Global Chocolate Powdered Drinks Market - 2023-2030

Overview

Global Chocolate Powdered Drinks Market reached US$ 1.98 billion in 2022 and is expected to reach US$ 4.21 billion by 2030, growing with a CAGR of 9.9% during the forecast period 2023-2030.

Premiumization is a significant trend in the chocolate powdered drinks market. Consumers are willing to pay a premium for high-quality, indulgent experiences. This trend is reflected in the introduction of premium and gourmet chocolate powdered drinks that emphasize superior ingredients, unique flavors, and sophisticated packaging, contributing to the market growth.

North Ameri market is experiencing an increasing demand for chocolate powdered drinks that offer functional benefits, such as added vitamins, minerals, and protein. Health-conscious consumers are seeking products that provide a delicious chocolate flavor and contribute to overall well-being in the region.

Manufacturers are introducing innovative flavors and varieties to cater to diverse consumer preferences. For instance, on September 21, 2023, Mars Chocolate Drinks and Treats (MCD&T) introduced a novel 250ml can format for its Mars and Galaxy milk drinks, aligning with the company's commitment to sustainable packaging that facilitates more straightforward recycling processes.

Dynamics

Increasing Consumer Preference for On-the-Go Beverage Products

Consumers are increasingly adopting busy and on-the-go lifestyles. Chocolate powdered drinks offer a convenient solution for individuals looking for quick and portable beverage options. The ease of preparation and consumption makes them a preferred choice for those with hectic schedules.

The instant preparation of chocolate powdered drinks aligns with the modern consumer's desire for immediate satisfaction, contributing to their popularity in the market. The market offers a diverse range of chocolate powdered drinks in various formats. This variety caters to different consumer preferences, allowing them to choose the most convenient and suitable packaging for their on-the-go needs.

Manufacturers are introducing innovative and user-friendly packaging designs for chocolate powdered drinks, expanding the market growth. For instance, on February 1, 2023, in a collaboration, 7-Eleven's exclusive brand, 7CAFE, teamed up with GODIVA, the renowned premium chocolate brand, for the first time to launch three "Limited Edition Sweet Surprise" chocolate beverages and chocolate coffee creations.

Rising Health and Wellness Trends

Health-conscious consumers are seeking beverages that satisfy their taste buds and also offer nutritional benefits. Chocolate powdered drinks incorporate functional ingredients such as vitamins and antioxidants, aligning with the health and wellness trends in the market. There is a growing demand for chocolate powdered drinks with reduced sugar content as consumers become more aware of the impact of excessive sugar consumption on health.

The market is witnessing a surge in demand for plant-based chocolate powdered drinks. These alternatives cater to consumers following vegan and lactose-free diets and those who seek plant-based options for health reasons. The availability of such products contributes to the market's alignment with health-conscious trends. Market players are responding by formulating products with lower sugar levels, appealing to those prioritizing healthier beverages and driving the market growth.

Increasing Fluctuations in Ingredients Prices

Fluctuations in the prices of key ingredients, such as cocoa, sugar, and milk solids, exert cost pressures on manufacturers. The rising costs of these essential components directly affect the overall production expenses, leading to challenges in maintaining competitive pricing for chocolate powdered drinks. Price volatility in ingredients can disrupt profit margins for chocolate powdered drink companies.

Manufacturers encounter challenges in securing a stable and cost-effective supply of key components, leading to potential delays and uncertainties in the production process. The unpredictability of ingredient prices makes it challenging for companies to engage in effective long-term planning. Strategic decision-making becomes complex when faced with the uncertainty of ingredient costs evolving over an extended period, hindering proactive market strategies.

Segment Analysis

The global chocolate powdered drinks market is segmented based on product type, distribution channel, and region.

Growing Consumer Preferences, Innovations in Milk Chocolate Powdered Drink Variety

The milk chocolate powdered drink segment holds the largest share of the global chocolate powdered drinks market. The ease of preparation and the ability to be customized for various applications enhance the segment's market growth, catering to on-the-go consumers and diverse consumption occasions. Companies are investing in improving the quality, texture, and flavor profile of their products to gain a competitive edge in the market.

For instance, on September 6, 2023, Yazoo launched a richer and more decadent milkshake range, featuring the addition of the sumptuous Thick n' Creamy variant to its product lineup. The FrieslandCampina milkshake brand introduces a new collection of beverages with a thicker texture, available in two enticing flavors - Indulgent Chocolate and Creamy Strawberry.

