Milk Chocolate Market - Forecast(2023 - 2028)

Milk Chocolate Market Overview

The Milk Chocolate Market size is estimated to reach $72.3 billion by 2027, growing at a CAGR of 3.7% during the forecast period 2022-2027. Milk chocolate is delineated as a chocolate confectionery produced by taking sugar, milk, and cocoa (butter and mass) into account. The milk chocolate bar was invented in 1875 by Daniel Peter (a famous Swiss chocolatier). Besides its fascinating taste and texture, milk chocolate is deemed to possess antioxidant properties that play a vital role in maintaining the health of several body functions. It boosts energy, reduces stress, and curbs the risk of life-threatening illnesses like heart attacks. Milk chocolates are commonly produced by ingredients (cocoa beans, sugar cane) that are grown through a conventional farming process (with the help of chemicals); however, growing health consciousness among consumers has heightened the demand for organic chocolates. Furthermore, lower sugar content, the addition of dry fruit to draw the attention of a larger audience, proliferating trend of exchanging gifts during the festive season, escalating western influence in developing countries, changing taste and preferences, growing popularity of chocolate among youngsters, rising disposable incomes, top-notch marketing strategies undertaken by various market players, and appealing packaging are factors set to drive the growth of the Milk Chocolate Market for the period 2022-2027.

Report Coverage

The report: “Milk Chocolate Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Milk Chocolate Market.

Key Takeaways

Milk Chocolate Market Share, By Region (%) in 2021

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Milk Chocolate Market Segment Analysis-By Nature

The Milk Chocolate Market based on nature can be further segmented into organic and conventional. The conventional segment held the largest share in 2021. Conventional farming is nothing but making use of possible pesticides with an aim to enhance the crop yield to the highest possible level. Even in the 21st century, conventional farming prevails around the world because of several advantages associated with it. Owing to less labor requirement and large-scale production in less land area, conventional farming help farmers in reducing their expenses and maximizing revenue; as a result, it always remains the first choice for them. In addition to that, unlike organic products, conventional products (in this case we have milk chocolate) are available across the board regardless of geographical location. Therefore, they always remain in demand. However, the organic segment is estimated to be the fastest-growing segment with a CAGR of 4.5% over the forecast period 2022-2027. The primary reason behind this is the downsides of conventional farming such as harmful effects on the environment, health problems, high risk of plant diseases, and many others. Therefore, with growing attentiveness among consumers regarding their health and environment, the overall demand for organic products is soaring drastically.

Milk Chocolate Market Segment Analysis-By Distribution Channel

The Milk Chocolate Market based on distribution channels can be further segmented. The offline segment held the largest share in 2021. The growth is owing to round the corner presence, which doesn’t matter whether the area is developed or underdeveloped; whereas, which is not the case with online platforms as in order to offer the services they require a more developed area with good connectivity. Furthermore, offline purchases extend several conveniences like easy return, bulk buying, bargaining, quality check before making the purchase, instant buying, and last but least a reason to go outside which can refresh the mood. In addition to that, the growing existence of modern outlets like supermarkets not only in developed countries but in developing countries also is attracting the attention of people because of their discount offers and one-stop solution options. Nevertheless, online is estimated to be the fastest-growing segment with a CAGR of 4.8% over the forecast period 2022-2027. As we are moving ahead in time, proliferating technological advancements are making our lives more and more easy. Therefore, with the existence of technologies like Google maps and e-banking services, it has become quite feasible for e-commerce companies to offer their services without setbacks. Moreover, rising smartphone users and tech-friendly populations have also aided the market.

Milk Chocolate Market Segment Analysis-By Geography

The Milk Chocolate Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held the largest share with 36% of the overall market in 2021. The growth in this segment is owing to the factors such as the jaw-dropping trend of chocolate consumption among European nations. According to a report, Switzerland is by far the biggest chocolate consumer with a per capita consumption of nearly 9 kg followed by Germany and Austria with 7.9 kg and 8.1 kg per capita consumption. Moreover, Ireland, France, Norway, and many other European countries have a sizable annual chocolate consumption. The sky-rocketing trend of chocolate consumption in these nations can be justified by the high disposable incomes of residents, quality lifestyles, well-established retail network, and presence of leading market players. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This high sugar cane production in India, China, and Thailand is aiding the market. In addition to that, improving living standards of people, rising disposable incomes as economies are flourishing, a growing number of manufacturers, and bettering infrastructure bracing the ease of doing business.

Milk Chocolate Market Drivers

Bettering retail in low-income nations, innovative marketing, festival celebrations, and rapid urbanization are anticipated to boost market demand.

The trend of conferring chocolate during festive seasons and occasions like Valentine's Day has broadened in recent years. For instance, in India conferring Diwali gifts is an age-old tradition going on for years. Also, the growing presence of modern retail outlets like supermarkets has grown in developing nations like India and China owing to rapid urbanization, changing lifestyles of people, the existence of flexible payment systems and delivery models, and infrastructure boost. As of now, nearly 35 percent of India’s population is residing in urban centers. Similarly, 64.7 percent of the Chinese population was living in metropolitan areas in 2021 and the figure is anticipated to reach 75 percent by the year 2030. Owing to a leading expressway network of nearly 149,600 km, businesses are flourishing in China and ultimately driving the milk chocolate market.

Rising GDP per capita incomes are expected to boost market demand.

Liechtenstein with $143,400, Luxembourg with $126,570, and Ireland with $111,360 were the three European nations with more than $100,000 GDP per capita income (PPP) in 2021. Nevertheless, the majority of other countries in Europe such as Norway, San Marino, Netherlands, Denmark, Austria, Iceland, Germany, and Others had GDP over capita income above $55,000. These figures are enough to represent the quality of lifestyles people enjoy on the European continent. Nevertheless, with the rising economic affluence of major developing countries like India, China, and Indonesia, the overall living standards of people are improving and they are making more demand for premium products like milk chocolates. For instance, from $10,511 in 2020, China’s GDP per capita income soared and reached $12,551 in 2021. Also, by uplifting nearly 100 million people from poverty, the country declared itself free from extreme poverty.

Milk Chocolate Market Challenges

Environmental problems, inflation, and side-effects linked with immoderate consumption are anticipated to hamper market growth.

Growing desertification because of widescale deforestation, the changed course of rivers is reducing the land suitable for farming. Also, widescale use of pesticides and pollution have emerged as the prime reason behind lessening fertility and organic content in the soil which eventually is affecting the crop yield adversely. In addition to that as crude oil crossed the $100 per barrel mark because of the Russia-Ukraine conflict, the inflation rates are surging in both developed and developing countries. For instance, in February 2022, the U.S. witnessed 7.5 percent of inflation, a number is highest since 1982; similarly, in February 2022 the Consumer Price Index (CPI) was measured at 6.07 percent, and the figure is the highest in the last 8 months. Also, immoderate consumption of milk chocolate can set health complications like tooth decay, insomnia, uneven heartbeat, enlarged urination, and many others in motion.

Milk Chocolate Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Milk Chocolate market top 10 companies include-

1. Nestle SA
2. Blommer Chocolate Company
3. Meiji Co Ltd
4. The Hershey Company
5. Mondelez International
6. Mars Incorporated
7. Ferrero SPA
8. Kinder Chocolate
9. Ezaki Glico Co Ltd
10. Berry Callebaut

Recent Developments/Product Launches:

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