Chocolate Confectionery in The United Kingdom
Chocolate Confectionery in The United Kingdom
Chocolate Confectionery in The United Kingdom
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CHOCOLATE CONFECTIONERY IN THE UNITED KI NGDOM Passport 1
CHOCOLATE CONFECTIONERY IN
THE UNITED KINGDOM
HEADLINES
Chocolate confectionery registers 1% retail current value and retail volume growth in 2018 to
reach GBP6.4 billion
Premiumisation and indulgence trend show no sign of slowing down
Chocolate with toys sees the highest retail value growth of 4% to reach GBP103 million in
2018
Average unit price increases by 1% as manufacturers pass on higher cocoa prices to
consumers
Mondelez UK holds on to top spot in chocolate confectionery in 2018, but the popularity of
niche premium brands has seen the leader lose share since 2016
Retail value sales of confectionery are set to see a 1% CAGR at constant 2018 prices over
the forecast period to reach GBP6.6 billion in 2023
PROSPECTS
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A large majority of retailers have now voluntarily removed chocolate and sugar confectionery
from check out aisles, a movement that began in 2014. At the end of 2016, Nestlé announced a
revolutionary new method to cut the sugar content of chocolate confectionery products by an
astonishing 40%, without the use of high intensity sweeteners or a compromise on sweetness.
In April 2018, it launched Milkybar Wowsomes, the first chocolate bar within the Nestlé portfolio
to achieve 30% less sugar using this sugar reduction method. Similarly, in 2017, Nestlé cut
down Kitkat’s sugar content by 10%, replacing the sugar with higher quantities of existing
ingredients or other, non-artificial ingredients to help turn around the recent slump in sales.
Whilst it is too early to tell how Nestlé’s new sugar reduction method will go down with
consumers, the company’s move towards sugar reduction is expected to spur industry-led
innovation in reduced sugar chocolate confectionery.
Organic Chocolate Tops the Consumer Wishlist in 2018, But Taste Will
Dictate Buying Decisions in the Forecast Period
Organic chocolate confectionery outperformed the overall chocolate confectionery category in
2018 in retail value sales as demand for ethical and “healthy” chocolates continues to rise.
Premium chocolate is no longer the preserve of the few; retailers such as Waitrose and Tesco
are dedicating more shelf space to small premium players such as Seed & Bean whose
products are handmade in England, organic and Fairtrade. But, the meaning of premium
chocolate has already started to change as brands such as Green & Blacks, Lindt and Ferrero
Rocher take premium to the masses. Green & Blacks Velvet Edition tablet range launched in
2015 saw double-digit growth in 2017 and 2018 despite moving away from the organic and
Fairtrade labelling that Green & Blacks has built itself upon. Instead, Mondelez’s own Cocoa Life
label is used, suggesting that the importance consumers attach to independent accreditation
and organic sourcing has fallen. And factors such as packaging, such as the introduction of the
120g sharing pouch and 200g box formats in 2018, and indulgent flavour combinations, such as
salted caramel and roasted almond, have overtaken health and ethics for consumers. Even
private label offerings now incorporate unusual flavours and single origin beans. While the
majority of the category will remain in the hands of the big players, high growth in the premium
segment will see more niche entrants and private label innovation in the next five years.
COMPETITIVE LANDSCAPE
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because the cost and limited availability of ingredients makes it difficult to maintain the high
quality that consumers expect. For these brands, manufacturers should look to focus on new
packaging formats, sophisticated ingredients and cleaner ingredient lists to add value.
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Chocolate lollipops
Other
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
CATEGORY DATA
Table 1 Sales of Chocolate Confectionery by Category: Volume 2013-2018
'000 tonnes
2013 2014 2015 2016 2017 2018
GBP million
2013 2014 2015 2016 2017 2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
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'000 tonnes
2018 2019 2020 2021 2022 2023
GBP million
2018 2019 2020 2021 2022 2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total
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