The global dairy free chocolate market size was USD XX Mn in 2022 and is likely to reach USD XX Mn by 2031, expanding at a CAGR of XX% during 2023–2031. The market growth is attributed to the increasing cases of lactose intolerance and allergies that are associated with milk products among consumers.
Dairy free chocolate is a type of chocolate that does not use animal milk or milk products in its manufacture. It instead uses milk derived from a wide variety of nuts, seeds, grains, and beans. This includes almond milk, soy milk, and oat milk among others. The dairy free chocolate prepared from such milk retains the properties and taste of regular milk in the chocolate. Similar to regular chocolate products, plant-based chocolate is created to deliver the texture, taste, and creaminess of regular milk chocolate products.
These types of chocolates have a wide variety of offerings available in the stores such as hazelnut cream, rice crisps, peanut butter cream, caramel & sea salt, classic, and caramelized coconut. Such products are a healthier alternative considering that the traditional chocolates use processed sugar as a key ingredient whereas organic vegan chocolates do not use it.
Dairy free chocolate or plant-based chocolate is rich in substances such as antioxidants and flavonoids. It also has several ingredients that prevent cancer and minerals such as copper, magnesium, potassium, and zinc. As a result, they help improve health by regulating blood flow, preventing heart issues such as irregular blood pressure & cardiovascular diseases, reducing cholesterol levels, and boosting the immune system.
Globally, numerous dairy free chocolate brands are emerging with rising awareness about the health benefits of these chocolates. Several established chocolate brands such as Hershey’s have also started including dairy free chocolate variants in their line of products.
The COVID-19 pandemic restrained the dairy free chocolate market as it severely affected the raw material price system and the global supply chain network. Post COVID-19, the market is showing positive recovery due to rising health and food awareness among consumers.
Dairy Free Chocolate Market Dynamics
Major Drivers
Rising food-related allergies and lactose intolerance among adults and children are anticipated to boost the dairy free chocolate market. The rise in cases of allergies is leading to the change in food preferences and consumption habits of consumers. For instance, every year in the United States, there are 200,000 cases of allergic reactions to food that need emergency medical care.
As per the Centers for Disease Control and Prevention (CDC) in 2021, one in every three adults and one in every four children in the United States has a food allergy. Lactose intolerance to food products including cream, cheese, milk, and yogurt has led to various types of allergies, such as milk protein-induced entropy, protein-induced gastroenteritis, and anaphylaxis. This has fueled the demand for vegan products and is expected to boost the market in the coming years.
Growing awareness regarding animal cruelty is expected to drive the market during the assessment period. Several organizations such as People for the Ethical Treatment of Animals (PETA) and the Animal Welfare Institute are working extensively to spread awareness about the cruel treatment and exploitation of animals such as using different hormones to increase the milk production of cows, often at the expense of their health.
This has made the general mass conscious of the choice of products and affinized organic products that are free of any form of animal cruelty. As of 2023, 6% of the United States population is vegan. That is a 500% increase as compared to the 1% vegan population in 2014.
Existing Restraints
Small consumer base of vegan products is anticipated to hinder the dairy free chocolate market. Although the demand for vegan products is on the rise, the consumer base of vegan products is significantly small as compared to the consumer base of regular food products.
In dairy free chocolate, the milk is derived from nuts and beans. Therefore, people with nut or bean allergies cannot opt for these chocolates. Over 4.6 million people in the United States have nut-related allergies. These factors collectively can impede the market growth of dairy free chocolates.
Emerging Opportunities
Inclusion of vegan food products by major players in their catalog is expected to boost the dairy free chocolate market. Major players in the confectionary industry are now launching their own chocolate confectionery assortments to compete in the vegan food market. This is likely to help the companies to make higher sales of such products and cater to the customers loyal to their brand.
For instance, in February 2020, Mondelēz International launched the vegan version of its most popular chocolate brand Dairy Milk. Emergence of online businesses is expected to create considerable growth opportunities in the dairy free chocolate market. Online businesses are quickly becoming efficient means for consumers to buy products at an affordable cost.
The pandemic severely limited retail sales to a great extent and paved the way for more online businesses to emerge. Factors such as a large variety of quality products, better discounts, quick delivery at the doorstep, return & exchange policies, and ease of access to online stores due to the rising internet penetration activities are likely to propel the opportunities of the market.
Scope of Dairy Free Chocolate Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Dairy Free Chocolate Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Nature (Organic and Conventional), Type (Milk Chocolate, Dark Chocolate, and White Chocolate), Distribution Channel (Online Stores and Offline Stores), Frequency (Premium, Seasonal, and Daily), and Flavor (Caramel, Dark, Brown Butter, Coconut Milk, Lavender, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Chocoladefabriken Lindt & Sprüngli AG Lindt & Sprüngli (USA) Inc.; Alter Eco; Amore Di Mona; ETHEREAL; Goodio; Lagusta's Luscious ; nib mor; No Whey Chocolate; Peanut Butter & Co.; Rescue Chocolate; Cadbury; and Taza Chocolate.
