Chocolate Confectionery - US - October 2003

SUMMARY

Chocolate Confectionery - US - October 2003

Americans love chocolate candy, consuming more than 3.1 billion pounds of chocolate each year, or 11.7 pounds per person. The U.S. chocolate confectionery market has shown growth of 11% from 1998 to 2003, but the forms in which consumers prefer their chocolate candy appear to be shifting, as indicated by growth in certain segments of the market.

Growth is being driven by fresh concepts and formats of traditional brands such as line extensions (Nestle Crunch with Caramel), limited edition (Mint Kisses by Hershey), portable packaging (Hershey's To Go), diet variations (Russell Stovers' Low-Carb Pecan Delights) and indulgent flavors and textures (Nestle Toll House Candy bars). Expanding distribution of chocolate confectionery within drug stores and convenience stores-both of which had double-digit increases from 2001 to 2003- is a large contributor to market sales.

This report explores the hypothesis that chocolate confectionery sales will continue overall steady growth, and answers questions such as:

• What shifts in the U.S. population are affecting chocolate sales?
• Where are the majority of chocolate sales taking place?
• How do chocolate preferences vary by age, location and gender?
• How do health-conscious consumers feel about chocolate?

This report covers the U.S. retail market for chocolate confectionery, which is any type of confectionery that has chocolate as its main ingredient. Included are solid chocolate bars, filled chocolate bars and chocolate bars with cookie, nut, or wafer fillings. All sizes are considered, from miniatures to extra large-sized bars, as well as chocolate gift boxes, assorted boxes of unwrapped pieces of chocolate confectionery, and all seasonal or themed chocolate confectionery items.

Excluded from this report are all confectionery items based mainly on sugar or artificial sweeteners, such as toffees, jellies, chewing gum, and mints (unless they are chocolate coated); all other types of cookies which are not chocolate cookie bars; cereal bars, cakes, and desserts of all types (even those with chocolate coatings); and any snack mixes, trail mixes or dried fruit with chocolate coating. Also excluded are white chocolate and carob products, baking chocolate, and chocolate chips.

This report contains US IRI InfoScan data. Report contents may be subject to change prior to the date of publication.

TABLE OF CONTENTS

INTRODUCTION & ABBREVIATIONS

• INTRODUCTION
• OTHER RELEVANT REPORTS
• DEFINITION
• ABBREVIATIONS & TERMS
  • Abbreviations
  • Terms

EXECUTIVE SUMMARY

• A MATURE MARKET
• CHOCOLATE CONFECTIONERY PRODUCT TRENDS
• INCREASES IN OLDER POPULATION AFFECT SALES
• HEALTH AND CHOCOLATE
• A HIGHLY SEGMENTED MARKET
• HERSHEY DOMINATES FDM MARKET (excluding wal-mart)
• TV AND MAGAZINES RECEIVE MOST AD SPENDING
• "OTHER CHANNELS" LEAD DISTRIBUTION
• CHOCOLATE CONSUMPTION NEARLY UNIVERSAL
• THE FUTURE OF CHOCOLATE CONFECTIONERY

MARKET DRIVERS

• PRODUCT TRENDS
  • Line Extensions/Limited Edition Candies
  • Indulgence
• HEALTH CONCERNS
  • Obesity
  • Figure 1 Incidence of overweight and obese Americans aged 18 and older, 1994-2000
  • Portion Sizes
  • Health Benefits and Positioning Claims
• POPULATION BY AGE GROUP
  • Figure 2 U.S. population projections 1998, 2003 and 2008
• SEASONALITY
• RETAIL DISTRIBUTION

MARKET SIZE & TRENDS

• STRONG GROWTH OVER REVIEW PERIOD
  • Figure 3 Sales of chocolate confectionery, at current and constant prices, 1998-2003
  • Graph 1 Sales of chocolate confectionery, at current and constant prices, 1998-2003
• MARKET TRENDS

