According to Mintel, as of 2024, the US confectionery market was valued at an estimated $26.59 billion, reflecting an 8.5% growth from 2023.¹
Such growth is not going to end anytime soon: long-term forecasts project a 17% increase from 2024 to 2029, with a 5% growth rate when adjusted for inflation.
Consumers today are actively seeking new product formulations and immersive multisensorial experiences, focusing on flavor, texture and mouthfeel. This shift is driving innovation in chocolate production, creating new opportunities for local manufacturers.
Investing in US ‘locally made’ chocolate production
The global chocolate industry is undergoing rapid transformation due to rising cocoa prices, climate-related disruptions, and supply chain challenges. In response, both consumers and food professionals are gravitating toward chocolates that emphasize authenticity, local sourcing, and innovation.
Consumers now prioritize products with a stamp of authenticity, favoring locally sourced ingredients and domestic production, a trend amplified by financial uncertainty, geopolitical disruptions, and climate concerns. Additionally, generational shifts, particularly among US Millennials, show a strong interest in exploring new chocolate products. Locally made chocolates stand out by offering unique flavors and experiences that differentiate them from mass-market options.
The locally made chocolate trend is gaining significant traction in the Americas region, providing manufacturers with greater certainty in today’s volatile economic climate. By producing chocolate domestically, companies can avoid concerns over potential tariffs and unpredictable trade regulations that could impact their costs.
For manufacturers, the ability to rely on local production ensures better cost control, a more streamlined supply chain, and greater responsiveness to market needs. At the same time, consumers benefit from high-quality products that combine the accessibility and trust of locally made offerings.
European crafted, US-produced chocolates
One of the most notable advancements in this space is the emergence of chocolate ranges that seamlessly blend traditional European craftsmanship with US-based production. These products offer the best of both worlds – combining the refined techniques and heritage of European chocolate-making with the accessibility and efficiency of local manufacturing. This fusion not only ensures a premium experience but also provides versatile applications for a broad range of confectionery and baking professionals.
A prime example is IRCA Group’s RENO X, a new range of locally produced chocolate that seamlessly blends Italian craftsmanship with US manufacturing, available in dark, milk and white variants. IRCA Group will use the same manufacturing process, equipment and intellectual property that it uses in Europe, in the US.
Thanks to a large investment in its facility outside of St. Louis, MO, IRCA Group will continue to expand its locally made assortment to include baking chocolate chip & chunks, fillings, and other chocolate and compound ranges this spring. This is in addition to the RENO X chocolate line which will be available via distribution from March 2025.
These new lines will provide the multi-sensorial solutions customers are looking for. IRCA Group provides accessible product solutions for food manufacturers across the US ensuring they have access to premium chocolate solutions without compromising on quality. Such US-based chocolate factories play a crucial role in delivering these products, with new facilities further enhancing capabilities for food professionals, empowering them to create exceptional products that cater to evolving consumer preferences.
Seizing opportunities in ‘locally made’ chocolate
To meet the demand for locally sourced chocolate, Chocolate producers can capitalize on growing demand for ‘’Made in’’, using local ingredients when possible, and offering unique flavors. Opportunities include seasonal and limited editions, direct-to-consumer sales, partnerships with local businesses, educational experiences, and corporate gifting and customizations. Emphasizing local production, manufacturers can explore opportunities to cater to national audiences seeking authentic ’Made in USA’ chocolate.
New investments in domestic chocolate manufacturing aim to equip food professionals, pastry chefs, and chocolatiers with high-quality, versatile ingredients suited for various applications. Producing chocolate locally streamlines supply chains, improves responsiveness to market needs, and ensures a competitive balance between quality and cost. Furthermore, local production fosters greater innovation in flavor development and product differentiation, meeting the evolving needs of industry professionals.
The future of US chocolate production
The future of the US chocolate industry lies in continued investment in sustainable practices, innovation, and consumer engagement. By integrating smart manufacturing processes, and locally sourced ingredients, chocolate producers can maintain consistency, reduce waste, and enhance efficiency. As consumer awareness grows, brands that can effectively communicate their commitment to quality and sustainability will establish stronger connections with their audience.
As the chocolate industry continues to evolve, locally made, high-quality chocolate will remain at the forefront, offering a sustainable, innovative, and comforting alternative to imported options. With strategic investments and a focus on authenticity, US chocolate manufacturers are well-positioned to shape the future of chocolate production. By addressing challenges, seizing opportunities, and leveraging the power of local production, the industry can continue to thrive in a competitive global market.
IRCA Group is a global leader in high-quality food ingredients, specializing in chocolate, creams, fillings, fruits, pistachios, and decorations. With over 100 years of Italian heritage, the company operates 21 production facilities across Europe, the US, and Vietnam, serving customers in more than 100 countries.
Through its portfolio of renowned brands – IRCA Since 1919, Dobla, JoyGelato, Ravifruit, Cesarin, Graffiti Sprinkles and Domori – IRCA Group provides innovative, trend-driven solutions that empower professionals to create exceptional products with ease. With over 2,000 employees worldwide, IRCA makes it simple to craft the extraordinary.
References
1. Mintel. Chocolate Confectionery – US 2024.