Dark Chocolate Market Trends - Free Report Sample

Introduction

According to Clootrack, an online marketing research solution, the dark chocolate market is valued at $43.4 billion as of the year 2017. The website also indicates that if the consumer trends on the product continue in the same direction, the market value in 2023 is expected to be $69.6 billion. Clootrack also predicts that the growth rate of the chocolate industry will be at an approximate Compound Annual Growth Rate (CAGR) of 8.2% between 2018 and 2023. Inferring to these figures, it is quite evident that the chocolate confectionery industry has viable investment opportunities especially for individuals intending to venture into diversified chocolate product niches.

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New Flavors

While the traditional dark chocolate has been in existence for the longest time, recent trends indicate the entry of new variants of both white and dark chocolates where new flavors tend to outsell the traditional dark chocolates that have dominated the markets for decades. In this context, it would be prudent therefore for an investor to consider the introduction of a new product in the chocolate market segment to attract customers. Clootrack, in their research of the dark chocolate industry, identified three market drivers in the industry.

The first market driver is the rising awareness of the health benefits of dark chocolate. Since dark chocolate is made from the seeds of the cocoa tree, research indicates that chocolates, similar to the seeds they are manufactured from, possess antioxidant characteristics. Subsequently, chocolates contain nutrients that can improve overall health and reduce the chances of individuals developing heart disease. The second market driver is the rising income levels of the population which affords them surplus money that can be spent on consumer products such as chocolates, hence the increased demand. Thirdly, is the innovative packaging of chocolates making them gift items which contribute to the overall growth of the industry.

Buckwheat Chocolate

Buckwheat is a pseudocereal that is consumed as a grain but does not grow on plants from the grass family. Similar cereals in this category include quinoa and amaranth which are also consumed as cereals yet do not necessarily originate from grasses. Contrasting its name which suggests wheat-like characteristics, buckwheat is gluten-free and can be processed into groats, flour, or noodles. In recent times buckwheat has gained popularity due to its high mineral content and antioxidant properties. Buckwheat also possesses the ability to improve blood sugar control when consumed regularly. Nutritionally, the pseudo cereal’s main dietary component is carbohydrates with significant percentages of protein, minerals, and antioxidants. Its nutritional value is often higher compared to other grains from the grass family.

In the food industry, buckwheat flour has been utilized as an ingredient in pasta, confectionery, and value-added bread products. It is worth noting, however, that buckwheat chocolate products in the UK and across the world is almost non-existent. Currently, most of the products qualifying as buckwheat chocolate are in chip cookies which use a combination of buckwheat flour, wheat flour, and chocolate powder in the baking process. Concerning, chocolate bars or other confectionery, no products are existing in the market.

The Opportunity

As indicated in the title, our product of choice is a buckwheat chocolate bar. Similar to traditional chocolate bars which are usually sold as snacks, we intend to develop a buckwheat chocolate bar that is delicious, healthy, and appealing across all the age groups and social classes in the UK. As earlier reviewed in the introduction, buckwheat has several health benefits such as vitamins, fibers, and magnesium which maintains a person’s blood pressure, digestion, and sleep quality ((Danihelová & Šturdík, 2012). Moreover, the product in question will also appeal to a wider consumer niche since its gluten-free characteristic makes it a chocolate choice for vegans. In substituting animal-based with plant-based ingredients in the processing of the bar, the enterprise would be able to attract customers in the vegan demographic thus increasing the potential market base for the product.

As indicated in the research findings by Clootrack, one of the driving factors in the chocolate industry is the increased awareness of the health benefits of chocolates. In this regard, buckwheat chocolate bars will be fulfilling the health requirements of an individual two-fold since both of its components possess almost similar benefits. The health benefits of the chocolate combined with those of buckwheat will result in an excellently healthy snack that will aid regulate the blood pressure of a person as well as reduce their chances of heart disease. Following similar trends in other consumer product niches such as in the alcohol industry where beer manufacturers are now producing health-conscious drinks, our buckwheat chocolate bar provides an alternative to all chocolate lovers in the UK.

Strengths and Weaknesses

Buckwheat chocolate bars, as indicated in the earlier sections of the paper are almost non-existent in the UK market. Therefore the strength of such a brand would be its uniqueness. In business, the buckwheat chocolate bar would possess a unique selling proposition (USP). In definition, USP refers to the factor or consideration presented by the seller of a product as the reason why the particular product is better compared to the already existing products or the competition.

