North America Compound Chocolate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.91 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Compound Chocolate Market Analysis
The North American compound chocolate market is projected to register a CAGR of 2.91% during the forecast period.
- Compound chocolate has several technical advantages over pure cocoa-based chocolates, including its lower cost, easy manufacturing process, and the fact that it hardens without tempering. This makes it an ideal choice for food manufacturers in various segments, such as bakeries, confectionery, ice creams, and frozen desserts. Compound chocolate ingredients also provide suppliers with formulation flexibility, which enables bakers to be more innovative in their product development.
- There are a variety of options for vegetable fats used in compound chocolate, including palm, palm kernel, soy, coconut, and shea, allowing for a wide range of melt points and melting curves. Compound chocolate products may also provide a better sensory experience than chocolate in snacks and baked foods.
- In addition, the increasing consumption of chocolate products in the region due to their health benefits supports the growth of the compound chocolate market. Chocolate has been shown to potentially lower the risk of cancer and heart disease, while its main saturated fats do not increase cholesterol levels. Consuming chocolate also raises endorphins and serotonin levels in the brain, which can aid in maintaining calm and relaxation.
- Furthermore, manufacturers are offering efficient alternatives to cocoa butter, which is attracting businesses to incorporate compound chocolate into their products. Companies like AAK are offering various natural alternatives to cocoa butter that can make the processing line easier and provide the desired chocolate. Many players in the market are also offering vegetable fat solutions for chocolate and confectionery that can supplement or completely replace cocoa butter in recipes, providing the potential to tailor chocolates according to the needs of the market. Such factors are expected to further boost the market's growth during the forecast period.
North America Compound Chocolate Market Trends
Economical and Desirable Substitute of Cocoa Butter
- Compound chocolate is a type of chocolate substitute that is made using vegetable fats instead of cocoa butter. This alternative ingredient makes it a more cost-effective option for manufacturers, who can reduce their production costs while offering similar functionalities to regular chocolate.
- The demand for chocolate and confectionary products in North America has been steadily increasing, particularly in the United States. The country holds the largest market share in the region, with a high level of chocolate consumption and production volumes. In 2021, the United States was the largest retail sale market for confectionery products, with a value of USD 39.5 billion.
- As a result, manufacturers are incorporating compound chocolate into their products to meet the growing demand for chocolate and increase their revenue. With its lower production costs and similar functionalities to regular chocolate, compound chocolate is becoming an attractive option for manufacturers looking to make a profit in the North American market.
Milk Chocolate Being the Most Desired Form of Chocolate in North America
- Milk compound chocolate is currently the most popular and widely consumed type of chocolate in North America, and it holds the majority market share in the compound chocolate market. This type of chocolate is made by combining premium-quality skimmed milk powders with a blend of milk and sugar, which is then mixed with cocoa powder. Milk chocolate is highly favored by consumers, with over two-thirds of the world's chocolate consumption being in the form of milk chocolate, according to Nunu Chocolates.
- Companies like Hershey's, a significant milk chocolate producer in North America, have benefited from this trend. In 2022, Hershey's North America Confectionery segment generated USD 8,536.5 million, which accounted for about 82% of its total sales. Hershey's also holds a significant market share in the United States chocolate market, with about 33.5%, making it a leading player in the industry.
- In addition, the growing awareness of the health benefits associated with milk chocolate has contributed to its increased consumption. Milk chocolate contains a high level of micronutrients and antioxidants, which make it a popular choice among health-conscious consumers. Milk chocolate's versatility is another factor driving its popularity, as it can be used for a variety of applications such as making fudge, enrobing, dipping, decorating, and more. Its ready-to-use profile and freeze/thaw stability make it a useful ingredient in various bakery products.
- Overall, these factors are contributing to the milk chocolate segment's dominance in the North American chocolate market, with manufacturers increasing production to meet the growing demand.
North America Compound Chocolate Industry Overview
The North American compound chocolate market is currently dominated by a few major players. These include Cargill, Puratos, Clasen Quality Chocolate, Santa Barbara Chocolate, The Barry Callebaut Group, and Aalast Chocolate. The market is relatively consolidated, with the largest shares being held by the Barry Callebaut Group and Cargill Inc.
