South America Compound Chocolate Market - Growth, Trends and Forecast (2018 - 2023)

South America Compound Chocolate Market - Growth, Trends and Forecast (2018 - 2023)

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The South America compound chocolate market is projected to register an estimated CAGR of 5.3%, during the forecast period of 2018-2023.

Economical and Desirable Substitute for Cocoa Butter

Increasing demand of low priced cocoa based products has increased the demand of compound chocolates in South America. The major market drivers include, increased price of cocoa butter, limited supply of cocoa products in the market, cheaper price of compound chocolates, and increasing demand in industrial and bakery applications. Other than the regulation on vegetable fats, major factors restraining the market growth includes, unhealthy nature of cheap vegetable fats along with consumer preferences for the pure chocolates, among others.

Many varieties of vegetable oils, like palm, shea, and mango kernel, if blended in proper proportions, can produce physical properties in the final products that are better than those obtained using cocoa butter. Manufacturers are, thus, trying different methods in order to enhance the sensory profile of compound chocolate. The world's capacity for making cocoa butter substitutes of all grades is now about 150,000 metric ton per year, up by 25,000 to 30,000 metric ton, since 2013.

Versatile Application of Compound Chocolate in Bakery & Confectionery Segment

The compound chocolates are used in industrial applications of bakery and confectionery products, as direct chocolate end-consumers, and in ice creams. The increased demand of coatings & coverings for the bakery products has raised compound chocolates’ popularity among bakery applications. The market is sub-segmented on the product type, as compound chocolate chips, coatings, slabs, and others. The chocolate chips are used in products, such as ice cream, biscuits, and cookies Chocolate slabs are utilized commercially by manufactures for industrial applications, where it is melted and further processed into final product.

By flavor, the South American compound chocolate market can be segmented into dark, white, milk, and others. White chocolate has found increasing consumer preference in bakery & confectionary applications, owing to its full cream flavor characteristic.           

Compound Chocolate Companies Continue to Expand Presence in Chile and Brazil

Increased advancement in technology and the chocolate crisis in the market have provided a great opportunity to the compound chocolate market.  Countries, such as Chile, Argentina, and Brazil are becoming very sophisticated in their tastes, which is influencing the application of compound chocolate in several segments of food & beverage industry, including bakery & confectionery. 

In 2014, Barry Callebaut opened a plant in Paine, nearly 45 km outside from Santiago, (Chile’s capital) as part of its agreement with Chilean subsidiary of Argentinean confectioners Grupo Arcor. Thus, companies are expanding their presence in emerging markets in the region, such as Chile, Argentina, Uruguay, Paraguay, and Peru.

Key Development

  • Barry Callebaut launched a new range of fillings for confectionery & bakery creations at ISM trade fair, in Cologne. The company claims the fillings to contain 40% less calorie compared to fat-based fillings, as they are made without any added vegetable fats or preservatives

Competitive Landscape

The major competitors prefer investment in new product development with more functional properties and marketing strategy for maintaining their market position. Some of the prominent Major Players: Cargill, ADM, Palsgaard, Barry Callebaut, Wilmar International, and Flanders Filings & Compounds (backed by Fuji Oil Europe).

Reasons to Purchase this Report

  • Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
  • Market dynamics, which essentially consider the factors that are impelling the present market scenario, along with growth opportunities of the market in the years to come
  • Market segmentation analysis including, qualitative & quantitative research incorporating the impact of economic & non-economic aspects
  • Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
  • Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
  • 3-month analyst support, along with the Market Estimate sheet in excel

Customization of the Report

  • Value chain analysis
  • Volume of Compound Chocolate Market
  • Consumer behavior analysis at country level

1. Introduction

1.1 Key Deliverables of the study

1.2 Study Assumptions

1.3 Market Definitions

2. Research Approach and Methodology

2.1 Introduction

2.2 Research Design

2.3 Study timelines

2.4 Study Phases

2.4.1 Secondary Research

2.4.2 Discussion Guide

2.4.3 Market Engineering & Econometric Modeling

2.4.4 Expert Validation

3. Key Findings

4. Market Dynamics

4.1 Drivers

4.2 Restraints

4.3 Opportunities

4.4 Porter's Five Forces Analysis

4.4.1 Bargaining Power of Suppliers

4.4.2 Bargaining Power of Buyers

4.4.3 Threat of New Entrants

4.4.4 Threat of Substitute Products and Services

4.4.5 Degree of Competition

5. Market Segmentation

5.1 By Product Type

5.1.1 Chocolate Chip

5.1.2 Chocolate Slab

5.1.3 Chocolate Coatings

5.1.4 Others

5.2 By Application

5.2.1 Ice Cream & Frozen Desserts

5.2.2 Bakery

5.2.3 Compound Chocolate

5.2.4 Confectionery

5.3 By Flavor

5.3.1 Milk

5.3.2 Dark

5.3.3 White

5.3.4 Others                               

5.4 By Geography

5.4.1 South America

5.4.1.1 Brazil

5.4.1.2 Argentina

5.4.1.3 Rest of South America

6. Competitive Landscape

6.1 Strategy adopted by Key players

6.2 Most Active Companies in the Past Five Years

6.3 Market Share Analysis

7. Company Profiles

7.1 Cargill

7.2 Puratos

7.3 Clasen Quality Chocolate

7.4 Santa Barbara Chocolate

7.5 Wilmar International

7.6 The Barry Callebaut Group

7.7 Aalst Chocolate

7.8 Sephra

7.9 Chocoley

7.10 Unigra

7.11 Palsgaard

7.12 AAK

7.13 Flanders Filings & Compounds (backed by Fuji Oil Europe)

7.14 Aalst Chocolate

7.15 KCG Corporation

8. Appendix

8.1 Disclaimer

8.2 Sources

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