Chocolate Confectionery - UK

 Published On: Apr, 2013 |    No of Pages: 217 |  Published By: Mintel Group | Format: PDF

Using more unusual flavour combinations in bars may appeal to the 28% of users who like trying chocolate with exciting flavours. Chilli flavours are now fairly commonplace in premium block and boxed chocolates and could add an exciting twist to bars, as could a hint of sea salt in a caramel centre.

Some questions answered in this report include:

  • Which NPD areas offer most potential in chocolate bars?
  • How can manufacturers benefit from the growing over-65s population?
  • To what extent do consumers believe ethically sourced chocolate is worth a price premium?
  • How much of a deterrent is price inflation to demand?

Introduction
Go to section
Definition
Abbreviations

Executive Summary
The market
Figure 1: Total UK retail value sales of chocolate confectionery, 2007-17
Figure 2: Total UK retail volume sales of chocolate confectionery, 2007-17
Segment performance
Figure 3: UK retail value sales of chocolate confectionery, by sector, 2012
Market factors
Half of adults indulge in unhealthy treats
Growth of over-65s poses a challenge to the market
Companies, brands and innovation
NPD in seasonal chocolate declines as blocks and countlines gain share
Mondelēz has biggest share of NPD activity
Limited editions reach a five-year high
Cadbury Dairy Milk is the chocolate market’s biggest brand
The consumer
Consumption and purchasing of chocolate declines with age
Price is the biggest choice factor when choosing a chocolate product
Over-55s are the most likely to prefer dark chocolate
Figure 4: Consumer preference to chocolate, by flavour type, by age, February 2013
Chocolate boasts value and treat appeal
Figure 5: Attitudes towards chocolate confectionery, February 2013
What we think

Issues in the Market
Which NPD areas offer most potential in chocolate bars?
How can manufacturers benefit from the growing over-65s population?
To what extent do consumers believe ethically sourced chocolate is worth a price premium?
How much of a deterrent is price inflation to demand?

Trend Application
Trend: Moral Brands
Trend: Extend my Brand
Mintel Futures Trend: Human

Market Drivers
Key points
Treat appeal remains consistent over the downturn
Figure 6: Agreement with selected lifestyle statements, 2008-12
Fewer people buy fair trade when available
Cocoa prices steady after volatile 2009-11 period
Figure 7: Global monthly average of cocoa prices, January 2009-January 2013
Ageing population represents a challenge
Figure 8: Projected trends in population growth, by age, 2012-17

Who’s Innovating?
Key points
Share of chocolate confectionery NPD tumbles in 2012 after record 2011
Seasonal NPD falls as countlines and blocks gain share
Figure 9: Share of new product launches within the UK chocolate confectionery market, by product category, 2008-12
Mondelēz has biggest share of NPD activity
Figure 10: Share of new product launches within the UK chocolate confectionery market, by company, 2008-12
Mondelēz International
Nestlé
Mars
Limited editions reach a five-year high
Vegetarian has the biggest share of claims
Figure 11: Annual growth/decline in new chocolate confectionery product claims, 2011-12
Other notable NPD
Alternative flavours and textures
Probiotic and low calorie

Strengths and Weaknesses
Strengths
Weaknesses

Market Size and Forecast
Key points
Commodity price inflation fuels value growth in chocolate confectionery
Figure 12: Total UK retail value and volume sales of chocolate confectionery, 2007-17
The future of the chocolate confectionery market
Market forecasts
Figure 13: Total UK retail value sales of chocolate confectionery, 2007-17
Figure 14: Total UK retail volume sales of chocolate confectionery, 2007-17
Forecast methodology

Market Segmentation
Key points
Chocolate bars record value decline
Figure 15: UK retail sales of chocolate confectionery, by sub-category, 2009-11
Price hikes lift block chocolate as assortments see value declines
Chocolate egg sales crash in 2012

Market Share
Key points
Cadbury rules the roost with Cadbury Dairy Milk
Figure 16: Leading brands’ sales and shares in the UK chocolate confectionery market, by value and volume, 2012 and 2013
Galaxy value sales stumble but there’s strong growth from Mars’ other stalwarts
Nestlé’s big brands struggle to keep up
Thorntons grows value sales in line with market

Companies and Products
Figure 16: Leading companies in the chocolate confectionery market and their brands*, 2013
Ferrero
Lindt & Sprüngli
Mars
Mondelēz International
Nestlé
Thorntons