MARKET SEGMENTATION

• OVERVIEW
  • Figure 4 FDM sales of chocolate confectionery, by type, 2001 & 2003
  • Graph 2 FDM sales of chocolate confectionery, by type, 2003
• CHOCOLATE CANDY BOX/BAG/BAR GREATER THAN 3.5 OZ.
  • Figure 5 FDM sales of chocolate candy box/bag/bar > 3.5 ounces, 1998-2003
• SEASONAL AND NOVELTY CHOCOLATES
  • Figure 6 FDM sales of seasonal and novelty chocolates, 1998-2003
  • Figure 7 FDM sales of seasonal and novelty chocolates, by sub-segment, 2001 & 2003
• CHOCOLATE CANDY BARS LESS THAN 3.5 OZ.
  • Figure 8 FDM sales of chocolate candy bars < 3.5 ounce, 1998-2003
• CHOCOLATE CANDY SNACK-SIZE
  • Figure 9 FDM sales of chocolate candy snack-size, 1998-2003
• GIFT BOX CHOCOLATES
  • Figure 10 FDM sales of gift box chocolates, 1998-2003

SUPPLY STRUCTURE

• FOREIGN TRADE
  • Imports
  • Figure 11 U.S. chocolate and confectionery products imports*-top source countries, 2000 and 2002
  • Exports
  • Figure 12 U.S. chocolate and confectionery exports*-top destination countries, 2000 and 2002
• FDM SALES BY MANUFACTURER
  • Figure 13 Top FDM manufacturer sales of chocolate confectionery, 2000 & 2002
• MANUFACTURER AND BRAND SALES BY SEGMENT
  • Chocolate candy box/bag/bar > 3.5 oz.
  • Figure 14 FDM brand sales of chocolate candy box/bag/bar > 3.5 ounces, 2000 & 2002
  • Seasonal and Novelty chocolate candy
  • Figure 15 FDM brand sales of seasonal and novelty chocolates, 2000 & 2002
  • Chocolate candy bars < 3.5 oz.
  • Figure 16 FDM brand sales of chocolate candy bars < 3.5 ounces, 2000 & 2002
  • Chocolate candy snack-size
  • Figure 17 FDM brand sales of chocolate candy snack-size, 2000 & 2002
  • Gift box chocolates
  • Figure 18 FDM brand sales of gift box chocolates, 2000 & 2002
• COMPANIES AND BRANDS
  • Hershey Foods
  • Mars, Inc.-Masterfoods USA
  • Nestle USA
  • Russell Stover
  • Private label

ADVERTISING & PROMOTION

• OVERVIEW
  • Figure 19 Advertising expenditures for selected manufacturers, 2002
• COMPANIES AND BRANDS
  • Masterfoods USA (Mars Inc.)
  • Hershey's
  • Nestle
  • Other leading manufacturers and advertisers
  • Russell Stover Candies

RETAIL DISTRIBUTION

• OVERVIEW
  • Figure 20 Sales of chocolate confectionery, by channel, 2001 & 2003
• SUPERMARKETS
  • Figure 21 Supermarket sales of chocolate confectionery, 1998-2003
  • Supermarket operating data
  • Figure 22 Top supermarket operating statistics, latest financial year-end
  • Figure 23 Percentage change from latest financial year-end versus year prior
• MASS MERCHANDISERS/WAREHOUSE CLUBS
  • Figure 24 Mass merchandiser and warehouse club sales of chocolate confectionery, 1998-2003
  • Mass Merchandiser operating data
  • Figure 25 Top mass merchandiser operating statistics, latest financial year-end
  • Figure 26 Percentage change from latest financial year-end versus year prior
• DRUG STORES
  • Figure 27 Drug store sales of chocolate confectionery, 1998-2003
  • Drug Store operating data
  • Figure 28 Top drug store operating statistics, latest financial year-end
  • Figure 29 Percentage change from latest financial year-end versus year prior
• CONVENIENCE STORES
  • Figure 30 Convenience store sales of chocolate confectionery, 1998-2003
• OTHER RETAILERS

