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Chocolate Confectionery - UK - May 2015

"While low/no/reduced sugar chocolate innovation in the UK is still very much a niche area, there are tentative signs that operators are placing a greater focus on it. Chocolate products with a low/no/reduced sugar claim grew from 1% of new launches in 2012 to 4% in 2014."
– Douglas Faughnan, Senior Food and Drink Analyst

This report looks at the following areas:

  • Sugar cuts and portion control can help chocolate combat health concerns
  • Premiumisation holds potential for mass-market brands
  • Point of sale holds much sway in chocolate choices

Chocolate remains an ingrained part of Britons’ diets, eaten by nine in 10 people, with 30% of people eating it at least four times a week. However, the market lost momentum in 2013 as sales in the chocolate confectionery segment fell, the modest growth in assortments failing to offset this.

The negative publicity surrounding sugar played a role here, with 28% of people who eat chocolate reporting to limit the amount they eat due to the high sugar content. However, the market was also hit by falling adspend and a slowing down in high-profile launches. Rising prices fuelled by the rising price of cocoa are also likely to have contributed to the volume decline.

The market should benefit to some extent from the expected rise in real incomes in 2015, the consumer research for this report suggesting marked scope for premiumisation. The openness among chocolate eaters towards low-sugar variants and portion control offers some good news as operators continue to face pressure to play their part in improving the nation’s health.

T
his report examines the UK retail market for chocolate confectionery. The market size includes sales through all retail channels including direct to consumer. Mintel defines the market as comprising packaged chocolate confectionery products, including the following segments:

Chocolate confectionery: This comprises all solid chocolate or chocolate-covered confectionery, including block chocolate up to 400g in weight, chocolate straight lines, chocolate-filled bars and chocolate confectionery variety packs not targeted for special occasions for gifting.

Chocolate assortmentsThis includes assortments, large bags, large boxes, tins, jars. Products include chocolates, chocolate mints, liqueurs, toffee, fudge, marzipan, truffles, jellies and nut assortments but exclude seasonal products.

The report excludes unpackaged chocolate, seasonal confectionery, chocolate biscuits (such as Cadbury Fingers), cakes and cake bars including wafers, cocoa powder and chocolate drinks. It also excludes sales via catering or foodservice establishments, however, references and comparisons to these sectors may be made where relevant.

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Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Figure 1: Value sales and forecast in the UK chocolate market, 2009-19
            • Market factors
              • Increased media coverage on sugar sees some users limit chocolate intake
                • 250kCal cap on confectionery adopted by FDF members
                  • Consumers see a role for treats
                    • Ageing population poses a challenge to confectionery
                      • Companies, brands and innovation
                        • Brands see mixed fortunes in the highly competitive market
                          • Figure 2: Leading brands’ sales in the UK retail chocolate confectionery market, by value, 2014/15*
                        • Low-sugar claims growing but niche in NPD
                          • Adspend continues to fall
                            • The consumer
                              • Nine in 10 people eat chocolate
                                • Figure 3: Frequency of eating chocolate, February 2015
                              • Despite media focus on sugar, few have cut back on chocolate
                                • Figure 4: Attitudes towards chocolate confectionery, February 2015
                              • Brand extensions offer growth potential in chocolate
                                • Figure 5: Usage and interest in different types of chocolate products, February 2015
                              • Chocolate remains an impulse purchase for many
                                • Figure 6: Attitudes towards buying chocolate, February 2015
                              • What we think
                              • Issues in the Market

                                  • Sugar cuts and portion control can help chocolate combat health concerns
                                    • The facts
                                      • The implications
                                        • Premiumisation holds potential for mass-market brands
                                          • The facts
                                            • The implications
                                              • Point of sale holds much sway in chocolate choices
                                                • The facts
                                                  • The implications
                                                  • Trend Application

                                                      • Moral Brands
                                                        • Sense of the Intense
                                                          • Locavore
                                                          • Market Drivers

                                                            • Key points
                                                              • Increased media coverage on sugar sees users limit chocolate intake
                                                                • 250kCal cap on confectionery adopted by FDF members
                                                                  • Consumers see a role for treats
                                                                    • Ageing of the population poses a challenge to the market
                                                                      • Figure 7: Trends in the age structure of the UK population, 2009-14 and 2014-19
                                                                  • Strengths and Weaknesses

                                                                    • Strengths
                                                                      • Weaknesses
                                                                      • Who’s Innovating?

