Compound Chocolate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

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

• 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.

Scope of the Report

Market Definition: Compound chocolates, as defined by FDA, are cocoa products containing cocoa butter substitute (CBS) or cocoa butter equivalent (CBE). The vegetable fats commonly used are often hard fats or fats semi-solids at room temperature, such as coconut oil and palm kernel oil.

Scope of the study for the market studied is segmented by type (dark, milk, and white), form (chocolate chips/drops/chunks, chocolate slabs/bars, chocolate coatings, and other forms), application (bakery, confectionery, frozen dessert and ice cream, beverages, cereals, and other applications), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

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Key Market Trends

Inclination 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.

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