Global Compound Chocolate Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Dark, Milk, White), By Form (Chocolate Chips/Drops/Chunks, Chocolate Slab, Chocolate Coatings, Other Forms), By Application (Bakery, Confectionery, Frozen Desserts And Ice Cream, Beverages, Cereals, Other Applications), And By Geography - Forecasts From 2022 To 2027
- Published : Aug 2022
- Report Code : KSI061612917
- Pages : 132
The global compound chocolate market was evaluated at US$14.576 billion for the year 2020.
Compound chocolates are made with cocoa butter replacement (CBS) or cocoa butter equivalent (CBE) (CBE). Hard fat or semi-solid at room temperatures, such as coconut oil and palm kernel oil, are extensively used vegetable fats. The market for compound chocolate is being driven by its functionality at a reduced price. It means that demand for compound chocolate is increasing as a result of its practical features as a replica of coverture or real chocolate at a lower price than coverture chocolate.
The vast utilization of compound chocolate in the production of several products is fueling the worldwide compound chocolate market's growth. Compound chocolates' versatility in blending with other goods and providing extraordinary taste and flavour is driving up demand for compound chocolate products. Furthermore, sugar-free, organic, and dark chocolate consumption is also increasing due to a growing interest in healthier lifestyles. Compound chocolate's advantages, such as its lower cost compared to pure cocoa-based chocolates and the fact that it hardens without tempering, make it a great choice for food manufacturers in a variety of industries, including bakery, confectionery, ice cream, and frozen desserts.
However, the global compound chocolate market relies on global raw material supply, quality, and cost. Price and supply changes in raw commodities, such as cocoa, can have a detrimental influence on the market due to crop disease, climate change, and labour shortages. Failure to recoup increased prices, as well as shortages in the availability or quality of raw ingredients such as cocoa butter, cocoa powder, sugar, and others, could have a negative influence on the market. Product delivery is further hampered by considerable changes in regulatory directives, legal systems, and customs in the regions.
Because of its diverse taste and texture, milk chocolate is more often consumed and used in numerous chocolate-based confectionery items. Milk chocolate has a creamy texture and flavour since it is produced using milk solids. The use of compound milk chocolate in the formulation of various beverages and confectionery items, such as cakes, shakes, croissants, and hot chocolate, has contributed to the milk chocolate market's expansion. Furthermore, dark chocolate appeals to customers while also providing health, sensory, and textural benefits and captures a substantial market share. Dark chocolates are high in antioxidants, can help lower blood pressure, and have various other health benefits, enticing customers to buy them.
Coatings are the most common type of compound chocolate, and they are expected to lead the market over the projected timeframe. Because different fats are employed, compound coatings can have a variety of textures and can be used in several applications, such as ice cream sticks and baked products. The compound coating does not need to be tempered, making it more versatile in terms of temperature and application. Furthermore, because there are few restrictions on ingredients, compound coatings can be improved or flavoured with anything, providing an almost limitless range of possibilities. Additionally, chocolate chips are increasingly gaining popularity, particularly in the artisanal baking business, where they are used to make cookies. Besides, most chocolate chip recipes use dark chocolate, which gives additional antioxidant benefits.
Producing a deeper chocolate flavour recognizes the demand for chocolate. Compound chocolates are more durable and stable in warmer temperatures. They are ideal for confectionery items developments and production processes as they are without the need for additional tempering effort. These chocolates are also commonly found in bakeries. It allows bakers to be more innovative in their product development and deliver a sensory experience in baked goods, resulting in promising growth opportunities.
Because of its vast cocoa processing base and robust manufacturing industry, Europe is likely to have the largest proportion of the market. According to statistics by European Commission, PRODCOM, the European Union, and the United Kingdom produced approximately 3.9 million tonnes of chocolate items in 2019. Chocolate bars, pralines, and cocoa-based sweets are among these products. Furthermore, due to the high per capita consumption of chocolate-based products, North America has a wide client base and is the second-largest market for compound chocolate. In addition, rising consumer awareness about the advantages of healthy confectioneries has boosted the market growth.
Barry Callebaut released a complete dairy-free chocolate compound line in November 2021, boosting the company's plant-based offerings. These new possibilities are entirely made of plants. For various purposes, the new line includes dairy-free EZ melt compound, compound chip/chunk, compound soft chunk, compound soft-shaped chunks, and bulk liquid.
