2022
9
UK Chocolate Confectionery Market Report 2022
2022-10-05T04:17:59+01:00
OX1102609
2195
156231
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Report
en_GB
“Growth in volume sales of chocolate will be dampened by a combination of the income squeeze, HFSS restrictions and consumers’ focus on moderation. Evenings in and gifting will support sales…

UK Chocolate Confectionery Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Chocolate Confectionery Market Report identifies consumers’ attitudes towards purchasing and eating chocolate, the impact of inflation and future flavour innovations in the UK chocolate market. This report covers the UK chocolate market share and market size, market forecast, market segmentation and industry trends in the UK chocolate confectionery market.

 

Frequently Asked Market Research Questions in the UK Chocolate Market

How much chocolate is consumed in the UK?

Chocolate remains one of Britain’s favourite indulgences, and unsurprisingly, the UK is one of the leading chocolate-consuming countries in Europe. The continuation of the income squeeze is expected to support UK chocolate consumption, with more evenings spent at home to save money, chocolate remains an affordable treat.

What is the market share of chocolate?

Cadbury Dairy Milk (Mondelez) are one of the leading brands in the UK chocolate confectionery market, commanding a strong market share. They reported £505 million in value sales in 2021/22. However, brands with an intrinsic link to Easter, such as Lindt, provide the biggest boost to sales in seasonal confectionery.

What is the market size of chocolate?

The market size of the UK chocolate market is expected to be worth £5.9 billion by the end of 2022. Sales of chocolate are forecast to grow by 13% between 2022 and 2027 to reach £6.66 billion, predominantly driven by a rise in average prices paid.

UK Chocolate Market – Current Landscape

The chocolate confectionery market should be in a good position compared to many other discretionary items to weather rising inflation. The cost-of-living crisis likely means that some consumers will limit their leisure outings, supporting evenings in, which chocolate is a firm favourite, as seen during the COVID-19 pandemic. However, the looming HFSS restrictions will dampen volume sales from October.

 

Chocolate Market Research – Trends and Statistics

Despite its affordable image, chocolate isn’t immune to shoppers scrutinising their spending. There is a growing importance of discount stores, highlighting the need for brands in the UK chocolate market to create a strong presence there.

2023 will see the chocolate confectionery market’s volume sales further dampened by HFSS restrictions, given reduced product visibility which will diminish the opportunities to prompt impulse purchases. Volume growth will also be held back by the continuation of the income squeeze in 2023. However, evenings in and gifting will help support UK chocolate consumption, given that chocolate is considered more affordable than many other gifts.

Consumer behaviours in the UK chocolate market

  • 81% of chocolate eaters agree that chocolate is an affordable treat.
  • 51% of chocolate consumers would be interested in purchasing a newly launched flavour.

 

UK Chocolate Confectionery Market – Future Trends

Despite the growing interest in healthy eating, the UK chocolate market’s future is positive. Mintel’s chocolate market research indicates that new flavours are by far the most likely facet of NPD to encourage consumers to buy new chocolate products, given that 44% of buyers and eaters of chocolate agree that a chocolate brand that regularly brings out new flavours is more appealing than one that does not.

The return of real income growth and a developing chocolate trend of ‘quality over quantity’ offer future opportunities for premium products to capture and boost value sales above inflation.

Read on to discover more about the UK Chocolate Confectionery Market Report 2022, read our UK Consumer Snacking Market Report 2022, or take a look at our other Chocolate Market Research.

 

Quickly Understand

  • Performance of the market following the easing of COVID-19 restrictions and expected impact on sales of the rising cost of living/inflation on UK chocolate consumption.
  • Frequency of eating chocolate, types eaten, and where and when it is consumed.
  • Enticements to buying a new chocolate product.
  • New launch activity in the UK chocolate market.
  • Attitudes towards selected brands in the chocolate confectionery market.
  • Behaviours and attitudes related to eating and buying chocolate.
  • Explores UK chocolate market share and UK chocolate market size.

 

Popular UK Chocolate Brands Covered in this Report

Products: Chocolate confectionery, seasonal chocolate and chocolate assortments.

