Private Label Chocolate Market Size, Share & Industry Analysis, By Type (Dark Chocolate, Milk Chocolate, Others ), By Distribution (Supermarkets/Hypermarkets, Convenience store, Online Retail) And Regional Forecast, 2024-2032

Private label chocolate is defined as chocolates manufactured or sold under the retailer's name rather than the manufacturer. These chocolates are gaining significant attention from various chocolate manufacturers as they offer better sales opportunities for retailers. These are usually less expensive alternatives to well-known brands; however, their quality is often better and more specialized in a few specific companies that sell the product.

Retailers are catching up with modernization, developing products at affordable prices that appeal to consumers of all profiles. Vegan, sugar-free, and single-origin chocolates are no longer exclusive to premium brands. These chocolate trends were seen at the World of Private Label exhibition in Amsterdam, 2020. It is hosted by the Private Label Manufacturers Association (PLMA), where supermarkets showcased some of their most innovative products. It includes Spar’s Natural Organic Fairtrade Extra Dark Chocolate and E-Leclerc’s L’origine du goût chocolate collection, made from Nicaraguan single origin cocoa.

Private-label chocolate is growing widely popular among diabetic people as they offer ease of customization and healthy ingredients like non-hydrogenated fat, lactose-free, honey, and stevia. Consumers are fond of low/no sugar claims in chocolate. Various health experts worldwide also recommend that moderate consumption of chocolate increases serotonin which acts as an antidepressant and calms the brain.

Private label brands include organic, clean labels and began lines of products that provide better value for money than popular and commercial brands. For instance, Davis Chocolate; make chocolate with 30-70 cocoa and can make any non-GMO, organic, kosher, gluten-free, parve, soy-free, sugar-free, and vegan chocolate as per consumer’s need. 

Furthermore, the escalating demand for private label chocolate across supermarkets also drives growth as it leads to impulse purchases by consumers. Thus, these aspects are likely to drive the market in the forthcoming years.

The private-label chocolate market is highly competitive with the presence of various international brands. The international brands roll out newer products frequently; for example, Nestle S.A. is launching a vegan KitKat – KitKat V in 2021 in several countries across the globe. The international brands dominate the market via advertising and promoting their products, as an aim to target and influence consumers into impulse purchasing decisions. Limited editions and flavor and texture developments such as Snickers Cruncher (Mars) or KitKat Orange (Nestlé) are constantly being rolled out to support consumer interest. These factors are likely to restraint the private label chocolate market growth in the coming years.

Key Market Driver -

Rise in Use of Healthy and Organic Ingredients

Key Market Restraint -

High Competition with National Brands

Key Players Covered:

The leading manufacturers operating in this market are Davis Chocolate, Sjaak’s Organic Chocolate, Lamontagne Chocolate Inc., Ludwig Weinrich GmbH & Co. KG, Birmingham Chocolate, Chocolats Halba, Mondelēz International, Inc., Marich Confectionery Company Inc., Chocolate Naïve, Cemoi S.A., and others.

Based on type, dark chocolate is expected to see robust growth over the forecast period. The demand for dark chocolate is high, as they contain less sugar and have the intense bitterness of concentrated cocoa. Dark chocolate has several health benefits; consuming it can reduce anxiety and improve symptoms of clinical depression. Increasing awareness about dark chocolate as a healthier product is expected to propel segment growth. In addition, dark chocolate also reduces the risk of cardiovascular disease as it contains a large number of flavonoids.

Supermarkets/hypermarkets are expected to hold a significant share, owing to the continuous innovations by retailers. Retailers nowadays follow modern trends, such as developing new products at affordable prices to entice consumers of all walks of life. European retailers increasingly support and use environmental and social principles. This is reflected in their assortment of chocolates, as the supply of organic and fair trade house brand chocolates in supermarkets is more prominent than ever. Raley's, a supermarket based in Sacramento, Calif., Launched the Raley's Hot Cocoa Bombs brand during the winter break. These bombs are made of chocolate, filled with marshmallows, and instant hot chocolate when dropped into hot milk or water.

Regional Analysis:

Europe is expected to see significant growth, owing to the high production and consumption of chocolates in the region. For several years, retailers have innovated their private label products and adapted their assortment to meet changing consumer needs. As a result, sales of supermarket chocolate brands are reaching new heights in Europe and have never been so innovative or popular. According to the Ministry of Foreign Affairs, Europe, the average global consumption of chocolate is estimated at 0.9 kg per capita per year, while European countries show significantly higher averages. The largest consumers of chocolate worldwide are the Germans, with a per capita consumption of 11 kg in 2018. Per capita, chocolate consumption in Europe reached 5.0 kilograms in 2018.

Asia Pacific is anticipated to emerge as the fastest-growing private label chocolate market, attributed to the fast-growing economies such as China, India, and Japan. Consumers across China view chocolate as an exotic treat and also offer it as a gift. The change in consumer preferences over the years and exposure to the international brand also shifts consumers towards organic and sugar-free chocolates in Asia Pacific region.

The Middle East and Africa are predicted to witness significant market growth due to the increased number of specialty retailers and product availability at stores. Furthermore, government initiatives like tax concession for chocolate producers are expected to increase productivity and contribute to market growth.

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