Industrial Chocolate Market - Global Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

Chocolate is presented as a snack, a treatment, an item on the menu, or an experience, and vendors are focusing on new ways to attract consumers in the global industrial chocolate market. The increasing degree of sensitization around food brands and increasing responsibility around sourcing, production, and the overall handling of those involved in the output is driving the resolution of the food and beverage industry. The importance of environmental cost of the chocolate and the ethical considerations are driving demand for certified products. The increasing focus on creating a unique experience is encouraging the companies to launch innovative products. From multisensory to sharing experiences, vendors are tapping into delivering satisfaction through a myriad of ways in the market. The growing number of regulations and legislation is impacting the way food products are sourced and delivered.

The rapidly shifting consumer needs, players are innovating to deliver products that will make the customer happier and healthier, and guaranteeing care in the cultivation and manufacturing of cocoa beans and chocolates. The paradigm shift in the behavior and increasing awareness about health and obesity is fueling the demand for healthier and sustainable products. Several companies are working on staying relevant to the changing marketplace, deviating tastes, and the incumbents demand more from products. Premium products lead the way for innovations.

MARKET TRENDS & DRIVERS

The increasing focus on texture for a multisensory experience will result in the transformation of the industrial chocolate market. The products that manifest through texture can play on the experiences of feel, sound, and satisfaction and are becoming more critical than ever. The use of textures has evolved beyond creamy or smooth to include multisensory experiences that come from layering creatively or combining ingredients differently. From chunky texture that give more bite to combinations such as crunchy additions in a soft filling are breaking new ground and taking textures to the next level. For instance, Barry Callebaut has introduced a sensory language and a tasting ritual for chocolates. These textural effects will act as a tool for iconic brands to breathe new life into their products as opposed to entirely coming up with new concepts.  

INDUSTRIAL CHOCOLATE MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Products
• Application
• Market Entity
• Type
• Geography

INSIGHTS BY PRODUCTS 

The focus on developing new confectionery products with a rounded mouthfeel drives innovation in the global industrial chocolate market

Cocoa butter dominated the total industrial chocolate market share in 2018, growing at a CAGR of over 3% during the forecast period. The growing demand for new confectionery products is mainly prevailing in developed countries where the end consumer wants a refined mouthfeel is fueling the growth of this segment. With consumers beginning to realize that all types of fats are not harmful, unsaturated fats, and in general pure butter (which has a natural halo) has found acceptance. Such a high demand for good quality products is fueling the demand for cocoa butter among manufacturers in the global chocolate industry analysis. Players such as Mars have begun to claim that their products have 100% pure cocoa butter – something that has been a regular with artisan shops.

INSIGHTS BY APPLICATION

Cocoa flavored dairy products are becoming a rage among consumers in the global market

The dairy application is the fastest growing segment, growing at a CAGR of approximately 4% during the forecast period. The increasing use of choco flavorings in newly developed milk products, yogurts, and creamers is fueling the growth of this segment. The nostalgic appeal of chocolate has reserved its space in flavors that are going to remain eternal from grandma’s cake to aunt’s pie; the product tends to lead to tons of food memories. These factors are driving demand for alkalized cocoa powders.

The introduction of Choco-flavored yogurt and other such novelty products are gaining immense prominence. The vendors such as Olam Cocoa are offering a mild cocoa powder that has an enhanced fruity flavor, which is lower on the bitterness scale to increase the application of these products. The availability of a broad palate of cocoa powder colors, ranging from dark brown or light brown to dark red and sometimes even black, will contribute to the major revenues.

INSIGHTS BY TYPE

New combinations and experiences emerging as the driving factor across the global market

The confectionery segment occupied the largest industrial chocolate market share in 2018. The unique combinations and experiences are becoming a must-do in the chocolate industries and fueling the growth of this segment. The increasing demand for happy bakes and chocolate nibbles will increase lucrative opportunities in the chocolate market for the top vendors. With the rising awareness about health and wellness and the increasing number of consumers seeking out foods enriched with healthy ingredients will create new opportunities for vendors. Manufacturers have responded with the consistent introduction of chocolate confectionery that is promoted with words such as cacao-rich, natural, and single-origin to meet the diverse demands. The growing demand for organic, fortified functional and reduced-sugar confectionery is fueling the diversity in the global market.

INSIGHTS BY MARKET ENTITY 

Companies are reinventing their products portfolio to attract consumers in the global market

The open market is benefitting as consumer chocolate companies outsource their production together with processing so they can handle marketing and R&D for their brands. Several vendors have grown through acquisitions of chocolate and compound production facilities of other chocolate and cocoa producers and processors and then outsourced to them. Outsourcing agreements from APAC are allowing players to gain a strategic foothold, especially in the emerging segments, thereby fueling the growth potential. Such agreements also include teamwork in joint R&D activities to innovate, thus supporting the growth of the client while also giving the supplier a deeper understanding and expertise of the immediate market. The focus on testing innovation will revolutionize the global market.

INSIGHTS BY GEOGRAPHY

Switzerland emerges as the most loved and noted region in the global industrial chocolate market

Europe dominated the market share of chocolate brands and industrial chocolates, growing at a CAGR of 4% during the forecast period. Europe dominates the production, export, and consumption and the increasing investments in product innovations, novelties, and sophisticated product development is contributing to the revenues in the region. For instance, the partnership with a wine-tasting expert to market and create tasting experiences like wine tasting, but for chocolates through the origin, tasting boxes are gaining immense popularity in the region. The Scandinavian and the Nordic countries are exceptionally forward in terms of industrial chocolate making and will contribute to the growing revenues.

Trends such as fiber and protein enrichment and dairy-free products with the growth of veganism are transforming the industry in the North American region. Various global industrial chocolate market players are opening R&D centers and training academies in Singapore, China, India, Japan, Malaysia, and Indonesia.

KEY VENDOR ANALYSIS

The global industrial chocolate market share has a high concentration, and the top 4 players contribute over 90% of the total revenues. The leading vendors are investing in capacity expansion into cocoa producing countries to stay better sheltered from the unbalanced climatic and economic situations market. The increasing focus on enhancing discoverability through several cultural and novelty influences and refining what companies are offering will help attract new consumers worldwide. The top players are competing based on product innovation, product quality, and price in the global industrial chocolate market. Major Vendors in the market include Barry Callebaut Group, Cargil, Fuji Oil, and Cémoi.

This research report offers chocolate industry outlook with growth rates, revenues & forecasts for the following segments:

By Product

• Cocoa Butter
• Cocoa Liquor
• Cocoa Powder

By Application

• Bakery
• Ice-Cream and Frozen Dessert
• Dairy
• Cereals
• Others

By Market Entity

• Open
• Integrated

By Type

• Confectionery
• Cocoa and Other Products

By Geography

• Europe
• UK
• France
• Germany
• North America
• US
• Canada
• APAC
• Japan
• China
• Australia
• India
• Rest of the World
• Brazil
• South Africa
• UAE