In this context, our buckwheat chocolate candy bar possesses two facets of USP. The first is the use of buckwheat within the bar. As highlighted in the introduction, buckwheat is a pseudocereal that possesses higher nutritional value compared to regular cereals. Therefore, the health benefits of the buckwheat within the material will act as a selling point especially in the highly aware society of today. The fact that buckwheat is gluten-free will also promote the healthy alternative narrative and also attract a new niche segment in that it will attract vegans who prefer plant-based products over animal-based ones which are often manifested in the use of milk in the manufacture of regular chocolate.

Another USP of buckwheat chocolate is the uniqueness of the brand in that it is a new niche product. Since there are minimal to non-existent buckwheat chocolate products in the market, such a new product will surely attract the attention of consumers. While some will by the bars for the health-oriented reasons, other individuals may just buy the bars to taste something new and different.

Regardless of these strengths highlighted in the paragraphs above, it is often common to encounter setbacks when launching a new product. Consequently, some of the potential weaknesses of the business venture lie in the acquisition of the significant resources which are required to such a business especially since it will be in the processing sector. The funds required to purchase the equipment, service them, and employ staff may present a potential problem. Nonetheless, the team intends to be cost-effective, approaching cheaper alternatives for example the use of social media as a marketing tool instead of mainstream advertising.

Opportunities and Threats

Within the chocolate confectionery business, the chocolate bar as a product offers a small increase margin. Therefore, this would act as a selling point for the product since the price increment would be justified especially regarding the quality of the product. The all-natural ingredient base of the chocolate and their ethical sourcing operation justifies the price premium of the buckwheat chocolate bar and will also help in promoting and marketing of the brand. Additionally, the same process also opens up opportunities for future diversification using the same ingredients, for example, venture into the processing of buckwheat tea or bread.

There are several opportunities in the confectionery market in the UK. Generally, the last few decades have seen an increase in health awareness among a lot of individuals across the world. People are now watching like never before, the food they consume and as such avoid sugary foods and junk food. Instead of traditional foods and treats, they seek healthier alternatives to the same. In this context, this is the biggest opportunity for the business since buckwheat chocolate fulfills all the requirements to be an alternative to the regular chocolate bar. According to Seifer an expert writing for the Food Business News, an online magazine on nutrition and dietetics, sugar is the most avoided ingredient among Americans, however, it does not necessarily mean doom for the confectionery industry. He also asserts that for entrants into the chocolate industry, the key to making a profit lies in knowing one’s market.

Inferring to Seifer’s assertions and basing on the interviews conducted by the team during the research process of the plan, a significant percentage of the population sought healthier alternatives to the sweet treats they normally enjoy. Such a large number would then surely seek buckwheat chocolate which is a healthier alternative to the regular chocolate bars sold across the UK. The fact that the product uses buckwheat which has higher protein content and minerals, is a better option to the highly caloric and gluten-filled regular chocolate bar.

Regardless of the opportunities available in the confectionery market, it is prudent for one to also consider potential threats to the business. Concerning the threats to our business, competition and copyright infringement stood out as the single most imminent threat. Similar to most unique ideas, often there will be individuals who will want to copy and make a profit out of an original and exclusive one. As already mentioned, there are currently no buckwheat chocolate bars being sold in any store in the nation. However, the probability of different brands of the same product may pop up once our product hits the market. Therefore, it is important to anticipate that our product may be copied by even larger enterprises that have the resources that we may lack. To mitigate such outcomes our business will consider options such as obtaining copyrights or patents to our product.

Customers and Primary Research

Before starting any business, the first and most important step is the conduction of research. So before the commitment of resources and time, it was imperative to conduct research. As the product we were intending to sell belonged in the consumer category, the first step involved the research of people or potential customers. Hansen and Thomsen (2018) assert the presence of a relationship between an individual’s age and health consciousness. For our research, the team interviewed 10 students, aged between 20-26. More than half of participants were pursuing healthier lifestyles and were seeking alternatives, with 60% of respondents eating sweet treats no more than once a week. When describing the products, 80% would like to try buckwheat chocolate and all of them would pay a slightly higher price (£2 on average) compared to normal chocolate due to these qualities.

Conclusion

Currently, there are many buckwheat products on the market. However, no chocolate products are being produced using pseudo cereal. Therefore, it suffices to say that the competition in the chocolate segment is non-existent, except that from other healthy snacks such as protein bars and nuts which sell within the same price range.