Market Trends of Europe Chocolate Milk Industry
This section covers the major market trends shaping the Europe Chocolate Milk Market according to our research experts:
Complying With "Better-for-you" and "Free-from" Products
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 European market. Also, 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 region.
Pertaining to the rising demand of vegan and sugar free chocolate milk, leading players are launching innovative organic chocolates to sustain themselves in the long run. For instance, in 2017, Nestle altered the sugar level and revamped its chocolate drink, in order to fulfil the consumers' demand for low-sugar chocolate drinks. Also, in 2019, Nestle launched a low sugar product, Nesquik All Natural, in a specially made recyclable paper packaging, with more cocoa.
United Kingdom Dominates the Market
The market across United Kingdom is one of the front runners in driving the demand for chocolate-based milk beverages over the past few years. The factors, such as new product launches along with innovation in offerings are some of the key traits that reshaped the market. As of 2018, the United Kingdom Upper Tribunal Tax court ruled out the chocolate milk shakes to be VAT free. Therefore, the products such as Nestlé's Nesquik chocolate powder milkshake were now zero rated for VAT. This factor adds another momentum to the existing market to scale.
In a bid to compete for the market share, companies are extensively investing in developing new offerings. For instance, Arla Foods UK offers two key chocolate milk-based drinks, namely, Wing-co Protein enriched chocolate milk (having 40% more protein than other chocolate milk products), and GULP milk shakes in 3 flavors including chocolate, specifically for children. The demand for raw chocolate offerings have also led manufacturers to reformulate and rebrand their products, while creating a healthier image with premium experience.
