UK Compound Chocolate Market Size (2024 - 2029)

The United Kingdom compound chocolate market is experiencing growth driven by increased consumer spending on indulgent confectionery products and strong demand from the food and beverage industry for various applications. This expansion is further supported by product innovations catering to changing consumer preferences, such as vegan and gluten-free options. The market's potential is enhanced by favorable trade agreements and policies that support small-scale manufacturers. However, challenges such as cocoa shortages and rising prices pose constraints on the market's expansion.

Market Size of UK Compound Chocolate Industry

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UK Compound Chocolate Market Summary
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

UK Compound Chocolate Market 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 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
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UK Compound Chocolate Market Size Summary

The United Kingdom compound chocolate market is experiencing steady growth, driven by increasing consumer spending on indulgent confectionery products and a robust demand from the expanding food and beverage industry. This demand spans various applications, including bakery, confectionery, frozen desserts, ice cream, beverages, and cereals. The market is further bolstered by product innovations catering to changing consumer preferences, such as vegan-based and gluten-free desserts. The growing preference for chocolate flavors and the availability of chocolate-flavored proteins and nutritional supplements also contribute to market expansion. The UK's renegotiation of trade agreements under fair-trade policies provides a favorable environment for small-scale compound chocolate manufacturers, allowing them to establish a presence and meet the high demand for chocolate confectioneries.

The market is characterized by a well-established supply chain, product selection, and distribution models, with a focus on healthier snacking options that combine convenience and taste. The medium-term growth of the confectionery sector is supported by consumer preferences for chocolate and sweets, with an increase in sales of low-calorie and sugar-free products due to rising health concerns. Small-scale manufacturers are making significant strides by offering innovative products, such as organic and no-added-sugar variants, and focusing on plant-based confections. Major players like Cargill Inc., AAK AB, Puratos, Fuji Oil Holdings Inc., and Barry Callebaut dominate the market, emphasizing mergers, expansions, acquisitions, and partnerships to enhance their brand presence and maintain a competitive edge. These companies are also investing in research and development to introduce new products and cater to seasonal demands, further driving market growth.

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UK Compound Chocolate Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Product Type

      1. 2.1.1 Dark

      2. 2.1.2 Milk

      3. 2.1.3 White Chocolate

    2. 2.2 Form

      1. 2.2.1 Chocolate Chips/Drops/Chunks

      2. 2.2.2 Chocolate Slab

      3. 2.2.3 Chocolate Coatings

      4. 2.2.4 Other Forms

    3. 2.3 Application

      1. 2.3.1 Bakery

      2. 2.3.2 Confectionery

      3. 2.3.3 Frozen Desserts & Ice Cream

      4. 2.3.4 Beverages

      5. 2.3.5 Cereals

      6. 2.3.6 Other Applications

UK Compound Chocolate Market Size FAQs

The UK Compound Chocolate Market is projected to register a CAGR of 3.32% during the forecast period (2024-2029)

Cargill, Inc., AAK AB, Fuji Oil Holdings Inc., Puratos and Barry Callebaut are the major companies operating in the UK Compound Chocolate Market.

UK Compound Chocolate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)