Premium Chocolate in the U.S.: Mass, Gourmet, Prestige and Super Premium, 4th edition

Premium Chocolate in the U.S.: Mass, Gourmet, Prestige and Super Premium, 4th edition

In 2007, premium chocolate sales were $3 billion, having grown 17.3% since the prior year and a healthy 200% since 2003. Conventional chocolate sales, in contrast, grew only 0.7% over the prior year and 4% since 2003. The growth in premium chocolate sales is part of a wider purchasing trend of consumers adopting special occasion brands as their everyday brands.

This all-new report investigates the market and forecasts its growth to 2012. It also analyzes 10 trends driving the premium chocolate category:

• Bean to bar and microbatch production
  
  
• Dark milk and upscale white chocolate
  
  
• Sustainability
  
  
• Premiumitizing the familiar
  
  
• Exotic flavors
  
  
• Exotic functions
  
  
• Ultra dark bars
  
  
• Ethical chocolate: organic and fair trade
  
  
• Large tablet bars
  
  
• Filled bars

This report relies upon several data sources to track chocolate sales. These sources use different assumptions with differing degrees of accuracy. To estimate the size of the retail U.S. chocolate market, Packaged Facts uses apparent consumption data published in the Department of Commerce (DOC)’s Current Industrial Reports: Confectionery 2007. Company and brand-level sales data were provided under special arrangement with Information Resources, Inc. (IRI).

In addition to DOC and IRI data, this report relies extensively on company financial and product information, extensive literature searches in industry trade publications and exclusive interviews with senior company staff.  
 

Chapter 1: Executive Summary

Methodology & Scope

Premium Chocolate Defined

Table 1-1: Premium Chocolate Segments, by Price (dollars/ounce & dollars/pound)

The U.S. Chocolate Market

Table 1-2: Retail Sales of Chocolate, Quantity & Value 2003-2007 (in millions of metric tons & millions of dollars)

Total U.S. Premium Chocolate Market

Table 1-3: Premium, Conventional & Total Chocolate Retail Sales; Premium as % of Total, 2003-2007 (billions of dollars & percent)

Retail Sales by Product Category

Distribution Channels

2008: A Challenging Economic Climate

Retail Chocolate Sales Forecast

New Product Introductions

New Product Claims

Trends

Table 1-4: Top 10 Premium Chocolate Trends

Sales by Company

Table 1-5: IRI-Tracked Premium Chocolate Sales by Company, One Year and 4-Year Sales Change; Ranked by One Year Change (in dollars and percent)

Sales by Category

Chocolate Demographics

Chapter 2: Market Size & Growth

Methodology & Scope

The Evolution of Premium Chocolate

The Premium Price Threshold

Table 2-1: Premium Chocolate Segments, by Price (dollars/ounce & dollars/pound)

Table 2-2: IRI-Tracked Top Ten Selling Premium Chocolate Brands, by Average Price per Pound, 2007 (dollars/lb)

The U.S. Chocolate Market

Table 2-3: Retail Sales of Chocolate, Quantity & Value 2003-2007 (in millions of metric tons & millions of dollars)

Figure 2-1: Growth Rates for Total Chocolate Retail Sales and Quantity Shipped, 2003-2007

The U.S. Premium Chocolate Segment

Table 2-4: Premium, Conventional & Total Chocolate Retail Sales; Premium as % of Total, 2003-2007 (in billions of dollars & percent)

Table 2-5: Premium, Conventional & Total Chocolate Retail Sales Growth, 2003-2007 (percent)

Figure 2-2: Premium Chocolate Retail Sales & Growth Rate, 2003-2007 (billions of dollars and percent)

Retail Sales by Product Category

Table 2-6: IRI-Tracked Premium Chocolate Market Sales and % Market Share by Category, 2007 (in dollars and percent)

Table 2-7: IRI-Tracked Premium Chocolate Penetration Rate in Total Chocolate Sales by Category, 2007 (percent)

Figure 2-3: IRI-Tracked Premium Chocolate’s Sales Growth by Category, 2004-2007 (percent)

Distribution Channels

Per Capita Consumption

Table 2-8: Per Capita Consumption of Chocolate by Pounds & Value, 2003-2007 (pounds & dollars)

2008: A Challenging Economic Climate

Figure 2-4: IRI-Tracked Premium Chocolate’s Sales Growth, 4-Week Periods, 2007-2008 (in millions of dollars)

Retail Conventional and Premium Sales Forecast

Figure 2-5: Premium & Conventional Chocolate Retail Sales, 2007 & 2012 (in billions of dollars)

Chapter 3: Trends & Opportunities

Introduction

New Product Introductions

New Product Claims

Figure 3-1: New Chocolate Candy Introductions, 2003-2008 (number of SKUs and percent)

Table 3-1: Top 10 Premium Chocolate New Product Claims, 2003-2007

New Trends Introduction

Table 3-2: Top 10 Premium Chocolate Trends

Trend 1: Bean-to-Bar & Microbatch Production

Trend 2: Dark Milk & Upscale White

Table 3-3: Bean-to-Bar Producers

Trend 3: Sustainability

Trend 4: Premiumitizing the Familiar

Trend 5: Exotic Flavors

Trend 6: Exotic Functions

Trend 7: Ultra Dark Bars

Trend 8: Ethical Chocolate: Organic & Fair Trade

Table 3-4: Imports of Certified Fair-trade & Organic Cocoa Beans, 2002-2006 (pounds & percent)

Trend 9: Large Tablet Bars

Trend 10: Filled Bars

Chapter 4: Major Marketers

Market Overview

Sales by Company

Table 4-1: IRI-Tracked Premium Chocolate Sales by Company, One Year and 4-Year Sales Change; Ranked by One Year Change (in dollars and percent)

Sales by Category

Figure 4-1: IRI- Tracked Premium Chocolate Sales Growth by Company, One Year Change and 4-Year CAGR (percent)

Table 4-2: IRI-Tracked Premium Chocolate Sales by Company and Category, One Year Change and Percent Market Share, 2007 (in dollars and percent)

Table 4-3: IRI-Tracked Premium Chocolate Sales by Brand, Category, One Year Change and Percent Market Share, 2007 (in dollars and percent)

Company Snapshots

Lindt

Ghirardelli

Godiva

See’s

Ferrero

Russell Stover

Rocky Mountain Chocolate Factory

Mars Snackfood

Hershey

Green & Black’s

Endangered Species

Nestlé

Guylian

Chapter 5: The Consumer

Introduction

Marketer Reputation

Table 5-1: Consumer Satisfaction Index for Top Food Manufacturers, 2003-2007 and Percent Change (index & percent)

Chocolate Demographics

Table 5-2 Purchasing Indexes by Demographic Breakout; Chocolate Purchases by Marketer: Dove Promises, Ferrero and Godiva, 2008 (U.S. adults)

Appendix: Addresses of Selected Marketers