Peter’s® Chocolate is a supplier of premium chocolate, a surprisingly growing segment the confectionery market, even during difficult economic times

Despite the continuing economic uncertainty, U.S. consumers have not given up on chocolate even as they cut back on other frills. Chocolate kept selling through the recession. With rising prices now the reality across many different aspects of everyday life, chocolate products tend to be viewed as indulgent, yet affordable products.

Consumers are willing to purchase smaller amounts of premium chocolate which helps the chocolate industry and its fans weather economic downturns.

Specialty chocolate consumption increases

Consumers are careful about spending, but specialty or “premium” foods have proven to be an exception. “The data shows that 63 percent of Americans purchased specialty foods in 2010, up from 46 percent in 2009.”¹ Chocolate is a commonly purchased “premium” product. Premium chocolate is typically characterized by an emphasis on production process and flavor uniqueness, much like wine. A premium price tag also tends to accompany the pursuit of quality. “In 2009, 50 percent of consumers purchased specialty chocolate while one year later, this number jumped to 59 percent. More than 70 percent of those surveyed claim they buy specialty food “to treat myself,” up from 61 percent in 2009.”¹

Chocolate is a popular choice because it can be enjoyed without preparation. For many people, depriving themselves, in general, generates a sudden urge to spend money on a small but extravagant chocolate product. Retailers are stocking shelves to address this growing premium chocolate sales opportunity. According to the National Confectioners Association’s sales report on Sept 4, 2011; “Confectionery dollar sales continue upward as sales for confectionery at Food, Drug and Mass Retailers increase. According to Symphony IRI, numbers are up 4.2 percent for the latest 52 weeks ending September 4th led by chocolate up 6 percent”.²

Many analysts thought they would see chocolate demand from recession-weary consumers decline, particularly amid higher prices for cocoa beans and poor predictions for cocoa harvests. However, consumers are willing to purchase smaller amounts of higher priced premium chocolate which helps the chocolate industry and its fans weather economic downturns.

Treating themselves to premium chocolate provides an emotional boost to many consumers. Economists call this the "lipstick factor." It refers to the historical rise in lipstick sales during tough economic times, like during World War II, as women looked for an affordable way to cheer themselves up. For the candy industry, people seek chocolate as an affordable indulgence to boost themselves psychologically. In addition, thanks to the rise in popularity of food television shows, people are becoming savvy about what “premium” means and increasingly, they want their purchases to say something about who they are.

Peter’s® chocolate 

Peter’s® chocolate offers confectioners and bakers a full line of cocoa butter-based chocolate that includes milk, dark and white. Using high-quality cocoa beans to produce our chocolate, Peter’s® roasts beans and manufactures chocolate in a way that ensures quality throughout the entire chocolate-making process.

At Peter’s®, each chocolate product is formulated and delivered to meet the exact specifications of confectioners and bakers across North America. Our technical expertise in chocolate formulation and confection preparation makes us an ideal partner for developing new indulgent offerings that attract consumers and drive sales.

Chocolate continues to represent an affordable indulgence for consumers in a slow economy, demonstrated by industry sales growth over the past few years.

¹Specialty Bounces Back. Candy & Snack Today. January/February 2011
²http://www.candyusa.com/IndustryResources/ReportsDetail.cfm?ItemNumber=4179