Brands: Mondelez (Cadbury’s, Milka, Crème Egg, Mini Eggs), Mars Wrigley (Celebrations, Mars, Galaxy, M&Ms, Malteasers, Snickers), Lindt & Sprüngli (Lindor, Gold Bunny), Ferrero (Thortons, Kinder, Ferrero Rocher), Nestlé (Quality Street, Kit Kat, Milkybar, Aero, Smarties), Carambar (Terry’s), Deliciously Ella, Moser Roth, Hotel Chocolat, Happi, Wizards, Divine, Lotus, Lily O’Brains, Storck.

 

Expert Analysis from a Specialist in the UK Chocolate Market

This report, written by Richard Caines, a leading senior analyst in the food industry, delivers in-depth commentary and analysis to highlight current trends in the UK chocolate confectionery market and add expert context to the numbers.

Growth in volume sales of chocolate will be dampened by a combination of the income squeeze, HFSS restrictions and consumers’ focus on moderation. Evenings in and gifting will support sales during the cost-of-living crisis, given that eight in 10 eaters and buyers of chocolate think it is an affordable treat. Flavour and texture innovation need to be central to NPD and marketing, while premium products and personalisation offer further opportunities.”

Richard Caines
Senior Food & Drink Analyst

 

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for chocolate
      • Figure 1: Outlook for chocolate, 2022-27
    • The market
    • 2022 growth expected to be driven mainly by inflation
    • Future growth in sales to come mainly from higher prices
      • Figure 2: Market size and forecast for UK retail value sales of chocolate, 2017-27
    • Companies and brands
    • Leading brands in block chocolate lose some growth momentum
      • Figure 3: Leading brands’ sales in the UK chocolate confectionery market, by value, 2020/21* and 2021/22**
    • Christmas 2021 boosts sales of assortments
    • Brands with big link to Easter perform strongly
    • More launches of vegan/plant-based chocolate
    • New flavours continue to be the biggest theme in NPD
    • Moving into new formats is another avenue explored by brands to grow sales
    • Fall in advertising spend on chocolate in 2021
    • The consumer
    • Frequency of eating chocolate increases
      • Figure 4: Frequency of eating chocolate, 2020-22
    • Single-serve bars boosted by more out-of-home occasions
      • Figure 5: Types of chocolate eaten, 2020-22
    • At-home occasions most important for chocolate
    • Chocolate is mostly eaten later in the day
    • Flavour and texture innovation needs to be central to NPD
      • Figure 6: Enticements to buying a new chocolate product, 2022
    • Focusing on nostalgia helps cement emotional connection
      • Figure 7: Behaviours related to eating and buying chocolate, 2022
    • Eight in 10 think chocolate is an affordable treat
      • Figure 8: Attitudes towards chocolate, 2022
  3. Issues and Insights

    • Brands need to use affordable treat image to maximise sales
    • Eight in 10 think chocolate is an affordable treat
    • Importance of taste and gifting will support premium sales
    • Many look for quality over quantity in chocolate
    • Flavour and texture innovation must be central to NPD
    • Need to ensure visibility for new flavour launches
    • Combining new flavours with different texture combinations warranted
    • Personalisation offers a big opportunity in chocolate
    • Chocolate the most popular food for gifting
    • Younger people keenest on personalised chocolates
    • From a change in recipe to compiling tailored selections
    • Focusing on nostalgia will help to cement emotional connections
    • Chocolate products from childhood appeal
    • Mine archives for old flavours or market familiar taste
    • Lasting appeal of brands helps brand extensions
  4. Market Size and Performance

    • 2022 growth expected to be driven mainly by inflation
      • Figure 9: Retail market size for chocolate, 2017-22
  5. Market Forecast

    • The five-year outlook for chocolate
      • Figure 10: Outlook for chocolate, 2022-27
    • Growth in sales to come mainly from higher prices
      • Figure 11: Market size and forecast for UK retail value sales of chocolate, 2017-27
      • Figure 12: Market size and forecast for UK retail volume sales of chocolate, 2017-27
    • Being an affordable treat and gift will support sales of chocolate
    • Rising prices and HFSS restrictions will stifle volume growth
    • Quality over quantity approach will come through more
    • Learnings from the last income squeeze
      • Figure 13: Total UK retail volume and value sales of chocolate*, 2010-15
    • Forecast methodology
  6. Market Segmentation

