Chocolate spreads are sweet flavored pastes consumed majorly in a form of spread on toasts, breads and other bakery products such as pancakes, muffins, pitas, waffles and additional flavors. These spreads consist of functional ingredients such as whey powders, olive oil and cocoa powder which depict excellent spreadibility at all temperatures. These spreads are majorly sold in plastic tubs and glass jars. Chocolate spreads and peanut butter owing to its high palatability are gradually gaining traction as an alternative to jam and marmalade and has become an integral part of every breakfast.
The market is witnessing significant growth owing to widespread acceptance of bread in daily diets majorly among urban population, where requirement of a suitable spread as a complement becomes a necessity. Increasing use of chocolate spreads as a substitute to butter owing to its low fat content, high nutritive value and easy spreadibility at refrigeration temperatures over food products such as ice cream toppings, croissants, instant hot chocolate are some of the key factors bolstering the market growth. Chocolate spread is perceived to be healthier and competes strongly against spreads made of butter as they constitute high amount of fats whereas the former (chocolate spreads) are made of actual seeds. Rising demand for ready to eat products owing to hectic and changing lifestyles has promoted the usage of readymade chocolate spreads. Increasing health benefits associated with chocolate spreads is also expected to drive the market over the forecast years. For example, Nutella, a hazelnut chocolate spread contains saturated fats and sweet, but also contain vitamins and minerals needed to boost heart health making it fairly nutritious food to be incorporated in everyday meals. However, growing consumer attention over other counterparts such as oats, cereals as breakfast meals along with fluctuating price of cocoa and sugar is expected to hinder the market growth.
Geographically, North America is projected to dominate the market in the coming years followed by Europe. The growth in North America is attributed to the rising preference for chocolate spreads not only in young ones but also among old age groups. Also, increased disposable income and higher expenditure power results in increased purchasing of chocolate spreads. Chocolate spreads market in Europe is expected to be driven by the rapid changing lifestyles which has led to shortage of times for making homemade recipes, leading to the use of readymade products. Asia Pacific chocolate spreads market is anticipated to grow at a rapid pace over the forecast period owing to large population base as well as prevailing trend of taste innovation among local manufacturers. Furthermore, rising demand for chocolate hazelnut spread owing to its appetizing taste as well as surging per capita expenditure on ready to eat premium products is another factor driving the market.
Some of the key players operating in the market include J.M. Smucker, Kraft Foods, Unilever Group, ConAgra Foods Inc., B & G Foods Inc., Ferrero Group, Hershey Co., Nestle, Wellness Foods, Premier Foods and Naturefood Chocolatier.
On the basis of its source, the global chocolate spreads market is categorized into following segments:
Conventional chocolate spread segment dominated the market growth in 2017, and is poised to retain its dominance throughout the forecast period. Some of the ingredients signifying the chocolate quality include cocoa, cocoa butter, sugar, emulsifiers and flavorings. Conventional chocolate spreads were formulated by substituting palm oil by palm olein along with cotton seed oil at an approximate levels of 25%, 50% and even 100%. Cocoa and sugar used as chocolate ingredients are grown with the help of chemical fertilizers, herbicides and pesticides. Consumption of conventional chocolate spreads is linked with certain health disorders such as high cholesterol, stroke, high blood pressure, and even cancer.? . Over the years, cost effectiveness has been a key factor supplementing the growth of conventional chocolate spreads.
Organic chocolate spreads are projected to grow with a significant CAGR over the forecast period. The rising trend of cocoa and sugar production by farmers, with the use of biodynamic and organic fertilizers and pest deterrents acts as a healthy alternative to conventional ones and is expected to surge the market growth. Furthermore, increasing advertisement by spread manufacturers about the absence of Genetically Modified Organisms (GMOs) and artificial sugars in their organic products along with presence of healthy ingredients such as honey is expected to be an important key aspect for market growth.
In 2017, Bottles segment led the global chocolate spreads market and is anticipated to continue its dominance throughout the forecast period. Bottles are projected to be the most suitable material for packaging spreads as it lowers the risk of product loss due to mycotoxin contamination. Also, glass bottles preserve the carbon dioxide content for a long period which ensures that taste and quality of spread remains the same. Growing trend for lightweight bottles and ease to carry around feature are some of the factors driving the market. Additionally, excellent thermal insulation property makes bottle an ideal choice for storing spreads.
Rising innovations in pouch designs such as pouches with plastic caps along with rapid transformations in global packaging industry is expected to be the driving factor for the market growth. Based on the aforementioned factors, the pouches segment is expected to grow with a rapid pace over the forecast period. However, rising environmental regulations pertaining to carbon footprint as well as rising concerns over the consequences after the disposal of plastic pouches is expected to deter the market growth.
In 2017, hypermarkets/supermarkets dominated the market and is projected to remain dominant over the forecast period. Hypermarkets, also known as mass merchandisers provides visible shelf space to line of both grocery and general merchandise. Innovative placement of chocolate spreads on designated racks enhances its visibility and attracts the foot falls, leading to increased sales. Easy accessibility to wide range of products owing to strategic location of supermarkets and hypermarkets is another prime factor for this market segment growth. Growing number of supermarkets/hypermarkets is leading to relatively more convenient shopping experience for consumers. Also, efficient advertising campaigns and frequent announcements regarding offers and discounts in supermarkets/hypermarkets gathers the attention of mobile consumers which further brings impetus in the overall sales, consequently increases the chocolate spreads sales.
Departmental stores are projected to grow with a significant CAGR over the forecast period. Departmental stores are large retail establishments with enhanced collection of range of products, organized in distinct departments under a single roof. These stores are a major part of initiatives taken by industry players to strengthen their market presence in different regions. Also, growing trend of seeking consumers attention by increasing the visibility of chocolate spreads through visual effects such as through colored posters is projected to foster the market growth to a great extent.
North America dominated the market in 2017 and is expected to maintain its dominance in the years to come. This growth is mainly attributed to presence of established food industry in this region. Huge demand for products such as Ferrero’s Nutella based spreads followed by Hershey’s has enormously increased the retail sales of chocolate spreads in the U.S. Higher shelf visibility of the product among the retail chains such as supermarkets, departmental stores, etc is another factor fostering the market demand. However, growth in Europe is expected to develop gradually in coming years due to an already-high market penetration of jams and multiple alternatives. Also, rising emphasis on premium quality products as well as ecofriendly attributes such as “vegetarian” and “environment friendly packaging” as a prominent consumer trend in Europe is projected to grow the market in coming years.
Asia-Pacific chocolate spreads market is predicted to rise with the highest CAGR due to rising product distributions by major chocolate spread market players in this region. Moreover, growing consumer interest in local and artisanal products, new products, flavors and taste are some of the key aspects fueling the market demand. For instance, Indian companies such as Mapro Foods, Dukes have recently introduced chocolate spread in their product portfolio. Mapro has started building its distribution and portfolio through various outlets across India. This is expected to enhance the availability of locally made chocolate spreads across India as is expected to drive the growth of market in this region.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Chocolate Spreads market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
