The global Asia Pacific Chocolate Market is projected to reach around $38 billion by the end of 2027, in terms of revenue, growing at CAGR of 5 per cent during the forecast period of 2019 to 2027, as highlighted in a report published by Coherent Market Insights.
Growth in the retail industry is projected to foster the market growth of the Asia Pacific chocolates. The emergence of various department stores, mass merchandisers, and duty-free shops at airports due to improvement in the infrastructure is projected to foster the market growth of the chocolate. According to the India Brand Equity Foundation, the retail industry reached US$ 950 billion in 2018 at CAGR of 13 per cent and expected to reach US$ 1.1 trillion by 2020.
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The advent of nutritional bars for diet conscious consumers is projected to provide potential opportunities in the near future. For instance, in August 2019, Soylent Nutrition, Inc., announced that it has expanded into the growing nutrition bar category with the launch of a new product: Soylent Squared. Soylent Squared is the first 100 calorie mini-meal bar and is engineered to be complete with 5g of plant protein, 36essential nutrients, and probiotics for digestive health
Chocolates have a high content of calorie and sugar which affects the tooth which increase the tooth decay. Moreover,consuming high-calorie food leads to obesity which can cause other lifestyle diseases. This is expected to hamper the market growth of the chocolates.
Asia Pacific Chocolate was valued at more than $24 billion market in 2019 and is forecast to reach a value of $37 billion by 2027 at a CAGR of 5.0 per cent between 2020 and 2027.
Molded chocolate segment dominated the Asia Pacific Chocolate in 2019, accounting for 31 per cent share in terms of volume, followed by countline and boxed chocolate, respectively.
Increasing production capacity of the chocolates in the Asia Pacific region for meeting the rising demand is expected to be a major trend. For instance, in June 2020, Barry Callebaut has added a fourth chocolate production line to its Singapore facility, as it aims to meet the increased demand for chocolate in Southeast Asia. The new production line has been installed with ‘state-of-the-art’ equipment that Barry Callebaut claims have the ability to produce chocolate blocks of different volumes at an efficient rate.
According to the study, growing demand for premium chocolates from the urban population is positively impacting the market growth of chocolates. For instance, in November 2018, Nestlé India introduces Nestlé Les Recettes De L’Atelier– a premium collection of uneven chocolate tablets in India. The new premium chocolate is made by using only all-natural ingredients. Thus, the growing demand for premium chocolate is projected to propel the market growth.
Asia Pacific Chocolate Market – Impact of Coronavirus (Covid-19) Pandemic
The coronavirus outbreak is expected to disrupt supply chains causing current or permanent closure of various industries across the globe. The sudden outbreak of the novel Coronavirus has caused major changes in the buying pattern of the consumers. Consumers are nowadays becoming more inclined towards using the packed food products due to rising awareness thereby, expected to increase the demand for the chocolatemarket.