Chocolate Confectionery - Brazil - February 2014


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Governmental pressure on the chocolate industry to make their products healthier or reduce portion sizes is likely to increase given the cost of obesity. A proactive approach in this respect can help brands to stay ahead of the “state stick” and avoid being targeted. This also has the potential to boost their reputation as a responsible brand among consumers.
Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Figure 1: Brazil retail value sales of chocolate, 2008-18
Market factors
Growing concerns over obesity In Brazil
The aging population
Rising purchasing power
Companies, brands, and innovation
Mondelēz leads the consolidated chocolate market
Figure 2: Leading brands’ shares in the Brazil chocolate confectionery market, by value, 2012
The consumer
Almost nine in 10 adults eat chocolate
Figure 3: Usage of chocolate, any frequency, October 2013
Seven in 10 adults buy chocolates from grocery stores
Figure 4: Typical places for buying chocolate, October 2013
Brand loyalty is lowest among female under-25s
Figure 5: Chocolate buying behaviors, October 2013
Female under-25s are driving growth in chocolate
Figure 6: Attitudes toward chocolate, October 2013
What we think

Issues in the Market

How can chocolate manufacturers appeal to the older consumer?
Are concerns over obesity likely to limit growth in the market?
What opportunities will the world cup bring to the chocolate market?
How can brands boost brand loyalty among the younger generation?

Trend Application

Trend: Extend My Brand
Trend: Middle-Class Heroes
Mintel Futures: Brand Intervention

Market Drivers

Key points
Most consumers allow themselves unhealthy foods
Figure 7: Attitudes toward food, June 2012
Older consumers have the healthiest diets
Figure 8: Selected attitudes toward healthy eating, by age group, June 2012
Expanding waistlines are a cause for concern
The aging population presents a challenge
Rising purchasing power driving growth of chocolate
Figure 9: Brazil gross domestic product, 2003-17
Rising cocoa costs put upward pressure on chocolate prices

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Key points
NPD activity in chocolate falls to a four-year low
Figure 10: Launches of chocolate confectionery as a share of total new products launched in the Brazil food market, 2010-13
Seasonal chocolate accounts for a third of new launches
Figure 11: Share of Brazil chocolate confectionery launches, by sub-category, 2013
Figure 12: Share of Brazil chocolate confectionery launches, by sub-category, 2010-13
A jump in launches of tablets
Mondelēz leads in NPD
Figure 13: Share of chocolate confectionery launches in Brazil, by company (top 10 in 2013), 2010-13
L/N/R allergen and gluten-free claims are the most common
Figure 14: Share of Brazil chocolate confectionery launches, by claims (top 10 in 2013), 2010-13
Brands start to flag up social media links on pack

Market Size and Forecast

Key points
Chocolate sales rise by 69% over 2008-13
Figure 15: Brazil retail volume and value sales of chocolate, 2008-18
The future of the chocolate market
Figure 16: Brazil retail volume sales of chocolate, 2008-18
Figure 17: Brazil retail value sales of chocolate, 2008-18
Factors used in the forecast

Market Share

Key point
Mondelez accounts for over a third of the market’s value
Figure 18: Leading brands’ sales and shares in the Brazil chocolate confectionery market, by value and volume, 2010-12

Companies and Products

Mondelēz International, Inc
Company background
Product range and innovation
Marketing and promotion
Nestlé, S.A
Company background
Product range and innovation
Garoto, S.A (Nestlé-owned)
Company background
Product range and innovation
Marketing and promotion
The Hershey Company
Company background
Product range and innovation

The Consumer – Usage of Chocolate Confectionery

Key points
Milk chocolate is the most popular type
Figure 19: Usage of chocolate, October 2013
Under-25s are the core users of chocolate
Figure 20: Usage of chocolate, by age group, October 2013
Consumption is still geared toward the most affluent…
… and those living in the South/South-East of Brazil

The Consumer – Where Chocolate Confectionery Is Bought

Key points
Seven in 10 adults buy chocolates from grocery stores
Figure 21: Typical places for buying chocolate, October 2013

The Consumer – Chocolate Buying Behavior

Key points
Brand loyalty is lowest among female under-25s
Figure 22: Chocolate buying behaviors, October 2013
Figure 23: Consumers who often switch between brands of chocolate, by age and gender, October 2013
A quarter buy chocolate only on impulse
A price-sensitive market

The Consumer – Attitudes Toward Chocolate

Key points
Female under-25s are the most likely to be eating more chocolate
Figure 24: Attitudes toward chocolate, October 2013
Figure 25: Consumers who are eating more chocolate than a year ago and consumers who consider themselves a chocolate lover, by age and gender, October 2013
Less than a fifth believe dark chocolate has health benefits
Chocolatiers are not seen to offer superior quality
Only a tenth use chocolate in cooking and baking

Appendix – Market Size and Forecast

Figure 26: Best- and worst-case forecasts for UK retail sales of chocolate confectionery, by value, 2013-18
Figure 27: Best- and worst-case forecasts for UK retail sales of chocolate confectionery, by volume, 2013-18
Figure 28: Brazil retail value sales of chocolate confectionery, by subcategory, 2011-12
Figure 29: Brazil retail volume sales of chocolate confectionery, by subcategory, 2011-12

Appendix – The Consumer – Usage of Chocolate Confectionary

Figure 30: Frequency of eating chocolates, October 2013
Figure 31: Frequency of eating chocolates, October 2013
Figure 32: Frequency of eating chocolates – Milk chocolate, by demographics, October 2013
Figure 33: Frequency of eating chocolates – Milk chocolate, by demographics, October 2013 (continued)
Figure 34: Frequency of eating chocolates – White chocolate, by demographics, October 2013
Figure 35: Frequency of eating chocolates – White chocolate, by demographics, October 2013 (continued)
Figure 36: Frequency of eating chocolates – Medium dark chocolate, by demographics, October 2013
Figure 37: Frequency of eating chocolates – Medium dark chocolate, by demographics, October 2013 (continued)
Figure 38: Frequency of eating chocolates – Dark chocolate, by demographics, October 2013
Figure 39: Frequency of eating chocolates – Dark chocolate, by demographics, October 2013 (continued)
Figure 40: Frequency of eating chocolates – Light/diet chocolate, by demographics, October 2013
Figure 41: Frequency of eating chocolates – Light/diet chocolate, by demographics, October 2013 (continued)
Figure 42: Frequency of eating chocolates – Chocolate with nuts/fillings, by demographics, October 2013
Figure 43: Frequency of eating chocolates – Chocolate with nuts/fillings, by demographics, October 2013 (continued)

Appendix – The Consumer – Where Chocolate Confectionery Is Bought

Figure 44: Typical places for buying chocolate, October 2013
Figure 45: Most popular typical places for buying chocolate, by demographics, October 2013
Figure 46: Next most popular typical places for buying chocolate, by demographics, October 2013

Appendix – The Consumer – Chocolate Buying Behavior

Figure 47: Chocolate buying behaviors, October 2013
Figure 48: Most popular chocolate buying behaviors, by demographics, October 2013
Figure 49: Next most popular chocolate buying behaviors, by demographics, October 2013

Appendix – The Consumer – Attitudes Toward Chocolate

Figure 50: Attitudes toward chocolate, October 2013
Figure 51: Most popular attitudes toward chocolate, by demographics, October 2013
Figure 52: Next most popular attitudes toward chocolate, by demographics, October 2013