Cargill India, the maker of Nature Fresh, Gemini, Sweekar, Rath, and Sunflower edible oils, entered the chocolate compounds market in India in June 2020, in conjunction with a local manufacturer in western India.
COVID-19 Impact on Compound Chocolate Market
The COVID-19 outbreak had a relatively negative effect on the Global Compound Chocolate market. Because most countries went under lockdown in 2020 to prevent the virus from spreading, demand for compound chocolate in the hospitality sector has decreased significantly. According to the Cocoa Association of Asia (CAA), Asia's cocoa grindings decreased by about 10% in the first half of 2020 compared to the same period last year. Cocoa prices declined, and shipping expenses climbed during the early phases of the COVID-19 outbreak. Collecting cocoa from smallholder farmers and supplying it to cocoa exporters and processors for chocolate manufacture was the most challenging task. The issue was made worse by transportation constraints and border closures. As a result, chocolate manufacturers experienced a shortage of raw materials, impacting their sales. For example, due to the pandemic, Barry Callebaut AG, a leading producer of premium chocolate, reported a slowdown in the first half of FY 2020. However, during the COVID-19 pandemic, the quick emergence and expansion of online retail, e-commerce, and other distribution channels have opened up new options for retailers. They are expected to increase the market shortly. Furthermore, the global demand for healthy ingredients has evolved, presenting an opportunity for healthier chocolates at both the retail and application levels.
Global Compound Chocolate Market Scope:
|Market size value in 2020||US$14.576 billion|
|Growth Rate||CAGR during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Form, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Cargill, Incorporated, Barry Callebaut, Clasen Quality Coatings, Inc., Aalst Wilmer Pte Ltd, AAK, Santa Barbara Chocolate, Puratos Group, Fuji Oil Company Limited, Hershey's Company, Mondelez International|
|Customization scope||Free report customization with purchase|
- By Type
- By Form
- Chocolate chips/drops/Chunks
- Chocolate Slab
- Chocolate Coatings
- Other Forms
- By Application
- Frozen Desserts and Ice cream
- Other Applications
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
Q1. What is the size of the global compound chocolate market?
A1. The global compound chocolate market was valued at US$14.576 billion in 2020.
Q2. Who are the major players in the compound chocolate market?
A2. Prominent key market players in the global compound chocolate market include Cargill, Incorporated, Barry Callebaut, Clasen Quality Coatings, Inc., Aalst Wilmer Pte Ltd, AAK, and Santa Barbara Chocolate, among others.
Q3. How is the global compound chocolate market segmented?
A3. The compound chocolate market has been segmented by type, form, application, and geography.
Q4. What factors are anticipated to drive the compound chocolate market growth?
A4. The flexibility offered by compound chocolates in mixing with different products and giving immense taste and flavor accompanied with health benefits is boosting the compound chocolate market growth.
Q5. Which region holds the largest market share in the compound chocolate market?
A5. Geographically, the North American region is expected to hold the largest share of the compound chocolate market owing to the rising demand for premium chocolate products in the region.
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Global Compound Chocolate Market Analysis, by Type
6. Global Compound Chocolate Market Analysis, by Form
6.2. Chocolate chips/drops/Chunks
6.3. Chocolate Slab
6.4. Chocolate Coatings
6.5. Other Forms
7. Global Compound Chocolate Market Analysis, by Application
7.4. Frozen Desserts and Ice cream
7.7. Other Applications
8. Global Compound Chocolate Market Analysis, by Geography
8.2. North America
8.3. South America
8.4.1. United Kingdom
8.5. The Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Cargill, Incorporated
10.2. Barry Callebaut
10.3. Clasen Quality Coatings, Inc.
10.4. Aalst Wilmer Pte Ltd
10.6. Santa Barbara Chocolate
10.7. Puratos Group
10.8. Fuji Oil Company Limited
10.9. Hershey's Company
10.10. Mondelez International
Clasen Quality Coatings, Inc.
Aalst Wilmer Pte Ltd
Santa Barbara Chocolate
Fuji Oil Company Limited
|Report Name||Published Month||Get Sample PDF|
|Chocolate Market Size, Share & Growth: Industry Report, 2022–2027||Nov 2022|
|Food Spread Market Size, Share & Trends: Industry Report, 2021-2026||Oct 2021|
|Food Inclusions Market Size, Share & Growth: Report, 2022-2027||Nov 2022|
|Condensed Milk Market Size & Share: Industry Report, 2022 - 2027||Aug 2022|