Brand Research
Brand map
Figure 17: Attitudes towards and usage of brands in the chocolate confectionery sector, January 2013
Correspondence analysis
Brand attitudes
Figure 18: Attitudes, by chocolate confectionery brand, January 2013
Brand personality
Figure 19: Chocolate confectionery brand personality – macro image, January 2013
Figure 20: Chocolate confectionery brand personality – micro image, January 2013
Brand experience
Figure 21: Chocolate confectionery brand usage, January 2013
Figure 22: Satisfaction with various chocolate confectionery brands, January 2013
Figure 23: Consideration of chocolate confectionery brands, January 2013
Figure 24: Consumer perceptions of current chocolate confectionery brand performance, January 2013
Figure 25: Chocolate confectionery brand recommendation – Net Promoter Score, January 2013
Brand index
Figure 26: Chocolate confectionery brand index, January 2013
Figure 27: Chocolate confectionery brand index vs. recommendation, January 2013
Target group analysis
Figure 28: Target groups, January 2013
Figure 29: Chocolate confectionery brand usage, by target groups, January 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists

Brand Communication and Promotion
Key points
Advertising levels regain in 2012
Figure 30: Main monitored media advertising spend on chocolate confectionery, 2009-12
Record-spending Mars is untouchable as the biggest advertiser
Figure 31: Main monitored media advertising spend on chocolate confectionery, by advertiser, 2009-12
M&M’s is the highest-supported individual brand in 2012
Figure 32: Main monitored media advertising spend on chocolate confectionery, by brand, 2009-12
Mars
Cadbury Dairy Milk
Ferrero
Lindt
TV spend falls as cinema rises sharply in 2012
Figure 33: Main monitored media advertising spend on chocolate confectionery, by media type, 2009-12

Channels to Market
Key points
Multiple grocers continue to reinforce growth
Figure 34: Estimated UK retail sales of chocolate confectionery, by outlet type, 2010-12
Chocolatiers seek expansion opportunities

Consumer – Usage of Chocolate Confectionery
Key points
Individual bars are the most typically bought and eaten type of chocolate confectionery
Figure 35: Usage of chocolate confectionery, by type, February 2013
Gender differences apply to chocolate usage
Figure 36: Consumption of selected chocolate types, by gender, February 2013
Over-55s are most likely to eat block chocolates
Figure 37: Consumption of selected chocolate types, by age, February 2013
Disparity between purchasing of sharing bags and boxes of wrapped chocolates
Figure 38: Purchasing of selected chocolate types, by gender and age, February 2013

Consumer – Choice Factors and Flavour Preferences
Key points
Price ranks highest when choosing chocolate
Figure 39: Choice factors when buying chocolate confectionery, February 2013
On-pack promotions appeal to lower earners
Figure 40: On-pack promotions as a choice factor when choosing chocolate, by socio-economic group and gross household income, February 2013
Just 16% of users consider higher cocoa content to be important
Milk chocolate is most popular flavour as preference for dark increases with age
Figure 41: Consumer preference to chocolate, by flavour type, by age, February 2013

Consumer – Attitudes Towards Chocolate Confectionery
Key points
Chocolate boasts value and treat appeal
Figure 42: Attitudes towards chocolate confectionery, February 2013
Dark chocolate boasts a healthy reputation
Figure 43: Agreement with the statements ‘Dark chocolate is healthier than milk or white chocolate’ and ‘I’d like to see more chocolate with added health benefits’, by gender and age, February 2013
High level of interest in added health benefits
Limited editions attract high interest
Ethically sourced chocolate lacks credibility among a sizeable minority of users
Figure 44: Agreement with the statements ‘Ethically sourced chocolate (eg Fairtrade, Rainforest Alliance) is worth paying more for’

Consumer – Further Attitudes Towards Chocolate Confectionery
Key points
Half of female users eat chocolate as a comfort food
Figure 45: Further attitudes towards chocolate confectionery, February 2013
Tray chocolates are poor value for money for one in three
Resealable packaging on bars has stronger appeal among women
Figure 46: Agreement with selected statements, by gender, February 2013

Consumer – Attitudes Towards Price Rises
Key points
Price hikes would force the majority of users to eat chocolate less often
Figure 47: Attitudes towards price rises, February 2013
Fewer than three in ten would not change buying patterns at all

