Published: Oct, 2016
The Asia Pacific chocolate market is concentrated, nearly with the top five players accounting for over 60% of the market in 2012. Frequent mergers and acquisitions are taking place in the industry with players competing to increase their market share. At the same time, players are striving for product innovation to attract consumers. However, what acts as a challenge and advantage for companies is that a strong sense of brand loyalty exists among consumers. The chocolate market faces a medium level of threat from substitutes such as snack bars, bakery products, and regional sweet varieties. The threat of new entrants is likely to remain low owing to the capital intensive nature of the industry and high interference from regulatory bodies.
According to the report, the Asia Pacific chocolate market is expected to be worth US$18.23 bn in 2019. On the basis of chocolate type, the molded bar chocolate segment will continue to lead and be worth US$5,543.9 mn by 2019. By geography, Australia is projected to remain the dominant regional segment and will be worth US$3,776.65 mn by 2019.
Increasing popularity of Chocolate as Gifting Option to Drive Market in Asia Pacific
Consumers in Asia Pacific are increasingly making use of chocolates as a gifting option. Attractive packaging and availability of newer variants are making chocolates an attractive gifting option. Boxed chocolates are one of those categories that are being increasingly used for gifting purposes. Another factor contributing to the Asia Pacific chocolate market is the rising disposable income of consumers, which in turn allows impulse purchases of chocolates. In addition to this, Asia Pacific have 717 mn people in the age group of 15 to 24 years, as per the United Nations Economic and Social Commission for Asia and the Pacific. This is benefitting the growth of the market because chocolates are most popular among consumers in this age group.
Increased Chocolate Cost to Hamper Demand
Chocolates make use of cocoa as their main ingredient and cocoa production is specific only to particular regions. This results in a shortage for cocoa. In addition to this, cocoa is also in demand from bakeries, restaurants, and beverage companies, further leading to a shortage in supply. As such, the price of cocoa is increasing continuously. This in turn is increasing the cost of chocolate production, thus ultimately resulting in lower purchases by consumers. The high cost of chocolate is an issue with cost-sensitive consumers residing in Asia Pacific and thus, the market is bound to be affected adversely.
Development of Nutritional Bars for Health Conscious Consumers to Widen Scope of Chocolate Market
Consumers in Asia Pacific are shifting their preferences towards healthy food products. “Manufacturers are thus, concentrating on developing chocolates that are low in calories and in sugar content so that chocolates continue to appeal to the expanding segment of health conscious people,” says a TMR analyst. In addition to this, health benefits of dark chocolate are expected to lead to an increased demand, thus benefitting the Asia Pacific chocolate market significantly.
Increasing advertisements and extensive marketing strategies adopted by players are anticipated to create opportunities in the untapped markets of Asia Pacific. Increasing the distribution network to the untapped markets will help boost the market in the coming years.
This information is based on the findings of a report published by Transparency Market Research, titled “Asia Pacific Chocolate Market - Scenario, Trends, Industry Analysis, Size, Share and Forecast, 2013 - 2019.”
The Asia Pacific chocolate market is segmented as follows:
Chocolate Market by Type
- Boxed Chocolates
- Countline Chocolates
- Straightline Chocolates
- Molded Bars
- Other Chocolates
Asia Pacific Chocolate Market by Countries
- New Zealand
- South Korea
- Rest of APAC (Philippines, Thailand, Indonesia, Hong Kong)
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