PUBLISHER: Mordor Intelligence | PRODUCT CODE: 703546
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 703546
South America's chocolate market is expected to grow at a CAGR of 4.2% during the forecast period.
The shift in attitudes is forcing global firms, like Mars Inc., Mondelez International, Nestle and other local brands, to rebrand or reformulate their mass-market chocolates to create a healthier image, or sell a more expensive and premium experience. Moreover, the consumers in South America are becoming more sophisticated and are increasingly searching for premium chocolate products, that are differentiated from common brands found in the retail sector. There is a minor market share that is earned by several smaller, premium chocolate companies, including Kopenhagen and Cauca Show. It is only over the past few years that premium chocolate has become desirable for the Brazilian market and other South American countries; only very recently, has organic and fair trade chocolate been introduced in the country.
Brazil's National Association of the Cocoa Processing Industry (AIPC) expects the surge in cocoa planting to help double the country's output of the raw material in chocolate by 2028, to 400,000 metric tons a year. This increase would raise global output by about 5 percent. The renewed planting could make Brazil one of the world's top three cocoa growers. Thus, this factor makes this market profit-oriented, during the future forecast period. Moreover, Brazil dominates the chocolate consumption in the region, which is expected to maintain its position during the forecast period. Moreover, as per data published by Lindt & Sprungli, in 2017, Brazil was one of the top countries in terms of per capita chocolate consumption, worldwide (in kilograms), thereby occupying the 21st position out of the total 24 countries taken under the scope.
The chocolate market in South America is competitive, with the significant presence of the top five global players, namely, Lindt & Sprungli AG, The Hershey Company, Ferrero Group, Mondelez International, and Nestle SA. The leading players in the South American chocolate market enjoy a dominant presence, worldwide. Brand loyalty among the consumers gives these companies an upper edge.