Market Trends of Chocolate Milk Industry
This section covers the major market trends shaping the Chocolate Milk Market according to our research experts:
Increasing Demand for "Better-For-You", "Organic", and "Free-From" Products
Post-pandemic people became more health conscious. They are avoiding products containing chemicals and artificial ingredients. This rise in health consciousness among consumers and the resulting increase in awareness about the disadvantages of consuming artificial ingredients is fueling the sales of organic chocolate milk and sugar-free chocolate milk in the global market. For instance, according to USDA, the total sales of organic fluid milk products in the United States increased by 2.0%from 2021 and stood at USD 2,385 million in 2022. This increased demand and sales support the growth of the organic chocolate milk market in the forecast period.
Along with this, a shift in the food consumption pattern of consumers and increasing demand for chocolate drinks is supporting the growth of organic chocolate drinks across the globe. The trend of these organic chocolate milk is creating lucrative opportunities for the chocolate milk manufacturers to tap the potential markets and opening the doors for new entrants to enter the market with new and innovative organic, flavored chocolates drinks and enhance the revenue of the companies by gaining an advantage over the others. For instance, in March 2021, Maple Hill, one of America's original 100% grass-fed organic dairy brands launched the nation's first Reduced Sugar Grass-Fed Organic Chocolate Milk. Moreover, the product has 25 percent less sugar than leading chocolate milk brands and has 8 grams of protein. It is made with 100% grass-fed organic milk, which is produced using regenerative agriculture along with Fair Trade Cocoa.
Furthermore, the rising demand for vegan and sugar-free chocolate milk is also supporting the chocolate milk market growth. The increase in veganism and people's interest in consuming vegan products with natural ingredients is pushing the leading players in the market to launch vegan-based chocolate milk products. For instance, in October 2021, a2 Milk Co. and Hershey Co. partnered and launched natural chocolate milk containing A2 protein rather than the combination of A1 and A2 proteins contained in most dairy products. Therefore, the demand for better for you and vegan-based chocolate milk is driving the growth of the market during the forecast period.
Asia-Pacific Leading The Global Chocolate Milk Market
Asia Pacific is the leading region for the chocolate milk market. The consumer demand for convenient, natural, nutritious, and healthy on-the-go snack options is the primary attribute for the sales of chocolate milk across Asia-Pacific. The changing lifestyle of consumers, their inclination toward a healthy lifestyle, and the growing desire for chocolate flavor and high nutritional content for children aid in the growth of the region's industry. Hence, chocolate milk, the healthier and more nutritional option, is witnessing increasing demand.
Along with this, dairy-based beverages are naturally high in calcium content, and thus, they are perceived as a nutritional beverage option. Also, the health benefits of probiotic drinks, especially their ability to improve digestion and the immune system, attract consumers across all age groups mainly in China and India. A shift in the food consumption pattern of consumers and increasing demand for chocolate drinks are supporting the growth of organic chocolate drinks across Asia-Pacific.
Moreover, India is the largest milk producer, so it is attracting chocolate milk businesses to set up manufacturing facilities and launch different products to expand their businesses. For instance, in 2021, Parle Agro a well-known player in the Indian beverage industry launched a new flavored milk product under SMOODH brand that is available in chocolate milk and toffee caramel flavors. Through this launch, the company expanded its business into the dairy sector. Therefore, the increased health benefits coupled with new product launches from the major players in the region's market are increasing the demand for chocolate milk products in the region.
