Chocolate Industry in Nutshell PDF

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Table of Contents
3. Chocolate Industry in Nutshell...............................................................................................3
3.1 Overview of Chocolate Industry......................................................................................3
3.1.1 Supply Chain of Cocoa Industry...............................................................................5
3.2 Supply Chain Vulnerability in Chocolate Industry..........................................................6
3.2.1 Sustainable Livelihoods for Farmers in Cocoa Industry...........................................6
3.2.2. Climate Change and Deforestation.....................................................................7
3.2.3. Child Labour in Chocolate Industry.....................................................................8
3.2.4. Swollen Shoot Virus Affecting Cocoa Industry...................................................9
3.3 Interim Summary...........................................................................................................11
References................................................................................................................................12
Table of Figures
Figure 1: Chocolate & Cocoa Market Size in North America (source: Statista, 2021).............4
Figure 2: Top Listed Cocoa Producing Countries (source: International Cocoa Organization,
2021)..........................................................................................................................................5
Figure 3: Logistics & Supply Chain of Chocolate Industry (source: World Cocoa Foundation,
2021)..........................................................................................................................................5
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3. Chocolate Industry in Nutshell
North American nations eat most of the world's chocolate, followed by European countries in
terms of consumption. The vast array of chocolate items on the market, from candy bars and
cakes to truffles and chocolate-covered everything, is truly mind-boggling. The quantity of
cocoa in a piece of chocolate can be used to categorise it. Most of the chocolate consumed in
the United States comes in milk chocolate with less than 10% cocoa. According to our
prediction, the worldwide cocoa and chocolate market will grow at a CAGR of 4.4% between
2019 and 2027, bringing the industry's total value to USD 61.34 billion (The Guardian,
2021). The worldwide chocolate confectionery industry's strong development trajectory has
fueled the market's rapid expansion. Entrepreneurs who want to get into the chocolate sector
have a wide range of options, as well as an industry that weathers economic downturns and
continues to thrive. People adore chocolate, which is a significant factor in the growth of the
confectionery industry. A recent survey in Great Britain found that 91 percent of women and
87 percent of men eat chocolate goods regularly (World Cocoa Foundation, 2021). China and
India, both of which have large populations and a rising middle class, are also discovering the
pleasures of chocolate. Changing consumer preferences and rising disposable incomes will
fuel industry expansion abroad, just as improved domestic economic conditions boost
domestic sales. There has been an increase in demand for chocolate in recent years.
3.1 Overview of Chocolate Industry
Milkshakes, candy bars, cookies, and breakfast cereals contain chocolate as a significant
ingredient. In North America and Europe, it's one of the most popular flavours. Many people
have never heard of this beloved dessert, despite its unusual origins. It takes a lot of time and
effort to make chocolate (Wessel and Quist-Wessel, 2015). Coca is harvested, refined into
cocoa beans, and shipped to the production facility, cleaned, coached, and ground. Exports or
imports of cocoa beans from these nations will produce various chocolate products in other
countries.
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Figure 1: Chocolate & Cocoa Market Size in North America (source: Statista, 2021)
People adore chocolate, which is a significant factor in the growth of the confectionery
industry. A recent survey in Great Britain found that 91% of women and 87% of men eat
chocolate goods regularly (World Cocoa Foundation, 2021). China and India, both of which
have large populations and a rising middle class, are also discovering the pleasures of
chocolate. Changing consumer preferences and rising disposable incomes will fuel industry
expansion abroad, just as improved domestic economic conditions boost domestic sales.
It is estimated that the chocolate market is worth around 33,000 tonnes. Many billions are
spent on the counter market, while the balance is spent on chocolate bars. A quarter of all
sweet-tooth items, including sugar-boiled sweets, mints, and chewing gums, are chocolates.
As expected, the highest market share belongs to sugar confections. Chocolate companies are
targeting adults to boost sales. The new target groups are being offered chocolates as a snack.
Introducing smaller editions was a different approach that was contemplated. Despite the
extensive promotional efforts of the players, penetration levels did not rise significantly
between 1999 and 2000. The stop was driven by a 5% to 15% surge in selling prices due to a
surge in cocoa prices, resulting in a grinding halt (World Cocoa Foundation, 2021).
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