                                                                        • Key points
                                                                          • Branded players fight back against own-label on the NPD front
                                                                            • Figure 8: Share of new chocolate confectionery products, private label vs. branded, 2008-14
                                                                          • Lidl’s level of NPD puts it on a par with confectionery giant Nestlé
                                                                            • Figure 9: Share of new launches within the UK chocolate confectionery market, by company (top 10), 2012-14
                                                                          • Smaller formats attract attention from brands in 2014
                                                                            • Limited editions continue to provide scope for NPD
                                                                              • Operators look to new formats to expand their audience
                                                                                • Low-sugar NPD is growing, but niche
                                                                                  • Figure 10: L/N/R sugar innovation as a share of all new chocolate launches, by country, 2012-14
                                                                                • Selected low-sugar launches in 2014
                                                                                  • Drop in ‘true’ innovation partly accountable for sales slump
                                                                                      • Figure 11: Share of new chocolate launches in the UK, by launch type, 2012-14
                                                                                    • Selected flavour innovation
                                                                                      • Ethical/environmental claims still lag significantly behind coffee and tea
                                                                                          • Figure 12: Share of new coffee/tea/chocolate launches in the UK carrying an ethical/environmental claim, 2012-14
                                                                                        • Beyond fair trade: the next wave of ethical/environmental claims for chocolate
                                                                                        • Market Size and Forecast

                                                                                          • Key points
                                                                                            • Volatile performance continues in chocolate
                                                                                                • Figure 13: UK value and volume retail sales of chocolate, 2009-19
                                                                                                • Figure 14: Value sales and forecast in the UK chocolate market, 2009-19
                                                                                                • Figure 15: Volume sales and forecast in the UK chocolate market, 2009-19
                                                                                              • Methodology
                                                                                              • Market Share

                                                                                                • Key points
                                                                                                  • Many leading players feel the troubles of chocolate confectionery
                                                                                                    • Dairy Milk retains top position
                                                                                                      • Ferrero ramps up NPD and advertising to drive Kinder forward
                                                                                                        • M&M’s enjoys volume growth of 22%
                                                                                                          • Mars loses ground following cut to size of bar and adspend
                                                                                                            • Figure 16: Leading brands’ sales in the UK retail chocolate confectionery market, by value, 2013/14 and 2014/15
                                                                                                            • Figure 17: Leading brands’ sales in the UK retail chocolate confectionery market, by volume, 2013/14 and 2014/15
                                                                                                          • Confectionery assortments post mixed performances
                                                                                                            • Ferrero’s adspend hike drives growth, price cuts support Terry’s
                                                                                                              • Figure 18: Leading brands’ sales in the UK retail chocolate assortments market, by value, 2013/14 and 2014/15
                                                                                                              • Figure 19: Leading brands’ sales in the UK Retail chocolate assortments market, by volume, 2013/14 and 2014/15
                                                                                                          • Companies and Products

                                                                                                            • Ferrero
                                                                                                              • Product range
                                                                                                                • Product Innovation and promotion
                                                                                                                  • Mars
                                                                                                                    • Product range
                                                                                                                      • Product innovation and promotion
                                                                                                                        • Mondelēz International
                                                                                                                          • Product range
                                                                                                                            • Product Innovation and promotion
                                                                                                                              • Nestlé
                                                                                                                                • Product innovation and promotion
                                                                                                                                  • Lindt
                                                                                                                                    • Recent activity
                                                                                                                                    • Brand Communication and Promotion

                                                                                                                                      • Key points
                                                                                                                                        • Above-the-line advertising spend drops by 6 percentage points in 2014
                                                                                                                                          • Figure 20: Above-the-line advertising spend on chocolate confectionery, 2011-14
                                                                                                                                        • Aldi surpasses Nestlé to become the fourth highest-spending advertiser in 2014
                                                                                                                                          • Nestlé cuts back on chocolate advertising
                                                                                                                                            • Mars shrinks advertising spend
                                                                                                                                              • Mondelēz’ spend falls as it reduces support for Marvellous Creations
                                                                                                                                                • Ferrero steps up adspend on its brands
                                                                                                                                                  • Figure 21: Above-the-line advertising spend on chocolate confectionery, by company, 2011-14
                                                                                                                                                  • Figure 22: Above-the-line advertising spend on chocolate confectionery, by brand, 2011-14
                                                                                                                                              • Brand Research – Chocolate Confectionery

