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The global chocolate beer market is witnessing significant growth due to the increasing number of craft breweries worldwide. Chocolate is increasingly used in alcoholic beverages as cocoa is rich in flavonoids and contains a high level of antioxidants. According to the International Cocoa Organization (ICCO), the regular consumption of cocoa can effectively improve mood, reduce depression, and prevent cardiovascular diseases.
The increasing number of craft brewers and microbreweries in the industry is further elevating the trend of innovative beer products. New entrants need to develop innovative product offerings to grab market share and stay innovative in the competitive landscape. According to the Brewers Association, there are nearly 9,761 craft breweries and 2,092 microbreweries operating in 2023 across the U.S.
The COVID-19 pandemic had a significant impact on the chocolate beer market due to the forced closure of industries, halting of production, supply chain disruptions, and government interventions. However, the current situation allows the market to grow at a significant CAGR during the forecast period due to the growing demand from Europe, North America, and Asia Pacific.
Increasing Popularity of Chocolate Beverages to Fuel the Demand
In recent years, the demand for chocolate beverages has shown remarkable growth owing to the rising consumer expenditure on indulgent flavored beverages, especially chocolate. The demand for chocolate-flavored beverages is higher among the young generation. Health benefits associated with cocoa are one of the major factors increasing the demand for chocolate beer across the globe. The increasing disposable income of young consumers and the rising adoption of health-beneficial products are the factors propelling the demand for chocolate beer in the upcoming years.
Availability of Alternative Products at Lower Prices May Hamper the Market
The increasing cost of raw materials such as cocoa and sugar is expected to hinder the market growth. The soaring prices of cocoa, rising inflation, and rising supply chain costs are the major factors reflecting the high cost associated with chocolate beer. Due to inflation and rising cost of living, consumers are becoming more cost-conscious. Changing consumer preferences and the availability of various alternatives at comparatively low prices are anticipated to restrict the market growth during the forecast period.
Soaring Consumer Demand for Premium Quality Products to Offer Growth Opportunities
Chocolate beer is one of the emerging segments of the beer industry. The manufacturers are emphasizing building strategic partnerships and joint ventures to serve the growing demand and changing consumer preferences. For instance, in October 2022, The Yuengling Company, a joint venture between D.G. Yuengling & Son, Inc. and Molson Coors Beverage Company, the leading manufacturers of alcoholic beverages, launched Hershey's Chocolate Porter. The companies aimed to produce a new range of chocolate beer with a long-term brewing partnership.
Furthermore, the growing consumer demand for premium quality products, the increasing number of new craft breweries across developing nations, and the emergence of e-commerce platforms are the major factors expected to create lucrative opportunities for market growth.
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The report covers the following key insights:
Based on type, the market is divided into chocolate ale, chocolate stout, chocolate lager, and others.
The chocolate lager segment is expected to dominate the market share during the forecast period. The brewing process associated with chocolate lager offers a refreshing dessert-inspired flavor, smooth finish, and crisp appeal to the product. Manufacturers are innovating chocolate lager with non-traditional flavors such as cocoa nibs to attract consumers seeking unique taste experiences. Growing demand for premium beverages among consumers and rising diversification in craft breweries are the factors promoting the growth of the market.
The chocolate ale segment is anticipated to show significant growth. The product comes in varying color palettes and has a luxurious, velvety texture. The chocolatey hops enhance the mouthfeel of the beer, providing an indulgent experience to the consumer. Ale yeast produces beer in a lesser amount of time, and therefore, it is commonly manufactured in small-scale breweries. The rising inclination of the young generation and the millennial population toward low-alcohol-based beverages is likely to fuel the demand for the segment.
Based on packaging materials, the market is subdivided into glass bottles, cans, and others.
Packaging materials, including glass bottles, cans, and others fragment the market. The glass bottles segment is anticipated to hold a major share of the market owing to its low processing cost. Glass is one of the most popular materials used for packaging alcoholic beverages. Increasing consumer preference for luxury products that offer a premium look is the major factor accelerating the segment growth.
The cans segment is anticipated to exhibit significant expansion due to the rising popularity of metallic cans among the young. Metal cans are a highly durable and convenient option for beer storage. Manufacturers are adopting attractive branding and marketing techniques to influence young consumers, thereby increasing the sales of beer cans.
Based on distribution channel, the market is fragmented into off-premise and on-premise.
The off-premise segment is anticipated to lead the market in the next few years. Chocolate beer is mainly distributed through supermarkets, wine shops, liquor stores, and others. The segment offers a wide variety of products at low prices compared to other on-premise channels. The convenience of choosing from a wide range of product categories enables impulse purchases through easy access.
The on-premise segment is expected to grow significantly over the forthcoming years. The growing trend of cocktail culture among the young population and the rising adoption of Westernization and cross-cultural practices have flourished product consumption at restaurants, pubs, bars, and others.
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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Europe is expected to account for the largest share of the global chocolate beer market during the forecast period. Europe is the largest importer of cocoa and an important trade hub for chocolate products. The regional market growth is attributed to the increasing expansion of breweries across the region to meet the consumer demand. Escalating demand for low-alcoholic beverages due to the health awareness among consumers is one of the major factors contributing the market growth. For instance, in November 2020, one of the largest craft beer breweries in U.K., Vocation Brewery launched a new vegan-friendly beer, Honeycomb Chocolate Stout. The product is lactose-free, contains abv of 7% and uses oats, wheat, and chocolate malt.
The Asia Pacific is anticipated to grow at a significant CAGR over the upcoming years owing to the increasing economic development in China and India. Rising urbanization, increasing party culture among adults, and growing disposable income in developing economies are the major factors promoting the growth of the chocolate beer market in the region.
The global chocolate beer market is highly competitive due to the large number of global players operating across regions. Companies are involved in new product launches, mergers, acquisitions, collaborations, and strategic marketing practices to increase their market share.
The report provides the profiles of the following key players:
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