Chocolate stores report

IBISWorld has released an updated industry report entitled Chocolate Stores in the US: Market Research Report. It covers speciality stores that sell chocolate products exclusively with a focus on premium and seasonal chocolates.

According to the report, the industry has performed exceptionally well in the past five years due to a combination of factors, including higher disposable income, strong demand and high selling prices.

In the report, IBISWorld economic analyst Amal Ahmad says, “Whereas demand corresponds to disposable income, selling prices correspond to the price of cocoa, the key ingredient into chocolate production.”

When cocoa prices rise, producers and retailers of chocolate pass the cost on to consumers via selling prices. The price of cocoa increased in 2010, 2011 and 2014, and brand name stores such as See’s Candies, Godiva and Lindt have been able to benefit from these favourable conditions. IBISWorld expects demand for chocolate to remain high through to 2020 and overall revenue is expected to grow.

“Although the majority of chocolate will be retailed at supermarkets and other retailers outside the industry, industry operators will continue to benefit from rising disposable incomes and growing demand for premium chocolates,” Ahmad says.