Consumer – Target Groups
Key points
Four target groups
Figure 48: Target groups, February 2013
Flavour Adventurers (22%)
Choc Sharers (28%)
Ethical Cynics (26%)
Cocoa Connoisseurs (24%)

Appendix – Market Drivers
Figure 49: Trends and projections in the UK population (‘000s), by age group, 2007-17
Figure 50: Forecast adult population trends, by socio-economic group, 2007-17
Figure 51: Forecast adult population trends, by lifestage, 2007-17
Figure 52: Agreement with selected lifestyle statements, by demographics, 2012

Appendix – Market Size and Forecast
Figure 53: Best- and worst-case forecasts for UK value sales of chocolate confectionery, 2012-17
Figure 54: Best- and worst-case forecasts for UK volume sales of chocolate confectionery, 2012-17

Appendix – Brand Research
Figure 55: Brand usage, January 2013
Figure 56: Brand commitment, January 2013
Figure 57: Brand momentum, January 2013
Figure 58: Brand diversity, January 2013
Figure 59: Brand satisfaction, January 2013
Figure 60: Brand recommendation, January 2013
Figure 61: Brand attitude, January 2013
Figure 62: Brand image – macro image, January 2013
Figure 63: Brand image – micro image, January 2013
Figure 64: Profile of target groups, by demographics, January 2013
Figure 65: Psychographic segmentation, by target groups, January 2013
Figure 66: Brand usage, by target groups, January 2013
Brand index
Figure 67: Brand index, January 2013

Appendix – Consumer – Usage of Chocolate Confectionery
Figure 68: Most popular types of chocolate have eaten in the past six months, by demographics, February 2013
Figure 69: Next most popular types of chocolate have eaten in the past six months, by demographics, February 2013
Figure 70: Most popular types of chocolate have bought in the past six months, by demographics, February 2013
Figure 71: Next most popular types of chocolate have bought in the past six months, by demographics, February 2013
Appendix – Consumer – Choice Factors and Flavour Preferences
Figure 72: Consumer preference to chocolate, by flavour type, by demographics, February 2013
Figure 73: Most popular choice factors when buying chocolate confectionery, by demographics, February 2013
Figure 74: Next most popular choice factors when buying chocolate confectionery, by demographics, February 2013
Figure 75: Other choice factors when buying chocolate confectionery, by demographics, February 2013
Appendix – Consumer – Attitudes towards Chocolate Confectionery
Figure 76: Agreement with the statements ‘Chocolate is a good value treat’ and ‘Chocolate is a good source of energy’, by demographics, February 2013
Figure 77: Agreement with the statements ‘Dark chocolate is healthier than milk or white chocolate’ and ‘I like trying limited edition versions of my favourite brands’, by demographics, February 2013
Figure 78: Agreement with the statements ‘I’d like to see more chocolate with added health benefits’ and ‘Ethically sourced chocolate is worth paying more for’, by demographics, February 2013
Figure 79: Agreement with the statements ‘Eating chocolate tends to make me feel guilty’ and ‘I’d eat more chocolate if it was less expensive’, by demographics, February 2013
Figure 80: Agreement with the statements ‘I like trying chocolate with exciting flavours’ and ‘I don’t trust ethical claims on chocolate’, by demographics, February 2013

Appendix – Consumer – Further Attitudes towards Chocolate Confectionery
Figure 81: Most popular further attitudes towards chocolate confectionery, by demographics, February 2013
Figure 82: Next most popular further attitudes towards chocolate confectionery, by demographics, February 2013
Figure 83: Other further attitudes towards chocolate confectionery, by demographics, February 2013
Appendix – Consumer – Attitudes towards Price Rises
Figure 84: Further attitudes towards chocolate confectionery, by demographics, February 2013

Appendix – Consumer Target Groups
Figure 85: Target groups, by demographics, February 2013
Figure 86: Types of chocolate eaten, by target groups, February 2013
Figure 87: Consumer preference to chocolate, by flavour type, by target groups, February 2013
Figure 88: Choice factors when buying chocolate confectionery, by target groups, February 2013
Figure 89: Attitudes towards chocolate confectionery, by target groups, February 2013
Figure 90: Further attitudes towards chocolate confectionery, by target groups, February 2013
Figure 91: Further attitudes towards chocolate confectionery, by target groups, February 2013

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