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Chocolate Bar Industry Analysis

Submitted to: Michelle Guile

Submitted by: Soumya Arora, Disha, Gurwinder Kaur

October 11, 2022

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Opportunity and Threats

DEMOGRAPHIC
 (O) It is assumed that in Canada the urbanisation will increase,

and rural population will decrease by approximately 85% from

2026 to 2040(The future demographic,2020)

o It is an opportunity because more customers will buy the

product due to the easy availability in urban areas as more

urbanisations would result in easy access to the chocolate

retailing stores and variety of chocolates which will increase

the demand of the products rapidly. Therefore, this will help

the company to grow. GURWINDER

 (O)Canadian population from ages15-64 is increased by 1.44%

from the previous year. (Euromonitor: passport,2022)

o It is an opportunity because number of customers between this

age loves to have chocolate as they feel them as their mood

booster and moreover. SOUMYA

 (O)Large-scale manufacturers are adopting handcrafted

chocolate's language and history. Major corporations are

working hard to close the marketing impact gap between their

products and those of higher quality. Disha

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Opportunity and Threats

SOCIO-CULTURE  (T) The consumers are more likely to try latest brands whereas

the usage of old brands will remain moderate.(consumer lifestyle

in Canada,2022)

o It is a threat because due to the new launches it can result in

decreasing the customer loyalty which can result in fall of sales.

Because the Canadian customers prefer to try new products and

the company will lose its old customer. GURWINDER

 (O)Sales would increase, and the company's reputation would

improve if they implemented a more reliable online presence.

o It is an opportunity as it will attract more customers as in the

online presence people find it more customized and easier to

buy as every chocolate will have there link below and even

develop a craving towards the different shapes and want to try

them. SOUMYA

 (O)Deals with craft chocolate producers are sought after by both

larger distribution (often health-focused stores, but not always)

and smaller retailers. Craft chocolate is also sold and promoted

by pop-up shops, internet distributors, and other chocolate

retailers, all of which are becoming more prevalent. It would be

the challenging part to find revenue margin that will please both

sides.
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o Digital platforms can provide excellent exposure. Craft

chocolate producers have not yet realised totally focused of

consistently and purposefully using social media, but many

firms in other industries are already making the most of it.

DISHA.

Opportunity and Threats

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ECONOMIC  Economic – (T) It is expected that the market will face a 50-50%

recession period due to the after affects of pandemic (Antunes,

2022).

o It is a threat to the people as they will stop buying unnecessary

goods because of the increased prices in the market and high tax

rates on substitutes. The company’s revenue will start declining

which can cause huge loss to the company. GURWINDER

 (O)Craft chocolate is more in demand from wholesalers. More

distributors and retailers are eager to stock handmade chocolate

companies on their shelves as demand for gourmet food

increases. These can be offered for a greater price than typical

chocolate bars since they have a great flavour, a compelling

narrative, attractive packaging, and all those things. Disha

 (O)Exports are the largest market for the Chocolate Production

industry in Canada's products, generating 96.3% of industry

revenue in 2022. (IBISWORLD, PARA1)

this is an opportunity because the more chocolate will be exported more

people from different nation will have interest which will increase the

production business and moreover the economy of country. SOUMYA

Opportunity and Threats

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TECHNOLOGICAL  (T) Cacao as a crop in general requires careful attention. Its

fruits must be hand-harvested and then extensively fermented

to provide the proper flavours. Because fine cacao is more

vulnerable to environmental impacts than bulk cacao, it

requires more work, care, and attention. The difference in

profitability between selling premium cacao and selling cacao

in bulk is unfortunately not often understood by cacao

growers. Sometimes the additional labour required to produce

a crop of high-quality chocolate outweighs their income.

Disha

 O) The technological changes happening are steady but

growing over the year.

o It is an opportunity because the company should know

all the changes happening in the market as using the

same technology cannot engage and retain new

customers. The major changes happening in this field

are like hygiene and packaging and increased product

quality.Gurwinder

 Increased automation and computer control regarding product

quality (IBISWORLD,2022)

(O)This is an opportunity because of technology our industries

provide the chocolate in a regulate temperature moisture and most

important hygiene which built trust of customers towards u.

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SOUMYA
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Opportunity and Threats

REGULATORY  (T) The future of handmade chocolate is in jeopardy because of

this new tactic adopted by large chocolate producers. The

artisan chocolate sector will need to come up with more

methods other than nomenclature to distinguish it from

commercial chocolate

 Organic production regulation, products with or equal to 95%

organic content will be labelled as organic. (IBISWORLD,

REGULATION, PARA2)

o It is an opportunity because customers will start gaining

trust towards the company and will buy the chocolate

with full satisfactions for themselves as well as for their

kids. SOUMYA

 (O) Over the years the regulatory changes were almost

constant and included in some operations only in areas such as

price fixing and ingredients by the Competition Bureau.

o It is an opportunity because due to the less regulations

and restrictions imposed on the company, the company

will develop as the company does not need to review

and adapt to new policies. Therefore, their stability

come out to a positive impact on the

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company.Gurwinder

Opportunity and Threats

COMPETITIVE  As people prefer products which(T) variety of confections

including hard candies, cookies, and other confectionery

product that are not made of chocolate. (IBISWORLD,

PARA1)

o This is a threat to chocolate companies as people have

different taste are not made of chocolate and moreover

it is easy to transport and no issue of there melting.

SOUMYA

 (O) Art chocolatier producers are now given more chances for

industry (B2B) transactions. Bakeries want cocoa wrappers

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including more sweetness and a deeper message. Ice

manufacturers strive to make dessert that feels more organic.

Restaurants and coffee stores are also interested in selling

handmade chocolate items or providing higher-quality hot

chocolate to the public in order to diversify their menus. There

are various choices available. Disha

 (O) Entrance of new plant based offering and natural

ingredients products are increasing and people are becoming

more health conscious (Chocolate confectionary in Canada,

2022).

o It is an opportunity because this will result in increase in

sales as the variety of product line will expand and the

customers will prefer the products made of low fat and

sugar. Due to the profits incurred by the company they

will attain higher position in the market. Gurwinder

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