These companies are primarily focusing on expanding their businesses and launching new products as major growth strategies. To remain competitive in the market, international companies are also entering into mergers and acquisitions. For example, Fuji Oil Holdings acquired Blommer Chocolate Company, one of the major players in the market. This acquisition has provided Fuji Holdings with a large customer base that they can further expand.
North America Compound Chocolate Market Leaders
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Barry Callebaut Group
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Cargill, Incorporate
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Puratos NV
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Clasen Quality Chocolate
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Santa Barbara Chocolate
*Disclaimer: Major Players sorted in no particular order
North America Compound Chocolate Market News
- April 2022: Grupo Bimbo SAB de CV and Barry Callebaut renewed their long-term supply agreement, which was first signed in 2012. Under the terms of the agreement, Barry Callebaut will continue to supply chocolate and compound to Grupo Bimbo's domestic market in Mexico and distribution to several countries in Central America, the United States, Canada, and Uruguay.
- September 2021: The Hershey Company and Barry Callebaut announced the extension of their strategic supply partnership originally signed in 2007. Under the extension agreement, Barry Callebaut will continue to supply Hershey's North American business with liquid chocolate and finished products. The renewed agreement will enable both companies to continue to drive strategic, long-term growth in North America.
- November 2021: Barry Callebaut launched a complete portfolio of dairy-free chocolate compounds, expanding the company's plant-based options. The company claimed that these launched options are 100% plant-based and processed in segregated facilities without dairy.
North America Compound Chocolate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
-
4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Flavor
- 5.1.1 Dark
- 5.1.2 Milk
- 5.1.3 White
- 5.1.4 Other Flavors
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5.2 Product
- 5.2.1 Chocolate Chips/Drops/Chunks
- 5.2.2 Chocolate Slab
- 5.2.3 Chocolate Coatings
- 5.2.4 Other Products
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5.3 Application
- 5.3.1 Compound Chocolates
- 5.3.2 Bakery
- 5.3.3 Confectionery
- 5.3.4 Ice Cream and Frozen Desserts
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5.4 Geography
- 5.4.1 United States
- 5.4.2 Canada
- 5.4.3 Mexico
- 5.4.4 Rest of North America
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Position Analysis
-
6.3 Company Profiles
- 6.3.1 Cargill Incorporated
- 6.3.2 Puratos Group
- 6.3.3 The Barry Callebaut Group
- 6.3.4 Clasen Quality Chocolate
- 6.3.5 Fuji Oil Holdings
- 6.3.6 Natra SA
- 6.3.7 Aalst Chocolate Pte Ltd
- 6.3.8 Sephra
- 6.3.9 AAK AB
- 6.3.10 Stover & Company
- 6.3.11 Chocoladefabriken Lindt & Sprüngli AG
- 6.3.12 Santa Barbara Chocolate
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Compound Chocolate Industry Segmentation
As defined by Food and Drug Administration (FDA), compound chocolates 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.
The North American compound chocolate market is segmented by flavor, product, application, and geography. By flavor, the market is segmented as dark, milk, white, and other flavors. By product, it is segmented as chocolate chips/drops/chunks, chocolate slab, chocolate coatings, and other products. By application, the market is segmented as compound chocolates, bakery, confectionery and ice cream, and frozen desserts. The market is studied in terms of its growth for prominent countries in the region like the United States, Canada, Mexico, and the rest of North America.
For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Flavor | Dark |
| Milk | |
| White | |
| Other Flavors | |
| Product | Chocolate Chips/Drops/Chunks |
| Chocolate Slab | |
| Chocolate Coatings | |
| Other Products | |
| Application | Compound Chocolates |
| Bakery | |
| Confectionery | |
| Ice Cream and Frozen Desserts | |
| Geography | United States |
| Canada | |
| Mexico | |
| Rest of North America |
North America Compound Chocolate Market Research FAQs
What is the current North America Compound Chocolate Market size?
The North America Compound Chocolate Market is projected to register a CAGR of 2.91% during the forecast period (2024-2029)
Who are the key players in North America Compound Chocolate Market?
Barry Callebaut Group, Cargill, Incorporate, Puratos NV, Clasen Quality Chocolate and Santa Barbara Chocolate are the major companies operating in the North America Compound Chocolate Market.
What years does this North America Compound Chocolate Market cover?
The report covers the North America Compound Chocolate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Compound Chocolate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
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