Market Trends of North America Premium Chocolate Industry
This section covers the major market trends shaping the North America Premium Chocolate Market according to our research experts:
Growing Influence of Endorsements, Aggressive Marketing, and Strategic Investment
The premium chocolate industry has seen a significant shift over the past few years in this age of diversity. With the growing importance of social media in a shopper's purchase journey, companies are evolving and stepping up their advertising and endorsement game across different distribution channels to garner consumer attention. Additionally, with celebrities vouching for or promoting their products, brands can increase awareness, trust, and familiarity, which are important variables in the purchase decision-making process. Consumers feel more sympathetic toward a brand if its products are promoted by a celebrity they admire or relate to. Brands tie up with celebrities as it is one of the easy ways to cut the clutter. For instance, in May 2021, Belgian chocolate maker Godiva Chocolatier launched a new global marketing campaign, "GODIVA is Chocolate" with actor Chris Evans as the new face of the campaign. The brand aims to market its products as a premium treat with portion control sizes, sharing packages, on-the-go convenient formats, as well as gift boxes for special occasions. Thus, the increase in endorsement and advertising expenses by key brands is anticipated to propel the sales of premium chocolates over the forecast period.
United States Dominates Premium Chocolate Market
Premium chocolate is gaining prominence among United States consumers owing to the impulse purchase power and increased interest in luxury and premium chocolates that are available in the market. According to the National Confectioners Association (NCA), the retail sale of premium chocolates in the grocery channel reached 21.4% in 2020. Owing to the increasing health concern, several populations across the country are consuming dark premium chocolate. According to the survey conducted by Cargill Inc. in 2021, nearly 52% of respondents chose dark chocolate as a healthier choice, increasing the demand for dark premium chocolate in the market. This trend promotes the growth of the market studied. Therefore, with the growing demand, manufacturers are expanding their portfolios to retain their position in the US premium chocolate market. For instance, in October 2021, Ferrero introduced premium chocolate bars, including Ferrero Rocher and Raffaello, in the market. The Ferrero premium bars are made with 55% of dark and white chocolate, available in seven different flavors. The launch of these products into the fast-growing premium chocolate bars category will reinforce Ferrero's competitive position within the premium chocolate market.
