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United Kingdom Compound Chocolate Market - Growth, Trends, and Forecasts (2023 - 2028)

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  • 85 Pages
  • April 2023
  • Region: United Kingdom
  • Mordor Intelligence
  • ID: 5529351
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.

United Kingdom Compound Chocolate Market Trends

Increasing Dark Chocolate Consumption Due to Health Benefits

Dark chocolate has strong antioxidants found in them. One of the best flavonols is called epicatechin. Plants have compounds called flavonols that lessen inflammation and protect against cell damage brought on by free radicals. Higher cocoa content chocolate contains more beneficial flavonols. Most of the benefits noted by numerous research are related to chocolate with at least 70% cacao. According to research, for everyday indulgences, choose dark chocolate that has undergone little processing and contains at least 70% cacao. A study that appeared in the Appetite journal also found that people who consumed chocolate, particularly dark chocolate, at least once a week had a lower prevalence of diabetes and were less likely to get the disease four to five years later. People who consumed dark chocolate less than once per week had a two times higher chance of developing diabetes than those who consumed it more frequently, according to the research of 908 non-diabetic adults and 45 people with diabetes. Due to these benefits, consumers are shifting toward products that claim to be made with dark chocolate. Compound chocolate sales in the country have been on the rise, with an increase in the demand for dark chocolate targeted toward a specific set of consumers. Companies are also focusing on developing free-from and vegan chocolates to capture the growing demand.

According to the Office for National Statistics (UK), the cardiovascular disease mortality rate in the United Kingdom was 255 deaths per 100,000 population in 2021. As these flavonoids present in dark chocolates reduce oxidative stress, increase the sensitivity of insulin receptors, inhibit lipid oxidation, and inhibit the angiotensin-converting enzyme, dark chocolate may lower the risk of atherosclerosis by thickening and hardening the arteries, restoring their flexibility and preventing white blood cells from adhering to the blood vessel walls. Its rising application in other industries, such as frozen desserts and ice creams, is surging its market growth. For instance, a dark compound coating product such as YYD-D1151, manufactured by Barry Callebaut, is used as a fast-melting chocolate compound for ice cream. Some companies manufacturing dark compound chocolate in the United Kingdom are Cargill Incorporated, Barry Callebaut Group, and Natra SA, mostly in the form of chocolate slabs, chocolate coatings, and chocolate chips.

Entry of Small-scale Players Driving the Market

Small-scale compound chocolate makers are forging their way 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 chocolate apart from fillings and cocoa powder in the country. The players are making meticulous efforts to get the most out of cacao beans as better-quality ingredients. Frequent launches of innovative products to match the consumer preferences of these players have boosted their brand marketing. They offer vegan bars that are also free from gluten, soy, and nuts.

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.

United Kingdom Compound Chocolate Industry Overview

The UK 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 mergers, expansions, acquisitions, and partnerships of other companies, along with new product developments, as strategic approaches by 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. Manufacturers in the market are focusing on special occasions such as Valentine's Day, Easter, and Christmas ad creating chocolate in different colors and shapes, matching the theme of the celebration.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
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
5.1 By Type
5.1.1 Dark
5.1.2 Milk
5.1.3 White
5.2 By Form
5.2.1 Chocolate Chips/Drops/Chunks
5.2.2 Chocolate Slabs
5.2.3 Chocolate Coatings
5.2.4 Other Forms
5.3 By Application
5.3.1 Bakery
5.3.2 Confectionery
5.3.3 Frozen Dessert and Ice Cream
5.3.4 Beverages
5.3.5 Cereals
5.3.6 Other Applications
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Puratos Group
6.3.2 Barry Callebaut Group
6.3.3 AAK AB
6.3.4 Fuji Oil Holdings Inc.
6.3.5 Cargill Inc
6.3.6 Pecan Deluxe Candy Europe Ltd
6.3.7 Natra SA
6.3.8 Ingredients UK Ltd
6.3.9 Sephra
6.3.10 The House of Sarunds

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Puratos Group
  • Barry Callebaut Group
  • AAK AB
  • Fuji Oil Holdings Inc.
  • Cargill Inc
  • Pecan Deluxe Candy Europe Ltd
  • Natra SA
  • Ingredients UK Ltd
  • Sephra
  • The House of Sarunds