BALTIMORE — Last week at the Natural Products Expo East conference, prominent signs adorned the exhibitor booths, proclaiming phrases like “World’s healthiest” and “all organic.” While such claims are typical at an event dedicated to the natural and organic industry, it was notably applied to a usually indulgent treat: chocolate. These companies aim to alter the long-held perception that chocolate is synonymous with guilt, and the timing seems favorable for this shift. Founders and managers of health-conscious and organic chocolate brands at Expo East indicated that changing consumer preferences and market dynamics have allowed their products to gain traction in the mainstream, challenging the conventional chocolate sector. Research focusing on the millennial demographic revealed 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 expected to experience particular growth. Small chocolate companies are eager to leverage these trends.
“I’ve witnessed a significant transformation over the past year with chocolates that feature reduced sugar content and are organic,” said Bonnie Boroian, founder and CEO of Blissfully Better, a chocolate crafted with low glycemic coconut nectar. “This certainly aids any of us in the sector aiming to provide customers with healthier alternatives… People can indulge in sweetness without compromising on flavor, returning for more.”
Anna Bond, general manager of Fine & Raw, an artisanal organic chocolate producer, noted an increasing consumer desire for a “healthy angle” on chocolate. As consumers seek transparency regarding their food and better options, both large and small chocolate makers are adapting. For instance, Fine & Raw has revamped its packaging to highlight its “value columns,” clearly stating that the product is handmade in Brooklyn with 100% organic ingredients and no refined sugars, among other health benefits. “We place that information on the back of our bars because consumers find significant value in it,” she explained. “They want to know what they are getting, and having all that information in one place simplifies their decision-making.”
Patrick Peeters, head of innovation and master chocolatier at Chocolove, emphasized the necessity for the industry to adapt to shifting consumer behaviors. His company, which produces all-natural and organic chocolate bars, has responded by increasing its range of dark chocolate and organic products. Sales of healthier chocolates have surged as health benefits become more evident, with recent studies suggesting that dark chocolate may enhance cognitive function and creativity. However, Peeters pointed out that one of the major challenges in the industry is the higher price point of organic chocolates, which can alienate regular customers. “[Chocolove] is priced reasonably, focusing more on quality and flavor than profit margins,” he stated.
Ty Cherry, founder of Innocent Chocolate, branded as “the world’s healthiest chocolate,” aims to address “key consumer concerns” with his all-natural, non-GMO product that contains zero carbs. Innocent Chocolate serves as a health supplement disguised in organic dark chocolate. “Retailers are still categorizing grocery items as traditional chocolate, even though the healthy chocolate trend is gaining momentum,” Cherry remarked. “They are not directly competing yet, but they are beginning to challenge the traditional chocolate market.”
Aiding the “better-for-you” chocolate makers is the recent trend among grocers and retailers like CVS and Raley’s to replace indulgent options such as Reese’s and Hershey’s with healthier snacks at checkout counters. Major chocolate brands, which often rely on impulse purchases, are struggling to adapt. Morgan Stanley analyst Eileen Khoo recently observed that impulse-driven chocolate purchases are diminishing as consumers prioritize quality over mere satisfaction, creating an opportunity for artisanal chocolates to capture a share of the market.
CPG manufacturers that have focused on optimizing in-store sales have also faced difficulties transitioning to the e-commerce landscape. Hershey, one of the leading chocolate manufacturers globally, has begun to shift its strategy by acquiring more snack brands and developing a digital strategy to keep pace with industry changes. Boroian from Blissfully Better acknowledged that established chocolate brands have substantial resources, allowing them to weather challenges, but she believes there is now greater potential for organic chocolate to flourish. Cherry added that a “perception change” is underway, as consumers seek to obtain additional health benefits from the foods they enjoy. “Our goal is to transform something regarded as a treat or indulgence, like candy, into a product that can still be enjoyed,” he said. “I can have my chocolate and share it with my kids. Consumers are beginning to embrace this message.” The rising interest in health-oriented products, such as those rich in calcium citrate, further underscores this trend toward a healthier lifestyle integrated with indulgence.