Chocolate Based Spreads Market

Chocolate Based Spreads Market Size, Share, Growth (2023-2028)

Chocolate Based Spreads Market size is expected to experience moderate growth to record a CAGR of about 2% throughout the forecast period 2023-2028.

Chocolate Based Spreads Market Overview:

One of the most popular and widely consumed food products worldwide is chocolate. Chocolate Based Spreads is a sweet chocolate paste that is spread mainly on bread, donuts, toast, pancakes, and other similar cereal products. It comprises cocoa, palm or vegetable oil, and other ingredients like milk, sugar, butter, etc. Sales of Chocolate Based Spreads have increased significantly in recent years and have become the second most popular spread. Chocolate spread is a sweet-flavored dough that is primarily used for spreading on bread, waffles, pancakes, and toast. The spread is a mixture of additional flavors, vegetable oil, butter, milk, cocoa, and sugar. Spreads slowly replace marmalade and jam due to their health. Chocolate spread is now an integral part of morning breakfast and is also used as a filling for cake decorations. Manufacturers offer gluten-free, fat-free, low-calorie chocolate spread products to meet the growing demand for health-conscious people in developed nations. 

REPORT COVERAGE:

Chocolate-Based Spreads Market Drivers and Restraints:

The increase in the consumption of Chocolate Based Spreads is driving the growth of the market. Consumers realize the favorable health effects associated with consuming dark chocolates, thus becoming another factor that complements the growth of the global chocolate spreads business.

Previously, only children and young people were the primary consumers of Chocolate Based Spreads. Still, now older groups are also benefiting from the product, which will stimulate growth in the Chocolate Based Spreads market. Another growth factor in the worldwide market is the increase in disposable income and purchasing power of consumers, resulting in the purchase of these products for themselves and the consumption of new products.Snacks have become a significant trend in all regions, as they not only provide energy for all-day activities, but also provide valuable nutrients, such as protein, minerals, vitamins, and fiber. People who eat healthy snacks can also reduce their hunger and prevent them from overeating during meals. Snacks have become a new trend among consumers who prefer food "on the go" due to a hectic lifestyle. Therefore, it is necessary for people to opt for food products such as Chocolate Based Spreads for additional nutrients and energy. These factors, in turn, lead to the increasing popularity of Chocolate Based Spreads products in the evolving retail landscape, along with the development of the foodservice sector.

Chocolate Based Spreads Market Restraints:

In addition, the growing demand for ready-to-eat products due to hectic and changing lifestyles has encouraged the adoption of ready-to-use Chocolate Based Spreads products. Dark chocolates help prevent heart disease and have many other benefits that help increase their popularity for years to come. On the other hand, the volatility in the raw material costs and unpredictability of the supply chain is supposed to hamper the global chocolate-based spreads market growth. Also, declining sales of baked goods such as bread, toast, etc., and the growing popularity of cereals will be a crucial constraint to the growth of the global Chocolate Based Spreads market.+The increase in health awareness effects of dark chocolate consumption, in turn, is driving the growth of the Chocolate Based Spreads market. Developing ready-to-eat products due to hectic and changing lifestyles globally is among the top trends driving Chocolate Spread's growth and thus driving the market growth during the forecast period. The increase in snack time as a trend among young people is expected to drive the growth of Chocolate Based Spreads. The increasing variation in the prices of raw materials such as cocoa and sugar is one of the main obstacles to Chocolate Based Spreads.

Recent Developments in Chocolate Based Spreads Industry:

1. Ferrero announced a USD 2.8 billion cash deal to buy Nestlé American brands, including Butterfinger and Baby Ruth. The sale will transform the private family business into the world's third-largest candy vendor, behind Mars and Hershey.

2. The Bundeskartellamt has regulated the acquisition of Peeters, a famous Dutch chocolate and nougat spreads maker, by Wilhelm Reuss GmbH, a part of Bergisch-Gladbach based Krüger Group. The Krüger Group is rated as the dominant German producer of chocolate and nougat spreads for third parties, such as food retailers and other manufacturers.

