Perspectives in the Chocolate Industry

BelgianChocolateStore

Current chocolate trends

Foodchannel recently posted new chocolate trends for 2012 which will be focused on more in 2013. To sum it up tastes move from traditional ones like milk chocolate with nuts to very individual tastes like “strawberry cheesecake” or “brownies”. Chocolate more and more tastes like a daily meal or a desert, or has the shape of the high heel that I wore yesterday. Also chocolate companies nowadays try to satisfy people who take care of health and would only eat something that fits into their diet. Chocolate with around 500 calories per bar seen as part of a healthy lifestyle? But the common excuse is that dark chocolate has less calories. It is known to lower both blood pressure and cholesterol, and has nearly 8 times the number of antioxidants as found in strawberries. Uff, in this way I propably don’t gain too much weight. Or is this maybe only a strategy to sell more of dark chocolate?

Companies more and more feel the pressure of meeting all modern needs also depending on seasons. During Christmas e.g. firms like Lindt offered special Christmas chocolate. But the rest which could not be sold can be find for half the price now in many supermarkets. Maybe there are just too many companies who offer nearly the same type of chocolate?

However, it’s not too late:

Chocolate industry analysis for 2013

Matt Sena, an expert of the industry, analyzed the chocolate industry for 2013.

The chocolate industry offers a wide variety of opportunities for the small business owner, weathers economic recession well and is growing despite increased health-consciousness and calorie counting. (Sena)

Fortunately people still buy chocolate, probably because even the deepest crisis does not stop people from loving chocolate. A recent study in Great Britain showed that 91% of females and 87% of males consume chocolate products. According to Sena the industry will even expand more. Being creative and innovative seems to be the challenge especially during the economic crisis.

Growth will be driven by population growth as well as expansion into new markets, product innovation and rising disposable income levels leading to greater purchasing of premium offerings. (Sena)

The focus goes more towards smaller businesses since they often offer better quality and a more unique chocolate than big companies which produce in huge factories. A small shop also offers special services like gift-wrapping for an individual requirement like a birthday or a business party.  Since in a time of globalization we now try to emphasize more on individuality. “I am the first person who tries this new fabulous taste” seems to be better than “I bought a chocolate bar that is sold 1000 times a day.” People spend less on very expensive issues like a costly journey but don’t want to give up the little ” affordable luxury” of the daily life. As already mentioned in my last post, the fair trade sector in chocolate business also increases since more people demand good labor conditions combined with premium chocolate and are willing to pay more but in this way supporting local farmers.

Also overseas countries increasingly take part of the chocolate hype which leads to greater export of special chocolates from Europe e.g. to China or India. This creates new E-Business possibilities to efficiently export abroad.

Future problems

Nevertheless, with 2013 also more problems will come along causing problems for the expanding chocolate industry:

Cocoa prices can be exceedingly variable as it is largely grown in developing nations with often unstable political situations. (Sena)

Cocoa farmers will not be able to meet coming chocolate demands. Scarcity of cocoa will rise chocolate prices for consumption in the next years. The question is: How much is still ok for my “affordably luxury”? How much is too much which lets my dream of buying premium chocolate recede into the distance? A recent post on investors.com states that there are already researchers developing genetically engineered cocoa trees to produce higher yields. Will this satisfy people who especially take care of good quality and fair production of chocolate?

Advertisements

3 thoughts on “Perspectives in the Chocolate Industry

  1. sassomi – my greatest competitor in the BlogBuster 😉
    What better 16:00 break is there than a nice cup of coffee and a bit of chocolate? That’s actually my favorite chocolate taste!

    I liked a lot of things about your new post, you’re getting better and better week after week. The design is very clean, starting with an interesting photo, splitting the post into small paragraphs, quotation and small and eye-catching titles – nicely done. I like the fact that the first sentence starts with an expert opinion – no smooth/fancy introduction that confuses the reader, but just telling him exactly what’s going on, and in a proffesional way.

    http://www.confectionerynews.com/Manufacturers/Nestle-s-uphill-struggle-in-block-chocolate-market

    While doing some research of my own online, I found that Nestle, the all-mighty chocolate company (and other products of course – I wrote about their coffee production 2 posts ago) has also come out recently with a new luxurious taste, but it has failed to succeed in the market. Are there too many new tastes out there? Do people prefer small brands over the big ones? or perhaps its really just about the final taste. Anyways, surely its worth to look deeper into Nestle and its business strategies in the chocolate industry.

    If Nestle does actually interest you, and you’d like to read some more, perhaps the following link will be at your service. It speaks about Nestle expanding its borders and investing into the Turkish market – I would love to taste a half western half turkish sweet ;-).

    http://www.spotblue.com/turkey-property-news/10902/swiss-chocolate-manufacturer-increases-turkish-investment-production/

    I would have liked it if the post would be more specific on some issues, rather than general. Perhaps more about expansions that you’ve mentioned, or about more the new tastes coming out to the market, business strategies, marketing strategies etc…
    But absolutely – a wonderful post!

    itaischwartz

  2. Hey sara!
    Your topic is definetely my favourite one! I love chocolate and I do not know if I`d survive without! But lets get to your post:
    Your introduction helps people to identify themselves with the topic. For example: I for myself always prefer to eat dark chocolate, of course I like it but at the same time I am always thinking it has less calories and is healthier, so even though it’s proven that it lowers blood pressure, its definetely also a marketing clue. I just found an interesting blog, dealing with this topic of “dark chocolate marketing”, check this:

    http://blogs.imediaconnection.com/blog/2012/03/22/mmmmm-%E2%80%93-marketing-dark-chocolate/

    Itai: I think Nestlé is an example for really bad quality chocolate. Its ways too sweet and just tastes like sugar. I think their products arent comparable to for example Rausch products, which Sara mentioned in one of her last posts. It would be interesting to see what is the difference in production and company philosophy? How do the big ones generate profits, and how do the small companies?

  3. Hey guys,
    thanks for your comments.
    @ Itai: I really appreciate your positive response to my post. This is also a result of your good hints for my topic. Therefore I want to thank you again for your help.
    It is interesting that you came up with “Nestle”. I have also heard a lot about their business strategy and how they make huge profits all over the world. I will do some research about their strategy concerning the chocolate industry.

    @Julia: I knew that we both fall for chocolate 😉 I think you showed with your comment that everybody can actually tell his or her own story in reference to an experience with chocolate. I am delighted that I could make you think a bit more about marketing strategies with my post.
    You also responded the same that I was going to answer to Itai’s comment. I will focus more on good quality chocolate and business strategies in this field because I think that this will be more successful one day since people already started to care more about quality. However, the future will remain very interesting and we will see how this industry will develop in the common years 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s