North America Compound Chocolate Market is forecasted to reach USD 806.61 million by 2024 growing at a CAGR of 3.8% during the forecast period (2019 - 2024).
Scope of the Report
- Qualities of compound chocolate, such as its attractive price, as compared to pure cocoa-based chocolates and the fact that it hardens without tempering, are making it an ideal choice for food manufacturers in various segments, such as bakery, confectionery, ice creams, and frozen desserts.
- The regulations associated with the amount of vegetable fat in compound chocolates are not uniform, which somehow restrain the compound chocolate market in the region. In addition, there is raising awareness among people about the health issues caused by the fats used in the products.
Compound chocolates, as defined by the FDA, 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 scope of the market includes North America compound chocolate market, segmented by Flavor includes dark, milk, white and other flavors. By product, it is segmented as chocolate chips/drops/chunks, chocolate slab, chocolate coatings, and other products and by application, the market is segmented as compound chocolates, bakery, confectionery and ice cream, and frozen desserts.Key Market Trends
Economical and Desirable Substitute of Cocoa Butter
The global retail sales of chocolate is increasing, with an annual rate of almost 8%, since 2014, and the United States is expected to be a leading market, in terms of absolute consumption. The United States is also expected to retain the largest share of approximately 19% of the global chocolate consumption by 2020. The low production cost and increased functionalities of compound chocolate are major drivers for the market.
The raw materials play a key role in gaining higher revenue in the compound chocolate market. Vegetable fats, which are the raw materials used in the production of compound chocolate, are far less expensive than cocoa butter. Thus, manufacturers prefer to use compound chocolate over regular chocolate to reduce their overall production costs.
Milk Chocolate Being the Most Desired Form of Chocolate in North America
Milk compound chocolate is the most popular and consumed chocolate, and it accounted for the majority market share of the compound chocolate market in North America. Milk chocolate is basically made from premium-quality skimmed milk powders. It involves ingredients, like a blend of milk and sugar, which is mixed with cocoa powder. Puratos markets Carat Coverlux Milk chocolate, which is a hard coating, used for making fudge, enrobing, dipping, decorating, and much more. It is light in color, with a smooth and milky taste. Its ready-to-use profile and freeze/thaw stability assist its use among various bakery products. The product’s multipurpose applications (molding, enrobing, dipping, flavoring, and decorating) makes it a possible alternative to other types.Competitive Landscape
North American compound chocolate market is primarily dominated by a few top players. The most active companies are – Cargill, Puratos, Clasen Quality Chocolate, Santa Barabar Chocolate, Blommer Chocolate Company, The Barry Callebaut Group, and Aalast Chocolate. The North American compound chocolate market is consolidated, with two major players - Barry Callebaut Group and Cargill Inc. accounting for the largest shares of 48% and 18%, respectively. The strategies followed by most of these companies are - expansion and new product launch.
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