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SUMMARY
- With candy universally popular, endlessly varied, and ubiquitouslyavailable, the overall U.S. market is largely mature. Moreover, ever-growingconsumer health and obesity concerns have kept consumption levels flat, evenas marketer competition and innovation have been dampened by a sluggisheconomy, by market consolidation, and by rising costs, which led Hershey toraise wholesale prices on its product line in December 2004. Difficult timescan drive consumers to comfort foods such as candy: the University ofMichigans American Customer Satisfaction Index for third quarter 2004shows Hershey and Mars products garnering the greatest increases in customersatisfaction ratings over the past year.
- Along with caloric and carb concerns, nonetheless, demographics conspireagainst any near-future surge in market growth. The competitive response? Anongoing free-for-all whereby marketers are stretching beyond former class,retail, segment, and product boundaries to grab sales and share fromcompetitors. Simultaneously, marketers are updating marketing, tweakingofferings, and launching new products to target candy consumers of allstripes.
- Packaged Facts new report, The U.S. Market for Chocolate: ChocolateBars, Bagged Chocolates and Gourmet Chocolates, analyzes sales and growthpotential for the chocolate category within the confectionery market (acompanion volume covers non-chocolate candy), including gourmet and low-carb/sugar-freeproducts; surveys marketing and new product trends; and dissects consumerdemographics for chocolate candy overall and for leading brands.
Report Methodology - The information in The U.S. Market for Chocolate: Chocolate Bars, BaggedChocolates and Gourmet Chocolates based on both primary and secondaryresearch. Primary research involved on-site examination of the retailmilieu, interviews with marketing, public relations and industry analystswithin the chocolate market and consultants to the industry. Secondaryresearch entailed data-gathering from relevant trade, business, andgovernment sources, including company literature. Packaged Facts has derivedmass merchandiser sales figures from Information Resources, Inc. (IRI)InfoScan sales-tracking data. Figures provided on national consumeradvertising expenditures are based primarily on data (copyright 2004)compiled by TNS Media Intelligence/CMR, the leading provider of strategicadvertising and marketing communications intelligence. The analysis ofconsumer demographics derives from Simmons Market Research Bureau surveydata for spring 2004. New product information is gathered via literatureresearch, personal interviews and data compiled by ProductScan, a service ofDatamonitor.
What Youll Get in this Report - The U.S. Market for Chocolate: Chocolate Bars, Bagged Chocolates andGourmet Chocolates is a brand-new report that offers a unique perspective onthe changing market for chocolate candy, from gourmet to the everyday. Noother market research report provides both the comprehensive analysis andextensive data that The U.S. Market for Chocolate: Chocolate Bars, BaggedChocolates and Gourmet Chocolates offers. The report addresses the followingsegments:
- The Market (including market size and composition, and projected marketgrowth)
- The Marketers (including discussions of specific marketer brand and marketshares)
- The Consumer(whos buying what, and where)
- The Products
- Trends and Opportunities
Plus, youll benefit from extensive data, presented in easy-to-read andpractical charts, tables and graphs. - How You Will Benefit from this Report If your company is already competingin the chocolate market, or is considering making the leap, you will findthis report invaluable, as it provides a comprehensive package ofinformation and insight not offered in any other single source. You willgain a thorough understanding of the current market for chocolate bars,bagged chocolates and gourmet chocolates, as well as projected sales andtrends through 2009. Contributing to that understanding will be a completeanalysis of sales data from IRI and other published and trade sources, adetailed discussion of the consumer for chocolate based on Simmons data.
This report will help: - Marketing Managers identify market opportunities and develop targetedpromotion plans for chocolate.
- Research and development professionals stay on top of competitorinitiatives and explore demand for products in the chocolate arena.
- Advertising agencies working with clients in the food industry understandthe product buyer to develop messages and images that compel consumers topurchase these products.
- Business development executives understand the dynamics of the market andidentify possible partnerships.
- Information and research center librarians provide market researchers,brand and product managers and other colleagues with the vital informationthey need to do their jobs more effectively.
