South America Compound Chocolate Market

The South America Compound Chocolate Market size was valued at USD XX Billion in 2022 and is expected to surpass USD XX Billion by 2031, expanding at a CAGR of 5.73% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing demand for the compound chocolate in industrial and bakery applications.

Compound chocolate is a product made from a combination of cocoa, vegetable fat, and sweeteners. It is cost-effective product to replace with enrobed chocolate. The dark chocolate compound is just used for preparing desserts but can even be used for garnishing, topping, and preparing truffle, among others.

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Compound chocolate's key ingredient comes from the cacao bean. Different types of chocolate available are milk, dark, and white. The use of chocolate compound derives from vegetable fats, coconut oil, or palm kernel oil instead of cocoa butter.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand for compound chocolate among children and adults is expected to propel the market growth.

• The decrease in prices of vegetables fat can help in mass production of compound chocolate, boosting the growth of the market.

• Increasing awareness and health consciousness among population can hinder the growth of the market.

• Increasing diabetes patients can decline sales, disrupting the growth of market.

• Rising advancement in manufacturing technology can create lucrative opportunities for the industry players of the market.

Scope of the Report

The report on the South America compound chocolate market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

South America Compound Chocolate Market Segment Insights

Dark chocolate segment is expected to grow at a robust rate

Based on flavors, the market is divided into dark chocolate, milk chocolate, white chocolate, and other flavors. The dark chocolate segment is expected to grow at a high rate during the forecast period owing to plethora of recipes made from dark chocolate. However, the other flavors segment is anticipated to hold a key share of the market in the coming years owing rising innovation in the taste of chocolates.

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Chocolate coatings segment is projected to expand at a healthy CAGR

On the basis of products, the market is segregated into chocolate chips/drops/chunks, chocolate slab, chocolate coatings, and other products. The chocolate coatings segment is projected to expand at a healthy CAGR during the forecast period due to increasing preference for chocolate coating compound in bakery applications. Moreover, the chocolate slab segment is anticipated to account for a major market share during the forecast period owing to rising use of chocolate slab to converting into finished food products.

Bakery segment is expected to hold a large market share

In terms applications, the market is divided into compound chocolates, bakery, confectionery and ice cream and frozen desserts. The bakery segment is expected to a account for a large market share during the forecast period owing to increasing number of bakeries in region. However, the frozen desserts segment is anticipated to hold a major share of the market owing to rising consumption among population in countries such as Brazil and Argentina.

Brazil is anticipated to constitute a key market share

In terms of regions, the market is classified as Brazil, Argentina and rest of South America. Brazil is expected to constitute a key share of the market during the projected period owing to high number of fresh cacao beans available. However, the market in Argentina is anticipated to expand at a rapid pace during the forecast period.

Segments

The South America compound chocolate market has been segmented on the basis of

Flavors

• Dark Chocolate
• Milk Chocolate
• White Chocolate
• Other Flavors

Products

• Chocolate Chips/Drops/Chunks
• Chocolate Slab
• Chocolate Coatings
• Other Products

Geography

• Brazil
• Argentina
• Rest of South America

Key Players

• Cargill Incorporated
• Puratos NV
• Unigra
• Santa Barbara Chocolate
• Blommer Chocolate Company
• The Barry Callebaut Group
• Aalst Chocolate

Competitive Landscape

Key players competing in the South America compound chocolate market are Cargill Incorporated; Puratos NV; Unigra; Santa Barbara Chocolate; Blommer Chocolate Company; The Barry Callebaut Group; and Aalst Chocolate.

In August 2021, Cargill entered into an agreement to acquire Aalst Chocolate Pte. Ltd., a Singapore-based chocolate manufacturer. The latter company’s product offering includes artisans chocolate compound.

In August 2021, Puratos NV, Belgian-based chocolate producer, raised one billion euros through a bond loan to combat slavery, child labor, and deforestation.