Global Compound Chocolate Market is segmented By Product Type (Chocolate Bars, Chocolate Chips, Chocolate Coatings, Others), By Application (Ice Cream & Frozen Desserts, Bakery, Confectionery, Others), By Flavor ( Milk, Dark, White, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Compound Chocolate Market Size
Global Compound Chocolate Market reached US$ 28.2 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 45.9 billion by 2031. The market is growing at a CAGR of 6.4% during the forecast period 2024-2031. Manufacturers are responding by offering compound chocolates with higher cocoa content to meet this demand.
Market Summary
| Metrics | Details |
| CAGR | 6.4% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | By Product Type, By Flavor, By Application |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Largest Region | Asia-Pacific |
| Fastest Growing Region | Europe |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
To Know More Insights: Download Sample
Market Dynamics
There is a growing trend towards higher cocoa solids content in compound chocolate products. Consumers are increasingly seeking chocolates with a higher percentage of cocoa solids, as it is associated with a richer and more intense chocolate flavor. Compound Chocolate Market is typically made with vegetable fats as a substitute for cocoa butter. There is a trend towards using healthier and more natural CBS options in compound chocolate formulations. Manufacturers are exploring alternatives such as shea butter or coconut oil, which have perceived health benefits and are considered more natural substitutes.
Growing Demand for Chocolate-Based Products is Driving the Market Growth of Compound Chocolate
Chocolate has long been associated with pleasure and indulgence. Its rich, sweet taste and smooth texture make it a favorite treat for many people. As a result, Chocolate-based products, such as bars, candies, and desserts, are experiencing significant growth. According to a report published by Barry Callebaut, the global retail sales of chocolate confectionery are predicted to reach approximately €107 billion /$128 billion by the end of 2023, with a volume growth rate of 1.9% CAGR over the following three years to 2025.
As the demand for chocolate-based products increases, manufacturers seek cost-effective solutions to meet consumer needs. Compound chocolate, which is made using vegetable fats instead of cocoa butter, offers a more affordable alternative to real chocolate. The lower cost of production enables manufacturers to produce chocolate-based products at a competitive price point, making them accessible to a larger consumer base.
Increasing Awareness of the Benefits of Compound Chocolate is Driving the Market Growth
The awareness of health considerations associated with compound chocolate is driving the market growth. A 100-gram bar of dark chocolate contains 11 grams of fiber, 66% of the DV(Daily Value) for iron, 57% of the DV for Magnesium, and 85% of the DV for manganese. Consumers are becoming more conscious of the potential health benefits of compound chocolate alternatives, such as sugar-free or reduced-sugar options. This awareness aligns with the growing demand for healthier food choices, leading to increased adoption of compound chocolate products that cater to specific dietary needs.
Growing awareness of the versatility and ease of use of compound chocolate is driving its market growth. Consumers and manufacturers are realizing that compound chocolate does not require tempering, making it easier to handle and work with compared to real chocolate. This awareness leads to increased adoption of compound chocolate in various applications, such as confectionery, bakery, and food industries, driving market expansion.
Fluctuations in the Price of Raw Materials can Hamper the Growth of the Market
Fluctuations in the prices of key raw materials such as cocoa powder, vegetable oils, and sweeteners can create cost pressures for compound chocolate manufacturers. If the prices of these ingredients increase significantly, it can lead to higher production costs, which may result in reduced profit margins or increased product prices. This, in turn, can affect consumer demand and hinder market growth.
Price volatility in raw materials can make it challenging for manufacturers to accurately forecast and plan their production and pricing strategies. Sudden price increases or shortages in raw materials can disrupt supply chains and lead to higher procurement costs. Manufacturers may struggle to maintain profitability under such circumstances, impacting their ability to invest in growth initiatives and expand their market presence.
Market Segmentation Analysis
The global compound chocolate market is segmented based on Product type, flavor, Application, distribution channel, and region.
