, 2004 (U.S. adults)
        • Table 3-23: Purchasing Indexes for Selected Chocolate Candy Brands: By Value of Residence, 2004 (U.S. adults)
        • Table 3-24: Purchasing Indexes for Selected Chocolate Candy Brands: By Employment Status, 2004 (U.S. adults)
        • Table 3-25: Purchasing Indexes for Selected Chocolate Candy Brands: By Number in Household, 2004 (U.S. adults)
        • Table 3-26: Purchasing Indexes for Selected Chocolate Candy Brands: Households Without Children vs. Households With Children, 2004 (U.S. adults)
        • Table 3-27: Purchasing Indexes for Selected Chocolate Candy Brands: By Number of Children in Household, 2004 (U.S. adults)
        • Table 3-28: Purchasing Indexes for Selected Chocolate Candy Brands: By Age of Children in Household, 2004 (U.S. adults)

    Chapter 4: Spotlight on Premium Chocolate

    • Competitive Situation
      • Premium Market Approaches $1.5 Billion in 2004
      • Gourmet Market Estimated at $1.1 Billion
      • Projected Market Growth
      • Figure 4-1: Projected U.S. Retail Sales of Gourmet Chocolates, 2004-2009 (in billions of dollars)
      • The Top Marketers
      • 16% Annual Growth for Premium Chocolates in Mass Market
      • Table 4-1: IRI-Tracked Sales of Selected Premium Chocolate Brands, 2000-2004 (in millions of dollars)
      • 36% Growth Rate for Lindt
      • Figure 4-2: IRI-Tracked Sales of Seasonally Packaged Lindt and Ghirardelli Chocolate Candy, 2000-2004 (in millions of dollars)
      • Godiva Goes Diva

    • New Product Trends
      • Overview of Flavor Trends
      • 35%-40% Prefer Dark Chocolate
      • Pushing the Envelope: Cocoa Content, Varietals, and Origins
      • Growth in Organics
      • 27% of Americans Eating More Organic Foods
      • The Case for Organic Chocolate
      • The Case for Fair Trade
      • The Organic Chocolate Line-Up
      • Figure 4-3: Number of New Chocolate Candy Introductions by Package Tags: Natural and Organic, 2000 vs. 2004
      • Frontiers in Flavor: Raiding the Pantry
      • The Holy Grail: Frequency of Consumption
      • Table 4-2: Premium Chocolate Candy Trends by Number of New Product Package Tags Among Selected Products, 2004
      • Table 4-3: Selected Premium Dark Chocolate Candy New Product Introductions: 2004 - January 2005
      • Table 4-4: Selected Premium Chocolate Candy New Product Introductions with Cocoa Content or Cocoa Bean Varietal/Origin Specified: 2004 - January 2005
      • Table 4-5: Categories of Organic Food Purchases by Those Who Buy Organic, 2004 (percent)
      • Table 4-6: Category Share of Consumer Sales of Organic Foods, 2004 (percent)
      • Table 4-7: Average Annual Growth Forecast by Organic Food Category, 2004-2008 (percent)
      • Table 4-8: Selected Organic Chocolate Candy New Product Introductions, 2004 - January 2005
      • Table 4-9: Selected Premium Chocolate Candy New Product Introductions with Innovative Flavors: 2004 - January 2005
      • Table 4-10: Selected Premium Single-Serve Chocolate Candy New Product Introductions: 2004 - January 2005

    • The Consumer
      • Premium Consumers Are 10% Less Likely to Eat Non-Healthy Treats
      • Women Are 24% More Likely to Choose Premium Chocolate
      • Table 4-11: Indexes for Food- and Diet-Related Attitudes and Behaviors: Consumers of Chocolate Candy Brands vs. Consumers of Premium Chocolate Brands, 2004 (U.S. adults)
      • Table 4-12: Purchasing Indexes by Demographic Breakout: Consumers of Chocolate Candy Brands vs. Consumers of Premium Chocolate Candy Brands, 2004 (U.S. adults)

    Chapter 5: Looking Ahead

    • Brand Churning
      • Table 5-1: IRI-Tracked Sales of Hershey’s Kit Kat Brand Product Lines, 2000-2004 (in millions of dollars)
      • Candy with a Conscience
      • Table 5-2: IRI-Tracked Sales of Russell Stover Brand Product Lines, 2000-2004 (in millions of dollars)
      • Beyond the Caste System
      • Table 5-3: Mass-Market Price Per Pound of Selected Premium Chocolate Brands, 2004 (in dollars)
      • Table 5-4: Indexes by Chocolate Candy Brand for Agreement with Statement: I Try to Eat Gourmet Food Whenever I Can, 2004 (U.S. adults)
      • The Future of the Past

    Appendix: Addresses of Selected Marketers

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