The Chocolate Industry of the USA

The Chocolate Industry of the USA

The Main Chocolate Manufacturers in the World

Candy Industry publishes an annual list of the top 100 global confectionery companies, ranking them by total sales. The table below is an extract from this list giving the top ten global confectionery companies that manufacture some form of chocolate by total confectionery sales value in 2005:

Company

Total Sales 2005
US$millions

Mars Inc

9,546

Cadbury Schweppes PLC

8,126

Nestlé SA

7,973

Ferrero SpA

5,580

Hershey Foods Corp.

4,881

Kraft Foods Inc.

2,250

Meiji Seika Kaisha Ltd.

1,693

Lindt & Sprüngli

1,673

Barry Callebaut AG

1,427

Ezaki Glico Co

1,239

Source: (Candy Industry, January 2006)

With 2006 sales estimated at close to billion through all channels, chocolate is forecast to grow to billion by 2011, according to the U.S. Market for Chocolate, a fully updated Packaged Facts report. Strong consumer interest in the reported health benefits of dark chocolate and a general trend towards product premiumization (including organic and fair trade products) are offsetting steady declines in other categories, such as sugar-free and novelty products. For example, the market share for premium chocolate grew from 13% of the total market in 2002 to nearly 17% in 2006 (Market Research.com, 2011).

The table and graph below shows the changes of production of cocoa, chocolate and sugar confectionery in the USA from 2005 to 2010.

2005

2006

2007

2008

2009

2010

Cocoa and sugar confectionary production

21,608.1

21,303.1

21,862.1

23,110.5

21,861.8

22,693.1

Source: (Euromonitor, n.d.)

Organic Cocoa and Chocolate

The organic cocoa market represents a very small share of the total cocoa market, estimated at less than 0.5% of total production. ICCO estimates production of certified organic cocoa at 15,500 tonnes, sourced from the following countries: Madagascar, Tanzania, Uganda, Belize, Bolivia, Brazil, Costa Rica, Dominican Republic, El Salvador, Mexico, Nicaragua, Panama, Peru, Venezuela, Fiji, India, Sri Lanka and Vanuatu.

However, the demand for organic cocoa products is growing at a very strong pace, as consumers are increasingly concerned about the safety of their food supply along with other environmental issues. According to Euromonitor International, global organic chocolate sales were estimated to have increased from a value of US$ 171 million in 2002 to US$ 304 million in 2005.

Certified organic cocoa producers must comply with all requirements associated with the legislation of importing countries on production of organic products. The benefit for cocoa farmers is that organic cocoa commands a higher price than conventional cocoa, usually ranging from US$ 100 to US$ 300 per tonne. However, originating countries with smaller volumes can fetch much higher premiums. This premium should cover both the cost of fulfilling organic cocoa production requirements and certification fees paid to certification bodies (International Cocoa Organization, 2011).

References

Euromonitor, Production of Cocoa, Chocolate and Sugar Confectionery: Euromonitor International from national statistics/UN/OECD.

International Cocoa Organization (2011). ICCO. Retrieved 25th January, 2011, from http://www.icco.org/statistics/grindings.aspx

Market Research.com (2011). U.S. Market for Chocolate. Retrieved 25th January, 2011, from http://www.marketresearch.com/product/display.asp?productid=1466680

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