UK Compound Chocolate Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.32 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UK Compound Chocolate Market Analysis
The United Kingdom compound chocolate market is projected to register a CAGR of 3.32% during the forecast period.
The primary factor driving the market for compound chocolates in the country is the rising consumer expenditure on indulgent confectionery products, especially chocolate confectioneries. Also, robust demand for the product from the expanding food and beverage industry in the country for various applications, such as bakery, confectionery, frozen dessert, ice cream, beverages, cereals, and others, has fuelled the market's growth. Furthermore, a rising number of product innovations, attributable to changing consumer preferences for newer products such as vegan-based and gluten-free desserts, has further boosted market growth. According to the Office for National Statistics (UK), the annual average Consumer Price Index (CPI), the price index value of chocolate, confectionery, and other confectionery items, was measured at 103.6 index points in the United Kingdom. Also, the growing preference for chocolate flavors is one of the drivers propelling the growth of the chocolate flavoring compound market. Besides this, consumers' palates for chocolate flavors and the availability of a range of chocolate-flavored proteins and nutritional supplements boost the market.
Moreover, the United Kingdom is renegotiating trade agreements under the fair-trade policy, and the government is ensuring changes in trade agreements with countries across the world for fairer trading policies, thereby providing a favorable environment for small-scale compound chocolate manufacturers to establish themselves in the country. Additionally, the demand for chocolate confectioneries in the country is high, attributed to rising consumer expenditure on indulgent confectionery products, especially chocolate confectioneries. According to the Office for National Statistics (UK), in 2021, the total turnover of companies producing chocolate and confectionary was approximately USD 4.6 billion. As a result, compound chocolate manufacturers have room to grow in order to meet the demands of chocolate confectioners and other food and beverage companies. However, a few factors, such as the shortage of quality cocoa, have resulted in soaring prices that hit cocoa users, such as bakers and confectioners, and the importing of quality cocoa, thus restraining the United Kingdom market.
UK Compound Chocolate Market Trends
Upsurge in Consumption of Bakery and Confectionery Products
People in the United Kingdom have traditionally included bakery and confectionary products in their diets. The main elements that have kept these products in the contemporary market are their convenience, accessibility, and nutritional composition. People regularly consume bakery products in their meals. The improved accessibility of these specialty baked products will support market expansion during the forecast period. Compound chocolate is being used more frequently in bakery and confectionery products. Healthier snacking, along with convenience and taste, is the rising trend among consumers, which is the major strategy adopted by giant companies due to the increasing demand for healthy snacks. The medium-term expansion of the confectionery sector will be driven by customer preferences and their propensity for chocolate and sweets. Sales of low-calorie and sugar-free confectionery products will rise as a result of rising health concerns and concurrent increases in customer cravings for a variety of chocolates and sweets. The supply chain, product selection, distribution models, and consumer preferences of the bakery and confectionery products market in the United Kingdom are all well-established. Indulgence categories like cakes, pastries, and cookies are progressively exhibiting innovations and new product development.
Entry of Small-Scale Players is Driving the Market
Small-scale compound chocolate makers are forging their way into the country and claiming their stakes to serve world-renowned chocolate makers. For instance, NATRA offers organic and no-added-sugar variants of white, dark, and milk compound chocolates, along with fillings and cocoa powder, in the country. Also, meticulous efforts are put forth by the players to get the most out of cacao beans as better-quality ingredients.
Additionally, frequent launches and offering of innovative products with more application options to match the consumer preferences of these players have boosted their brand marketing. They offer bars that are vegan and free from gluten, soy, and nuts. Small-scale businesses, for example, are investing in providing products with a higher level of expertise in creating fully plant-based confections, such as chocolate made with less cocoa butter and more plant-based fats from other sources. They are offering products that can be used to create chocolate coatings, implemented as ingredients in cookies, trail mixes, and ice cream, and molded into bars or other shapes, thereby increasing the popularity and usage of compound chocolates in the market. Moreover, the United Kingdom is renegotiating trade agreements under the fair-trade policy. The government is ensuring changes in trade agreements with countries worldwide for fairer trading policies, thereby providing a favorable environment for small-scale compound chocolate manufacturers to establish themselves in the country. Such developments in the market are expected to boost the market's growth during the forecast period.
