The powdered chocolate market has been in sharp decline since 2016.
This type of cocoa is particularly a victim of the decline in the consumption of dairy products and an “old-fashioned” image.
In order to boost sales, manufacturers are offering new less sugary products and are not skimping on investments.
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LE WE 20H
The morning habits of the family met by our team have changed radically. Milo, the eldest, now eats a salty breakfast. “At the moment, he thinks he’s an Englishman, so he eats eggs. The little one takes eggs. chocolatines”, explains his father in the 20H report at the top of this article. Her daughter dips her pastries in plain milk. In this family, it is impossible to find the essential cocoa powder. “I found the chocolate powder to be too sweet, so I kind of gave it up,” declares the father at the microphone of TF1.
Because what we call powdered chocolate could almost be called powdered sugar. Poulain’s recipe contains 67% sugar, Nesquik’s 75%, while Benco’s goes up to 78%. Cocoa is also a victim of the decline in dairy consumption, and a somewhat “old-fashioned” image. Marketing has not changed much, which is enough to tire some customers.
The powdered chocolate market has collapsed, with a drop in sales of 25.7% since 2016. Manufacturers in the sector find themselves in serious difficulty due to consumers’ disinterest. In 2019, the Faverolles (Somme) factory which produced Benco and Banania powders closed its doors. This year, it is the Poulain de Blois factory which is threatened with closure, more than 170 years after its establishment in this commune of Loir-et-Cher.
Less caloric ranges
Nesquik takes consumer habits changes very seriously. The market leader is also affected by the crisis. The Nestlé factory in Pontarlier (Doubs) has been producing chocolate powder since 1961. Nesquik boxes are intended for France, but also abroad. Some 260,000 products come out of here every day, including a new range that is much lower in calories, with three times less sugar than the original recipe.
However, renewal is very expensive. “We have made 10 million investments to modernize our factory, to be able to innovate and offer products that increasingly meet consumer expectations”says Matthieu Manigold, Nesquik France brand manager.
In order to boost sales, manufacturers are offering new products such as capsules for coffee machines that are more practical to use, takeaway pods as well as new flavors for chocolate powders. “We need to find the right balance between offering something new (…) and at the same time not going too far so as not to risk disturbing the consumer,” explains Gwarlann de Kerviler, associate professor of marketing at the Ieseg School of Management.
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These new products cost more: at Nesquik, it costs 4.99 euros per kilo for the original product, but the pods cost 19 euros per kilo, or almost four times more. This increase is not very attractive in times of inflation. The surge in cocoa prices should also not encourage consumers to buy more chocolate powder.
