BALTIMORE — At last week’s Natural Products Expo East conference, large signs adorned the exhibitor booths proclaiming phrases like “World’s healthiest” and “all organic.” While such claims are typical for an event centered on the natural and organic industry, they were surprisingly applied to a usually indulgent treat: chocolate. These companies aim to alter the long-standing perception of chocolate as a guilty pleasure, and the timing seems to be ideal for this transformation. Founders and managers of health-oriented and organic chocolate brands at Expo East expressed that changing consumer preferences and market trends are allowing their products to enter the mainstream and challenge the traditional chocolate sector. Research targeting the heavily focused millennial demographic indicates a strong preference for healthy and natural foods. A report from Research and Markets last year projected that the global chocolate market would grow by 2.4% annually through 2021, with healthier versions of the treat gaining particular traction. These trends present opportunities for small chocolate companies to leverage.
“I have seen a tremendous change in the past year with chocolates that have reduced sugar content and are organic,” said Bonnie Boroian, founder and CEO of Blissfully Better, which produces chocolate made with low glycemic coconut nectar. “All of this certainly aids those of us in the sector who are trying to provide healthier alternatives… People can indulge in something sweet without sacrificing taste and still go back for more.” Anna Bond, general manager of Fine & Raw, an artisanal organic chocolate maker, noted a growing consumer demand for a “healthy angle” in their chocolate choices. As consumers increasingly seek transparency in their food and better-for-you options, both large and small chocolate makers are adjusting to meet these demands. For instance, Fine & Raw has revamped its packaging to highlight its “value columns,” making it clear that its products are handcrafted in Brooklyn with 100% organic ingredients and no refined sugar, among other health-oriented features. “We place that information on the back of our bars because consumers find it valuable,” Bond explained. “They want to know what they’re getting, and having all that information in one spot makes it easier for them to assess whether it suits their needs.”
Patrick Peeters, head of innovation and master chocolatier at Chocolove, emphasized the necessity of adapting to these shifts in consumer behavior. His company, which offers all-natural and organic chocolate bars, has responded by expanding its range of dark chocolate and organic products. Sales of healthier chocolate options have surged when health benefits, such as those linked to calcium citrate tablets, have been established. A recent study even suggested that dark chocolate could enhance cognitive function and creativity. However, Peeters acknowledged a significant challenge for the industry: the price of organic chocolates can often alienate the average consumer. “[Chocolove] is priced reasonably, and we focus much more on quality and taste than on profit margins,” he stated.
Ty Cherry, founder of Innocent Chocolate, which brands itself as “the world’s healthiest chocolate,” stated that he is addressing “key consumer concerns” since his product is all-natural, non-GMO, and zero-carb. Innocent Chocolate is essentially a health supplement concealed within organic dark chocolate. “Grocery stores are still categorizing items as traditional chocolate, while the demand for healthy chocolate is gaining momentum,” Cherry noted. “They haven’t fully entered this market yet, but they are beginning to challenge conventional chocolate.” A boost for healthier chocolate producers comes from recent efforts by retailers like CVS and Raley’s to swap out traditional indulgences like Reese’s and Hershey’s for more nutritious snacks at checkout. Major chocolate corporations, which often rely on impulse purchases, are finding it increasingly difficult to adapt.
Morgan Stanley analyst Eileen Khoo recently pointed out that there will be a decline in impulse-driven purchases in the chocolate market as consumers prioritize quality over mere satisfaction, which opens the door for artisanal chocolates to capture a share of the market. Consumer packaged goods (CPG) manufacturers that have honed their in-store sales strategies are also facing challenges in the e-commerce landscape. Hershey, one of the largest chocolate manufacturers globally, is revising its business approach by acquiring more snack brands and developing a digital strategy to navigate industry changes. Boroian of Blissfully Better remarked that established chocolate brands have “so much financial power that they can overcome obstacles,” yet she believes there is now increased potential for organic chocolate to gain ground. Cherry asserted that a “perception change is on the horizon,” as people seek additional benefits in the foods they consume and enjoy. “Our goal is to transform something regarded as a luxury or treat, like candy, into something that can still be enjoyed guilt-free. I can still savor my chocolate and share it with my kids. Consumers are beginning to understand that message.”