TABLE OF CONTENTS
Chapter 1: Executive Summary - Scope and Methodology
- Market Scope
- Report Methodology
- The Competitive Situation
- Wholesale Dollar Shipments Top $9 Billion
- Overall Retail Sales at $14.6 Billion
- Figure 1-1: U.S. Retail Sales of Chocolate Candy, 2000-2004 (inmillions of dollars)
- Factors to Market Growth
- The Top Marketers
- Figure 1-2: Top Four Marketers of Chocolate Candy by IRI-TrackedShare, 2004 (percent)
- The Dollar Gain Leaders
- 358 New Product Lines in 2004
- Three Key Trends: Gourmet, Low-Carb, and Natural
- Figure 1-3: Key Chocolate Candy Trends by Number of New ProductIntroduction Package Tags, 2000 vs. 2004
- Grab-and-Go Chocolates
- Extending into Snacks
- Sea Legs for Sugar-Free?
- The Consumer
- 67% of Adults Eat Chocolate Candy
- Homemakers and Part-Timers as Heavy Users
- 51% of Adults Eat Hershey Chocolate Candy
- M&Ms the Top Brand at 19% Usage Rate
- Spotlight on Premium Chocolates
- Premium Market Approaches $1.5 Billion in 2004
- 36% Growth Rate for Lindt
- Godiva Goes Diva
- Overview of Flavor Trends
- Pushing the Dark Chocolate Envelope
- Growth in Organics
- Frontiers in Flavor: Raiding the Pantry
- The Holy Grail: Frequency of Consumption
- Premium Consumer Demographics
- Looking Ahead
- Brand Churning
- Candy with a Conscience
- Beyond the Caste System
- The Future of the Past
- Chapter 2: Competitive Situation
- Market Size and Growth
- Note on Information Resources, Inc. Market Share Data
- Wholesale Dollar Shipments Top $9 Billion
- Wholesale Per Capita Consumption at $32
- Overall Retail Sales at $14.6 Billion
- Figure 2-1: U.S. Retail Sales of Chocolate Candy, 2000-2004 (inmillions of dollars)
- IRI-Tracked Sales at $4.4 Billion
- Standard Assortment Chocolates at 70% of Mass Market
- Solid Chocolate at 13% of Market
- Figure 2-2: Share of Wholesale Dollar Value of Chocolate Confectioneryby Product Type, 2003 (percent)
- Supermarkets and Grocery Stores at 29% of Market
- Factors to Market Growth
- Figure 2-3: Share of U.S. Population Growth for Selected Racial/EthnicPopulations, 2005-2010 (percent)
- Figure 2-4: Share of Selected U.S. Racial/Ethnic Populations WhoFrequently Eat Sweets, 2004 (percent)
- Figure 2-5: Share of Selected U.S. Racial/Ethnic Populations WhoFrequently Snack, 2004 (percent)
- Figure 2-6: Share of U.S. Population Growth for Selected Age Brackets,2005-2010 (percent)
- Sales Projected at $17.8 Billion in 2009
- Table 2-1: U.S. Manufacturers Pound and Dollar Shipments ofChocolate Confectionery, 1999-2003 (in millions of pounds and dollars)
- Table 2-2: Manufacturers Pound and Dollar Shipments of ChocolateConfectionery by Product Type, 1999-2003 (in millions of pounds anddollars)
- Table 2-3: U.S. Per Capita Consumption of Chocolate Confectionery:Pounds and Wholesale Dollar Value, 1999-2003
- Table 2-4: Per Capita Consumption of Chocolate Confectionery inSelected Countries, 2000 vs. 2002 (in pounds)
- Table 2-5: U.S. Retail Sales of Chocolate Candy, 2000-2004 (inmillions of dollars)
- Table 2-6: IRI-Tracked Sales of Chocolate Candy, 2000-2004 (inmillions of dollars)
- Table 2-7: IRI-Tracked Sales of Standard Assortment Chocolate Candy,2000-2004 (in millions of dollars)
- Table 2-8: IRI-Tracked Sales of Seasonal Chocolate Candy, 2000-2004(in millions of dollars)
- Table 2-9: IRI-Tracked Sales of Gift Box Candy, 2000-2004 (in millionsof dollars)
- Table 2-10: Share of Chocolate Candy Sales Through IRI-TrackedOutlets: By Category, 2000 vs. 2004 (percent)
