The Chocolate Market in France
Christmas is coming soon! Chocolate is a very important market for the entire French economy. Who are its players, and what are the main segments of Chocolate Market in France?
The Chocolate Market in France:
The French are indeed huge consumers of chocolate, on a European scale and a global scale. In France, 90% of SMEs represent 30,000 permanent employees, including 15,850 in production. Chocolate currently represents a rapidly changing market, with a resurgence of high-end products and products from organic farming. In 2022, sales in large and medium-sized stores represented 347,979 tons of chocolate for 3.324 million euros for more than 100 production sites.
The overall turnover of the market is 3.3 billion euros. The market shares of the products are as follows: chocolate bars of all brands represent 36.1% of the market share, spreads 24.6%, chocolate bars 15.4%, and finally, confectionery and cocoa powders represent 13.5% and 10.4% of the market share, respectively.
In France, chocolate has three main peak periods: the Christmas and Easter periods, as well as Valentine’s Day. It should also be noted that the average consumption in France is 13.2 kg per year; the French tend to eat more dark chocolate than the rest of Europe, with 30% compared to 5%, which is the average for European countries. Ivory Coast is one of the world’s leading cocoa-producing countries, along with Ghana and Indonesia (non-exhaustive list). France also exports 70% of its production. Finally, 180,675 tons of chocolate are sold to professionals across all sectors.
Supply and Demand | Chocolate Market
There are several types of players in the sector. The first are international groups, such as Cémoi, Ferrero, Lindt, Mondelez, Mars, and Nestlé. They produce all types of chocolates and sell them in various points of sale. It include supermarkets, retailers, and specialist points of sale, such as tobacconists and vending machines.
More than 90% of SMEs in the sector also bear the names of Cluizel, Marlieu, Révillon or Weiss. In addition, many artisans prepare their creations, and depending on the time of year, the vast majority work in dedicated workshops, bakeries, and pastry shops. Manufacturers such as Léonidas and Jeff de Bruges have both physical and online sales areas and offer all types of assortments all year round. Other players, such as Daniel Stoffel or Hershey, offer vegan chocolates.
As we said above, the French are very fond of chocolate. However, this market has evolved a lot over time, with very strong demand in specialized areas, such as chocolates from organic farming, which offer more ethical products that are more respectful of the planet. Chocolate is indeed one of the foods whose production remains very harmful to the future of the Earth. Consumers today tend to pay more attention to what they consume, hence this craze for organic products. However, more than 80% of them admit that they cannot do without chocolate. Which is considered by many to be a natural antidepressant.
Vegan chocolate is also increasingly in demand, with a manufacturing process that does not contain traces of animal products, such as butter. The products are replaced by agave syrup or vegetable milk. People like this type of chocolate because it is better for health and the environment.
BCG Matrix of Sector
The chocolate market has cash cows and star products due to its great success with French consumers. Star products are those whose profitability is confirmed over time. Moreover, players must continue to invest to make them even more perfect, with exceptionally highly competitive pressure. Cash cows are the products that bring in the most profits to companies. Of course, it is essential to remember that some brands are more successful than others, for example, Nutella, which remains one of the most purchased spreads in the world.
Dilemmas are products that can pose specific positioning problems for companies; we find milkshakes, which, depending on the brand, do not necessarily have the expected success, and sure, specialized chocolates sell much less than the rest of the products. Among the dead weights, we note certain types of flavors or packaging that could be more practical or have not had great success. The chocolate market today includes, more than ever, many innovations that have become essential, especially in the current competitive context.
Environmental Factors | Chocolate Market
Despite its remarkable global success, chocolate has a very negative impact on the environment. Indeed, it is a sector that produces a lot of greenhouse gases. We record 5 kg Co2 e for one kilo of chocolate or 20% of global emissions. All stages of chocolate design are affected, that is, cultivation, harvesting, manufacturing, transport, and packaging.
It should be noted that cocoa cultivation includes the use of pesticides and other chemicals, and demand continues to increase over the years. Its manufacture requires cocoa beans and butter, and deforestation favoring cocoa plantations is often significant. These techniques also promote poor climatic conditions, not to mention the manufacturing processes, which are also very limited in terms of ethics. Very young children are forced to work in extreme conditions, and the impacts are very negative on the health of local populations, hence the resurgence of players who will now offer organic or vegan products.
Trends and Outlook
While the chocolate market is experiencing a constantly increasing demand. However, consumers are increasingly like more local, more eco-responsible, or even vegan products. The real question is whether this market will still flourish in fifty years, and if so, what changes it will have to undergo. There could be a shortage of chocolate because the supply could decrease drastically, and demand would continue to increase. Things are changing gradually, with new trends emerging over the years. Between cocoa production, which is only sometimes doing well, and price fluctuations, many players are looking for alternatives to the production and manufacture of chocolate.
Conclusion | Chocolate Market
For many years, the chocolate market has flourished more than ever in France and worldwide. The French are among those who consume the most chocolate, which is now available in an extensive range. More and more players are trying to make a place for themselves among the most prestigious by offering new products, such as chocolate from organic farming, which is enjoying increasing success among consumers who are aware of environmental issues. The BCG matrix highlights this sector’s main strengths, which are much more numerous than the weaknesses.
Chocolate is one of the markets most subject to innovation, with consumers being ever more demanding. This leaves room for new players, especially at the local level. In fifty years, it is impossible to say whether chocolate, as we know it today, will still exist or whether the shortage will be too significant to satisfy a demand that is only growing over time.
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