    • Block chocolate to slip back from COVID-19 boost to sales
    • Assortments and seasonal chocolate bounce back
      • Figure 14: Retail value and volume sales of chocolate 2019-22, by segment
  7. Market Drivers

    • Government emphasis on health intensifies
    • HFSS food and drink store location restrictions to come into place in 2022
    • Chocolate falls within the scope of regulations
    • New rules on the advertising of HFSS food and drink delayed to 2024
    • Strong consumer interest in healthy eating
    • COVID-19 increases spotlight on health
    • Number of most frequent eaters of chocolate set to stagnate
      • Figure 15: Trends in the age structure of the UK population, 2016-26
    • Inflation is the key concern in 2022 for consumers, brands and the economy
    • Consumer Prices Index rises to 10%
    • Steep rise in energy prices
    • Consumers being affected by inflation
    • Price of chocolate increasing more slowly than food prices overall
    • The conflict in Ukraine will hurt the UK economy
    • Sharp decline in consumer confidence
      • Figure 16: Household financial wellbeing index, 2016-2022
  8. Market Share

    • Leading brands in block chocolate lose some growth momentum
      • Figure 17: Leading brands’ sales and share in the UK chocolate confectionery market, by value and volume, 2019/20-2021/22
    • Christmas 2021 boosts sales of assortments
      • Figure 18: Leading brands’ sales and share in the UK chocolate assortments market, by value and volume, 2019/20-2021/22
    • Brands with big link to Easter perform strongly
      • Figure 19: Leading brands’ sales and shares in the UK seasonal chocolate market, by value and volume, 2019/20-2021/22
  9. Launch Activity and Innovation

    • More launches of vegan/plant-based chocolate
      • Figure 20: Proportion of new launches in chocolate making vegan/no animal ingredients and dairy-free claims, 2017-22
      • Figure 21: Examples of branded vegan/plant-based launches in chocolate , 2021/22
      • Figure 22: Examples of own-label vegan chocolate launches , 2021/22
    • Low/no/reduced sugar claims continue to be rare in chocolate
      • Figure 23: Proportion of new launches in chocolate making low/reduced sugar and no added sugar claims, 2017-22
      • Figure 24: Examples of reduced sugar claims in chocolate launches, 2021/22
    • New flavours continue to be the biggest theme in NPD
    • Chocolate orange is flavour of the moment
      • Figure 25: Examples of products adding orange flavours in new launch activity, 2021/22
    • Ranges being extended into dark, white and caramilk
      • Figure 26: Examples of products adding different types of chocolate options, 2021/22
    • Cadbury launches three new ‘Inventor’ flavours; limited editions continue
      • Figure 27: Cadbury Dairy Milk Inventor new flavour launches, 2021
    • Seasonal flavours from Twix and Dairy Milk
      • Figure 28: Examples of limited-edition launches in chocolate, 2021/22
    • Moving into new formats offers another way for brands to grow sales
    • Quality Street and Ferrero Rocher launch bars
    • Thorntons and After Eight expand boxes of chocolates
      • Figure 29: Examples of chocolate brands extending with new formats, 2021/22
    • Nestlé launches new sharing formats for KitKat and Aero
      • Figure 30: Examples of new chocolate products for sharing from Nestlé, 2022
    • Premium own-label products cater for demand for luxury
      • Figure 31: Examples of premium own-label launches in chocolate, 2021/22
      • Figure 32: Examples of blonde chocolate launches, 2022
    • Major chocolate brands advance on sustainable packaging
  10. Advertising and Marketing Activity

    • Fall in advertising spend on chocolate in 2021
      • Figure 33: Total above-the line, online display and direct mail advertising expenditure on chocolate, by media type, 2018-22
    • Big five chocolate companies dominate spending
      • Figure 34: Total above-the line, online display and direct mail advertising expenditure on chocolate, by advertiser, 2019-22
    • Chocolate brands focus on getting conversations going
    • Cadbury hopes to tackle young people’s self-doubt
    • Maltesers focuses on ups and downs of new mums
    • Encouraging consumer involvement with new flavours
    • Cadbury runs Mystery Bar summer competition
    • Quality Street gets consumers to vote for old favourites
    • Three more Cadbury Inventor bars launched
    • Brands looking to drive stronger emotional connections
    • Thorntons invests in TV advert as part of new campaign
    • ‘How do you eat yours?’ advert with a twist
    • Nielsen Ad Intel coverage
  11. Brand Research

