Asia Pacific Chocolate Market: Snapshot
The Asia Pacific chocolate market has enjoyed rapid growth over the last few decades due to the urbanization drive in emerging economies in the region. Urbanization has created a sustainable consumer demographic for the Asia Pacific chocolate market and has also led to the development of adequate sales networks to make the most of the growing demand. Rising investment by foreign players in emerging markets in the region is also likely to remain a key driver for the Asia Pacific chocolate market in the coming years. The Asia Pacific chocolate market is thus likely to remain a leading contributor to the global chocolate industry in the coming years.
According to Transparency Market Research (TMR), the Asia Pacific chocolate market is likely to reach a valuation of US$18.2 bn by 2019.
Growing Disposable Income of Youth Population Vital for Asia Pacific Chocolate Market
One of the prime drivers for the Asia Pacific chocolate market is the rising disposable income of the urban population, and particularly the steady growth of a youth demographic with rising disposable income. The widespread adoption of the urban lifestyle in emerging countries has made the youth demographic important for the Asia Pacific chocolate market, as their demand for chocolate is also higher than the demand from other demographics, including more affluent ones. According to UN statistics, Asia Pacific is home to nearly 60% of the world’s youth population, making the region crucial for the global chocolate market. The Asia Pacific chocolate market is thus likely to exhibit steady growth in the coming years.
Growing use of digital television as well as other digital media has also boosted the prospects for advertising of chocolate products. This is likely to remain a key driver for the Asia Pacific chocolate market, as consumers in the region are becoming a vital demographic for digital media viewing, aided by the booming regional smartphone industry.
Helped by the widespread urbanization initiatives in Asia Pacific, the distribution network of the Asia Pacific chocolate market has grown rapidly in the last few years. The easy availability of chocolate products at small-scale local stores as well as supermarkets has been vital in ensuring consistent growth in demand from the Asia Pacific chocolate market. Regional chocolate producers have also been helped by the ready availability of widespread distribution networks and could also become an important part of the Asia Pacific chocolate market in the coming years.
Japan Likely to Dominate Asia Pacific Chocolate Market, Molded Bars Likely to Stay Popular Product Type
Regionally, Japan is the leading contributor to the Asia Pacific chocolate market and is likely to retain the position in the coming years due to the growing popularity of chocolates as a gift. The Japan chocolate market is likely to be dominated by sugar-free, low-sugar, and dark chocolate in the coming years due to the rising health awareness among the population and the growing geriatric population. The Japan chocolate market is expected to reach a valuation of US$4.6 bn by 2019. The booming dairy industry in India could also become a crucial factor for the Asia Pacific chocolate market in the coming years.
By form, molded bars are likely to be the leading contributor to the Asia Pacific chocolate market in the coming years. The convenience of molded chocolate bars in packaging and distribution as well as consumption will help ensure a steady rise in demand for molded bars in the Asia Pacific chocolate market. Countline chocolate is the next in line and is also likely to remain a leading contributor to the Asia Pacific chocolate market in the coming years.
The report also profiles the competitive dynamics of the Asia Pacific chocolate market by analyzing the figures of the leading players in the market. Key players examined in the report include Ferrero S.p.A., The Hershey Company, Mars Inc., Nestle SA, and Lotte Co. Ltd.
Chocolate is one of the most favorite sweet snacks among all the age groups especially, kids and youths with distinct taste of cocoa and varieties of chocolates. By product types, chocolates are classified into boxed chocolate, countline chocolate, straightline chocolate, molded bars, novelties and others (that include small size candies, alfazores). Increasing disposable income in emerging countries such as India and China, changing taste preferences and following of western food habits in Asian countries are some of the major factors driving the chocolate market in Asia Pacific at present.
The demand for molded bars is increasing among all age groups due to its easy availability in major retail channels. Thus, the demand for molded bars is expected to increase during the forecast period. In the last decade, health awareness has increased among consumers and therefore there has been a dramatic increase in sales of sugar free, reduced fat and reduced calorie offerings. Dark chocolate is known to lower both blood pressure and cholesterol and this has increased demand of dark chocolates, especially in molded bars categories.. However, countline chocolates are more popular among teenagers and consumers under 30 years of age. In addition, manufacturers are introducing this product in large bite size in order to increase the consumption through special advertisement to buy large packs. For instance, munch and perk at the time of introduction were available in small- size but at present they are available also in big bite sizes.
Chocolate manufacturers are emphasizing on the raw material quality primarily cocoa. The cocoa quality has a direct impact on the quality of chocolates. Therefore, maximum chocolate manufacturers go through the quality check of the cocoa being supplied in order to avoid any variance in taste. Moreover, other raw materials such as sugar, milk, fruits and nuts among others require extensive quality checks to maintain the quality of the product. In addition, the price of crucial raw material, i.e., cocoa varies and is increasing due to their demand in other industry such as bakery and beverages. Furthermore, the economic conditions of the countries supplying cocoa are unstable. Therefore, chocolate manufacturers enter into the long term relationship with the supplier to cope up with the fluctuating prices of the raw materials.
The overall APAC market is expected to grow at a single digit CAGR over the next six years. However, in few emerging economies of Asia Pacific, the market is expected to grow at a double digit CAGR over the forecast period. The report has been segmented by types of chocolates and countries. It also includes the drivers, restraints and opportunities (DROs), Porter’s five forces analysis and value chain of the chocolate market. The study highlights current market trends and provides the forecast from 2013 to 2019.
By country the market has been segmented into the Australia, New Zealand, China, Japan, India, Malaysia, Singapore, South Korea and Rest of APAC (Indonesia, Philippines, Thailand, and Hong Kong). The present market size and forecast till 2019 is covered in the report. The report also analyzes macro economic factors influencing and inhibiting the growth of chocolate market. Porter’s five forces analysis offers insights on market competition throughout its value chain. In addition, the market attractiveness analysis provided in the report highlights key investing areas in this industry. This report is for manufacturers, suppliers and distributors in this industry. The focus is to provide the present and future trends in this market for manufacturers and it will help them formulate their strategies accordingly.
The Asia Pacific Chocolate market here refers to the market by product type and by country. The market is categorized into the following segments:
Chocolate Market by Type
The different types covered under this research study are defined as follows:
- Boxed Chocolates
- Countline Chocolates
- Straightline Chocolates
- Molded Bars
- Other Chocolates
Asia Pacific Chocolate Market by Countries
The different countries covered under this research study are defined as follows:
- New Zealand
- South Korea
- Rest of APAC (Philippines, Thailand, Indonesia, Hong Kong)
The in-depth research and high level analysis will allow Chocolate vendors to make informed decisions about the Chocolate market, formulate growth strategies and gain competitive advantage.