The organic chocolate market - Germany

1.2 Globally growing market

The global organic chocolate market was worth $***.* million in **** and is expected to grow at a CAGR of *.*% from **** to ****. The main reasons for this are the increasing preference for healthy food and various marketing and promotional activities by manufacturers. However, the COVID-** pandemic has affected the market and weakened consumers' purchasing power. In the U.S., seasonal demand for confectionery has decreased due to the pandemic.

As chocolate is often consumed on the go or away from home, sales initially declined in ****. However, factors such as growing consumption and rising disposable income are strengthening market growth. In addition, many manufacturers are relying on innovative strategies to market their chocolate products as healthy options.

Attractive packaging, creative brand campaigns, and promotions are increasing demand for these chocolates.

The boxed segment accounted for the highest revenue share of over **% in **** and is expected to grow *.*% annually through ****. Organic chocolate boxes are very popular as a gift option worldwide. Factors such as packaging, craftsmanship, quality and origin of cocoa, and flavors influence consumers' purchasing decisions. However, the chips & bites segment is expected to grow at the fastest rate during the forecast period."[***]

Global Organic Chocolate Market Global, **** - ****, in USD mn Source: ****

1.3 Fairtrade chocolate popular in Germany

Fairtrade chocolate and organic chocolate are two different concepts within the chocolate industry, both aiming at sustainability, social responsibility and environmental protection. Although they have different certifications and focuses, they complement each other in many ways and together can contribute to more ethical and environmentally friendly chocolate production.

Fairtrade chocolate refers to chocolate produced under fair conditions for the workers and farmers who are at the beginning of the supply chain. Fairtrade organizations guarantee that cocoa farmers receive a minimum price for their harvest that provides them with a stable income and better living conditions. A Fairtrade premium is also paid, which is invested in social, environmental and economic projects in the growing communities.

Organic chocolate, on the other hand, refers to chocolate made from organically grown cocoa beans. Organic certification guarantees that the cocoa was grown without the use of synthetic pesticides, herbicides and chemical fertilizers. This helps protect the environment, soil health and biodiversity.

The connection between Fairtrade chocolate and organic chocolate is that they both aim to reduce the negative impact of chocolate production on people and the environment. Fairtrade chocolate focuses on improving the living conditions and incomes of cocoa farmers, while organic chocolate aims to protect ...

1.4 Good development of foreign trade

Foreign trade in chocolate: a sweet success

In ****, German exports of chocolate totaled *.** billion euros. This value increased continuously over the years and reached *.** billion euros in ****. This represents an increase of about **% within seven years. These figures show that the chocolate industry has grown worldwide and successfully placed its products in various markets. The reasons for this increase can be attributed to various factors, such as the increased demand for chocolate in emerging markets, the development of new markets and the improvement of production and distribution methods.

In parallel, imports of chocolate also increased from €*.** billion in **** to €*.** billion in ****, representing an increase of around **% over the period under consideration. The increase in imports shows that demand for chocolate has increased in various countries and that people are willing to buy and enjoy chocolate products from other countries.

Foreign trade in chocolate Germany, **** - ****, in billion euros Source: ****

The main ingredient of chocolate, cocoa, is imported to Germany mainly in the form of cocoa beans and cocoa bean curd. In ****, the total amount of imported raw materials was ***,*** tons, an increase of *.*% compared to ****. The most significant share of imports (***)[***]

2.1 The German organic consumer

More and more people prefer food from organic sources: According to their own data, ** percent of respondents now buy more organic food than products without an organic label. This is an increase of ** percentage points compared to ****. In the same period, the proportion of those who do not buy organic products has halved: Only ** percent of respondents now completely avoid organic products(***).

Age and living situation influence the purchase of organic products, with **% of households with children more likely to buy organic food. The increasing demand for organic products is due to health aspects and environmental friendliness, but also ethical reasons such as fair payment and animal welfare.

Survey: Development of the percentage share of organic products in purchases Germany, ****, in % Source: ****

Consumers are increasingly paying attention to organic quality in dairy products, baked goods and confectionery. chocolate can be assigned to these categories, as many of these products are made of chocolate.

Products for which organic quality is taken into account at the time of purchase Germany, **** - ****, in % Source: PwC A strong development can be observed in the frequency of purchasing organic products. A large proportion of the consumers surveyed buy organic products at least once a week:

Proportion ...

2.2 The chocolate consumption

s **% of Germans like to eat chocolate. The popularity of chocolate is slightly higher among older respondents (***). **% of chocolate lovers buy chocolate for their own use several times a month, while **% do so once a month, **% once a week, *% several times a week and *% daily.

Purchase frequency of chocolate for own consumption Germany, ****, % Source: ****

For Germans, taste is the most important purchase criterion for chocolate (***).