                                                                                                                                                • What you need to know
                                                                                                                                                  • Brand map
                                                                                                                                                    • Figure 23: Attitudes towards and usage of selected brands, February 2015
                                                                                                                                                  • Key brand metrics
                                                                                                                                                    • Figure 24: Key metrics for selected brands, February 2015
                                                                                                                                                  • Brand attitudes: Thorntons has strongest premium brand image
                                                                                                                                                    • Figure 25: Attitudes, by brand, February 2015
                                                                                                                                                  • Brand personality: Most brands associated with accessibility
                                                                                                                                                    • Figure 26: Brand personality – Macro image, February 2015
                                                                                                                                                  • Green & Black’s fair trade proposition promotes other positive associations
                                                                                                                                                    • Figure 27: Brand personality – Micro image, February 2015
                                                                                                                                                  • Brand analysis
                                                                                                                                                    • Maltesers is likely to maintain high user base
                                                                                                                                                      • Figure 28: User profile of Maltesers, February 2015
                                                                                                                                                    • Cadbury Dairy Milk uses whole product range to entice consumers
                                                                                                                                                      • Figure 29: User profile of Cadbury Dairy Milk, February 2015
                                                                                                                                                    • Galaxy promotes accessible luxury
                                                                                                                                                      • Figure 30: User profile of Galaxy, February 2015
                                                                                                                                                    • Green & Black’s has a strong point of difference
                                                                                                                                                      • Figure 31: User profile of Green & Black’s, February 2015
                                                                                                                                                    • Thorntons is seen as special and indulgent
                                                                                                                                                      • Figure 32: User profile of Thorntons, February 2015
                                                                                                                                                    • Twirl struggles to stand out from the crowd
                                                                                                                                                      • Figure 33: User profile of Twirl, February 2015
                                                                                                                                                    • Mars has high usage but is most likely to be seen as unhealthy
                                                                                                                                                      • Figure 34: User profile of Mars, February 2015
                                                                                                                                                    • Wispa and Twirl have a similar brand image
                                                                                                                                                      • Figure 35: User profile of Wispa, February 2015
                                                                                                                                                  • Social Media – Chocolate Brands

                                                                                                                                                    • What you need to know
                                                                                                                                                      • Social media metrics
                                                                                                                                                        • Figure 36: Social media metrics of selected brands, March 2015
                                                                                                                                                      • Online mentions: Thorntons dominates conversation due to occasion-based mentions
                                                                                                                                                        • Figure 37: Online mentions of selected brands, 2 March 2014-28 February 2015
                                                                                                                                                      • Topics of discussion: Consumption and taste take precedence over brand-based topics
                                                                                                                                                        • Figure 38: Topics of discussion around selected brands, 2 March 2014-28 February 2015
                                                                                                                                                      • Analysis by brand
                                                                                                                                                        • Thorntons hits the headlines but also uses Twitter to its advantage
                                                                                                                                                          • Figure 39: Topic cloud around mentions of Thorntons, 2 March 2014-28 February 2015
                                                                                                                                                        • Maltesers’ sharing format may help promote conversation
                                                                                                                                                          • Figure 40: Topic cloud around mentions of Maltesers, 2 March 2014-28 February 2015
                                                                                                                                                        • Mars comes into spotlight around Scotland referendum and World Cup
                                                                                                                                                          • Figure 41: Topic cloud around mentions of Mars, 2 March 2014-28 February 2015
                                                                                                                                                        • Cadbury Dairy Milk brings different products under one account
                                                                                                                                                          • Figure 42: Topic cloud around mentions of Cadbury Dairy Milk, 2 March 2014-28 February 2015
                                                                                                                                                        • Galaxy’s advertising lacks same online impact as in 2013
                                                                                                                                                          • Figure 43: Topic cloud around mentions of Galaxy, 2 March 2014-28 February 2015
                                                                                                                                                        • Green & Black’s also uses Twitter competitions to its advantage
                                                                                                                                                          • Figure 44: Topic cloud around mentions of Green & Black’s, 2 March 2014-28 February 2015
                                                                                                                                                        • Wispa and Twirl lack online conversation
                                                                                                                                                        • The Consumer – Usage