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Dairy Free Chocolate Market Segment Insights
Based on nature, the dairy free chocolate market is divided into organic and conventional. The organic segment is expected to expand at a significant growth rate during the projection period due to the increasing health and fitness awareness among consumers. Manufacturers of conventional chocolates often use chemicals such as DDT (a harmful pesticide banned in the US) and lindane (a chemical found in lice shampoo) in their cocoa farming.
The ingredients of organic chocolates are free of any artificial harmful chemicals. Several factors such as the rise in the trend of veganism across the globe, elevating per capita disposable income, and increasing health consciousness among the population are rapidly drawing customers towards organic alternatives instead of conventional products. As consumers are opting for healthier food options, these factors are anticipated to boost the segment.
On the basis of type, the global market is segregated into milk chocolate, dark chocolate, and white chocolate. The dark chocolate segment is projected to register a considerable CAGR during the forecast period owing to its numerous health benefits. The demand for dairy free dark chocolate is increasing with the increase in health problems related to conventional dairy products.
The dairy free dark chocolates have numerous health benefits such as low blood pressure, increased energy & creativity, improved mood, reduced risk of strokes & heart attacks, and higher magnesium content that helps the heart. These are some of the reasons that are increasing the demand for dairy free dark chocolate confectionary products.
On the basis of distribution channel, the dairy free chocolate market is segmented into online stores and offline stores. The offline stores segment is expected to register a robust growth rate during the forecast period due to the high customer preference for grocery shopping from retail stores, specialty stores, and supermarkets & convenience stores.
Most products launched by prominent companies debut at large supermarket chains such as Tesco, Walmart, and Kroger. For instance, in June 2020, a vegan food brand in the United Kingdom called Wicked Kitchen launched its vegan cupcakes via the country’s Tesco supermarket. Furthermore, the specialty stores offer a wide range of premium products and private-label brands for a customer base with an acquired taste.
On the basis of frequency, the dairy free chocolate market is segmented into premium, seasonal, and daily. The daily segment is expected to hold a substantial market share during the assessment period owing to its cost-effectiveness and easy availability. The low- to mid-income consumer base is primarily concerned with factors such as affordability. The dairy free chocolates are easily affordable and are expected to be highly in demand on a daily basis.
On the basis of flavor, the dairy free chocolate market is categorized into caramel, dark, brown butter, coconut milk, lavender, and others. The dark segment is anticipated to expand at a significant pace in the market due to its numerous health benefits including the high number of antioxidants, regulated blood flow, and improved mood & creativity. Increased health awareness among consumers is estimated to increase its demand.
In terms of region, the global dairy free chocolate market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to dominate the market during the projection period owing to rising consumer awareness about health, sustainability, and animal welfare. Europe had the largest value share of the vegan chocolate market in 2022.
North America is expected to register robust growth during the assessment period. This is due to various factors such as the rising trend of veganism, awareness of animal cruelty, increase in per capita disposable income, and emerging health awareness.
Segments
The dairy free chocolate market has been segmented on the basis of
Nature
Type
- Milk Chocolate
- Dark Chocolate
- White Chocolate
Distribution Channel
- Online Stores
- Offline Stores
Frequency
Flavor
- Caramel
- Dark
- Brown Butter
- Coconut Milk
- Lavender
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Chocoladefabriken Lindt & Sprüngli AG Lindt & Sprüngli (USA) Inc.
- Alter Eco
- Amore Di Mona
- ETHEREAL
- Goodio
- Lagusta's Luscious
- nib mor
- No Whey Chocolate
- Peanut Butter & Co.
- Rescue Chocolate
- Cadbury
- Taza Chocolate
Competitive Landscape
Key players competing in the global dairy free chocolate market are Chocoladefabriken Lindt & Sprüngli AG Lindt & Sprüngli (USA) Inc.; Alter Eco; Amore Di Mona; ETHEREAL; Goodio; Lagusta's Luscious; nib mor; No Whey Chocolate; Peanut Butter & Co.; Rescue Chocolate; Cadbury; and Taza Chocolate.
These companies adopted development strategies including, production expansion, collaboration, mergers, acquisitions, product launches, and partnerships to expand their consumer base worldwide. Several new dairy free chocolate brands are emerging to compete with the major market players that produce plant-based chocolates. For instance,
- In February 2022, Chocoladefabriken Lindt & Sprüngli AG Lindt & Sprüngli (USA) Inc. launched three new types of dairy free chocolate bars in Canada and the United Kingdom. These chocolate bars are made with oat milk and come in premium flavors such as salted caramel and hazelnut.
- In February 2022, Cadbury released its first dairy free vegan chocolate called the Cadbury Plant Bar. It has two flavors, smooth chocolate, and salted caramel. Its dairy free chocolate bars include almond paste, a blend of cocoa, and rice extract and are vegan certified.
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