Hot Chocolate Market Progress Forecast 2027

Posted by Mrudula Anil Karmarkar on May 17th, 2022

The global hot chocolate market size is anticipated to reach USD 4.44 billion by 2027, expanding at a CAGR of 4.0% over the forecast period, according to a new report by Grand View Research, Inc. Growing awareness among consumers regarding associated health benefits of chocolate is a key factor driving the market. Furthermore, growing middle class population and rapid urbanization at the global level are expected to promote the industry growth over the forecast period.

Shifting consumer inclination towards nutritional products on account of rising incidence of cardiovascular disorders and surge in the number of weight management programs are expected to propel the demand for hot chocolate as a healthy option. Furthermore, increased number of health awareness videos on social media platforms, including YouTube and Facebook, by fitness enthusiasts is projected to upscale the requirements of hot chocolate.

The offline distribution channel segment held a major share of exceeding 90.0% in 2020. High product availability at supermarkets and hypermarkets and convenience stores is expected to favor sales of hot chocolate through offline channel in coming years. While the popularity of online sales channel is steadily growing, around 83% of consumers prefer offline channel as it provides the leverage of feel, touch, and taste, thereby driving the sales of hot chocolate through offline channel.

Online distribution channel is expected to expand at the highest CAGR of 7.5% from 2020 to 2027. Convenience of doorstep delivery, discounted price, and cash on delivery are the major factors influencing sale of hot chocolate through online channel. Moreover, entry of online retail giant Amazon in the online grocery industry is expected to boost hot chocolate sales through online channel in coming years.

To Request Sample Copy of this report, click the link:

https://www.grandviewresearch.com/industry-analysis/hot-chocolate-market/request/rs1

Asia Pacific emerged as the largest regional market with share of 30.2% in 2020. This growth is attributed to rising awareness related to the health benefits of chocolate and increasing disposable income of the middle-class population in countries, such as China and India. Furthermore, growing presence of cafés in the region is expected to contribute to the growth of the hot chocolate market in coming years. For instance, according to the Starbucks’ investor presentation, as of September 2020, the company’s total store count stood at 163 across 10 cities in India.

Hot Chocolate Market Report Highlights

• Online distribution channel is expected to expand at the fastest CAGR of 7.5% from 2020 to 2027. This is attributed to increasing preferences for e-commerce and rising dependence of generation X, millennials, and generation Z parents on internet
• Middle East and Africa is expected to expand at a highest CAGR of 5.8% over the forecast period and reach a value of USD 511.6 million by 2027. Improvement of economic indicators in countries, including Ethiopia, Nigeria, and Kenya is expected to open new avenues for the market in this region
• Some of the key manufacturers of hot chocolate are Nestle; Mondel?z International; The Hershey Company; Mars, Incorporated; Chocoladefabriken Lindt & Sprüngli AG; Xucker GmbH; Cocosutra; HARIBO of America, Inc.; Twinings (Associated British Foods plc); and Valrhona Inc.

Hot chocolate, also known as drinking chocolate, consists of chopped chocolate, melted chocolate or cocoa powder stirred into milk or water with sugar. Cocoa is rich in polyphenols that are known for their various health benefits. Polyphenols are naturally occurring antioxidants, well known for improving blood flow, alleviating inflammation, and lowering blood pressure.

Grand View Research has segmented the global hot chocolate market by distribution channel:

Hot Chocolate Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

• Offline
• Online