- Table 2-11: Share of Standard Assortment Chocolate Candy Sales ThroughIRI-Tracked Outlets: By Segment, 2004 (percent)
- Table 2-12: Population Projections for Selected U.S. Racial/EthnicPopulations, 2000-2020 (in thousands)
- Table 2-13: Projected U.S. Population by Age Bracket, 2000-2010 (inthousands)
- Table 2-14: Share of U.S. Population Growth for Selected Age Brackets,2005-2010 (percent)
- Table 2-15: Projected U.S. Retail Sales of Chocolate Candy, 2004-2009(in millions of dollars)
- Marketer and Brand Shares
- The Top Marketers
- Figure 2-7: Top Four Marketers of Chocolate Candy by IRI-TrackedShare, 2004 (percent)
- At Marketer Level, Hershey Leads in Dollar Gains
- M&Ms Brand at 11.6% Market Share
- Figure 2-8: Top Ten Brands of Chocolate Candy by IRI-Tracked Share,2004 (percent)
- By Product Line, Russell Stover Diet Leads in Dollar Gains
- Table 2-16: Top Marketers of Chocolate Candy by IRI-Tracked Share,2000-2004 (percent)
- Table 2-17: Top Marketers of Chocolate Candy by IRI-Tracked Share:Standard Assortment, Seasonal, Gift Box, and Overall, 2004 (percent)
- Table 2-18: IRI-Tracked Sales of Top Chocolate Candy Mass Marketers,2000-2004 (millions of dollars)
- Table 2-19: Increase/Decline in IRI-Tracked Sales of Top ChocolateCandy Mass Marketers, 2000-2004 (millions of dollars)
- Table 2-20: Top Brands of Chocolate Candy by IRI-Tracked Share,2000-2004 (percent)
- Table 2-21: IRI-Tracked Sales of Top Mass-Market Chocolate CandyBrands, 2000-2004 (millions of dollars)
- Table 2-22: Top Mass-Market Chocolate Candy Brands by 4-Year DollarGrowth, 2000-2004 (millions of dollars)
- Marketing and New Product Trends
- $415 Million in Advertising for Mars
- 358 New Product Lines in 2004
- The Key Trends: Gourmet, Low-Carb, and Natural
- Figure 2-9: Key Chocolate Candy Trends by Number of New ProductIntroduction Package Tags, 2000 vs. 2004
- Grab-and-Go Chocolates
- Extending into Snacks
- Sea Legs for Sugar-Free?
- Chocolate as Health and Beauty Care
- Marketing to Women: Its the Emotions
- Targeting Hispanics: Flavors and Packaging
- Targeting Children: Long-Term Licenses
- Newness and Name Brands for Seasonal Chocolates
- Table 2-23: Number of New Chocolate Candy Introductions by PackageTags, 2000-2004
- Table 2-24: Top Mass-Market Chocolate Product Lines by 52-WeekIncrease in IRI-Tracked Sales, 2004 (millions of dollars)
- Table 2-25: Selected Chocolate Candy New Product Introductions, 2004 -January 2005
Chapter 3: The Consumer - Consumer Overview
- Note on Simmons Market Research Bureau Consumer Data
- 67% of Adults Eat Chocolate Candy
- Figure 3-1: Candy Usage Rates: Overall, Chocolate Candy, andNon-Chocolate Candy, 2004 (U.S. adults)
- Homemakers and Part-Timers as Heavy Users
- Attitude Variations in Users and Heavy Users
- Table 3-1: Purchasing Indexes by Demographic Breakout: Consumers ofChocolate Candy Brands vs. Consumers of Non-Chocolate Candy Brands, 2004(U.S. adults)
- Table 3-2: Purchasing Indexes by Demographic Breakout: Consumers ofChocolate Candy Brands vs. Heavy Users of Chocolate Candy Brands, 2004(U.S. adults)
- Table 3-3: Indexes for Food- and Diet-Related Attitudes and Behaviors:Consumers of Chocolate Candy Brands, Consumers of Non-Chocolate CandyBrands, and Heavy Users of Chocolate Candy Brands, 2004 (U.S. adults)
- Consumer Patterns by Marketer and Brand
- 51% of Adults Eat Hershey Chocolate Candy
- M&Ms the Top Brand at 19% Usage Rate
