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The New Zealand chocolate market has been dominated by global players such as Mars and Cadbury for some time now.
As a professional chocolate production line & chocolate machine factory, many of our clients use our machines to produce chocolate every day.
So in this article, we will talk about some of the chocolate in the New Zealand industry.
New Zealand is a small country with a population of just over 4 million people. However, its chocolate markets are growing and have the potential to become much bigger.
According to the Food and Agriculture Organization, New Zealand’s per capita annual consumption of chocolate was 3.5 kg, which is quite low compared to other countries.
While this has limited growth opportunities for smaller local manufacturers and suppliers, it has also made it difficult for new entrants to establish themselves in the market.
The risk of new businesses entering this saturated market is high unless they can offer something different or better than what’s currently available on the market.
Introduction of New Zealand’s Famous Chocolates
New Zealand’s most famous chocolate brands are Whittaker’s and Pip-the-Great.
Whittaker’s is one of New Zealand’s oldest chocolate companies and has been in operation for over 65 years.
Founded in 1954 by William Whittaker, it is now the country’s largest chocolate manufacturer.
Whittaker’s is best known for its signature “Crunchie” Bar, which holds the title of “New Zealand’s Favourite Chocolate Bar”.
Whittaker’s products are sold around the world and are also popular in New Zealand.
The company has an annual turnover of about NZD 40 million and employs about 150 people.
Pip-the-Great is another New Zealand chocolate company & brand that is popular among locals and tourists alike.
Founded in the early 2000s, Pip-the-Great is a family-owned business that initially specialized in manufacturing confectionery products for the hospitality sector.
In the last few years, the brand has expanded its product range to include chocolate bars and other high-end confectionery products.
Aside from its delicious chocolates, what sets Pip-the-Great apart from other chocolate brands is its social responsibility towards the community.
It actively engages with schools, charities, and non-profit organizations to raise awareness about issues such as the dangers of Child Abuse, Bullying, and other social ills.
Moreover, the brand also supports and encourages entrepreneurship among young people by offering apprenticeships that teach the skills needed to successfully run a business.
The company produces a wide range of products such as chocolate bars, chocolate-coated biscuits, and chocolate-covered fruit.
Manufacturing of Chocolate in New Zealand
The chocolate industry in New Zealand is primarily concentrated in the North Island, which is home to around 85% of the country’s chocolate factories.
The main cities in the North Island that have factories are Auckland, Wellington, and Hamilton.
The chocolate factories in New Zealand mostly use the “Warm Liquid Cocoa Process” to manufacture their confectionery products.
In this process, the cocoa beans are first roasted at a temperature of 155–165°C for about 10 minutes. After this, the beans are ground, and then sugar is added to them.
The sugar is then caramelized at a temperature of 165–195°C for about 15 minutes. Now, the cocoa mass is heated at a temperature of 195–200°C for about 15 minutes.
Next, the cocoa mass is cooled at a temperature of 35–45°C for about 2 hours.
Finally, the cocoa mass is cut into small pieces for about 15 minutes and then it is ready for the manufacturing of the confectionery products.
The Warm Liquid Cocoa Process is a modified version of the more traditional “Warm Fat Cocoa Process”.
It uses less cocoa butter and skims milk powder, which makes it suitable for large-scale production.
Opportunities for New Entrants in the NZ Chocolate Market
The New Zealand chocolate market has seen steady growth over the last few years, but it is likely to see much greater growth in the coming years.
This is because New Zealand’s population and economy are growing, and this, in turn, is increasing the demand for chocolate.
As the population grows, more people become potential chocolate consumers, and as the economy expands, consumers have more money to spend on chocolate.
Chocolate manufacturers must meet this increased demand by increasing their supply of chocolate. If these manufacturers do not increase their supply, the price of chocolate will increase as the demand for it outstrips supply.
These factors are driving growth in the chocolate market at a rate that is expected to outpace the growth rate of the overall food and beverage industry in New Zealand.
As a result, there are plenty of opportunities for new entrants to establish themselves in this market. New Zealand’s tourism industry is growing, and this is likely to increase the demand for chocolates.
Tourists visit New Zealand for a wide range of reasons, including leisure, business, and educational purposes.
Regardless of the reason behind their visit, tourists are likely to buy chocolates when they are in the country.
This creates opportunities for new entrants in the chocolate market because they can easily target tourists with their products.
Key Challenges for New Entrants in NZ’s Chocolate Markets
The New Zealand chocolate market is highly competitive.
Major players such as Cadbury and Mars have a large presence in the country, and they have been operating in the market for decades.
This means that new entrants will have to work harder to establish themselves in the market. They’ll also have to work harder to differentiate themselves from the competition.
There is a high risk of getting caught up in a product liability lawsuit.
This is because consumers are overly sensitive about the safety of their food and beverage products.
New entrants will have to make sure that their products are safe for consumption.
In conclusion, the New Zealand chocolate market is currently growing, and new entrants have the potential to capitalize on this growth.
Chocolate bars, spreads, and snacks are among the most popular products in this market, and consumers can choose from a variety of flavors, such as milk chocolate, dark chocolate, or ginger and cocoa.
It is recommended that new entrants study the market and its consumers before entering it.
They should also make sure that their products are safe for consumption.