UK Compound Chocolate Industry Overview
The United Kingdom market for compound chocolate is consolidated and dominated by players such as Cargill Inc., AAK AB, Puratos, Fuji Oil Holdings Inc., and Barry Callebaut. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new product development, as strategic approaches adopted by the major companies to boost their brand presence among consumers. These companies have set their focus on R&D, aiming to retain their positions in the market or gain a competitive advantage. Also, companies on the market are making things for holidays like Valentine's Day, Easter, and Christmas in different colors and shapes that match the theme of the holiday.
UK Compound Chocolate Market Leaders
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Cargill, Inc.
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AAK AB
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Fuji Oil Holdings Inc.
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Puratos
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Barry Callebaut
*Disclaimer: Major Players sorted in no particular order
UK Compound Chocolate Market News
- June 2021: The Puratos, United Kingdom-based company, launched two new Belgian chocolate products with 40% less sugar than their previous offerings.
- April 2020: Brenntag Food & Nutrition and Cargill expanded their distribution relationship in the United Kingdom and Ireland to include cocoa and chocolate.
- January 2020: Swiss chocolate and cocoa products company Barry Callebaut has opened a new branch of its Chocolate Academy in Banbury, United Kingdom.
UK Compound Chocolate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions & 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
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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 Product Type
- 5.1.1 Dark
- 5.1.2 Milk
- 5.1.3 White Chocolate
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5.2 Form
- 5.2.1 Chocolate Chips/Drops/Chunks
- 5.2.2 Chocolate Slab
- 5.2.3 Chocolate Coatings
- 5.2.4 Other Forms
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5.3 Application
- 5.3.1 Bakery
- 5.3.2 Confectionery
- 5.3.3 Frozen Desserts & Ice Cream
- 5.3.4 Beverages
- 5.3.5 Cereals
- 5.3.6 Other Applications
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies Adopted by Key Players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Cargill, Incorporated
- 6.3.2 Puratos Group
- 6.3.3 AAK AB
- 6.3.4 Barry Callebaut Group
- 6.3.5 Fuji Oil Holdings Inc.
- 6.3.6 Natra
- 6.3.7 Ingredients UK Ltd.
- 6.3.8 Sephra
- 6.3.9 Britannia Superfine
- 6.3.10 Pecan Deluxe Candy Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
UK Compound Chocolate Industry Segmentation
Compound chocolate is a product made from a combination of cocoa, vegetable fat, and sweeteners. It is used as a less expensive substitute for real chocolate because it substitutes less expensive hard vegetable fats like coconut oil or palm kernel oil for the more expensive cocoa butter. The United Kingdom's compound chocolate market is segmented based on type, form, and application. Based on type, the market is segmented into dark, milk, and white chocolate. Based on its form, the market is segmented into chocolate chips, chocolate drops, chocolate chunks, chocolate slabs, chocolate coatings, and others. Based on the application, the market is segmented into bakery, confectionery, frozen desserts and ice cream, beverages, cereals, and others. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Product Type | Dark |
| Milk | |
| White Chocolate | |
| Form | Chocolate Chips/Drops/Chunks |
| Chocolate Slab | |
| Chocolate Coatings | |
| Other Forms | |
| Application | Bakery |
| Confectionery | |
| Frozen Desserts & Ice Cream | |
| Beverages | |
| Cereals | |
| Other Applications |
UK Compound Chocolate Market Research FAQs
What is the current UK Compound Chocolate Market size?
The UK Compound Chocolate Market is projected to register a CAGR of 3.32% during the forecast period (2024-2029)
Who are the key players in UK Compound Chocolate Market?
Cargill, Inc., AAK AB, Fuji Oil Holdings Inc., Puratos and Barry Callebaut are the major companies operating in the UK Compound Chocolate Market.
What years does this UK Compound Chocolate Market cover?
The report covers the UK Compound Chocolate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UK Compound Chocolate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Compound Chocolate Industry Report
Statistics for the 2024 UK Compound Chocolate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Compound Chocolate analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
