The chocolate industry offers a wide variety of opportunities for the small business owner, weathers economic recession well and is growing despite increased health-consciousness and calorie counting. Growth will be driven by population growth as well as expansion into new markets, product innovation and rising disposable income levels leading to greater purchasing of premium offerings.
Chocolate is wildly popular for individual consumption, gift giving and cooking. Due to the dominance of large-scale production dynasties, franchises and small businesses tend to focus on unique or specialty items or services. Unique chocolates may be from a region famous for a particular technique, baked on-site or offer a different take on tradition, while specialty services tend to focus on gift-packaging or delivery.
One of the primary demand drivers for chocolate and other sweets is consumer taste, and consumers continue to love chocolate! Long a beloved treat in the western world, a recent study in Great Britain showed that 91% of females and 87% of males consume chocolate products. But the taste for chocolate is now expanding into highly populated nations with a growing middle class, such as China and India. Rising disposable incomes and changing tastes will continue to drive growth in the industry overseas, just as improving domestic economic conditions increase sales at home.
The candy and confection industry remained strong through the recent recession, with the chocolate industry in particular having strong sales despite belt tightening. Considered a luxury, chocolate surprised many industry observers with continued sales strength over the last several years. Though people spent less on big ticket items like vacations, consumers refused to give up the little ways they spoil themselves at home. A chocolate bar is often considered an “affordable luxury.”
Profitability for large confection and candy producers is derived from manufacturing and supply chain efficiency, as well as effective marketing. Smaller companies look to offer premium or specialty products. For all companies involved in the chocolate industry, however, rising commodity prices can be cause for concern. Cocoa prices can be exceedingly variable as it is largely grown in developing nations with often unstable political situations. Recent turmoil in the Ivory Coast, the largest producer of cocoa, has caused prices to skyrocket for the beans. Lack of access to modern insecticides and fertilizers also makes production less predictable. Large producers of cocoa manage and absorb much of this risk, but will begin to pass on higher prices beyond a certain point.
There are a number of trends within the chocolate industry that are driving growth; and product innovation in 2010 brought a 16% increase in new product releases over 2009. Increasing disposable incomes as well as changing public sentiments regarding health and our global community are the driving forces behind this growth in innovation.
Premium and specialty items have shown strong growth over the long-term. During the recession, there had been a shift away from premium items, but as the economy has continued to recover, sales of premium items have taken the lead again. High-end varieties can be baked on the premises, come from a renowned region or have a hidden secret recipe. Seasonal and boxed assorted chocolates have been experiencing the fastest growth, and sales are expected to expand 13% between 2010 and 2015. Holidays, birthdays, retirement parties and more, chocolate is a versatile gift for many occasions.
Over the last several decades there has been increased understanding of what constitutes a healthy diet, and there has been a dramatic increase in sales of sugar free, reduced fat and reduced calorie offerings. Dark chocolate is known to lower both blood pressure and cholesterol, and has nearly 8 times the number of antioxidants as found in strawberries. A recent survey found that 35% of respondents believe dark chocolate to be healthier, and it shows: sales grew 9% in 2009 versus 3.6% for the chocolate industry as a whole.
Fair-trade certified chocolate is another fast growing segment of the market, where consumers pay a premium to ensure goods are produced in an ethical manner. As our global community grows smaller with the communication revolution, it becomes glaringly obvious that goods produced in developing countries are often subject to horrible labor conditions or controlled by dominant industry participants. Fair Trade is an social movement aimed to promote sustainability in developing countries, and generally requires a higher price but conforms to higher social and environmental standards.
Chocolate Industry Franchise Opportunities
There are a wide variety of chocolate industry opportunities available for the franchisee, based on location, clientele, and affluence. Franchises exist in storefront or online variety and for shipping or hand delivery; specialty stores provide high-end treats and bulk candy stores offer large quantities of varying quality!
I am Leisa Hawkins, and I am a Washington State Xocai healthy chocolate entrepreneur. I sell and promote the industry-leading category leading world's first official healthy chocolate online and in Snohomish and King County and I am a team leader. Our valued WA customers recommend the Nuggets because Nuggets is a great tasting health product .
I made a choice to start my own business and work part time because I can eat guilt free chocolate, promote better health and get more tax benefits by doing so. I can show you how too.
Xocai healthy chocolate is home-based style of business in the Snohomish County area. Washington state entrepreneurs can supplement their income by cashing in on a high-demand Washington healthy chocolate market. To learn more about joining our team, visit www.leisaloveschocolate.com
Call me at 425 210-1138 to show you how to have your own up and coming chocolate business in Snohomish or King County . We need starters (both men and women) in Washington state. Xocai is looking for good people, is that you ?
Leisa Hawkins
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