The global chocolate
industry is an $82 billion dollar business.
It is expected to have 2% annual growth per year now until 2030. A chocolate bar is often considered an
“affordable luxury.” (Marcia Mogelonsky, Global Food Analyst at researcher
Mintel. Chocolate) Even during difficult economic times when consumers spend
less on big ticket items, sales continue to strengthen in the chocolate
industry.
A KPMG
industry report segments chocolate consumers into 3 types of buyers. These segments are: the convenience buyer,
the value buyer and the luxury buyer.
Each of these markets have unique demands. (KPMG, 2012)
First, is the
convenience buyer looking to “grab and go.”
This buyer is time deficient and requires accessibility that is in
alignment with their lifestyle. The need
for convenience will give rise to new sales channels for chocolate. The convenience buyer will also want to
consume part of their bar and save the rest for later. Mars has developed the “memory wrapper” it is
reusable chocolate bar wrapper, allowing the consumer to keep the uneaten
potion of the bar fresh for later consumption.
Second, is the value buyer,
this buyer is looking for a premium product at a medium to low price
point. The value buyer is becoming a
significant segment in the emerging market economies. The emerging markets are
BRIC (Brazil, Russia, India, China) and MINT (Mexico, Indonesia, Nigeria,
Turkey) countries. Research from
financial services provider Rabobank, a 45g chocolate bar accounted for less
than 1% of the weekly shopping budget in the US and UK in 2010, but in India
the same bar made up 18% of the weekly food allowance. (Bhosale, 2014) Three of the
major players in the chocolate world Mars, Nestle and Hershey are already set
to launch lower priced bars into these EME (emerging market economies). These companies will lower the cost of the
bars by producing a smaller size bar, with lower quality ingredients and less
cocoa. However, it is also expected that the growing middle class with
disposable income will develop a taste for fine premium chocolate.
Third, is the luxury buyer, this consumer is the
connoisseur. They possess knowledge
about the art and craft of chocolate. Price is a secondary consideration after
quality. This buyer seeks extended flavor offerings as well as exclusive
chocolates with limited production. The
luxury consumer will go to great lengths to procure the highest quality
product.
