Sales of Chocolate Candy Reach Nearly $20 Billion

In 2011, chocolate sold at retail jumped 6.6%, and sales at convenience stores showed remarkable resilience.

June 04, 2012

ROCKVILLE, Md. - Chocolate candy sales soared to nearly $20 billion in 2011, according to Packaged Facts. The U.S. chocolate candy market is mature, differentiated and demanding. That makes it challenging for marketers of chocolate products seeking to distinguish themselves from the competition, according to "Chocolate Candy in the U.S.," a just-released report from Packaged Facts.

Packaged Facts estimates the U.S. market for chocolate sold at retail at $19.5 billion in 2011, up 6.6% over the previous year. Everyday chocolate, seasonal candies, and premium chocolate all posted dollar gains for the market, though driven in part by price increases implemented to offset rises in raw material and other costs.

From a channel perspective, chocolate is showing particular buoyancy in convenience stores and natural food stores, according to David Sprinkle, publisher for Packaged Facts. In natural food stores, organic chocolates posted nearly 20% growth in 2011, according to SPINSscan data cited in the report. Conventional supermarkets nonetheless remain the main channel for chocolate sales, followed by convenience stores.

While the country remains challenged by economic doldrums, chocolate can be counted on to outpace overall food market growth. Packaged Facts identifies several factors that will continue to spur dollar gains in the market, including the success and increasingly widespread acceptance of premium chocolates, spurred both by consumers' desire to indulge in this "affordable luxury" and by the influence of foodie culture.

Also, growth of chocolate retailers, both through franchise expansion and by successful independent shops looking to expand their footprints, and continued innovation in packaging and flavors by major and niche chocolate manufacturers alike. Increased marketing support and advertising expenditures, plus rising prices at retail, driven in part by higher input costs, will increase the amount pulled in by chocolate candy.

For more on candy in convenience stores, check out "Easily Forgotten" in the May issue of NACS Magazine.

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