Hot Chocolate Market Size
Global Hot Chocolate Market reached USD 3,789.2 million in 2022 and is projected to witness lucrative growth by reaching up to USD 5,771.2 million by 2030. The market is growing at a CAGR of 5.4% during the forecast period (2024-2031).
Hot chocolate demand is anticipated to increase over the forecast period due to consumers' shifting preferences for nutritive foods and beverages as a result of changing lifestyles and eating habits.
Antioxidants that are found in nature called polyphenols are well known for enhancing blood flow, reducing inflammation, and lowering blood pressure. According to a YouGov survey of 1,000 US adults aged 21 and over, hot chocolate is the country's preferred winter beverage. 34% of Americans say hot chocolate is their favorite holiday beverage. Men (30%), women (35%), and people under the age of 50 (34%) all rank it as their top choice for hot chocolate.
Market Scope
| Metrics | Details |
| CAGR | 5.4 % |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (USD ) |
| Segments Covered | Type, Distribution Channel, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increased Demand For Flavored Hot Chocolate And The Growth Of Coffee Shops Is Expected To Drive The Market Growth
The rising demand for flavored hot chocolate and the rising number of coffee shops drive the global hot chocolate market growth. Over the projected period, technical improvements such as utilizing cocoa powder with various tastes are expected to propel the global hot chocolate market's growth. For instance, on January 27, 2023, The Chocolate Professor released the more recent hot chocolates follow confectionery industry trends, which include a shift towards less sugar, healthier ingredients, single-origin cacao, and ingredient lists free of artificial flavors and preservatives.
On the other hand, Starbucks is rapidly expanding in China due to the country's vast tea-drinking populace. To capitalize on this opportunity, the company plans to open around 600 outlets per year. Consumer preferences for nutritional items are likely to shift as a result of increased cardiovascular disease rates and an increase in the number of weight-loss programs, boosting demand for hot chocolate as a healthy option.
Market Segment Analysis
The global hot chocolate market is segmented based on type, distribution channel and region.
Offline Segment Accounts For The Highest Share In Global Hot Chocolate Market
The offline distribution channel segment had a significant share of more than 38% during the predicted period. In the coming years, high product availability at supermarkets, hypermarkets, and convenience stores is likely to benefit hot chocolate sales through the offline channel. While the popularity of online sales channels is gradually increasing, approximately 83 % of consumers prefer the offline channel because it allows them to feel, touch, and taste the product, resulting in hot chocolate sales being driven by the offline channel. The high visibility of the product at supermarkets, hypermarkets, and convenience stores is a crucial factor favoring hot chocolate sales through the offline channel. Furthermore, the growing number of retailers in countries like India, China, and Brazil would witness market growth in the next years.
Market Geographical Share
Asia-Pacific is Expected To Be The Dominating Region During The Forecast Period.
By region, the global hot chocolate market is segmented into North America, South America, Europe, Asia-Pacific, Middle-east and America.
In 2022, Asia Pacific accounted for about 36.9% of worldwide sales. Cocoa consumption can aid in preventing diabetes, obesity, and stress. The key factor likely to boost demand for hot chocolate in the future years is rising consumer knowledge of the health advantages of cocoa. Furthermore, due to changing eating patterns and a desire for chocolate drinks, an increase in the number of fast-service restaurants in India and China is likely to open up opportunities for hot chocolate shortly. For instance, on July 8, 2021, Harbinger Foods, India, launched Artisanal Chocolate with an aspiration to create an ‘Indian, world-class, luxurious chocolate brand’.
Hot Chocolate Companies
The major global players include Cadbury, W.T Lynch Foods, Starbucks, Chocomize, Land O” Lakes, Chek Hup Sdn. Bhd, The Hershey Company, Nestlé S.A., Swiss Miss, and GODIVA Chocolaiter.
Nestle S.A. – Overview
- Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation.
- Nestle S.A has a presence of more than 2,000 brands and a presence in 188 countries, including baby foods, bottled water, cereals, chocolates and confectionery, coffee, culinary products, chilled and frozen foods, dairy products, nutritional products, ice cream and pet products are among the company's product offerings.
- Nestle S.A. provides direct-to-consumer meal delivery services, sausages and nutritional goods. Aero, Alpo, Milky Bar, Nestle Ice Cream, Cerelac, Nescafe, Nespresso, Nestea, Häagen-Dazs, Milo, Maggi, Buitoni, Cailler, Movenpick, Freshly, Purina, Boost, Gerber and Kit Kat are a few of its well-known brands.
- The company achieved about 1,03,543.97 USD million in revenue in 2023.
Covid Impact on Market
The demand for hot chocolate is growing rapidly, which has a considerable impact on manufacturing. Furthermore, the influence of COVID-19 has revealed significant changes in production, demand, prices, and market growth. Hot chocolate is also utilized as a treatment for stomach and liver problems and is a unique beverage.
Vegan hot chocolates are a prominent trend in this market. With the growing popularity of plant-based chocolate, it's the ideal opportunity to elevate the hot chocolate category from a purely hedonistic beverage to one that promotes health and wellness. These beverages are also high in vitamins and minerals and have low fat, making them perfect for people with slow digestive systems. Another significant trend is rising consumer demand. In England, for instance, hot chocolate nearly surpassed both coffee and tea.
Key Developments
- On January 3, 2023, Mondelez International launched ‘Spectacularly nice’ promotion across its Cadbury Hot Chocolate range. The promotion is available for three months starting in mid-January on 500g of Cadbury Drinking Chocolate, 400g of Instant Hot Chocolate, and 220g of Highlights Milk Chocolate.
- On October 20, 2021, Lindt launched “Hot Chocolate powder”, billed as a “velvety smooth and luxuriously creamy hot chocolate drink”.
- On September 15, 2022, Bevzilla launched a premium hot chocolate range sweetened with date palm jaggery. Bevzilla's Hot Chocolate Mix Range combines mild flavors of chocolate, hazelnut, and cinnamon with the sweetness of date palm jaggery so that consumers don't need to add any refined sugar to enjoy the true goodness of chocolate with perfect consistency & the smoothest aroma.
Why Purchase the Report?
- To visualize the global hot chocolate market segmentation based on type, distribution channel, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of hot chocolate market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global hot chocolate market report would provide approximately 77 tables, 82 figures and 195 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
