The Asia Pacific chocolate market is concentrated with the top five players accounting for above 60% of the market in 2012. Players in the market are constantly participating in mergers and acquisitions and also focusing on product innovation. There is moderate threat from substitutes such as snack bars, regional sweets, and bakery products, which will continue to remain in the coming years. Threat from new entrants is expected to be low owing to the capital intensive nature of the industry and interference of regulatory bodies, Transparency Market Research (TMR) finds in a new study.
According to the report, the Asia Pacific chocolate market is expected to be worth US$18.23 bn by 2019. By product, the molded bar chocolate segment is expected to lead and account for US$5543.9 mn by 2019. The rising demand for dark chocolates owing to the rising health concerns among the people in the region is behind the escalated growth of the molded bar chocolate segment. The chocolate market in Japan is expected to reach US$4656.23 mn in 2019. China is also one of the prominent markets for chocolates in Asia Pacific.
Visual Merchandising in Retail Stores to Increase Purchase of Chocolates
The rising per capita income of the people in Asia Pacific owing to the economic growth in the past few years is supporting impulsive purchases of chocolates among consumers. Additionally, retailers trigger impulsive purchase among consumers by prominently displaying chocolates at checkout aisles. Chocolate is increasingly becoming popular as a gifting option in the Asia Pacific region. This will allow demand for chocolates to rise considerably in the forthcoming years.
Asia Pacific comprises 60% of the world youth population. Since youth forms an important consumer segment for chocolates, the demand for various types of chocolates is expected to surge in Asia Pacific. Additionally, “Advertisements and promotions aimed at this age group also play a vital role in driving the market,” states a TMR analyst. The number of department stores, mass merchandisers, and duty free shops at airports has increased due to infrastructure development in the region, which is driving the chocolate market
High Cost of Cocoa to Become Cause of Concern for Chocolate Manufacturers
Cocoa is high in demand, but their production is limited to specific regions. This increases the price of cocoa in the international market. “The price of cocoa is expected to continue to remain high owing to their rising demand from restaurants, bakeries, and beverage companies,” says a TMR analyst. This is increasing the production cost of chocolates, negatively influencing their demand. High price of sugar, which is another prime ingredient in chocolates, will also impact the prices of chocolates. Thus, the chocolate market in Asia Pacific will be restricted by rising prices of chocolates.
Development of Nutritional Bars to Widen Scope of Chocolate Market
The rising health awareness among consumers in Asia Pacific is fueling the demand for low calorie chocolates. Therefore, chocolate manufacturers are increasingly concentrating on the development of chocolates with numerous health benefits, in order to tap the health conscious consumer segment. Manufacturers are making use of dark chocolates, which reduce insulin resistance and the risk of heart diseases and improve the body’s antioxidant levels.
Another significant opportunity in the market lies in the tier 2 and tier 3 countries of Asia Pacific. Chocolate novelties are yet to make a significant impact in these countries and thus, there is an immense scope of growth. Regular advertisements and intense marketing programs can help create a lucrative market for chocolate novelties in these untapped countries. Increasing the distribution channel in these areas will help increase accessibility and convenience to buy chocolates, thus boosting 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:
- Boxed Chocolates
- Countline Chocolates
- Straightline Chocolates
- Molded Bars
- Other Chocolates
- New Zealand
- South Korea
- Rest of APAC (Philippines, Thailand, Indonesia, Hong Kong)
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