Sweet outlook: Increasing incomes and healthier alternatives will support growth

The outlook for hot chocolate is relatively sweet. Growth will likely be driven by increased demand because of higher incomes, population growth and an improved product mix. Continued nutritional concerns will negatively affect demand for industry products, but operators will help offset this factor by developing healthier products and premium products (like gourmet and organic) as well as increasing visibility and marketing. Over the next five years, operators will continue to expand product lines to adhere to consumers' changing preferences...read more.

Industry Statistics & Market Size
Revenue
$893m
Annual Growth 12-17
2.1%
Forecast Growth 17-22
Profit
Employment
1,146
Businesses
31
What Our Customers Say

Industry Threats & Opportunities

  • Research on cocoa’s health benefits have strengthened industry demand
  • The prices of key inputs have been volatile during the five-year period
  • IBISWorld expects consumers to become even more health-conscious over the next five years
  • Industry Report - Industry Analysis Chapter

    The Cocoa and Drinking Chocolate Production industry expanded over the past five years. Favorable economic conditions paired with fresh opportunities for product innovation benefited industry operators. America’s sweet tooth kept the industry afloat as revenue increased in line with rising disposable incomes, boosting industry revenue significantly by propelling demand for premium products such as dark and organic chocolates. As a result, IBISWorld estimates industry revenue has grown at an annualized rate of 2.1% to $892.9 million over the five years to 2017, including an expected decline of 0.5% in 2017...purchase to read more.

    Additional Insights for the Cocoa & Drinking Chocolate Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cocoa & Drinking Chocolate Production Industry are

  • Economies of scale
  • Brand Management
  • Diversification of products
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita sugar and sweetener consumption in the Cocoa & Drinking Chocolate Production industry impact industry performance..

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    What is the Cocoa & Drinking Chocolate Production Industry?

    This industry primarily produces hot chocolate, which is also known as hot cocoa or drinking chocolate. Industry operators generally process cacao beans and other ingredients to make a powder that is then mixed with a liquid, such as milk or water. This industry does not produce syrup that is poured into milk to make hot chocolate. Ready-to-drink dairy-based chocolate milk products are also excluded.

    Industry Products
  • Sweetened hot chocolate in cans or packages 2 1/2 lbs or less
  • Sweetened hot chocolate in bulk containers
  • Unsweetened hot chocolate
  • Industry Activities
  • Producing chocolate powder for milk
  • Producing chocolate powder for water
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita sugar and sweetener consumption
  • World price of cocoa
  • Price of sugar
  • Trade-weighted index

  • Current Performance
  • Health trends and product expansion
  • Prices and profit
  • Competition and trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Health consciousness
  • Profit and competition expansion
  • Table: Cocoa & Drinking Chocolate Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cocoa & Drinking Chocolate Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Confectionery Wholesaling
  • Supermarkets & Grocery Stores
  • Specialty Food Stores

  • Key Selling Industries
  • Fruit & Nut Farming
  • Plastic Products Miscellaneous Manufacturing
  • Sugar Processing
  • Syrup & Flavoring Production

  • Products & Services
  • Unsweetened hot chocolate
  • Sweetened hot chocolate in bulk containers
  • Sweetened hot chocolate in cans or packages 2 1/2 lbs or less
  • Chart: Cocoa & Drinking Chocolate Production Industry Products and Services Segmentation

  • Demand Determinants
  • Disposable income
  • Health consciousness

  • Major Markets
  • Confectionery wholesalers
  • Specialty retailers
  • Supermarkets and grocery stores
  • Exports
  • Direct to consumers
  • Chart: Major Market Segmentation for the Cocoa & Drinking Chocolate Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Cocoa & Drinking Chocolate Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cocoa & Drinking Chocolate Production Industry

  • Industry Globalization
    Nestle SAConAgra Brands Inc.The Hershey Company
  • Table: Nestle SA - financial performance
  • Table: ConAgra Brands Inc. - financial performance
  • Table: The Hershey Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cocoa & Drinking Chocolate Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cocoa & Drinking Chocolate Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of cocoa (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Antioxidant
  • A substance that opposes oxidation or inhibits reactions promoted by oxygen or peroxides.
  • Cacao
  • Seeds (grown on trees in warm climates) from which cocoa, cocoa butter and chocolate are made.
  • Chocolatier
  • A person or company that makes or sells chocolate.
  • Cocoa
  • A powder made from cacao seeds used in chocolate.
  • Confectionery
  • A sweet, desert product that can come in the form of a pastry, candy or beverage.
  • Premium
  • When producers charge consumers a price for their product that is more than its nominal value.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • Why buy this report?

    The Cocoa & Drinking Chocolate Production industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cocoa & Drinking Chocolate Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cocoa & Drinking Chocolate Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cocoa & Drinking Chocolate Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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