Aspects when buying chocolate Germany, ****, in % Source: ****

2.3 The most popular chocolate varieties of the Germans

The most popular chocolate varieties of the Germans

Germans' most popular types of chocolate Germany, ****, in % Source: ****

Milk chocolate is probably the best-known and most frequently consumed type of chocolate in Germany. It consists mainly of cocoa mass, cocoa butter, sugar and milk powder. The milk content gives the chocolate a creamy consistency and a mild, sweet taste.

In second place comes dark chocolate, also known as bittersweet chocolate. It has a higher cocoa content than milk chocolate. This gives it a more intense, tart flavor. Dark chocolate is often used in cooking, for example for baking or for making chocolate sauces.

2.4 Trend product vegan chocolate

Chocolate manufacturer EcoFinia presented its first organic vegan chocolate line, iChoc, in ****. The range consists of eight varieties and is exported to over ** countries. Half of EcoFinia's sales come from vegan chocolate. Vegan chocolate saves CO*, energy, land area and water compared to milk chocolate. According to Nielsen, vegan products already account for nearly four percent of chocolate bar sales. The Future Institute ranks veganization of recipes among the most important food trends in ****[***].

Vegan chocolate bar sales Germany, **** - ****, in million euros Source: ****

since ****, a huge growth in sales of vegan chocolate is visible. Between **** and ****, sales decreased by **.**%, which may be due to increased prices.

3.1 Value chain and cost structure

The organic chocolate value chain is a process that aims to produce high-quality chocolate products in an environmentally friendly and ethical manner. Compared to conventional chocolate production, the organic chocolate value chain places particular emphasis on sustainability, fair working conditions and the protection of natural resources.

The first step in the value chain is the selection of raw materials. Here, only organically grown cocoa beans are used, which are cultivated without the use of chemical pesticides and fertilizers. This protects the environment and promotes biodiversity.'

The next step is to harvest the cocoa beans. Here, farmers take care to harvest the beans gently and at the optimal time to ensure the best possible quality. As a rule, organic chocolate manufacturers work closely with the farmers and support them through fair prices and long-term partnerships.

After harvesting, the cocoa beans are fermented and dried. This process is crucial for the development of the typical chocolate flavor. In the production of organic chocolate, special emphasis is placed on natural and gentle processes to preserve the quality of the beans.

Before the beans can be processed further, they must be roasted. This step also contributes to flavor development and removes any impurities. The ...

3.2 Distribution channels of organic products

Organic products are offered through various distribution channels. In ****, the preferred distribution channels for organic products were distributed as follows: Supermarkets, such as Rewe and Edeka, were the preferred place to buy organic products with **%. Discounters such as Aldi, Lidl and Penny followed with **%. Weekly markets were preferred by **% of shoppers, while organic supermarkets scored **%. Farms and farm stores were preferred by **% of consumers, health food stores by **% and online purchases accounted for *%.

Preferred sales channels of organic products Germany, ****, in % Source: ****

This shows that consumers purchase organic products through various channels and are distributed between traditional retail stores as well as specialized organic stores and online offerings.

Development of e-commerce and organic market sales channels Germany, ****, in % Source: ****

3.3 Sustainability seals at a glance

Organic seals are official labels that distinguish products from organic farming. They guarantee that the products have been produced under certain ecological and social standards. These include the absence of synthetic chemical pesticides and genetic engineering and the conservation of natural resources. The organic seal allows consumers to consciously choose sustainable and organic products when shopping. There are various national and international organic seals that have different requirements and guidelines. Among the best known are the EU organic logo, the German organic seal and the Demeter seal. Other seals that also include Fairtrade are shown in the following table:

Source: ****

3.4 A highly fragmented market

The market for chocolate is highly competitive and includes a number of players. In addition to large, globally active companies such as Nestle, Lindt and Ferrero, there are a number of small manufacturers, most of which operate more locally.

With the help of a survey, Kantar has identified the best-known brands for chocolate, measured by the number of consumers:

Leading brands in the 'chocolate mixes and chocolates' category by number of consumers Germany, ****, in number Source: ****

4.1 Price development

Consumer price index for individual consumption of chocolate bars Germany, **** - ****, Index Source: ****

the consumer price index (***) is a significant tool for tracking the development of the cost of living over time. It measures the average price change of goods and services purchased by households for consumption purposes.

Looking at the evolution of the CPI for chocolate bars over this period, we can see that the index remained relatively stable from **** to ****, with slight increases in ****, **** and ****. In ****, the index reached the value of ***, which serves as the base year and reference point for calculating price changes.

However, from **** onwards, a significant increase in the CPI for chocolate bars can be observed. This could be due to various factors, such as rising commodity prices, changes in demand due to consumer behavior, or even the impact of global events, such as the COVID-** pandemic, on chocolate production and distribution. Finally, in ****, the consumer price index for chocolate bars reaches a value of ***.*, indicating a significant price increase compared to previous years.

