The Chocolate of Tomorrow
CONSUMER MARKETS
The chocolate of tomorrow
What today’s market can tell us about the future June 2012 kpmg.com
R
evenues from the chocolate industry continue to prove rewarding, with 2011 figures from IBISWorld predicting annualized growth of around 2% over the next five years, after dampened expectations during the dark days of 2007-09. But behind the encouraging headlines, many companies are battling to stay on top of a rapidly shifting marketplace. Taste is diverging, as fast-growing economies and empowered consumers demand more from their products. For industry stalwarts, the requirement to offer local, highly tailored and increasingly diverse products represents a serious threat to market share. Spotting the markets that are likely to grow quickly will make the difference between the winners and losers of tomorrow’s chocolate landscape. According to official government figures, current hot spots include India (annual growth rate 15%), China (9%), Russia (6%) and Mexico (3.8%). They all exhibit a number of key factors that help them stand out from the pack, including a youthful population, rapid capital inflows and retail consolidation. In this report, we’ll take a tour of the factors shaping the chocolate market of tomorrow – from geography and demographics, to consumer needs and preferences, and other market drivers. And we’ll attempt to offer a glimpse into the future by defining what might be the chocolate bar of 2030.
John A Morris
European Head of Consumer Markets KPMG LLP
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
The chocolate of tomorrow State of the market
Contents
4 The global picture
What they’re eating and why: a world tour of consumer taste in the chocolate market The three types of consumer shaping the way people buy
The chocolate of tomorrow
What today’s market can tell us about the future June 2012 kpmg.com
R
evenues from the chocolate industry continue to prove rewarding, with 2011 figures from IBISWorld predicting annualized growth of around 2% over the next five years, after dampened expectations during the dark days of 2007-09. But behind the encouraging headlines, many companies are battling to stay on top of a rapidly shifting marketplace. Taste is diverging, as fast-growing economies and empowered consumers demand more from their products. For industry stalwarts, the requirement to offer local, highly tailored and increasingly diverse products represents a serious threat to market share. Spotting the markets that are likely to grow quickly will make the difference between the winners and losers of tomorrow’s chocolate landscape. According to official government figures, current hot spots include India (annual growth rate 15%), China (9%), Russia (6%) and Mexico (3.8%). They all exhibit a number of key factors that help them stand out from the pack, including a youthful population, rapid capital inflows and retail consolidation. In this report, we’ll take a tour of the factors shaping the chocolate market of tomorrow – from geography and demographics, to consumer needs and preferences, and other market drivers. And we’ll attempt to offer a glimpse into the future by defining what might be the chocolate bar of 2030.
John A Morris
European Head of Consumer Markets KPMG LLP
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
The chocolate of tomorrow State of the market
Contents
4 The global picture
What they’re eating and why: a world tour of consumer taste in the chocolate market The three types of consumer shaping the way people buy