UK Compound Chocolate Market - Growth, Trends and Forecasts (2022 - 2027)

UK Compound Chocolate Market - Growth, Trends and Forecasts (2022 - 2027)

The UK compound chocolate market is growing at a CAGR of 3.32% during the forecast period (2021-2026).

The primary factor driving the market for compound chocolates in the country is the rising consumer expenditure on indulgent confectionery products, especially chocolate confectioneries. Also, robust demand for the product from the expanding food and beverage industry in the country for various applications, such as bakery, confectionery, frozen dessert, ice cream, beverages, cereals, and others, has fueled the market growth.

Furthermore, a rising number of product innovation attributed to the changing consumer preferences for newer products, such as vegan-based and gluten-free desserts, has further boosted the market growth. For instance, Ingredients UK offers compound coatings as milk, white, and dark chocolate, which are gluten-free and few of them available as sugar-free and dairy-free for use in applications, like bakery, confectionery, dairy desserts, and food and nutrition.

However, few factors such as the shortage of quality cocoa have resulted in soaring prices that hit the cocoa users, such as bakers and confectioners, and the importing of quality cocoa, are thus restraining the UK market.

Key Market TrendsRising Demand for Dark Chocolate

The demand for dark chocolate flavors has been witnessed with an increasing trend, where it is majorly being used in the confectionery and bakery industries in the United Kingdom, since dark chocolate contains no milk solids, and is suitable for vegan baking as well, which is expected to increase substantially. Also, its rising application in other industries such as frozen desserts and ice-creams is surging its market growth. For instance, dark compound coating product such that YYD-D1151, which is manufactured by Barry Callebaut, is a fast-melting chocolate compound for ice cream. Some of the company’s manufacturing dark compound chocolate in the United Kingdom are Cargill Incorporated, Barry Callebaut Group, and Natra SA, mostly in the form of chocolate slabs, chocolate coatings, and chocolate chips.

Entry of small-scale payers is driving the market

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 country. Also, meticulous efforts are put on by the players to get the most out of cacao beans as better quality ingredients. Also, frequent launches of innovated products to match the consumer preferences by these players have boosted their brand marketing. They offer bars that are vegan, free from gluten, soy, and nuts. For instance, Cadbury’s dairy milk chocolate bar has come up with major product differentiation as the company uses vegetable oils, such as palm and shea, thereby, increasing the popularity and usage of compound chocolates in the market. Moreover, the United Kingdom is renegotiating trade agreements under the fair-trade policy and the government is ensuring changes in trade agreements with countries across the world for fairer trading policies, thereby, providing a favorable environment for small-scale compound chocolate manufacturers to establish themselves in the country.

Competitive Landscape

The UK market for compound chocolate is consolidated and dominated by players, such as Cargill Inc., Puratos Group, and Barry Callebaut Group. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the major companies to boost their brand presence among consumers. For instance, in September 2018, the Barry Callebaut Group signed an agreement with Burton’s Biscuit Company for the long-term supply of over 12,000 metric tons of chocolate and compound per year.

Additional Benefits:

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

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.