THE CONSUMER

• INTRODUCTION
• TYPES OF CHOCOLATE LIKED
  • Figure 31 Types of chocolate preferred, August 2003
  • Cross-tabulation: Multiple Users
  • Figure 32 Types of chocolate preferred, cross-tabulation, August 2003
  • Figure 33 Types of chocolate preferred, by gender, August 2003
  • Figure 34 Types of chocolate preferred, by age, August 2003
  • Figure 35 Types of chocolate preferred, by ethnicity, August 2003
  • Sole-type users of chocolate
  • Figure 36 Sole types of chocolate users, August 2003
  • Figure 37 Sole types of chocolate users, by age, August 2003
• PREFERENCE FOR ADDED INGREDIENTS IN CHOCOLATE
  • Figure 38 Preference for added ingredients in chocolate, August 2003
  • Figure 39 Preference for added ingredients in chocolate, by gender, August 2003
  • Figure 40 Preference for added ingredients in chocolate, by age, August 2003
  • Figure 41 Preference for added ingredients in chocolate, by household income, August 2003
  • Figure 42 Preference for added ingredients in chocolate, by region of residence, August 2003
  • Cross-tabulation: which type of chocolate liked by added ingredients liked in chocolate
  • Figure 43 Type of chocolate by preferences for added ingredients, August 2003
• FORMS OF CHOCOLATE CONFECTIONERY
  • Figure 44 Forms of chocolate confectionery, January-May 2003
  • Figure 45 Forms of chocolate confectionery, by gender, January-May 2003
  • Figure 46 Form of chocolate confectionery, by age, January-May 2003
  • Figure 47 Forms of chocolate confectionery, by household income, January-May 2003
  • Figure 48 Forms of chocolate confectionery, by ethnicity, January-May 2003
• TEENS AND CHOCOLATE CONFECTIONERY
  • Forms of chocolate candy consumed
  • Figure 49 Forms of chocolate confectionery eaten by teens, January-September 2002
  • Figure 50 Forms of chocolate confectionery eaten by teens, by age and sex, January-September 2002
• CHILDREN AND CHOCOLATE CONFECTIONERY
  • Forms of chocolate confectionery consumed
  • Figure 51 Forms of chocolate confectionery eaten by children, June 2002-May 2003
  • Figure 52 Forms of chocolate confectionery eaten by children, by age and sex, June 2002-May 2003
  • Cross tabulation of eating attitudes with chocolate consumption
  • Figure 53 Cross-tabulation of eating attitudes with consumption of any chocolate, January-September 2002
• CONCLUSIONS

FUTURE & FORECAST

• FUTURE TRENDS
  • New product innovation
  • Greater importance of 'convenient' distribution outlets
  • Shifts in population offer market opportunities
  • Figure 54 U.S. population projections, by age, 2003 and 2008
  • Indulgence in chocolate and rising health concerns
• MARKET FORECAST
  • Total Market
  • Figure 55 Forecast of U.S. retail sales of chocolate confectionery, at current and constant prices, 2003-2008
  • Graph 3 U.S. retail sales of chocolate confectionery, at constant prices, 1998-2008
  • FDM Sales by Segment
  • Figure 56 FDM sales of chocolate confectionery, by type, 2003 & 2008
  • Total Market by Channel
  • Figure 57 Sales of chocolate confectionery, by channel, 2003 & 2008
  • Forecast Factors

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: NEW PRODUCT BRIEFS

• Innovative Companies: Carb Slim Chocolate Caramel Crunch Bites
• Nestle USA: Nestle Boo! Halloween Big Bucket
• CarboLite Foods: CarboRite Chocolate Crisp Wafer
• Russell Stover Candies: New Low Carb Candy
• Inspired Natural Foods: Cloud Nine Premium Chocolate Bar
• Hershey Foods: Kit Kat Miniatures
• Guylian USA: Praline Candy Bar
• Hershey Foods: Mr. Goodbar Bites
• American Chocolate: The Island Gourmet Dark Chocolate Bar
• Madelaine Chocolate Novelties: Santa and Snowman Stackables

APPENDIX: RESEARCH METHODOLOGY

• CONSUMER RESEARCH
• Sampling & Weighting
• Presentation & Definition
• Further Analysis
• TRADE RESEARCH
• Informal trade research
• Formal trade research
• DESK & INTERNET RESEARCH
• SOURCES
• DEFINITIONS
• FORECASTS

APPENDIX: WHAT IS MINTEL?

• MINTEL PUBLICATIONS
• MINTEL SERVICeS
• Product retrieval
• Retail audits
• Tailored research
• Global New Products Database
• RESEARCH SUPPORT/CONSULTANCY/MIC
• The Mintel Information Centre (MiC)
• PR Research