Compound Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Compound Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global compound chocolate market is expected to register a CAGR of 6.31% during the forecast period (2020-2025).

Key Highlights

• A primary factor driving the market for compound chocolate is its functionality at a lower price. It implies that the demand for compound chocolate is growing, owing to the functional attributes of compound chocolate being a replica of coverture or real chocolate, at a lower price than the coverture chocolate.
• Moreover, compound chocolate contains hard fat, which makes it suitable to use in products, such as granola bars, and trail mixes, where baking at higher temperatures is required. In addition, the composition of compound chocolate helps increase the shelf life of the product, with which it is used.
• Companies are coming up with sustainable solutions for sourcing and the usage of cocoa butter substitutes or cocoa butter equivalents in the products.
• With the impact of COVID-19 mainstream consumption of compound chocolate in retail and industrial level seems stable, however the craft chocolate segment is having difficulties. The global market has also seen a demand for healthy ingredients, which opens an opportunity for better-for-you chocolates at the retail and application level.

Key Market TrendsInclination Towards Products With Better-For-You Claims

The compound chocolate market has seen a growth in the consumer preference towards products with various better-for-you claims. Major players in the market are launching healthy variants to remain competitive in the market. For instance, major player Mondelez is offering their Cadbury Dairy Milk with 30% less sugar. In addition to the major player increasing their investments in developing products with various health claims, the inclination of the people toward the healthier and artisanal range of chocolates has led to the entry of many small-scale compound chocolate makers in the market, so as to cater to the needs of artisanal bakers and confectioners. Small-scale compound chocolate makers are forging their way and claiming their stakes to serve world-renowned chocolate makers. For instance, NATRA offers organic and no-added-sugar variants of white, dark, and milk compound chocolate, apart from fillings and cocoa powder in the United Kingdom. Most of the bars are also vegan, as producers are favoring cocoa butter and vegetable oils, rather than milk. This is expected to create new market opportunities in the market, thus contributing to market growth.

North America is the Largest Market Segment

Compaound chocolate in North America is expected to continue its upward trend, supported with increasing demand for premium chocolate and confectionery items. Furthermore, greater interest in healthy lifestyles continues to drive consumption of sugar-free, organic and dark chocolate.Qualities of compound chocolate, such as its attractive price, as compared to pure cocoa-based chocolates, and the fact that it hardens without tempering, are making it an ideal choice for food manufacturers in various segments, such as bakery, confectionery, ice creams, and frozen desserts. Milk chocolate holds a major share in the compound chocolate market in the region and continues to register demand, along with other flavors. Companies are coming up with sustainable solutions, for sourcing and the usage of cocoa butter substitutes or cocoa butter equivalents for confectionary products.

Competitive Landscape

The global compound chocolate market is a fragmented market with the presence of various players. Manufacturers are coming up with several innovations in health aspects, with better cocoa butter substitutes (CBS) and cocoa butter equivalent (CBE). As the manufacturing methods and flavors of compound chocolates improve, the cost differential in comparison to chocolate is likely to make chocolate compounds a more desirable choice. These companies have set their focus upon R&D, with an aim to retain their position within the market or gain an advantage over their competitors. Major players of the compound chocolate market are Cargill Incorporated, AAK, Barry Callebaut, and Clasen Quality Chocolate Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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