Chocolate Based Spreads Market Regional Analysis:

• North America (US and Canada)

• Europe (U.K., France, Germany and Rest of Europe)

• Asia Pacific (Japan, China, India and Rest of APAC)

• Latin America 

• Middle-East & Africa (GCC and Rest of MEA)

Of these regions, Asia Pacific chocolate-based spreads market had the largest share of the global revenue in 2018. Australia holds the largest share in the Chocolate Based Spreads market in this area as these spreads are widely consumed among other food spreads in the country. Changes in lifestyle and breakfast habits have had a significant impact on sales of Chocolate Based Spreads products in the region. Market players are finding key opportunities to introduce chocolate spread products to the largest Chinese markets by focusing on imported food stores. Furthermore, the adoption of Western food and culture has replaced traditional foods with bread and toast, increasing the demand for spreads.

North America and Europe dominate the Chocolate Based Spreads market due to factors such as increased consumer preference for Chocolate Based Spreads and increased disposable income for consumers in the region. In Russia, the busy schedule, the change in lifestyle and the lack of time to make homemade preserves favor the use of spread products. Additionally, increasing demand for Chocolate Based Spreads owing to its delicious taste as well as surging per capita expenditure on ready to eat premium products is another factor driving the market. Latin America, and the Middle East and Africa are also foreseen to experience considerable growth in the near future.

Chocolate Based Spreads Market Detailed Segmentation:

The global Chocolate-Based Spreads market can be divided based on the

• type

• distribution channel.

Depending on the types of products, the Chocolate-Based Spreads Market is divided into

• organic

• conventional

The organic segment accounted for the largest market share in 2019. This trend is expected to continue throughout the forecast period due to a number of benefits such as high nutritional value, low sugar, and less fat content, and the ease of spreading chocolate at refrigerated temperatures in baked goods such as bread and croissants. These additional advantages over the conventional segment are expected to drive the organic segment during the forecast period.

In terms of distribution channels, the market is divided into

• supermarkets

• specialty stores

• convenience stores

• online retail.

The popularity of specialty stores has declined in recent years. Consumers prefer supermarkets and the online store distribution channel for the Chocolate Based Spreads Market. In supermarkets, consumers benefit from a wide variety of chocolate spread options. Moreover, the hike in supermarkets and online stores is likely to increase the growth of the Chocolate Based Spreads Market during the forecast period.

Impact of COVID-19 on Chocolate-Based Spreads Market

Uncertainty about employment increases, with the likelihood that a point of sale was employed at the closing store. Outlets that will continue to exist will do so with significantly less seating capacity and reduced overall demand due to public perception and reduced unjustified departures, further impacting the number of employees needed. The return of migrant labor to their country of origin will also affect the availability of skilled labor and there may be a shortage of people who are well-adjusted to the limited jobs available. It will be a two-sided problem for both operators and F&B employees. As per the industry experts, this phase is survival of the fittest. As many operations will deteriorate, some will merge with larger companies. Today, as the entire nation grapples with the problem of a global recession, all sectors are in an unprecedented situation where they are forced to make difficult decisions that could have colossal tax effects on their businesses. By being forced to endure this challenge, the F&B sector does so for the benefit of the entire community, although it will take some time to recover from losses incurred during the closing phase. While the strong performance in the last quarter will be austere, expectations for a strong rebound in the days after the close are not predictable and will be a daunting task. The road to profitability will not be easy and companies will need to adopt innovative and more efficient methods of doing business and creating new sources of income to maintain their presence in the market.

Chocolate Based Spreads Market Key Players

1. Wellness Foods

2. J.M. Smucker

3. Premier Foods

4. Nestle

5. B & G Foods Inc

6. Hershey Co

7. Ferrero Group

8. ConAgra Foods Inc

9. Unilever Group

10. Kraft Foods