2020
9
UK Chocolate Confectionery Market Report 2020
2020-08-27T15:45:39+01:00
OX988758
2195
123093
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Report
en_GB
“Although the market has proven resilient in past difficulties, the economic downturn triggered by the COVID-19 outbreak will coincide with new challenges. The heightened spotlight on health will dial up…

UK Chocolate Confectionery Market Report 2020

£ 2,195 (Excl.Tax)

Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the UK Chocolate Confectionery market, its consumers and the major players who make up the market.

Mintel has the answers you’re looking for

  • What are the key challenges facing the industry?
  • Who is the consumer and what do they want?
  • Where are the opportunities, where are the risks and what lies ahead?

Market

Point of sale market data

In conjunction with IRi, extensive point of sale data shows you what consumers are spending their money on

Market Size

How big is the market today and what is our 5 year forecast? Includes both best & worst case scenarios

Market Segmentation

What are the different segments within the market and how are those individual segments performing?

Consumer

Consumer behaviors

What are consumers looking for, what drives their buying habits and what are their main purchase influencers?

Demographic breakdown

From iGen & Millennials to Baby Boomers & beyond. Who is spending money and what are they spending it on?

Representative sample

We gather our data from real-world consumers, selected to accurately reflect precise global demographics

Players

Company strategy

What are the key players doing, what has been successful for them and what was their marketing spend?

Product innovation

Using data from our Global New Product Database, what products were launched and how well were they perceived?

Opportunities

What happens next, which areas are likely to experience growth and what opportunities exist within the market?

Covered in this report

This report examines the UK retail market for chocolate. The market size includes sales through all retail channels including direct to consumer. The market size comprises 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 or gifting
  • Chocolate assortments: This includes assortments, large bags, large boxes, tins and jars. The segment also includes a small portion of sales of non-chocolate items and excludes seasonal products
  • Seasonal chocolate: This includes confectionery for seasonal occasions such as Christmas, Easter and Valentine’s Day. The segment also includes a small portion of sales of nonchocolate items

Expert analysis from a specialist in the field

Written by Amy Price, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Consumers’ preference for ‘less but better’ chocolate puts manufacturers in a difficult situation when it comes to making these treats healthier. The market is under pressure from the government, which is calling on treat categories to reduce sugar and calories. At the same time, most consumers are saying they do not want reduced sugar varieties. However, this mindset also opens up opportunities for premiumisationAmy Price
Senior Food & Drink Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Products covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
  2. Executive Summary

    • The market
    • Impact of COVID-19 on Chocolate
      • Figure 1: Expected impact of COVID-19 on chocolate, short, medium and long term, 8 July 2020
    • Following 2019 uplift, chocolate volumes expected to stagnate in 2020
      • Figure 2: UK retail value sales of chocolate (COVID-19 adjusted forecast), 2015-25
    • COVID-19 fuels emphasis on healthy eating
    • Income squeeze will sharpen focus on price
    • Chocolate confectionery extends its lead in the market
      • Figure 3: UK retail value and volume sales of chocolate, by segment, 2017-20
    • Companies and brands
    • Cadbury Dairy Milk posts strong growth
      • Figure 4: Leading brands’ sales in the UK retail chocolate confectionery market, by value, 2018/19-2019/20
    • Spotlight on plastic waste sees brands explore sustainable packaging
    • Vegan claims leap ahead
    • Various brands explore new channels to market
    • Adspend stands at £98m in 2019
    • The consumer
    • 15% of people eat chocolate at least daily
      • Figure 5: Frequency of eating chocolate, March 2020
    • Scope to associate with relaxing moments and activities
      • Figure 6: Reasons for eating chocolate, March 2020
    • New flavours tempt almost half of chocolate buyers
      • Figure 7: Concepts that would prompt buyers to buy a new chocolate, March 2020
    • Taste is at the heart of product choice
      • Figure 8: Purchase drivers for chocolate, March 2020
    • Premium chocolate maintains ‘affordable luxury’ image
      • Figure 9: Behaviours related to chocolate, March 2020
    • Almost half prefer taste of standard over lower-sugar chocolate
      • Figure 10: Behaviours related to chocolate, March 2020
    • What we think
  3. The Impact of COVID-19 on Chocolate

