Global Industrial Chocolate Market to Reach $59.6 Billion by 2024

Chocolate is a primary ingredient in various food products such as candy bars, milk shakes, cereals, and cookies. Industrial chocolate processed from cocoa beans is mainly used as ingredients by chocolate confectionery manufacturers, bakers, dairy beverage producers, chefs, and other food service providers to create finished chocolate products like bakery items, beverages and ice cream, and chocolate-based confectionary products. The by-products of cocoa derived from processing of cocoa beans include cocoa butter, cocoa liquor, and cocoa powder. Cocoa products are blended in varying quantities with butter, powdered milk, and other ingredients to create different types of chocolate such as milk chocolate, white chocolate, and plain dark chocolate. Industrial chocolate is typically produced in bulk to meet the heavy demand requirements of chocolate related products. The main components of industrial chocolate include 54% cocoa butter, 11.5% protein, 10% organic acids and aromas, 9% cellulose, 6% tannic acids and color, 5% water, 2.6% salts, 1% sugars, and 0.2% caffeine. The mixture of industrial chocolate differs based on different applications. The manufacturing process of chocolate begins with harvesting and refining of cocoa beans that are shipped to the manufacturer for further processing into different chocolate products. On reaching the manufacturing factory, further processing steps undertaken include cleaning of raw cocoa beans, roasting and winnowing, grinding cocoa nibs, separation of cocoa from cocoa butter, addition of other ingredients, conching, and heating and cooling.

Amid the COVID-19 crisis, the global market for Industrial Chocolate market projected to reach US$59.6 Billion by 2024, registering a compounded annual growth rate (CAGR) of 4.5% over the analysis period. The United States represents the largest regional market for Industrial Chocolate, accounting for an estimated 23.0% share of the global total. The market is projected to reach US$13.6 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 6.8% over the analysis period.

The market has been witnessing robust growth and is poised to continue its growth trend. Medley of factors driving growth in the market includes surging demand for sugar-free and organic chocolates, growing demand for chocolate flavored snack bars for busy on-the-go professional and youngsters, introduction of several new confectionery products, and innovations in chocolate manufacturing by chocolate manufacturers to address changes in consumption pattern and lifestyle. Growth in the market is also attributed to the rising preference for convenient and healthier breakfast options such as chocolate-based energy bars, yogurts, smoothies and breakfast sandwiches. There is also growing demand for organic products over synthetic colored products. While enjoying the taste of chocolates, consumers prefer products that provide health benefits as well. Another noteworthy trend is the increasing demand for high quality and pure black type of chocolates. As black chocolates are composed of high amount of antioxidants and low sugar rate, they offer higher health benefits over ordinary sweets. Chocolate`s indulgent and premium attributes, besides its beneficial health properties due to the presence of flavanols and natural antioxidants in cocoa bean are contributing to its unique standing in the food industry.

Due to the presence of antioxidants, chocolate is known to be beneficial for cardiovascular health. Dark chocolate in particular is renowned for its natural health advantages. Chocolate also offers advantages as it can be easily fortified with nutrients, while negative characteristics can be eliminated. The better-for-you trend in the food industry has led to increased demand for chocolate and compound coating products, which are developed primarily to address key nutritional such as reduced sugar, reduced fat or calories, added fiber and added benefit, without compromising on taste and texture. These properties of chocolate impart beneficial properties to snack foods and baked goods. It is due to these reasons that chocolate and other related ingredients are becoming vital for snack producers and bakers to enhance the nutritional profile of their products, without compromising taste and flavor.

Despite growth drivers strongly in place, there are certain restraining factors which have been posing as major challenges for the industrial chocolates market lately. Individuals searching for healthy alternatives to chocolate-based products, volatile cocoa and sugar prices, stringent regulations pertaining to industrial chocolate quality, and recall of chocolate at different levels of supply chain are some of the major challenges hindering the market growth. Introduction of sweeteners to replace sugar is also becoming a major challenge for chocolate manufacturers, as premium quality sweeteners are required to provide a taste similar to that of sugar. Further increasing health awareness coupled with the rising number of obese and diabetes population is proving to be other major factors hampering market growth. Sourcing premium quality cocoa is another major concern for chocolate manufacturers.