A 600 billion yen market! The “Great Midsummer Battle” in the Chocolate Industry

The stereotype that chocolate is sweet may be being overturned.

This was the impression of a FRIDAY reporter when he visited a convenience store near the editorial office in mid-August, when the sweltering heat continued.

At lunchtime, a woman in her 40s or 50s was shopping in the confectionery section. She was wearing a jacket and staring at the chocolate shelves with only her wallet, and after a moment of hesitation, she picked up a “Chocolate Effect 72% Cacao” and got in line at the cash register.

Chocolate Effect” is a high-cacao chocolate launched by Meiji in 1998 (the cacao content of ordinary chocolate is about 30 to 40%). The cacao polyphenols contained in cacao have fat-burning and antioxidant effects, and are said to prevent arteriosclerosis and high blood pressure.

Chocolate is usually associated with Valentine’s Day, but these health-conscious chocolates have also become a necessity for summer office workers.

High-cacao chocolate is also rich in dietary fiber, which is good for the skin. Recently, research has shown that it also has a dementia-preventing effect. Chocolate is now changing from a snack for children to a health food,” said Chihiro Matsubayashi, a confectionery expert and winner of “TV Champion’s” “Confectionary connoisseur championships.

Meiji, which sells “Chocolate Effect,” is a long-established manufacturer with Japan’s oldest existing chocolate bar “Milk Chocolate” (launched in 1926). The company also has “Almond Chocolate” launched in 1962, “Kinokonoyama” (launched in 1975) and “Takenokonosato” (launched in 1979), which have caused a “mushroom-takenoko controversy” on the Internet.

Among these powerful products, the “Chocolate Effect” is unique. Consumers’ image of chocolate is that it is sweet and tasty, whereas this product is not sweet but tastes okay.

In fact, Chocolate Effect did not sell well for about 17 years after its launch,” said economic journalist Takai Naoyuki.

However, the development staff persevered and visited more than 100 cacao farms in Central and South America to improve the quality of the product. Mr. Takai continues.

The tide turned in 2002. Through joint industry-government-academia research with Gamagori City, Aichi Prefecture, and Aichi-Gakuin University, Meiji discovered that high cacao chocolate had effects such as preventing high blood pressure and increasing the blood concentration of good cholesterol. This was reported in the media and the “chocolate effect” came into the limelight. Today, it has grown into a huge brand with annual sales of 20 billion yen.

With both its long-selling products and the new series that triggered a new boom, Meiji now has the number one share of the 600 billion yen chocolate market.

Ezaki Glico, with its “Pocky,” was quick to capitalize on the health-conscious boom triggered by Meiji. In 2004, the company launched “LIBERA,” which suppresses the absorption of fat and sugar, and became the first chocolate product to be designated as a food with a functional claim. Ayumi Ichikawa, a chocolate journalist, said, “‘LIBERA’ has a special functionality label.

LIBERA” contains indigestible dextrin, a type of dietary fiber, which suppresses the absorption of fat and sugar. The company also offers two types of GABA (launched in 2005), one that claims to reduce stress and the other that claims to improve the quality of sleep, both of which contain gaba, a type of amino acid.

Ezaki Glico has been developing high-cacao conscious products such as “Pocky 60% Cacao,” but basically I have the impression that Ezaki Glico is taking the approach of adding more ingredients that are known to be beneficial to health.”

GABA” pouch-type products have the phrase “reduces stress,” but when the seal is opened, the words are detached and can be discarded. Glico’s excellent package design, which visually helps the consumer to stay away from stress, and the functionality of the product itself helped Glico to develop the demand for “chocolate to eat at work.

Purchase price of cacao skyrocketed.

Following the trend toward health-conscious chocolate by Meiji and Glico, Lotte launched “Cacao no Megumi” (72%) in 2009.

Usually, the chocolate market is not quick to follow up on hit products. In fact, Lotte’s “Almond Chocolate” was launched 21 years after Meiji’s “Almond Chocolate,” and Lotte’s “Toppo” was launched 28 years after Glico’s “Pocky. However, …….

The “Blessing of Cacao,” at 72%, the same as “Chocolate Effect,” came on the market just six years after the “boom. The fact that 72% chocolate was used in Meiji’s research made this number a major player, and products with similar percentages are being developed throughout the industry. That is how much emphasis each company is placing on the health boom.

Lotte currently holds the number two position in the industry by offering “Cacao no Megumi” along with its mainstay products, “Ghana” and “Koala March.

While the three companies are competing with each other with health-conscious products, Morinaga Seika, the fourth largest company in the industry, with its “Darth” and “Chocoball” products, has dared to stay out of the fray.

Morinaga is also marketing 70% and 88% high cacao chocolate “Carré de Chocolat” (launched in 2003), but what does this mean?

Morinaga also offers a 70% and 88% high cacao chocolate, “Carré de Chocolat” (launched in 2003), but what does that mean? The “Carré” in “Carré de chocolat” means “square,” and it is a square that gives a stylish and elegant impression. It is a product that shows Morinaga’s pride in creating delicious chocolate by combining all of its technologies.

There are other peculiarities of “Carré de chocolat” as well.

The concept of chocolates that go well with wine is put forth: 70% of the chocolates are introduced as going well with full-bodied Bordeaux wines, and 88% with champagne. The fact that the chocolates are individually packaged also amplifies the sense of luxury,” said Matsubayashi.

The four companies are all vying for supremacy in the 600 billion yen market with their various efforts, but one major issue is threatening the four major players.

The four companies are all vying for supremacy in the 600 billion yen market, but one major issue is threatening the four major players: “The purchase price of cacao is skyrocketing due to high prices and historically poor harvests. However, health-oriented products such as “Chocolate Effect” and “GABA” are inexpensive compared to other functional foods, so consumers will not leave even if prices are raised slightly. That is why companies are focusing on the health/functional line,” says food journalist Junnosuke Nagahama.

This is where “saving cacao” becomes important.

Airy, light, mouth-feel chocolates like Ezaki Glico’s Caprico may become a trend in the future. There are studies showing that Japanese people have less saliva than people from other countries, which may make it easier to be accepted.

We can look forward to the development of products that conserve cacao but still have a luxurious feel, such as Lotte’s “Sasa,” which is made of layered chocolate in a linear shape.

Companies that fail to keep up with the rapid changes in the chocolate industry, which are changing with the times, are likely to have a bitter experience in the future.

From the September 6-13, 2024 issue of “FRIDAY