Chocolate Milk Market Size
Global Chocolate Milk Market reached USD 8.5 billion in 2022 and is expected to reach USD 12.6 billion by 2031 growing with a CAGR of 5.1% during the forecast period 2024-2031. Indulge in the ultimate chocolate experience with creamy and decadent chocolate milkshakes, made with rich and flavorful low-fat chocolate milk for a guilt-free treat that satisfies sweet cravings of consumers.
One of the key drivers for the growth of the chocolate milk market is the rising demand for healthy and functional dairy beverages. Consumers are increasingly seeking convenient and nutritious beverage options, and flavored milk fits into this category.
The sweet and creamy taste of chocolate in milk creates a delightful sensory experience that is highly sought after. chocolate is often associated with indulgence and treats. By infusing chocolate flavor into milk, flavored milk products create a sense of indulgence and enjoyment. Its familiar and comforting flavor profile has established chocolate as a leading flavor in the market.
Market Scope
| Metrics | Details |
| CAGR | 5.1% |
| Size Available for Years | 2023-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product Type, Distribution Channel, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increasing Health Benefits Awareness of Chocolate Milk Drives the Market Growth
Chocolate milk is a rich source of protein and vitamin. Non-skim chocolate milk contains fat. Protein and fat reduce the percentage of hunger. A high diet in protein with enough vitamin D lowers the body's calories. Chocolate milk provides many electrolytes like potassium, calcium, sodium and magnesium added to commercial recovery drinks. Chocolate milk contains fluids that help to rehydrate the body.
Chocolate milk is a rich source of vitamins and minerals, including vitamin C, which is good for immunity and helps to protect against infections and illness. Chocolate contains fiber, which improves digestion and regulates bowel movement while eliminating bloating, cramping and indigestion. Generally, 8-ounce of chocolate milk contains 30 grams of carbohydrates, 7 grams of protein, 188 Calories, 5 grams of fat, 2 grams of fiber and around 24 grams of sugar.
Increase in the Demand of Convenience And On-The-Go Products Like Chocolate Milk Drives the Market Growth
In today's busy world, consumers are looking for the convenient and on the go options that fit into their busy schedules. Chocolate milk is available in ready-to-drink format with portable packaging, offers a quick and easy beverage choice for people on the go. It eliminates the time required for preparation or additional ingredients, making it a convenient option for busy people.Chocolate milk is available in various types of packaging such as bottles, cartons, or pouches.
These packaging options make it easy for consumers to carry and consume chocolate milk wherever they go. The accessibility of chocolate milk in grab-and-go formats enhances its appeal and drives market growth. Some of the major key players follows merger and acquisition strategy to expand their business. For instance, On February 28, 2023, NotCo partnered with SIG to launched products in carton packs. These products are available in the 250ml aseptic carton packs which makes it more convenient.
High Sugar Content in the Chocolate Milk Hampers Market Growth
Increase in the consumers awareness about the negative health effects of excessive sugar consumption has led to a shift in consumer preferences towards healthier options. High sugar content in chocolate milk can deter health-conscious consumers who are actively looking to reduce their sugar intake. Also, increase in the consumers awareness about their dental health, weight gain, and the potential risk of chronic diseases like obesity and diabetes can hamper the demand of chocolate milk globally. According to the dat published by the World Health Organization in 2021, around 39 million children under the age of 5 are facing obesity in 2020.
Also, increasing the availability of healthier alternatives, such as low-sugar or sugar-free chocolate milk options poses a competitive challenge to chocolate milk. Consumers are increasingly turning to options like unsweetened plant-based chocolate milk, Fortified Chocolate Milk, plain milk, or alternative flavored beverages that offer similar taste profiles with lower sugar content.
Market Segmentation Analysis
The global chocolate milk market is segmented based on product type, distribution channel, and region.
Non-Dairy Based Chocolate Milk Segment Accounted for the Highest Share in Global Chocolate Milk Market
The global chocolate milk market by flavour type has been segmented by chocolate, vanilla, butterscotch, coconut, strawberry, coffee, hazelnut and others.
Non-dairy chocolate milk is made by using Non-dairy milk alternatives such as soy milk, oat milk, coconut milk, almond milk, or rice milk. All these milk substitutes provide a flavorful base and creamy texture for the chocolate milk while catering to individuals with lactose intolerance, dairy allergies. Non-dairy chocolate milk is considered as healthier option as compared to Dairy Based Chocolate Milk.