- Snickers Claims 2.5 Million Loyalists
- Bite-Sized Brands Draw Heavy Users
- Attitude and Behavior Variations by Brand
- Table 3-4: Purchasing Indexes by Demographic Breakout: Chocolate CandyOverall vs. Hershey, Mars, and Nestle as Marketers, 2004 (U.S. adults)
- Table 3-5: Purchasing Rates for Selected Chocolate Candy Brands, 2004(U.S. adults)
- Table 3-6: Top Ten Chocolate Candy Brands by Number and Percent ofSole Users, 2004 (U.S. adults)
- Table 3-7: Heavy Usage Indexes by Chocolate Candy Brand, 2004 (U.S.adults)
- Table 3-8: Indexes by Chocolate Candy Brand for Agreement withStatement: I Often Snack Between Meals, 2004 (U.S. adults)
- Table 3-9: Indexes by Chocolate Candy Brand for Agreement withStatement: I Frequently Eat Sweets, 2004 (U.S. adults)
- Table 3-10: Indexes by Chocolate Candy Brand for Agreement withStatement: I Feel Guilty When I Eat Sweets, 2004 (U.S. adults)
- Table 3-11: Indexes by Chocolate Candy Brand for Agreement withStatement: Fattening Food Makes Me Feel Guilty, 2004 (U.S. adults)
- Table 3-12: Indexes by Chocolate Candy Brand for Agreement withStatement: I Normally Count Calories in the Foods I Eat, 2004 (U.S.adults)
- Table 3-13: Indexes by Chocolate Candy Brand for Agreement withStatement: I Usually Only Snack on Healthy Foods, 2004 (U.S. adults)
- Table 3-14: Indexes by Chocolate Candy Brand for Agreement withStatement: I Like to Try Out New Food Products, 2004 (U.S. adults)
- Table 3-15: Indexes by Chocolate Candy Brand for Agreement withStatement: Im Often Swayed by Coupons to Try New Food, 2004 (U.S.adults)
- Brand Demographics
- Women Index High for Chocolate Mints
- Senior Skew to Classic, Boxed, and Bite-Sized Chocolates
- Hershey Catching Up to Hispanics
- Brand Strengths by Region
- Dove as Exception to Lower-Education Skew
- Patterns by Household Income and Value of Housing
- Crunch vs. Creme in Households with Kids
- Figure 3-2: Purchasing Indexes for Selected Chocolate Candy BrandsAmong Households With Children Age 12-17, 2004 (U.S. adults)
- Table 3-16: Purchasing Indexes for Selected Chocolate Candy Brands: ByGender, 2004 (U.S. adults)
- Table 3-17a: Purchasing Indexes for Selected Chocolate Candy Brands:By Age Bracket, 2004 (U.S. adults)
- Table 3-17b: Purchasing Indexes for Selected Chocolate Candy Brands:By Age Bracket, 2004 (U.S. adults)
- Table 3-18: Purchasing Indexes for Selected Chocolate Candy Brands: ByRace/Ethnicity, 2004 (U.S. adults)
- Table 3-19a: Purchasing Indexes for Selected Chocolate Candy Brands:By Region, 2004 (U.S. adults)
- Table 3-19b: Purchasing Indexes for Selected Chocolate Candy Brands:By Region, 2004 (U.S. adults)
- Table 3-20: Purchasing Indexes for Selected Chocolate Candy Brands: ByHighest Degree of Educational Attainment, 2004 (U.S. adults)
- Table 3-21: Purchasing Indexes for Selected Chocolate Candy Brands: ByHousehold Income, 2004 (U.S. adults)
- Table 3-22: Purchasing Indexes for Selected Chocolate Candy Brands: ByType of Residence, 2004 (U.S. adults)
- Table 3-23: Purchasing Indexes for Selected Chocolate Candy Brands: ByValue of Residence, 2004 (U.S. adults)
- Table 3-24: Purchasing Indexes for Selected Chocolate Candy Brands: ByEmployment Status, 2004 (U.S. adults)
- Table 3-25: Purchasing Indexes for Selected Chocolate Candy Brands: ByNumber in Household, 2004 (U.S. adults)
- Table 3-26: Purchasing Indexes for Selected Chocolate Candy Brands:Households Without Children vs. Households With Children, 2004 (U.S.adults)
