Analysts Euromonitor say sales hit €5.48 billion in 2004, representing a three per cent growth over the previous year.
Germany, the UK and France continue to dominate the market for tablets, accounting for a combined 61 per cent slice of total retail sales in Western Europe.
Plain milk chocolate varieties beat plain dark as the most consumed tablets for the region, accounting for 51 per cent of total retail sales in 2004.
Filled and plain dark tablets took 23 per cent and 19 per cent of total sales respectively, while white tablet sales dragged far behind, representing a mere seven per cent of total retail sales in 2004.
Premium varieties of chocolate far outshone private label sales, reports Euromonitor. The market researchers estimate that private label chocolate tablets took an 11 per cent share of total retail sales in 2004 in Western Europe.
Private label's share over total value sales has been declining since 2001.
"This decline is a result of the increasing sophistication of demand, particularly apparent as Western Europe is a region where consumers are willing to pay a premium in exchange for higher quality, better flavour and more attractive packaging," say the report authors.
Consequently, low-priced economy tablets have seen their relative importance over the total value of the market reduced, despite sustained growth in volume terms.
In the UK, tablets are becoming a key driver in the growth of chocolate products, a result of the strong promotional support given by major manufacturers in the industry, claims Euromonnitor, for example Cadbury's Dairy Milk superbrand, introduced in August 2003. To a lesser extent, premium tablet products are driving growth, such as Green & Black's and Lindt Excellence. Indeed, a sign of this success, last month Cadbury acquired the successful organic and fair trade chocolate firm Green & Black's.
In France, chocolate tablets will remain the second most valuable product in confectionery after seasonal chocolate. Euromonitor pitches sales in France at over €995 million in 2004, up by three per cent from 2003.
This, despite a dip in volumes that decreased by two per cent during the same year, mostly as a result of strong product 'premiumisation' as manufacturers aim to develop added-value products, such as filled tablets or 'finest quality' tablets.
Despite disappointing results in volume terms, the penetration rate of tablets remained high in 2003, standing at more than 90 per cent, says the report.
In Germany, on the other hand, chocolate tablets maintained positive growth in 2004, rising by around one per cent to reach €1.4 billion.
Lindt's premium portfolio of tablets, from a very low base, contributed positively to the growth of the entire sector. Ludwig Schokolade was also very successful with its Schogette range and increased its share in tablets considerably to reach around five per cent of value sales in the same year.
Italians favoured the 'gourmet' and health route, with five per cent growth in sales in 2004 boosted by campaigns highlighting the health benefits of consuming good quality, controlled origin cocoa contained in premium products.
Tablets dominated the bulk of chocolate confectionery sales in the Spanish market, accounting for 29 per cent of total value sales in 2004, according to Euromonitor's estimates.
This is the most mature segment within chocolate confectionery, which explains the slightly slower growth of 6 per cent in 2003, they add.
Apparently Spanish manufacturers are focusing their efforts on reinventing tablets, launching tablets with higher cocoa content, in small-sized formats for weight conscious consumers.