Consumer Preference for Milk Flavor is Driving the Segment Growth
By flavor, the global compound chocolate market is segmented into milk, dark, white, and others.
In 2022, milk chocolate has long been a favorite flavor among consumers worldwide. Its smooth, creamy taste appeals to a broad range of palates, including children and adults. The familiar and comforting flavor of milk chocolate makes it a popular choice for various applications, such as confectionery, baking, and snacking.
Milk chocolate has a strong global presence and widespread consumption. It is widely available and consumed in various forms, including chocolate bars, candies, truffles, and other confectionery products. Companies such as Cadbury, Nestlé, Hershey's, and Mars, which are known for their milk chocolate products, have a strong market presence worldwide.
Market Geographical Share
Increased Artisanal Chocolates in Europe Region
In 2022, Europe had the highest revenue share in the compound chocolate market. According to CBI, Ministry of Foreign Affairs, with a 16% global market share in value, Germany leads all other exporters of chocolate, followed by Belgium (11%), Italy (7.6%), Poland (7.2%), and the Netherlands (6.5%). Europe has a rich tradition and culture of chocolate consumption. Chocolate is deeply ingrained in European culinary heritage, and Europeans have a long-standing affinity for chocolate products. This cultural preference for chocolate translates into robust market demand, including compound chocolate.
Europe is known for its strong confectionery industry, with several renowned chocolate manufacturers and brands based in the region. These companies have a long history of expertise in producing chocolate products, including compound chocolate. The presence of established players contributes to the growth and market share of compound chocolate in Europe.
Compound Chocolate Market Companies
The major global players include Cargill Cocoa & Chocolate, Inc., Barry Callebaut AG, Palsgaard A/S, Adm Cocoa International B.V., Wilmar International Ltd., Flanders Filings & Compounds, Puratos Corporation, Clasen Quality Coatings, Inc., Blommer Chocolate Co, and Aalst Chocolate Pte. Ltd.
COVID-19 Impact on Market
COVID-19 Impact
During the initial phases of the pandemic, there was a surge in demand for comfort foods and indulgent treats, including chocolate products. Many people turned to chocolate as a source of solace and enjoyment during stressful times. This increased demand benefited the compound chocolate market, as it is an affordable alternative to traditional chocolate and can be used in various applications.
However, the pandemic resulted in disruptions to global supply chains due to restrictions on transportation and movement of goods. These disruptions affected the availability of raw materials and ingredients for compound chocolate production. Manufacturers faced challenges in sourcing the necessary inputs, leading to potential delays in production and distribution.
AI Impact
AI can be utilized to optimize the confectionery coating process in compound chocolate production. Machine learning algorithms can analyze data on coating thickness, temperature, and viscosity to identify the optimal parameters for achieving a consistent and high-quality coating. This can lead to improved efficiency, reduced wastage, and enhanced product aesthetics.
AI can assist in mitigating fat bloom, which is a challenge in compound chocolate production. Machine learning algorithms can analyze the relationship between various factors such as formulation, processing conditions, and storage conditions, and the occurrence of fat bloo AI can assist in the conching process, which is crucial for developing the flavor and texture of chocolate. m. AI can optimize the melting and tempering processes in compound chocolate production.
Key Developments
- In February 2023, Mars Wrigley India, announced the launch of GALAXY FUSIONS Dark Chocolate, with 70% cocoa.
- In January 2022, Mondelez International introduced Oreo frozen desserts. There will be Oreo bars, cones, sandwiches, and tubs in this new line.
- In December 2021, Lacta partnered with Froneri and introduced an ice cream with a creamy filling and chocolate chips.
Why Purchase the Report?
- To visualize the global compound chocolate market segmentation based on type, product, and distribution channel understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous Compound Chocolate market-level data points all for segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The Global Compound Chocolate Market Report Would Provide Approximately 61 Tables, 60 Figures, And 102 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