    • The market
    • Chocolate volumes expected to stagnate in 2020
    • 2008-10 learnings bode well for chocolate to grow spend
    • The consumer
    • COVID-19 fuels emphasis on healthy eating
    • Income squeeze will sharpen focus on price
    • Mood-boost and affordable-luxury connotations will support chocolate
    • COVID-19’s link to planetary health puts spotlight on sustainability
    • Companies and brands
    • Large players are better placed to weather disruption from COVID-19
    • Learnings from 2009-10 signal own-label is well placed to gain share
    • With impulse occasions being hit, chocolate must win in weekly shop
  4. Issues and Insights

    • COVID-19 sharply heightens the focus on health
    • The facts
    • The implications
    • Flavour innovation is imperative
    • The facts
    • The implications
  5. The Market – What You Need to Know

    • Following 2019 uplift, chocolate volumes expected to stagnate in 2020
    • 2008-10 learnings bode well for chocolate to grow spend
    • Chocolate confectionery extends its lead in the market
    • Brexit deal will impact import prices
    • Fewer 25-34s and slowing growth of children poses a challenge
  6. Market Size and Forecast

    • Impact of COVID-19 on Chocolate
      • Figure 11: Expected impact of COVID-19 on chocolate, short, medium and long term, 8 July 2020
    • Following 2019 uplift, market expected to stagnate in 2020
      • Figure 12: UK retail value and volume sales of chocolate (COVID-19 adjusted forecast), 2015-25
    • 2008-10 learnings bode well for chocolate to maintain spend
      • Figure 13: UK retail value sales of chocolate (COVID-19 adjusted forecast), 2015-25
    • A lasting shift in work patterns and continued evenings in put more focus on at-home occasions
    • Spotlight on health from COVID-19 expected to dent volume growth
    • Brexit injects further uncertainty to outlook
      • Figure 14: UK retail volume sales of chocolate (COVID-19 adjusted forecast), 2015-25
  7. Market Segmentation

    • Chocolate confectionery extends its lead in the market
    • Seasonal chocolate and assortments feel the disruption acutely in spring 2020
      • Figure 15: UK retail value and volume sales of chocolate, by segment, 2017-20
  8. Market Drivers

    • Manufacturers tasked with cutting sugar
    • COVID-19 heightens focus on health
      • Figure 16: Changes in eating healthily being seen as a priority since the COVID-19 outbreak, by gender and age, 7-14 May 2020
    • Fewer 25-34s and slowing growth of children poses a challenge
    • Over-65s warrant attention
      • Figure 17: Trends in the age structure of the UK population, 2014-19 and 2019-24
    • Income squeeze will sharpen focus on price
      • Figure 18: Cutting back on non-essential spending, by gender, 25 June-1 July 2020
    • Mood-boost connotations and evenings in will support chocolate
      • Figure 19: Extent to which consumers feel comfortable doing selected out-of-home activities, 25 June-1 July 2020
    • Lockdown and expected rise in remote working will hamper impulse occasions
      • Figure 20: Changes in selected behaviours since the start of the COVID-19 outbreak, by gender, 25 June-1 July 2020
    • COVID-19 linked to human impact on the environment
      • Figure 21: Changes in the environment being seen as a priority since the COVID-19 outbreak, by gender and age, 7-14 May 2020
    • Palm oil was on people’s radars pre-COVID-19, vegan diets gain appeal
    • New legislation will require supply-chain due diligence
    • Brexit deal will impact import prices
    • Impact of COVID-19 on cocoa supply remains uncertain
  9. Companies and Brands – What You Need to Know

    • Cadbury Dairy Milk posts strong growth
    • Learnings from 2009-10 signal own-label is well placed to gain share
    • Cadbury reveals first brand identity overhaul in 50 years
    • Spotlight on plastic waste sees brands explore sustainable packaging
    • Vegan claims leap ahead
    • Various brands explore new channels to market
    • Adspend stands at £98m in 2019
  10. Market Share

    • Cadbury Dairy Milk posts strong growth
    • Darkmilk and Freddo Treasures boost Mondelez
      • Figure 22: Leading brands’ sales and shares in the UK retail chocolate confectionery market, by value and volume, 2017/18-2019/20
    • Aero leaps ahead
    • Mixed performances for assortments brands
    • Multinational conglomerates dominate the market
      • Figure 23: Leading manufacturers’ sales and shares in the UK retail chocolate confectionery market, by value and volume, 2017/18-2019/20
    • Large players are better placed to weather disruption from COVID-19
    • Learnings from 2009-10 signal own-label is well placed to gain share
  11. Launch Activity and Innovation

