Navigating the Chocolate World
Welcome to the delicious realm of chocolate, where taste, tradition, and innovation come together to form a vibrant and dynamic industry. In this part, we will be exploring the secrets that make the chocolate market a hub of competition, creativity, and sweet delights.
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We’ll uncover the magic of this market, from the rivalry among chocolate firms that requires constant innovation to the high threat of new entrants that bring eco-friendly and organic chocolate to the forefront. We'll also savor the existence of chocolate alternatives that tempt our senses and investigate the dynamics of cocoa producers and suppliers along the way.
Here's a closer look at the behind-the-scenes, inspired by Porter's Five Forces Analysis:
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Competition - The Battle of Creativity: It's like a culinary show! Each brand strives to outshine its competitors by making the most innovative products. Why? To keep their slice of the chocolate market pie, of course.
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Threat of New Entrants - The Rise of the Underdogs: Barriers to market entry are high, leaving little room for new players. However, organic chocolate brands are becoming increasingly attractive to consumers, and are a growing threat as consumers become more aware of the need for purer, more environmentally-friendly chocolate bars.
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Threat of Substitutes - The Other Temptation: There are many substitutes for chocolate bars. For instance, all kinds of products derived from chocolate bars, candies and cakes can replace classic bars. However, chocolate, and especially chocolate bars, still have a special place in our lives, especially during the festive season or when baking.
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Bargaining Power of Buyers - The Sweet Seekers: Our modern chocolate connoisseurs have become choosy. They're looking for products that are rich in cocoa and respectful to the environment. That's why consumer power is so strong, especially as they have a choice of several big brands, meaning that competition is pretty fierce, which leaves consumers with a low switching cost. i.e. they can change brands easily.​
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Bargaining Power of Suppliers - The Cocoa Guardians: The guardians of the cocoa kingdom are Ivory Cost and Ghana, but nature keeps them on their toes. Climate influence their production methods giving them a unique bargaining position in the cocoa chain.
The market's key factors include growing demand for organic, vegan, sugar-free, and gluten-free chocolates. With increasing awareness about the negative effects of synthetic products on health and the environment, most health-conscious and informed consumers have started using organic products. Furthermore, seasonal demand plays an important role in the sales of premium chocolates.
Flavor Trend- The dark chocolate segment is likely to exhibit the highest growth during the forecast period, owing to the health benefits associated with it. Moreover, French people also love premium and expensive chocolates and often like to treat themselves to one. Dark chocolate is the most popular chocolate in France followed by milk chocolate and white chocolate. Big brands like Lintd, Cote d’Or, Poulain now produce high-content coca chocolates ranging from 70% -80% cocoa to customers catering to the various demand, which provides the smooth flavor, perfect scent and less sugar. While other famous brands like Milka, Cadbury, Ferrero only promote the milk chocolate mixed with different flavor and the percentage of cocoa accounting for less than 50%.
Competition in price and distribution -The introduction of dark premium chocolate by international brands, the availability of a variety of flavors and expanding online chocolate distribution are the key factors catalyzing the growth of the chocolate market in France. However, the rising costs of raw materials, increased competition, and changing consumer tastes and preferences are the major constraints faced by the market.
Competition in marketing activity -Various companies launch a wide range of chocolate varieties during Easter, Christmas, and other occasions. Sales were marked by two highlights: Christmas and Easter, which accounted for €694 million for Christmas and €319 million for Easter. Lindt is an good example who never miss to publish their special chocolate as presents in Festivals. With the delicate package and involving with their most popular flavor, it becomes the best option among consumers as a gift on every festival.
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Sources: France Chocolate Market (2019-2025) Companies, Brands, Size (6wresearch.com)
Les chiffres clés du secteur - Syndicat du chocolat : Syndicat du chocolat
More to know about Chocolate Brands
Now it’s time to talk about figures of the chocolate market in 2020. If, like us, you're passionate about this divine treat, you'll love these mouth-watering statistics.
In 2020, the chocolate industry had a sweet year, with a 5.3% increase in chocolate bar sales revenue, reaching €1.29 billion. Chocolate lovers didn't give up even in challenging times. There was a 4.2% increase in chocolate bar sales volume, showing that people turned to chocolate for comfort.
Chocolate became a comfort food during the 2020 pandemic, with 40% of consumers choosing it as their go-to comfort product, far ahead of fruit (16 %) and cakes (13%). Despite a drop in Easter chocolate sales (27%) due to lockdowns, chocolate bar sales increased, driven by more people buying snacks and making desserts at home.
Major brands like Mondelez (Milka and Côte d'Or) saw significant sales increases during the crisis, with a 28% value increase. Organic chocolate also gained popularity, with a 37% increase in value.
Sales of chocolate bars have exploded in drive-through (112%) and local stores (50%) due to the pandemic. Brands adapted by focusing on digital communication to meet this demand.
On social media, Milka, Lindt, and Cemoi were the most mentioned chocolate bar brands, with discussions covering recipes, taste, new products, cocoa, organic options, hygiene, and ethics. Hazelnut, almond, caramel, salt, and 70% cocoa chocolates were popular varieties in social media conversations. Chocolate lovers shared their experiences and favorite recipes.
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Sources:
“Quelles sont les marques de tablettes de chocolat les plus discutées sur les réseaux sociaux ? Le earned media » ; Christophe Asselin ; October 11, 2022 ; Digimind
https://blog.digimind.com/fr/tendances/marques-tablettes-chocolat-citees-reseaux-sociaux
« Les tablettes de chocolat sont à la fête », LSA, September 3, 2020 ; Sylvie Lavabre
https://www.lsa-conso.fr/les-tablettes-de-chocolat-sont-a-la-fete,356583