The global real and compound chocolate market size stood at USD 27.09 billion in 2021. The market is anticipated to rise from USD 29.03 billion in 2022 to USD 42.71 billion by 2029, at a 5.67% CAGR during the forecast period. Fortune Business Insights™ has delved into these insights in its latest research report, titled, “Real and Compound Chocolate Market, 2022-2029.”
According to the analysis, the rising trend towards indulgent confectionery products could encourage leading companies to expand penetration across advanced and emerging economies. Prominently, end-users are likely to exhibit traction for premium chocolate confectioneries and innovative chocolate products. However, the prevalence of the COVID-19 pandemic could reshape the global dynamics.
Raw Material Supply Shortage to Mar Growth Prospect
The pervasive COVID-19 outbreak had a telling impact on the food & beverage sector in 2020, with the hospitality sector witnessing major disruption. Besides rising transportation costs, raw material shortage did not augur well for the business outlook. Meanwhile, the growth of the e-commerce sector and online retail sector has encouraged stakeholders to invest in confectionery items. Robust government policies are likely to act in favor of real and compound chocolate manufacturers in the ensuing period.
In terms of product category, the market is segregated into compound chocolate and real chocolate.
Based on type, the market is segmented into dark chocolate, milk chocolate, and white chocolate.
On the basis of form, the market is fragmented into coatings, chips, slabs, and others.
With respect to application, the market is segmented into bakery, confectionery, beverages, dairy and frozen desserts, and others.
On the geographical front, the market covers Europe, North America, Asia Pacific, the Middle East & Africa, and South America.
The report provides a comprehensive perspective of the market size, share, volume, and revenue. It has also delved into SWOT analysis and Porters’ Five Force Analysis. The report has been prepared through qualitative and quantitative analysis to bolster the strategic approach. The primary interviews are used to validate assumptions, findings and the prevailing business scenarios. The report also includes secondary resources such as annual reports, press releases, white papers, and journals.
Drivers and Restraints
Premiumization Trend to Expedite Innovations in Real and Compound Chocolate
Millennials and Gen Z population are well poised to cash in on the premiumization trend, thereby fostering real and compound chocolate market share. Brands are likely to inject funds into innovations with variations of savory and sweet flavors. Additionally, emerging economies could seek compound chocolate as a low-cost alternative to original chocolate. Amidst the burgeoning population across China and India, food companies could invest in compound chocolate to meet the product demand. In doing so, plant-based chocolate consumption could witness an upsurge following the rise in the vegan population. Prominently, organic chocolate is likely to be sought-after with consumers seeking “green products.”
Volatile raw material prices and shortage of manpower could impede the industry growth during the forecast period.
Expanding footfall of Real Chocolate in France to Propel Europe Market
The Europe market forecast is slated to be robust against the backdrop of the presence of leading chocolate manufacturers across France and Germany. Centre for the Promotion of Imports from developing countries (CBI) claimed France and Germany to be the largest real chocolate importer in Europe with 168,000 tons and 142,000 tons, respectively, in 2019. Leading companies, such as Cargill Inc. and Barry Callebaut AG, are likely to invest in real chocolate to tap markets across the region.
Stakeholders expect the North America real and compound chocolate market growth to witness an upward trajectory on the back of the premiumization trend. Industry participants are likely to explore opportunities in cocoa nibs and other chocolate-based products. With high per capita consumption and trend for at-home consumption, the U.S., Canada and Mexico could provide promising growth opportunities.
Asia Pacific is likely to witness investment abound following the presence of leading companies across Japan, Indonesia, China, Australia, and India. According to the Centre for the Promotion of Imports from developing countries, Asia Pacific contributed 23% of the global grindings in 2019. With a surge in cocoa grinding, stakeholders are likely to up their investments to gain a foothold across the region.
Industry Players to Invest in Organic and Inorganic Strategies to Bolster Portfolio
Stakeholders are slated to invest in robust strategic approaches to tap the global market. In doing so, investments in product launches, research and development activities, technological advancements, and mergers & acquisitions could be pronounced.
Key Industry Development
September 2020: Olam Cocoa rolled out a new business for professional chefs, bakers, and pastry chefs.
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