    • Cadbury reveals first brand identity overhaul in 50 years
    • Two in three launches make environmental or ethical claims
      • Figure 24: Share of chocolate launches with selected ethical claims, 2015-20*
    • Co-op calls out the tangible impact of Fairtrade, Cox & Co claims a ‘fully sustainable’ Easter egg
      • Figure 25: Examples of chocolate launches spotlighting ethical commitments, 2020
    • Swiss chocolatier creates new WholeFruit chocolate
    • Spotlight on plastic waste sees brands explore sustainable packaging
      • Figure 26: Percentage of chocolate launches with ethical packaging claims, 2015- May 2020
    • Nestlé links with TerraCycle, launches Smarties in recyclable paper wrapper
    • Vegan Galaxy uses compostable film, Asda redesigns its Easter eggs to reduce packaging
    • Montezuma redesigns for sustainability, some brands adopt recycled plastic
      • Figure 27: Examples of products with sustainable packaging claims, 2019-20
    • Vegan claims leap ahead
      • Figure 28: Percentage of chocolate launches with allergen-free and vegan claims, 2015-20*
    • Mars introduces vegan Galaxy, Barry Callebaut launches new vegan ‘milk’ chocolate
      • Figure 29: Examples of chocolate launches with vegan claims, 2019-20
    • Lower-sugar and high-protein launches still niche
      • Figure 30: Percentage of chocolate launches with a low/no sugar, high/added protein or high/added fibre claim, 2015-20*
    • Cadbury releases Dairy Milk 30% Less Sugar range and pledges 100-calorie cap for kids’ treats
    • Nestlé creates new chocolate with no refined sugar…
    • …and launches ‘More’ range
      • Figure 31: Examples of reduced sugar or portion-controlled launches, 2019
    • Brands extend into new flavours and formats
      • Figure 32: Share of chocolate launches by launch type, 2015-20*
    • Cadbury launches crowdsourced Dairy Milk flavours
      • Figure 33: Established brands continue flavour innovation, 2019-20
    • M&M’s launches blocks, Quality Street and Galaxy explore truffles
      • Figure 34: Established brands explore new formats, 2019-20
    • Seasonal launches gain share of NPD
      • Figure 35: Share of seasonal chocolate launches of all chocolate launches, 2015-20*
    • Supermarkets expand the Easter menagerie
      • Figure 36: Examples of novelty animal-shaped Easter products, 2019-20
    • Various brands explore new channels to market
    • Nestlé ties up with Deliveroo for home delivery…
    • … while KitKat offers DTC, personalised products
    • Quality Street festive pick-and-mix repeated, Lindt Lindor goes pick and mix at Sainsbury’s
  12. Advertising and Marketing Activity

    • Adspend stands at £98m in 2019
      • Figure 37: Total above-the-line, online display and direct mail advertising expenditure on chocolate, by advertiser (ordered by 2019), 2019-20*
      • Figure 38: Total above-the-line, online display and direct mail advertising expenditure on chocolate, by media type (ordered by 2019), 2016-20*
    • Cadbury continues with “There’s a glass and a half in everyone” campaign
      • Figure 39: Total above-the-line, online display and direct mail advertising expenditure on chocolate, by brand (ordered by 2019), 2019-20*
    • Cadbury Dairy Milk links with Age UK
    • Cadbury pushes visibility for its limited-edition Dairy Milk Inventor bars
    • Creme Egg goes VOD for 2020
    • Cadbury Heroes explores long-form in 2019
    • Galaxy targets busy, under-pressure women
    • M&M’s launches TV and digital campaign to promote new bars…
    • …while Maltesers use AR for Easter bunny campaign
    • Nestlé partners with Now TV once again
    • Lindt debuts ad for Excellence range
    • KitKat takes the spotlight on TV
    • Nielsen Ad Intel coverage
  13. Brand Research

