Opportunities to Grow in Better-for-you Segments
This is a must-read for chocolate businesses and own brands seeking to enter the realm of health-conscious chocolate & snacking. It also provides valuable insights for those seeking new growth opportunities amidst the current global situation.
Let’s dive deeper into how we’re evolving to meet the demands of a world that craves healthier snacking options and small portions.
- The impact of inflation and changing consumer habits.
- The changing landscape of snacking.
- Small-Scale Moulds for chocolate
While we all share a passion for great-tasting chocolate, we would be lying if we said we’ve never felt a little guilt after devouring one too many chocolate treats.
Here at Luker, we’re on a mission to find out how chocolate, in moderation, can remain a delicious treat for consumers with melt-in-your-mouth qualities and still have some pretty sweet health benefits.
In recent years, all around the world, there has been a shift in our snacking habits. It’s no secret that people are actively seeking healthier snack options, and chocolate lovers are no exception.
The impact of inflation and changing consumer habits in both confectionery & snacks
While the confectionery industry is growing, it is important to take note of the potential challenges ahead. Inflation will impact the industry, particularly with rising costs of raw materials.
In 2023, the International Monetary Fund (IMF) has projected that the global inflation rate will fall from 8.7 percent to 6.8 percent. In such an environment, affordable products that provide a momentary escape from the stress of everyday life will be in high demand.
This is where the confectionery market can come in handy.
The market has consistently shown resilience in the face of economic downturns, marking it as a dependable source of revenue for brands.
Business owners can leverage this opportunity to expand their products and meet rising demand effectively.
Apart from this, the context has also highlighted the need for products that cater to the changing demographics. Millennials and centennials are two of the biggest demographic groups that look for products in this category.
They are constantly seeking new and exciting options.
It is essential for businesses in the confectionery industry to be agile and adapt their products to meet the evolving demands of consumers. , e.g., vegan, gluten-free, non-GMO, etc. Brands must target these demographics in their marketing strategies to capture them.
Taking measures such as reducing sugar content and replacing artificial ingredients with natural alternatives may help to innovate and boost customer loyalty. These changes will be necessary for businesses to remain relevant and competitive in the market.
|👆🏽This is especially true considering that many countries are introducing taxes on sugary snacks, further increasing production costs.|
Thus, businesses need to have strategies in place to address the decrease in demand for such items. Investing in research and development to create healthier snacks will ultimately give them an edge over competitors who are not taking similar steps.
Additionally, businesses can explore alternative packaging options to increase the shelf life of snacks and make them more attractive to consumers.
The Changing Landscape of Snacking
The snacking market has been impacted by inflationary pressures, leading to rising prices and declining consumer purchasing power.
Consumers increasingly demand healthier and better-for-you options from the brands they trust as they become more health-conscious and prioritize wellness in their daily lives.
This shift in consumer behavior has challenged brands to innovate and create products that meet this new demand for healthier options.
Scientists and flavor specialists continually work hard to produce chocolate that reduces sugar, fat, or calories without sacrificing taste. Especially now, in a world where health-conscious attitudes and economic fluctuations are reshaping consumer preferences.
As covered by The Grocer, this year has resulted in the weakest chocolate global volumes in decades, tracking down 2% to 3%.
Despite people eating less chocolate, they are looking for better quality when shopping. Undergoing a flavorful transformation, the demand for healthier, guilt-free snacking options has given rise to a new trend for the chocolate industry to take hold of: bite-sized indulgences that offer a perfect balance of pleasure and well-being.
By reducing portion sizes and packaging, brands can create healthier options without compromising too much on taste or quality.
Snacking habits have undergone significant changes in recent times.
Global data company Kantar highlighted that treats and snacking is an emotive category for consumers, who typically want to recharge and reward themselves. A sector based on enjoyment and taste, it’s imperative that brand owners and chocolatiers find innovative ways to blend their offerings. Meeting the market’s demands and becoming part of a healthy global snacking market is expected to grow at a rate of 6.6 percent annually between 2022 and 2030.
The market should reach 152.3 billion U.S. dollars by 2030. This growth demonstrates that health-conscious snacking is not just a trend; it is here to stay. For brands looking to innovate and thrive in this segment, bite-sized portions offer an opportunity to meet the demands of consumers who are looking for healthier snacking options.
In response, stores are already seeing growth by replacing the traditional chocolate snacks by the register with healthier nuts and snack mixes. Retailers are also seeing the creation of healthy snack displays within the produce section and other fresh food items.
Small-Scale Moulds and Healthier Delights
The magic behind bite-sized snacks lies in their small size. Not only are they convenient for on-the-go snacking, but they also allow consumers to indulge without overindulging.
This is important for brands that want to create healthier snacking options that still satisfy consumers’ cravings. Bite-sized snacks also provide opportunities for brands to experiment with new flavors and ingredients without the risk of a large-scale product launch.
As the demand for health-conscious snacks rises, we have decided to innovate and use small-scale molds to create bite-sized versions of our popular chocolate treats. This will enable us to cater to the need for moderation and portion control while still providing our customers with the chocolate they love.
Born from our commitment to sustainability and quality, we are redefining indulgence. The joy of guilt-free snacking is palpable as consumers savor every moment of a treat designed to nourish both body and soul.
These molds facilitate the creation of delectable bite-sized indulgences and empower product and category managers to reimagine their offerings. In a world where the craving for health-conscious treats meets economic realities, these molds provide the canvas for culinary magic.
Co-creation and Experimentation across the Value Chain
At the heart of Luker Chocolate’s success lies co-creation—an intricate, collaborative process where vision, values, and innovation converge.
Co-creation is more than a process; it’s a philosophy that harmonises the aspirations of brand founders with our passion for crafting chocolate that resonates.
Whilst our goal is to create healthier chocolate options, we can face challenges, seeing as chocolate has pretty stringent definitions. For example, organizations like the FDA in the US create “Standards of Identity”, determine what can and cannot be contained in chocolate to make it chocolate – and how much of said ingredients are permissible.
However, through experimentation and our turnkey services, we’re able to navigate the evolving snacking landscape and empower partners and clients to envision and realise their culinary dreams. Leading us to produce couvertures such as our ‘Balance’ line—chocolate that embraces wellness— and snacking portfolio.
Whether it is including our dark chocolate chips or chunks in trail mixes, covering nutritious snacking bars with one of our sugar free chocolate couvertures or trying our snackable dragees, it is our role to partner with brands, to provide the expertise, resources and support to help you take advantage of this growing trend.
The snacking landscape is undergoing a big transformation, as consumer routines become more dynamic and health-conscious attitudes deepen, chocolate treats are redefining what it means to snack smart.
If this read has left you wanting to explore our ‘Balance’ and snacking line of guilt free treats that epitomises everything we’ve discussed, click the link below to find out more.