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China presents opportunities for heat resistant chocolate

China is forecast to become the leading APAC chocolate market in 2018, a market that may present opportunities for the innovative.

Heat-resistant chocolate has resurfaced in the media, after a Swiss bulk chocolate manufacturer, Barry Callebaut released a thermo-tolerant chocolate, with a melting point up to 4 degrees Celcius higher than the normal 34 degrees Celcius. But Barry Callebaut isn’t the first, with the likes of Mondelez, Nestle and Hershey having already developed heat-resistant chocolate.

Heat-resistant chocolate could still provide opportunities for growth, particularly in the climates that traditionally turn chocolate into a melted blob.

According to Euromonitor, Japan (US$3.6 billion) was the biggest market in APAC/ANZ for chocolate confectionery sales in 2014, followed by China (US$2.7 billion), Australia (A$2.6 billion), India (US$1.7 billion), Indonesia (US$1 billion) and South Korea (US$570 million).

However, China is forecast to overtake Japan as the leading APAC chocolate market in 2018, with significant growth also predicted from India (and a strong performance by Japan) to drive much of the growth forecast for the Asia Pacific region over the next five years.

China and India are forecast to increase their chocolate confectionery markets by US$2 billion a piece, which represents 67 per cent total period (2015-2020) growth for China and 104 per cent for India.

While the Asia Pacific is predicted to lead confectionary growth, it’s forecast that the Middle East and African market won’t be too far behind.

“In five to 10 years, heat-resistant chocolate will be more important than premium chocolate in the Middle East and Africa, as they don't have the necessary infrastructure to keep it cool,” said Jack Skelly, Research Analyst, Euromonitor International.

But not all the analysts are convinced, with mouthfeel a concern.

“Mouthfeel will be the most important issue – specifically how to make a chocolate with a 50 degree melting point melt in a 37 degree mouth,” says Daniel Grimsey, Senior Research Analyst, Euromonitor International.

 

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