Geographical Penetration

Increasing Accessibility and Availability, Health and Wellness Trends in North America

North America dominates the global chocolate powdered drinks market. North America's dominance implies that chocolate powdered drinks are readily accessible and widely available in the market. This is attributed to effective distribution networks, retail presence, and overall market penetration in the region. Consumers in the region exhibit a heightened awareness and interest in chocolate powdered drinks that cater to specific health-related needs, contributing to market leadership.

North American companies are likely at the forefront of introducing new and advanced chocolate powdered drink formulations to meet evolving consumer preferences. For instance, in May 2022, KT Tape introduced a new offering called KTHealth+ AIM drink mix. This product is promoted as 100% drug-free and incorporates beneficial ingredients such as turmeric, ashwagandha, and vitamin D.

COVID-19 Impact Analysis

The pandemic induced widespread disruptions in the supply chain, affecting the sourcing of key ingredients for chocolate powdered drinks. Lockdowns, restrictions, and logistical challenges hindered the smooth flow of raw materials, impacting production. With lockdowns, traditional retail channels faced challenges in terms of closures and shifting consumer preferences towards online shopping. This impacted the distribution and accessibility of chocolate powdered drinks.

However, the pandemic heightened consumer awareness about health and wellness. This led to a positive shift in demand for chocolate powdered drinks positioned as healthier alternatives, incorporating functional ingredients and nutritional benefits. The market witnessed increased innovation as companies responded to evolving consumer preferences. The focus was on developing new flavors and packaging to cater to changing demands and preferences.

For instance, on May 26, 2020, according to the CEO of Spencer's Retail and Nature's Basket, amidst the ongoing coronavirus pandemic, health has emerged as a crucial factor, even in the realm of food and grocery items. The Indian population is increasingly embracing the concept of bolstering immunity and adhering to healthy diets as preventive measures against COVID-19. Products like olive oil, soya oil, mustard oil, fortified bread & biscuits, and powdered chocolate drinks are experiencing substantial demand. While these products typically witness a growth rate of 5-10% annually during normal times, the current scenario has propelled them to achieve an annualized growth of 20-40%.

Russia-Ukraine War Impact Analysis

The conflict led to disruptions in the supply chain of key ingredients for chocolate powdered drinks. Trade disruptions and logistical challenges hindered the smooth flow of raw materials, impacting manufacturers' ability to maintain consistent production levels. The geopolitical tensions contributed to fluctuations in commodity prices. These price fluctuations pose challenges for manufacturers, influencing their production costs and profit margins.

The war-induced geopolitical instability created an atmosphere of uncertainty in the global market. This uncertainty affected decision-making processes within the chocolate powdered drinks sector, impacting strategic planning and market growth. The war's impact on supply chains and ingredient costs influenced the competitive landscape of the chocolate powdered drinks market.

By Product Type

• Dark Chocolate Powdered Drink
• Milk Chocolate Powdered Drink
• White Chocolate Powdered Drink

By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Sales
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On September 1, 2023, Empire Bespoke Foods introduced the Spanish chocolate milk brand Cacaolat. It is recognized as the second-leading cocoa milk brand in Spain, Cacaolat has expanded its presence to 25 countries. Notably, it claims the top position in Catalonia, its province of origin.
• In August 2023, Choko La announced an expansion by introducing a range of new premium offerings in its retail fast-moving consumer goods portfolio. This expansion includes innovative products such as canned chocolate drinks, aimed at broadening the brand's presence across the country.
• In July 2022, Danone introduced a trio of nutritious products available through online platforms, specifically Tmall and Douyin, in China. These three items are tailored for consumption at different times of the day-namely, for breakfast, lunch, and before bedtime. Enriched with probiotics and fiber, the drink mix aims to enhance both immune system function and gut health.

Competitive Landscape

The major global players in the chocolate powdered drinks market include Kanegrade Ltd, Stokely-Van Camp, Inc., Mondelez International, PepsiCo Inc., Mars Inc., Nestle S.A., Olam Group Limited, Barry Callebaut AG, Fuji Oil Company Ltd., Harnik General Foods Private Limited.

Why Purchase the Report?

• To visualize the global chocolate powdered drinks market segmentation based on product type, distribution channel, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous chocolate powdered drinks market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of critical products of all the major players.

The global chocolate powdered drinks market report would provide approximately 53 tables, 48 figures, and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies