🍫Why is the chocolate category a sweet opportunity in Africa?
Written by: BD Team | Published 2 years ago
The world of chocolate is a universal pleasure. Beyond its irresistible taste, chocolate holds significant potential in Emerging Markets. In particular, the African chocolate market is experiencing considerable growth of 6% over the next 5 years (Source: Euromonitor). This blog post delves into the captivating opportunities within the African chocolate market and explores the factors driving its expansion.
Health-conscious Consumer Trends:
In recent years, consumer consciousness regarding the health benefits of high-quality chocolate has surged. Dark chocolate, known for its antioxidant properties and potential health benefits, has gained popularity among African health-conscious individuals. However, it's worth noting that milk chocolate currently dominates the category in African markets capturing a significant 50% share. As awareness and education around the health benefits of chocolate continue to grow, the market for premium, healthier, sugar-free chocolate options is expected to expand.
Kenya - A Growing Market:
Among the countries in Africa, Kenya stands out as a noteworthy market for chocolate. With one of the fastest-growing populations in the continent, coupled with a rise in disposable income, Kenya presents a promising landscape for chocolate manufacturers and brands. The chocolate category in Kenya is experiencing remarkable growth, estimated to reach over $64 million by 2027 (RSP retail value). The driving force behind this growth is the population of young consumers, creating a higher demand and resulting in the expansion of modern retail shops.
The Middle-Class Influence:
The expansion of the African chocolate market in Kenya is closely tied to the rise of the middle-class population and rapid urbanisation. As middle-class incomes increase, the demand for higher-quality and premium chocolate products grows. This demand stems from a desire for not only indulgence but also healthier options that align with consumers' evolving tastes and preferences. The healthy segment of the chocolate market is witnessing a surge in demand, reflecting the changing consumer landscape and the pursuit of a balanced and conscious lifestyle.
The Impact of Health Taxes:
Within the chocolate segment, rising prices are being driven, in part, by health taxes. Governments in certain African countries have imposed taxes on sugary and high-calorie products, including chocolate, as a means of promoting healthier dietary choices. While these health taxes pose challenges for the industry, they also create opportunities for innovation, encouraging manufacturers to explore healthier formulations and alternatives.
The African chocolate market is an exciting space filled with potential for growth and innovation. With a market value projected to increase and a rising consumer base that values both indulgence and health consciousness, the stage is set for chocolate manufacturers and brands to seize the opportunities. By catering to the preferences of young consumers, tapping into the demands of the growing middle class, and embracing healthier options, the African chocolate market can evolve and flourish, creating a sweeter future for all.
Are you ready to tap into Africa's sweet tooth? Get in contact with us to explore chocolate business opportunities in the continent!
–Mirfat Khamis, Digital Marketing Specialist, Imagine
–Lisa Laouiti, Commercial Director, Imagine