1. Lindt & Sprungli Group
2. Lotte Confectionery Co., Limited
3. Mars Incorporated
4. Nestle SA
5. Ferrero SPA
South America grows some of the most prized flavour beans in the world. Brazil is the largest producer of cocoa beans in South America, while Venezuela is well known for its rarer varieties like the Porcelana and the Chuao. The great comparative advantage that is based on a fortunate geographic position, as well as other aspects such as genetic diversity and the diversity that is typical of South American ecosystems, has enabled the region to contain 7 of the 11 genetic clusters of cocoa. Ecuador in Latin America is home to the world’s best chocolates. Branding and packaging play a pivotal role in targeting consumers. The increasing demand for ethically harvested cocoa and cocoa sourced from a single plantation is driving the growth of the premium chocolate segment. Annual holidays like Christmas, Easter, Halloween, and Valentine’s Day, among others, are the days when there is a steep rise in demand for chocolates. The marketers are launching and re-branding their different variants to capture more market share. The chocolate market of Latin America is proposed to become the next big destination for the chocolate industry with its rapid chocolate adaptation. According to the research report, "South America Chocolate Market Research Report, 2027," published by Actual Market Research, the chocolate market in South America is projected to grow at a CAGR of 7.99% over the forecast period. The chocolate market in South America is driven by rising awareness regarding the health benefits offered by chocolate and increasing marketing activities. In addition, other factors such as growing demand for customised chocolate are expected to trigger the chocolate market in South America. Consumers' increase in disposable income is a major driving force for the chocolate market. Chocolate consumption is highly influenced by occasion and type, like white chocolate, milk chocolate, or dark chocolate. An inclination towards the desire for new tastes has opened markets for the industry to bloom. Growing health concerns have impacted the market, causing it to shift its dominance from milk chocolate gradually towards dark chocolate. The demand for premium chocolates will have the highest CAGR of 12.49% in the forecasted year. The availability of confectionary items at discounted prices in supermarkets and online grocery stores has made the purchase easier for customers. The emerging online segment is pushing the chocolate market on the path of growth and development. Companies have started selling their chocolate products through their websites. It is projected that sales of chocolates through the online segment will grow at a CAGR of 10.80% over the forecast period. Constant launches of new flavours and variants have opened the doors for a promising future in the South American market. Consumers being proactive with regards to health now consider eating smaller chocolates as overeating leads to obesity. Gifting chocolates is the simplest and most widely used form of gifting today due to its global acceptance. Despite wide acceptance, luxury chocolates still need to find a prominent place. Dark chocolate, which has a high percentage of cocoa, is particularly suggested for preventing or slowing the ageing process as well as some ailments such as cardiovascular disease. Furthermore, chocolate's antioxidant content, blood pressure-lowering capabilities, and presumed anti-aging benefits will continue to drive the consumption of chocolate and chocolate products. According to recent research findings, chocolate consumption helps people look younger and reduces stress, which is projected to drive dark chocolate demand in the market throughout the forecast period at a CAGR of 8.92%. Chocolates displayed prominently in venues like shops and supermarkets can draw customers' attention and lead to impulse purchases. Sales through supermarkets and hypermarkets constituted nearly 52% of the total sales of chocolates in the region. Furthermore, impulsive purchases are fuelled by a surge in consumer disposable income and a shift in lifestyles, in addition to attractive display techniques used by retailers. In recent years, the colours and packaging of chocolate have played an essential role in its purchase. Following the shift in product perception, manufacturers have made significant investments in product design, labelling, pricing, and packaging. Innovation in products and packaging, impulse purchasing, and increased chocolate consumption are driving the market. Growing demand for premium chocolate further accelerated the chocolate market in South America. The companies selling their chocolate products in the South American market are experimenting with the launch and rebranding of their products so as to maintain their sales and interest among the consumers. The shift in attitudes is forcing global firms, like Mars Inc., Mondelez International, Nestle, and other local brands, to rebrand or reformulate their mass-market chocolates to create a healthier image or give a premium experience. Moreover, consumers in South America are becoming more sophisticated and are increasingly searching for premium chocolate products that are differentiated from common brands found in the retail sector. It is only over the past few years that premium chocolate has become desirable for the Brazilian market and other South American countries. Brazil is the largest market for chocolates in the South America region with half of the total region’s chocolate market share. Brazil’s National Association of the Cocoa Processing Industry (AIPC) expects the surge in cocoa planting to help double the country’s output of the raw material in chocolate by 2028. This increase would raise global output by about 5%. The renewed planting could make Brazil one of the world’s top three cocoa growers. Thus, this factor makes this market profit-oriented during the forecast period. Moreover, Brazil dominates chocolate consumption in the region, which is expected to maintain its position during the forecast period. Considered in this report • Geography: South America • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • South America chocolate market with its value and forecast along with its segments • Country-wise chocolate market analysis • Various divers and challenges • Ongoing trends and developments • Five force models • Top profiled companies • Strategic recommendation Countries covered in the report • Brazil • Argentina • Chile Types of chocolates in the report • Milk chocolate • Dark chocolate • White chocolate Application of chocolates in the report • Everyday • Seasonal/ Box • Premium • Gourmet Sales Channel of chocolates in the report • Supermarkets & Hypermarkets • Convenience Stores • Online • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chocolate industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.