ROCKVILLE, Md. -- Valentine’s Day treats continue to flatten consumers’ wallets, as research firm Packaged Facts estimates that holiday chocolates account for 24% of all U.S. chocolate candy sales, according to its U.S. Food Market Outlook 2018 report.
The report, which covers 14 food categories including chocolate, cereal, candy, cookies, ice cream and more, revealed that Valentine’s Day trails only Easter and Christmas as the biggest holidays for the chocolate and candy markets.
Packaged Facts reports that despite its holiday success, the chocolate market faces diminishing consumer demand, arising from the trend toward healthy eating and the connotation that sugar can contribute to diabetes and childhood obesity. The report also addresses concerns over the cocoa farming process and the supply of cocoa and other ingredients. Moreover, innovations such as self-checkout and online purchasing may decrease impulse purchases, which often drive chocolate sales, Packaged Facts said.
Nonetheless, the chocolate market maintains a consistent flow of new products and big-time brands to keep it atop candy sales. The report notes the growing consumer perception that chocolate is an accessible luxury, which creates many opportunities to trade the consumer up to premium products both in terms of everyday usage and holiday purchases.
Rockville, Md.-based Packaged Facts publishes market intelligence on consumer demographics shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, pet products and more.