Milk Chocolate Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global milk chocolate market reached a value of about USD 58.60 billion in 2021. The industry is projected to grow at a CAGR of around 3.8% in the forecast period of 2022-2027 to reach a value of about USD 73.13 billion by 2027.

The global milk chocolate industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The need for novel dairy products, such as chocolate milk products, is constantly strong because their ingredients are full of nutritional content. The good is a quick and accessible source of nutrition and energy popular among many consumers. In the industry report, the critical demand indicator is the highest category spender by region—Europe (Western Europe) due to the rise in milk chocolate manufacturing in France and Germany.

Industry Definition and Segmentation

Milk Chocolate is solid chocolate that primarily contains cocoa, sugar, and milk. It is associated with being a nutritional snack, particularly for youngsters, while flavour and texture have been essential factors in its popularity. It is full of nutrients and helps improve memory, smoothens, and hydrates the skin, lowers the risk of cardiac strokes and attacks, and strengthens the immune system. Furthermore, it is high in flavonoids, antioxidants that remove free radicals from the bloodstream and increase blood flow. It melts quickly and has a lighter hue and creamier texture than plain or dark chocolate. The electronic manufacturing services industry report comprises segments by type (Dairy-Based Chocolate Milk, Non-Dairy Based Chocolate Milk), distribution channel (Supermarket/ Hypermarkets, Convenience Stores, Other Distribution Channels), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America). The European milk-based chocolate holds a significant share in the global market, with North America, Eastern Europe, Asia, Latin America, the Middle East and Africa, and Australasia following Western Europe.

North America, Europe, Asia Pacific, Middle East & Africa, and South America Regions are Driving the Growth of the Industry

The product also finds application in a wide range of products like confectionery goods, including cakes, milkshakes, croissants, and hot chocolate furthering the market's potential. The launch of newer products with ingredients like orange, caramel, biscuits, and nuts is gaining traction. Changes in products to make them more appealing, like the introduction of bars, chips, cubes, and wafers, are boosting sales in the sector. Other factors like the preference of packaged foods, rise in disposable income, and expenditure on premium products are giving the market a significant thrust.

However, factors such as the shifting consumer preference towards dark chocolate due to higher health advantages, changing raw material costs, particularly cocoa, supply volatility, and political instability in cocoa-producing nations are likely to impact the market negatively.

Best Procurement Practices

The global milk chocolate industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global milk chocolate producing and consuming regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Milk chocolate is primarily made using cocoa, milk, and sugar. The seeds, known as beans, are extracted from the cocoa pods, and fermented before drying. After that, they're transferred to a processing factory to be cleaned and roasted. The beans are then processed in two stages, first with an impact mill to liquefy the cocoa, then with a ball mill. Cocoa liquor is liquefied and separated into cocoa mass and cocoa butter. Now, the two key elements enter the process. Excess water would impair the flowing qualities of the liquid chocolate; thus, milk is typically added in powdered form. Some industries prefer condensed milk, especially if milk production is seasonal. The final significant component, sugar, is added in a roll refiner or conche at the same time as the milk powder. Also utilised is sugar beet. They are sometimes blended separately before adding the milk and sugar to the liquid cocoa mass and cocoa butter. After that, the liquid chocolate is put into moulds and made into bars. The final product is then packaged and ready to be shipped.

Various Initiatives by Manufacturers, is Further Increasing the Procurement of Milk Chocolate

The industry faces a constant challenge from healthier substitutes of the good but, growing marketing efforts and introduction of products that suit all consumer-base is propelling the market demand. With the increasing prevalence of health conditions like lactose intolerance worldwide, consumers are gravitating toward low-fat, lactose-free variants creating new market opportunities for global players. Other product variations like reduced-fat and fortified chocolate milk with low sugar and extra nutritional advantages due to consumer demand are bolstering the market's growth. Other factors like growing knowledge regarding the nutritional content in the goods, product shelf life, consumer preference for packaged and ready-to-eat goods is furthering the market's expansion.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Milk Chocolate Industry Report

• Ferrero Spa
• Ezaki Glico Co., Ltd.
• Nestle S.A.
• Kinder Chocolate
• Mondelez International
• Blommer Chocolate Company
• Lindt & Sprungli
• Godiva
• Barry Callebaut
• Stella Bernrain

Market Landscape

The milk chocolate industry is being fueled by introducing new goods to expand their range and reach an unreached consumer base. Various industry companies have made significant product advancements in response to shifting consumer tastes and preferences. In addition, marketing strategies through advertisements and social media are furthering the market's expansion. The advantage of a loyal consumer base is also impacting the market positively.

Key Initiatives by Companies

• Mondelez's Cadbury developed an extreme variant of their pre-existing dairy milk chocolate bar in July 2019 that is healthy for you. The new milk bar is said to have 30% less sugar than the previous one.
• BRACH'S Milk Chocolate double-dipped hazelnuts were introduced in May 2019 by BRACH'S Confections, a company located in Illinois that is recognised for its traditional and seasonal confections.