In summary, the consumer price index for chocolate bars shows an increasing trend over the period considered, especially from **** onwards, highlighting the importance that chocolate has as a consumer good for ...

4.2 The product ranges with organic chocolate

The production of chocolate and chocolate products in Germany has developed differently in different product groups in the years **** to ****. Overall, however, production shows an increase in almost all groups.

For filled bars and bars, production increased from ***.** tons in **** to ***.** tons in **** and is estimated at ***.** tons in ****. The production of other unfilled chocolate products decreased from ***.** tons in **** to ***.** tons in ****. On the other hand, production of other filled chocolate products increased from **.** tons in **** to **.** tons in **** and is estimated at **.** tons in ****.

The production of non-alcoholic chocolates also increased during the period considered, reaching a peak of ***.** tons in ****. It is expected to increase further to ***.** tons in ****. The production of chocolates containing alcohol fluctuated between **.** and **.** tons in the period from **** to ****.

Cocoa-containing sugar confectionery recorded an increase from **.** tons in **** to **.** tons in ****, and a further increase to **.** tons is expected in ****. The production of white chocolate almost doubled during the period considered, from **.** tons in **** to **.** tons in ****, and is expected to increase further to **.** tons in ****.

Overall, it can be seen that the production of chocolate and chocolate products in Germany has increased overall in the years **** to ****, with some product groups growing ...

4.3 A highly fragmented market

The market for (***) chocolate is highly competitive and includes some companies. The following table shows some companies for organic chocolate, as well as companies that offer vegan and organic products:

5.1 Supply Chain Act

The Supply Chain Act: Corporate Due Diligence in Supply Chains

The Supply Chain Act is a law passed in Germany that requires companies to ensure compliance with human rights and environmental standards along their supply chains. It initially affects companies with *,*** or more employees and is set to apply to those with *,*** or more employees from ****. The aim of the law is to strengthen corporate due diligence in supply chains and to prevent or minimize negative impacts on people and the environment from companies' operations.

The basis of this law is the recognition that companies have a responsibility for the social and environmental impacts of their business practices, even if those impacts are caused by their suppliers. Therefore, companies should monitor not only their own actions, but also the actions of their direct (***) suppliers.

The Supply Chain Act covers four main aspects:

*.Risk analysis: companies must conduct a systematic risk analysis to identify potential negative impacts on human rights and the environment in their supply chains. This analysis should be regularly updated and documented.

*.Preventive measures: Based on the results of the risk analysis, companies must take appropriate measures to avoid or minimize the identified risks. This includes informing ...

5.2 Regulation for cocoa and chocolate products

In accordance with Directive ****/**/EC of the European Parliament and of the Council, the Cocoa Regulation sets out the requirements that must be met for a product to be designated as a cocoa or chocolate product for human consumption. The regulation sets minimum requirements for the content of cocoa solids, milk solids, milk fat or cocoa butter, depending on the product.

The regulation also regulates the permitted ingredients. In addition to cocoa butter, certain other vegetable fats such as palm oil or shea may be used in the manufacture of chocolate. In such cases, the chocolate must be labeled "contains other vegetable fats in addition to cocoa butter." In addition, the regulation requires that for certain products, the minimum cocoa content must be labeled with the statement "Cocoa: ...% minimum."

For chocolate, milk chocolate or chocolate couverture, special quality claims can be used if higher requirements are met with regard to the content of value-added ingredients such as total dry cocoa solids, cocoa butter or dry milk solids.

Source: ****

This article on the website of the German Federal Center for Nutrition (***) discusses the topic of chocolate and provides an overview of its production, composition and different types of chocolate.

It explains that ...

5.3

6.1 Segmentation of the players

Company segmentation in the chocolate industry

The chocolate industry is a multi-faceted market that can be divided into different segments. These include vegan chocolate, organic chocolate, fair trade chocolate and conventional chocolate. In recent years, the range of more sustainable and ethical chocolate products in particular has increased significantly.

It is interesting to note that many brands and companies in the chocolate industry now combine several of these segments. For example, there is vegan organic chocolate that is also Fairtrade certified. This shows that more and more companies and consumers are attaching importance to sustainability, environmental protection and social responsibility.

Conventional chocolate, on the other hand, is often made from mass-produced goods and cheaper raw materials without any particular focus on environmental or social standards. While these products are often less expensive, the trend shows that more and more consumers are willing to spend a little more money for more sustainable and ethical chocolate.

• Alnatura
• Veganz Group AG
• Rapunzel
• Naturata AG
• GEPA
• dennree GmbH
• Original Food GmbH
• PACCARI
• EcoFinia GmbH