Increase in the Non-dairy based chocolate milk product launches by major key players helps to boost segment growth over the forecast period. For instance, On October 22,2021, NotMilk, a growing food tech company launched chocolate milk in the market. It is available in the 64 oz pack size. The new launched product is available for the sale on Amazon. It has creamy texture and has flavor of cocoa. It is made with the 100% plant based ingredients such as peas, pineapple, cabbage, and cocoa.
Market Geographical Share
The Increased Demand for Chocolate Milk in North America Region Due to its Health Benefits
High chocolate milk demand in countries such as U.S. and Canada are fueling the market growth due to the increase in the adoption of healthy products. This is attributed to changes in eating habits and increased awareness about the benefits. The growing vegan population increases the demand for plant-based milk, which increase the adoption of non dairy based chocolate milk. Also, a hike in the number of sellers and manufacturers has led to an increase in the availability of chocolate milk in North America.
Some of the major key players launched new products in the market. For instance, on March 10, 2021, Maple Hill, a organic dairy company launched reduced sugar grass fed organic chocolate milk in the market. The new launched product has 25% less sugar and is made from the 100% grass-fed organic milk cow milk. These healthy product launches helps to boost product sales in the market and also helps to boost regional market share over the forecast period.
Market Companies
The major global players include Nestlé S.A., The Hershey Company, Mondelez International, Inc., Amul, Meiji Holdings Company, Ltd., Clover Farms Dairy., Arla Foods, Dean Foods, Dakin Dairy and Shatto Milk Company.
COVID-19 Impact on Market
The COVID-19 pandemic is negatively impacted on the chocolate milk market due to the worldwide lockdown restrictions, posing challenges for the manufacturer. The COVID-19 pandemic has initially caused the manufacturing units to shut down in many countries due to the Government restrictions. The shortage of labors due to fear of the coronavirus has caused many companies to decrease their production. Hotels and restaurants are completely closed during the pandemic which resulted in the decrease in the sales of chocolate milk.
The COVID-19 pandemic disrupted all the strategies such as import export and supply chain and forecasts for industry growth. The major key players need to review their strategies to support the following COVID-19 scenario and maintain healthy relationships with their business partners. As a result of this pandemic, the world's average disposable income decreased.
Russia-Ukraine Impact Analysis
The ongoing tensions between Russia and Ukraine can have an impact on the chocolate milk market. These factors can affect various aspects of the market, including supply chains, production, trade relations, and consumer preferences. The trade disputes and political instability between the two countries may disrupt the smooth flow of ingredients and finished products, potentially leading to supply chain disruptions and affecting the availability of chocolate milk in the market.
Additionally, changes in trade policies, tariffs, or import and export regulations can impact the cost of raw materials, manufacturing, and distribution of chocolate milk. The overall economic climate and consumer sentiment in both countries influence the purchasing power and consumer behavior, potentially affecting the demand for chocolate milk. Therefore, it is crucial for businesses operating in the chocolate milk market to closely monitor the geopolitical situation between Russia and Ukraine and adapt their strategies accordingly to mitigate any potential risks or take advantage of emerging opportunities.
Key Developments
- On October 26, 2021, a2 Milk & Hershey launched chocolate milk in the market. It is made from the 2% reduced fat a2 Milk. It is available in the 59 oz refrigerated cartons and 8 oz shelf stable single, 18-pack and 06-packs. It is free from the artificial flavores, colors and additives.
- On July 14, 2021, Parle Agro, an Indian food and beverage company launched flavoured milk in the market under the brand name of Smoodh.It is available in the 85 ml of tetrapack. It is available in the two flavors such as chocolate milk and toffee caramel.
- On July 31, 2021, Nestle, a dairy and chocolate company launched ready to drink chocolate oat milk named as GoodNes in the market. It is made from the oat milk and pea protein. It contains 6 grams of the protein per servings.
Why Purchase the Report?
- To visualize the global chocolate milk market segmentation based on product type, distribution channel, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of chocolate milk market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global chocolate milk market report would provide approximately 53 tables, 41 figures and 122 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