                                                                                                                                                          • Key points
                                                                                                                                                            • Despite concerns around sugar/calorie content, nine in 10 still eat chocolate
                                                                                                                                                              • Figure 45: Frequency of eating chocolate, February 2015
                                                                                                                                                            • Younger consumers and those in households with children are among the highest users
                                                                                                                                                              • Not all formats achieve the same penetration
                                                                                                                                                                • Figure 46: Types of chocolate confectionery eaten in the last three months, February 2015
                                                                                                                                                            • The Consumer – Attitudes towards Chocolate Confectionery

                                                                                                                                                              • Key points
                                                                                                                                                                • Despite concerns over sugar, only three in 10 have cut back because of it
                                                                                                                                                                  • Figure 47: Attitudes towards chocolate confectionery, February 2015
                                                                                                                                                                • For many, low sugar means inferior taste, presenting a challenge for the market
                                                                                                                                                                  • Brands should take control of the debate around smaller pack sizes
                                                                                                                                                                  • The Consumer – Interest in Types of Chocolate Products

                                                                                                                                                                    • Key points
                                                                                                                                                                      • The UK lacks premium chocolate spreads, unlike elsewhere in Europe
                                                                                                                                                                        • Figure 48: Usage and interest in different types of chocolate products, February 2015
                                                                                                                                                                      • High-protein snacks in the style of their favourite chocolate interest 56%
                                                                                                                                                                          • Figure 49: New products launched in the UK food market carrying high-protein claims, by category, January 2013-April 2015
                                                                                                                                                                        • Protein-boosting ingredients offer a route into protein chocolate
                                                                                                                                                                          • Cobranding opportunities for protein chocolate
                                                                                                                                                                            • Like coffee, chocolate can explore single origin beyond country
                                                                                                                                                                            • The Consumer – Chocolate Purchasing Behaviours

                                                                                                                                                                              • Key points
                                                                                                                                                                                • Discounters gain ground, but supermarkets still dominate chocolate purchases
                                                                                                                                                                                  • Figure 50: Channels used to buy chocolate, February 2015
                                                                                                                                                                                • Specialists stores remain the preserve of high earners
                                                                                                                                                                                  • Four in 10 decide what to buy when looking at the products in-store
                                                                                                                                                                                    • Figure 51: Attitudes towards buying chocolate, February 2015
                                                                                                                                                                                    • Figure 52: Share of new chocolate confectionery launches in the UK, by launch type, 2014
                                                                                                                                                                                  • Chilled chocolates offer a way to compete in the dessert aisle
                                                                                                                                                                                  • Appendix – Market Size and Forecast

                                                                                                                                                                                      • Figure 53: UK value and volume retail sales of chocolate confectionery, 2009-19
                                                                                                                                                                                      • Figure 54: UK value and volume retail sales of chocolate assortments, 2009-19
                                                                                                                                                                                      • Figure 55: Value sales and forecast in the UK chocolate confectionery market, 2009-19
                                                                                                                                                                                      • Figure 56: Volume sales and forecast in the UK chocolate confectionery market, 2009-19
                                                                                                                                                                                      • Figure 57: Value sales and forecast in the UK chocolate confectionery assortments market, 2009-19
                                                                                                                                                                                      • Figure 58: Volume sales and forecast in the UK chocolate confectionery assortments market, 2009-19
                                                                                                                                                                                  • Appendix – Market Share

                                                                                                                                                                                      • Figure 59: Leading manufacturers’ sales in the UK retail chocolate confectionery market, by value, 2013/14 and 2014/15
                                                                                                                                                                                      • Figure 60: Leading manufacturers’ sales in the UK retail chocolate confectionery market, by volume, 2013/14 and 2014/15
                                                                                                                                                                                      • Figure 61: Leading manufacturers’ sales in the UK retail chocolate assortments market, by value, 2013/14 and 2014/15*
                                                                                                                                                                                      • Figure 62: Leading manufacturers’ sales in the UK chocolate assortments market, by volume, 2013/14 and 2014/15
                                                                                                                                                                                  • Appendix – Brand Communication and Promotion

                                                                                                                                                                                      • Figure 63: Share of adspend in chocolate confectionery, by format, 2011-14

                                                                                                                                                                                  Companies Covered

                                                                                                                                                                                  To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                  Chocolate Confectionery - UK - May 2015

                                                                                                                                                                                  £1,995.00 (Excl.Tax)