- Table 3-27: Purchasing Indexes for Selected Chocolate Candy Brands: ByNumber of Children in Household, 2004 (U.S. adults)
- Table 3-28: Purchasing Indexes for Selected Chocolate Candy Brands: ByAge of Children in Household, 2004 (U.S. adults)
Chapter 4: Spotlight on Premium Chocolate - Competitive Situation
- Premium Market Approaches $1.5 Billion in 2004
- Gourmet Market Estimated at $1.1 Billion
- Projected Market Growth
- Figure 4-1: Projected U.S. Retail Sales of Gourmet Chocolates,2004-2009 (in billions of dollars)
- The Top Marketers
- 16% Annual Growth for Premium Chocolates in Mass Market
- Table 4-1: IRI-Tracked Sales of Selected Premium Chocolate Brands,2000-2004 (in millions of dollars)
- 36% Growth Rate for Lindt
- Figure 4-2: IRI-Tracked Sales of Seasonally Packaged Lindt andGhirardelli Chocolate Candy, 2000-2004 (in millions of dollars)
- Godiva Goes Diva
- New Product Trends
- Overview of Flavor Trends
- 35%-40% Prefer Dark Chocolate
- Pushing the Envelope: Cocoa Content, Varietals, and Origins
- Growth in Organics
- 27% of Americans Eating More Organic Foods
- The Case for Organic Chocolate
- The Case for Fair Trade
- The Organic Chocolate Line-Up
- Figure 4-3: Number of New Chocolate Candy Introductions by PackageTags: Natural and Organic, 2000 vs. 2004
- Frontiers in Flavor: Raiding the Pantry
- The Holy Grail: Frequency of Consumption
- Table 4-2: Premium Chocolate Candy Trends by Number of New ProductPackage Tags Among Selected Products, 2004
- Table 4-3: Selected Premium Dark Chocolate Candy New ProductIntroductions: 2004 - January 2005
- Table 4-4: Selected Premium Chocolate Candy New Product Introductionswith Cocoa Content or Cocoa Bean Varietal/Origin Specified: 2004 -January 2005
- Table 4-5: Categories of Organic Food Purchases by Those Who BuyOrganic, 2004 (percent)
- Table 4-6: Category Share of Consumer Sales of Organic Foods, 2004(percent)
- Table 4-7: Average Annual Growth Forecast by Organic Food Category,2004-2008 (percent)
- Table 4-8: Selected Organic Chocolate Candy New Product Introductions,2004 - January 2005
- Table 4-9: Selected Premium Chocolate Candy New Product Introductionswith Innovative Flavors: 2004 - January 2005
- Table 4-10: Selected Premium Single-Serve Chocolate Candy New ProductIntroductions: 2004 - January 2005
- The Consumer
- Premium Consumers Are 10% Less Likely to Eat Non-Healthy Treats
- Women Are 24% More Likely to Choose Premium Chocolate
- Table 4-11: Indexes for Food- and Diet-Related Attitudes andBehaviors: Consumers of Chocolate Candy Brands vs. Consumers of PremiumChocolate Brands, 2004 (U.S. adults)
- Table 4-12: Purchasing Indexes by Demographic Breakout: Consumers ofChocolate Candy Brands vs. Consumers of Premium Chocolate Candy Brands,2004 (U.S. adults)
Chapter 5: Looking Ahead - Brand Churning
- Table 5-1: IRI-Tracked Sales of Hersheys Kit Kat Brand ProductLines, 2000-2004 (in millions of dollars)
- Candy with a Conscience
- Table 5-2: IRI-Tracked Sales of Russell Stover Brand Product Lines,2000-2004 (in millions of dollars)
- Beyond the Caste System
- Table 5-3: Mass-Market Price Per Pound of Selected Premium ChocolateBrands, 2004 (in dollars)
- Table 5-4: Indexes by Chocolate Candy Brand for Agreement withStatement: I Try to Eat Gourmet Food Whenever I Can, 2004 (U.S. adults)
- The Future of the Past
Appendix: Addresses of Selected Marketers
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