    • Brand map
      • Figure 40: Attitudes towards and usage of selected brands, May 2020
    • Key brand metrics
      • Figure 41: Key metrics for selected brands, May 2020
    • Brand attitudes: Lindt Lindor leads on being seen as worth paying more for
      • Figure 42: Attitudes, by brand, May 2020
    • Brand personality: Kinder and M&M’s are most widely seen as fun
      • Figure 43: Brand personality – macro image, May 2020
    • M&M’s has the strongest association with being cool
      • Figure 44: Brand personality – micro image, May 2020
    • Brand analysis
    • Cadbury Dairy Milk is the most widely eaten brand, most widely seen as accessible and trustworthy
      • Figure 45: User profile of Cadbury Dairy Milk, May 2020
    • Lindt Lindor leads the pack on perceptions of high quality and exclusivity
      • Figure 46: User profile of Lindt Lindor, May 2020
    • Galaxy holds its own on deliciousness, comfort and accessibility
      • Figure 47: User profile of Galaxy, May 2020
    • KitKat is widely seen as a family brand and a brand that offers good value
      • Figure 48: User profile of KitKat, May 2020
    • Ferrero Rocher seen widely as indulgent and special
      • Figure 49: User profile of Ferrero Rocher, May 2020
    • M&M’s leads on being seen as cool
      • Figure 50: User profile of M&M’s, May 2020
    • Kinder seen as the most fun and family orientated
      • Figure 51: User profile of Kinder, May 2020
  14. The Consumer – What You Need to Know

    • 15% of people eat chocolate at least daily
    • Young people are core users
    • Many want emotional fulfilment from chocolate
    • New flavours tempt almost half of chocolate buyers
    • Taste is at the heart of product choice
    • Over half have yet to try lower-sugar chocolate
    • Premium chocolate maintains ‘affordable luxury’ image
    • Almost half prefer taste of standard over lower-sugar chocolate
  15. Frequency of Eating Chocolate

    • 15% of people eat chocolate at least daily
      • Figure 52: Frequency of eating chocolate, March 2020
    • Young people and families are core users
  16. Types of Chocolate Eaten

    • Two thirds eat single-serve bars
      • Figure 53: Formats of chocolate eaten in the last three months, March 2020
  17. Time of Day for Eating Chocolate

    • Majority eat chocolate after midday
      • Figure 54: Time of day when chocolate is eaten, March 2020
    • Further potential for morning consumption
      • Figure 55: Examples of chocolate bars with ingredients evoking morning connotations, 2015-19
  18. Reasons for Eating Chocolate

    • Many want emotional fulfilment from chocolate
    • Scope to associate with relaxing moments and activities
    • Maltesers supports Mental Health Awareness Week
    • Tie-ups can link with cheering up or to combat boredom
      • Figure 56: Reasons for eating chocolate, March 2020
    • One in five reach for chocolate when hungry
      • Figure 57: Examples of chocolate products with a high-/added-protein claim, 2019-20
  19. Concepts of Interest

    • New flavours tempt almost half of chocolate buyers
      • Figure 58: Concepts that would prompt buyers to buy a new chocolate, March 2020
    • Cadbury turns to crowdsourcing for new flavours
      • Figure 59: Examples of brands offering new flavours, 2019
    • A fifth are drawn to recyclable packaging
    • Vegan ingredients appeal to one in ten
      • Figure 60: Examples of brands offering vegan chocolate products, 2019-20
  20. Purchase Drivers for Chocolate

    • Taste is at the heart of product choice
      • Figure 61: Purchase drivers for chocolate, March 2020
    • Price matters to three in five
    • Healthy products are not a priority or widely available
  21. Behaviours Related to Chocolate

    • Premium chocolate maintains ‘affordable luxury’ image
    • Recession heightens importance of accessibly priced products, points to opportunity for premium own-label
      • Figure 62: Behaviours related to chocolate, March 2020
    • Over half have yet to try lower-sugar chocolate
    • Over a third willing to pay more for single-origin cocoa
  22. Attitudes towards Chocolate

    • Almost half prefer taste of standard over lower-sugar chocolate
      • Figure 63: Attitudes towards chocolate, March 2020
    • Consumers are divided about gift packaging
  23. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  24. Appendix – Launch Activity and Innovation

      • Figure 64: Share of new product launches in the UK chocolate confectionery market, by claim category, 2015-20
      • Figure 65: Share of new product launches in the UK chocolate confectionery market, by ethical claim, 2015-20

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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