    • Brand map
      • Figure 35: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 36: Key metrics for selected brands, 2022
    • Brand attitudes: Lindor stands out for image of offering consistently high quality
      • Figure 37: Attitudes, by brand, 2022
    • Brand personality: Maltesers seen as the most fun brand
      • Figure 38: Brand personality – macro image, 2022
    • Cadbury Dairy Milk, KitKat and Maltesers are seen as big family brands
      • Figure 39: Brand personality – micro image, 2022
  12. Usage Frequency for Chocolate

    • Frequency of eating chocolate increases
      • Figure 40: Frequency of eating chocolate, 2020-22
    • Younger people eat chocolate most often
      • Figure 41: Frequency of eating chocolate, 2022
  13. Types of Chocolate Eaten

    • Single-serve bars boosted by more out-of-home occasions
      • Figure 42: Types of chocolate eaten, 2020-22
    • Most types of chocolate enjoy highest usage among younger people
      • Figure 43: Number of different types of chocolate eaten, 2022
  14. Where Chocolate is Eaten

    • At-home occasions most important for chocolate
      • Figure 44: Where people eat chocolate, 2022
    • Out-of-home occasions benefit from absence of COVID-19 restrictions
  15. When Chocolate is Eaten

    • Chocolate is mostly eaten later in the day
      • Figure 45: When people eat chocolate, 2018 and 2022
    • Brands target earlier occasions through other categories
  16. Enticements to Buying a New Chocolate Product

    • Flavour and texture innovation needs to be central to NPD
    • Need to ensure visibility for new flavour launches
      • Figure 46: Enticements to buying a new chocolate product, 2022
    • Combining new flavours with different texture combinations warranted
    • Healthier attributes of secondary importance to taste
    • A third would be prompted to try a reduced sugar chocolate launch…
    • … but most would prefer a smaller amount of regular chocolate
    • More than a quarter would be prompted to buy 100 calorie or less bars/packs
  17. Behaviours Related to Eating and Buying Chocolate

    • Chocolate products from childhood appeal widely
    • Focusing on nostalgia helps cement emotional connection
    • Lasting appeal of brands helps brand extensions
      • Figure 47: Behaviours related to eating and buying chocolate, 2022
    • Strong demand for personalised gifting
    • Chocolate is the most popular food for gifting
    • Younger people keenest on personalised chocolates 
    • From a change in recipe to compiling tailored selections
      • Figure 48: Example of Quality Street pick and mix tins at John Lewis, December 2018
  18. Attitudes towards Chocolate

    • Eight in 10 think chocolate is an affordable treat
    • Discount grocers pose a heightened threat to branded chocolate sales amidst income squeeze
      • Figure 49: Attitudes towards chocolate, 2022
    • Half would rather see size of a favourite chocolate reduced than face a price rise
    • Premium chocolate products can still do well
    • Importance of taste and gifting will support sales
    • Many look for quality over quantity in chocolate
  19. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  20. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 50: Market forecast and prediction intervals for UK value sales of chocolate, 2022-27
      • Figure 51: Market forecast and prediction intervals for UK volume sales of chocolate, 2022-27
      • Figure 52: Market size and forecast for UK retail value and volume sales of chocolate, 2017-27
    • Market drivers and assumptions
    • Forecast methodology
  21. Appendix – Market Share

      • Figure 53: Leading brand-owners’ sales and share in the UK chocolate confectionery market, by value and volume, 2019/20-2021/22
      • Figure 54: Leading brand-owners’ sales and share in the UK chocolate assortments market, by value and volume, 2019/20-2021/22
      • Figure 55: Leading brand-owners’ sales and shares in the UK seasonal chocolate market, by value and volume, 2018/19-2020/21
  22. Appendix – Launch Activity and Innovation

      • Figure 56: New launches in chocolate, by branded vs. private label, 2017-22
      • Figure 57: New launches in chocolate, by launch type, 2017-22
      • Figure 58: New launches in chocolate, by claim, 2017-22
      • Figure 59: New launches in chocolate, by sub-category, 2017-22

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.

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

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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.

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*databooks not available with UK B2B Industry reports.

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