The project report includes Present Market Position and Expected Future Demand, Market Size, Statistics, Trends, SWOT Analysis and Forecasts. Report provides a comprehensive analysis from industry covering detailed reporting and evaluates the position of the industry by providing insights to the SWOT analysis of the industry.
Compound chocolate is a product made from a combination of cocoa, vegetable fat and sweeteners. It is used as a lower-cost alternative to true chocolate, as it uses less-expensive hard vegetable fats such as coconut oil or palm kernel oil in place of the more expensive cocoa butter. It may also be known as “compound coating” or “chocolatey coating” when used as a coating for candy. It is often used in less expensive chocolate bars to replace enrobed chocolate on a product.
Cocoa butter must be tempered to maintain gloss and coating. A chocolatier tempers chocolate by cooling the chocolate mass below its setting point, then rewarming the chocolate to between 31 and 32 °C (88 and 90 °F) for milk chocolate, or between 32 and 33 °C (90 and 91 °F) for semi-sweet chocolate. Compound coatings, however, do not need to be tempered. Instead, they are simply warmed to between 3 and 5 °C (5.4 and 9.0 °F) above the coating’s melting point.
MARKET OVERVIEW
The global real and compound chocolate market size was USD 27.09 billion in 2021. The market is projected to grow from USD 29.03 billion in 2022 to USD 42.71 billion by 2029,exhibiting CAGR of 5.67% during the forecast period. The globalism pact of COVID-19 has been unprecedented and staggering, with real and compound chocolate experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -3.61% in 2020 as compared to 2019.
Real chocolate mainly comprises cocoa mass and cocoa butter, while compound chocolate uses vegetable oil instead of cocoa butter and cocoa powder. Real type of chocolate is prepared from a nutritious seed, roasted to bring out its ?avors. However, the efficacy of chocolate (compound type) lies in its technical advantages such as high heat resistance, bloom resistance, and others which make it suitable for consumption in warmer countries and wider application ease.
A rise in the real and compound chocolate market growth could be associated with the rising consumer inclination toward indulgent confectionery products. The demand for innovative chocolate products, ingredients, and premium chocolate confectioneries in emerging and developed economies has witnessed positive growth in recent years. This growth has been attributed to rising consumer expenditure on indulgent confectionery products, especially chocolate confectioneries. This trend has boosted the sales of real and compound chocolate.
The COVID-19 pandemic has heavily affected the food & beverage processing industry. The socio-economic situation has affected the consumption patterns of particular products negatively. Since most countries went under lockdown in 2020 to stop the spread of the virus, the demand for real and compound chocolate in the hospitality sector saw a signi?cant decline. According to the Cocoa Association of Asia (CAA),Asia’s cocoa grindings fell by almost10% in the ?rst half of 2020 as compared to the same period in 2019.During the early stages of the COVID-19 pandemic, cocoa prices fell, and transportation costs rose. The biggest challenge was to collect cocoa from small holder farmers and supply it to cocoa exporters and cocoa processors for chocolate production. Transport restrictions and border closures worsened the situation. As a result, chocolate manufacturers faced raw material supply shortages, thereby ecting their sales. For instance, Barry Callebaut AG, a leading manufacturer of premium chocolate, reported
as lowdown for the ?rst six months of FY-2020 due to the pandemic. The rapid establishment and speedy expansion of online retail, e-commerce, and other distribution channel samidst the COVID19 pandemic have unlocked new opportunities for Manufacturers in the retail sector. They are anticipated to boost the market in forthcoming years.
The chocolate confectionery category is traditionally driven by indulgence, and the sector has experienced a surge in demand for chocolates with better-for-you options over the past few years. The rise in ?exitarianism is another factor contributing to the fuelingdemandforplant-basedchocolates.Asconsumerexpectationsarechanging,and they are seeking products beyond dairy allergies and lactose intolerance. At the same time, millennials look for tasty yet”ethical” plant chocolate that are harmless to the planet and animals. Organic chocolate has evolved into the mainstream with the latest trends as chocolatiers and chocolate makers expand their reach. As consumers are growing more interested inorganic products, it offers various opportunities for confectionery products manufacturers to meet the demands. More organic chocolate variants manufactured by traditional iconic brands and boutiques and independent producers appear on shelves, creating a positive product image among consumers. Retailers are highly aware of
the potential of this label, which has nudged them to develop innovative products. For instance, in March 2021, Puratos USA announced the newest creation in their real Belgian Chocolate portfolio: Belcolade Selection Amber Cacao-Trace. It is an all-natural, clean-labeled, non-GMO and contains no arti?cial ?avors.
Confectionery relies on pre miumization in a market that has matured but continuesto grow modestly. In the U.S., the reis particular interesting artisan and gourmet style options, often focusing on the origin of cocoa, its content in the ?nished product, and the use of additional ingredients and ?avors of great importance. While consumers focus on getting health bene?ts, the irdesire to indulge themselves in innovative and ?avorful confectioneries mains strong. Taste and textur ere main them a in factor for the consumers in making chocolate confectionery purchasing decisions. Brands continue to innovate with new variations of sweet and savory ?avors. For instance, Barry Callebautin corporates contrasting creamy and crunchy textures into chocolate products as they strive to create more memorable and engaging sensory experiences for consumers.
Compound type chocolate is a low cost alternative to original chocolate as it uses inexpensive hard vegetable fats – such as coconut oil and palm kernel oil instead of comparatively expensive cocoa butter. Cocoa butter must be tempered to retain coating and gloss. However, since there is no need to temper the compound type chocolate, thismakesthemeasiertoworkwithandcost-effective.Indevelopingcountries, such as India and China, where the food service industry is growing due to rising population, the compound chocolate and is witnessing a signi?cant upsurge.
RESTRAININGFACTORS
This market relies on the supply, quality, and cost of raw materials worldwide. The ?uctuations in the price and supply of raw materials, such as cocoa, due to crop disease, climate,and labor unavailability can negatively impact the market. Failure to recoverhigheror shortfalls in availability or quality of raw materials, such as cocoa butter, cocoa powder, sugar, and others, could adversely impact the market. The signi?cant change in regulatory controls, legal systems, and customs in the regions also affects product supply and hampers market growth.
