Market Size of United Kingdom Compound Chocolate Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 3.00 % |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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UK Compound Chocolate Market Analysis
The UK compound chocolate market is projected to record a CAGR of 3% 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. Robust demand for the product from the country's expanding food and beverage industry for various applications, such as bakery, confectionery, frozen dessert, ice cream, beverages, cereals, and others, has fuelled the market's growth. A rising number of product innovations attributed to the changing consumer preferences for newer products, such as vegan-based and gluten-free desserts, has also boosted the market's growth. According to the Office for National Statistics (UK), the annual average Consumer Price Index (CPI), including the price index value of chocolate, confectionery, and other confectionery items, was measured at 103.6 index points in the United Kingdom. The growing preference for chocolate flavors is one of the drivers propelling the growth of the chocolate flavoring compound market. Consumers' palate for chocolate flavors and the availability of chocolate-flavored protein and nutritional supplements may boost the market.
The United Kingdom is renegotiating trade agreements under the fair-trade policy, and the government is ensuring trade agreement changes with countries worldwide for fairer trading policies, thereby providing a favorable environment for small-scale compound chocolate manufacturers to establish themselves in the country. 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, which provides a scope of expansion for compound chocolate manufacturers to cater to the demand from 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 impacted the cocoa users, such as bakers and confectioners, and the imports of quality cocoa, thus restraining the UK market.
UK Compound Chocolate Industry Segmentation
Compound chocolate is a product made from a combination of cocoa, vegetable fat, and sweeteners. Since it substitutes less expensive hard vegetable fats like coconut oil or palm kernel oil for the more expensive cocoa butter, it is used as a more affordable substitute for real chocolate.
The UK compound chocolate market is segmented by type (dark, milk and white chocolate), form (chocolate chips/drops/chunks, chocolate slab, chocolate coatings, and other forms), and application (bakery, confectionery, frozen desserts and ice cream, beverages, cereals, and other applications). The report offers market sizes and forecasts in value (USD million) for all the above segments.
By Type | |
Dark | |
Milk | |
White |
By Form | |
Chocolate Chips/Drops/Chunks | |
Chocolate Slabs | |
Chocolate Coatings | |
Other Forms |
By Application | |
Bakery | |
Confectionery | |
Frozen Dessert and Ice Cream | |
Beverages | |
Cereals | |
Other Applications |
United Kingdom Compound Chocolate Market Size Summary
The United Kingdom compound chocolate market is experiencing steady growth, driven by increasing consumer spending on indulgent confectionery products, particularly chocolate. The expanding food and beverage industry in the UK is a significant contributor to this growth, with compound chocolate being utilized in various applications such as bakery, frozen desserts, and beverages. The market is further bolstered by product innovations catering to changing consumer preferences, including vegan and gluten-free options. The growing popularity of chocolate flavors, along with the availability of chocolate-flavored nutritional supplements, is also propelling market expansion. Despite challenges like cocoa shortages affecting prices, the market remains robust, supported by favorable trade policies that encourage small-scale manufacturers.
The market landscape is dominated by major players such as Cargill Inc., Barry Callebaut, and Puratos, who are focusing on strategic expansions, mergers, and product innovations to maintain their competitive edge. These companies are investing in research and development to introduce new products that align with consumer trends, such as dairy-free and reduced-sugar chocolates. The demand for dark chocolate, known for its health benefits, is particularly strong, with companies developing products like fast-melting chocolate compounds for ice cream. Small-scale manufacturers are also carving out niches by offering organic and specialty products. The market's growth is further supported by seasonal demand, with manufacturers creating themed chocolates for holidays and special occasions.
United Kingdom Compound Chocolate Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Dark
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2.1.2 Milk
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2.1.3 White
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2.2 By Form
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2.2.1 Chocolate Chips/Drops/Chunks
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2.2.2 Chocolate Slabs
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2.2.3 Chocolate Coatings
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2.2.4 Other Forms
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2.3 By Application
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2.3.1 Bakery
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2.3.2 Confectionery
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2.3.3 Frozen Dessert and Ice Cream
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2.3.4 Beverages
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2.3.5 Cereals
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2.3.6 Other Applications
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United Kingdom Compound Chocolate Market Size FAQs
What is the current United Kingdom Compound Chocolate Market size?
The United Kingdom Compound Chocolate Market is projected to register a CAGR of 3% during the forecast period (2024-2029)
Who are the key players in United Kingdom Compound Chocolate Market?
Cargill Inc., Puratos Group, AAK Group, Barry Callebaut and Fuji Oil Holdings are the major companies operating in the United Kingdom Compound Chocolate Market.