Chocolate Based Spreads Market

Global Chocolate-Based Spreads Market Size (2024 to 2029)

The size of the global chocolate-based spreads market was valued at USD 2.88 billion in 2023. The global market is anticipated to grow at a CAGR of 5.56% from 2024 to 2029 and be worth USD 3.98 billion by 2029 from USD 3.04 billion in 2024.

Current Scenario of the Global Chocolate-Based Spreads Market

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. 

Presently, the chocolate based spreads market is going through changes owing to the growing awareness of the harmful effects of excessive sugar, palm oil and other ingredients on human health. So, the demand for gluten-free or vegan or sugar-free or no-added-sugar products is rising and companies are responding with steady new offerings. Similarly, the plant-based chocolate sector is also gaining traction. According to a survey, plant-based chocolate is witnessing delightful progress. About 40 per cent of European customers have bought this type of chocolate in the previous year. And the pattern is only going forward. Also, 48 percent of those Europeans who purchased plant-based chocolate have surged their intake of it past year.

MARKET DRIVERS

The growing awareness and increasing consumption of chocolate-based spreads worldwide are majorly driving the global market growth.

Consumers realize the favorable health effects associated with consuming dark chocolates, thus becoming another factor that complements the growth of the global chocolate spreads market. 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.

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. 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 the chocolate-based spreads market.

MARKET RESTRAINTS

The growth of the chocolate based spreads market is hindered by the heavy price. Organic raw materials usually come at a premium cost, thus placing this type of chocolate spread at a higher price bracket in comparison to those of traditional counterparts. This can be a barrier for a few cost-sensitive customers. Also, the unpredictability of the supply chain is supposed to hamper the growth of chocolate-based spreads market. Moreover, decreasing sales of baked goods like bread, toast, etc., and the rising popularity of cereals will be a crucial restraint to the expansion of this market. The increasing variation in the prices of raw materials such as cocoa and sugar is one of the main obstacles to the chocolate-based spreads market.

MARKET CHALLENGES

The chocolate-based spreads market is progressively turning into a crowded one to operate, with prominent companies and new players that entered the market are competing for shelf space. To come on top, it needs effective marketing strategies, introducing unique products, and a clear brand identity. Moreover, increased efforts in educating customers regarding organic alternatives are another challenge for the market players. Creating an understanding concerning the advantages of natural chocolate spreads against those of traditional choices is vital. Brands are required to efficiently convey the value one promises to deliver of organic raw materials and appropriate practices to health-aware customers.

Additionally, legal compliance and pressures with food safety criteria and rules depict considerable issues for producers. Stringent control laws on raw material labelling, making methods, and health claims need persistent compliance and adjustment and compliance, adding complications and expenses to activities.

MARKET OPPORTUNITIES

European countries like France, Germany, and Italy present potential opportunities for the chocolate spreads market by more intensely focusing on the development and launch of high-protein, gluten-free, or no-sugar-based offerings. In the United Kingdom, the most prevalent category is preserves and jams which hold a significant possibility for chocolate-based spreads.

Another lucrative market is the Asia Pacific due to its growing consumer incomes, retail trade, and e-commerce along with regionalized taste preferences. The consumption of long-lasting spreads is accelerated by the growth of e-commerce as these are handily available in online food or grocery applications. Similarly, the chocolate spread in India is turning into a popular breakfast choice, despite chocolate consumption per capita being much lower than in Japan, coupled with peanut butter, providing favourable conditions for market expansion. Besides this, China which is currently spearheading imports of jams, marmalades and fruit jellies, with an overall value of more than 81 million dollars is a potential market, followed by Japan, South Korea and Australia.

REPORT COVERAGE 

SEGMENTAL ANALYSIS 

Global Chocolate-Based Spreads Market Analysis By Type

The organic segment is expected to grow at a faster rate during the estimation period for the chocolate-based spread market. This can be attributed to the increase in customer inclinations towards low-sugar or sugar-free and without-gluten options and the widespread acceptability of single-origin chocolates. Furthermore, fair-trade and sustainable customs in chocolate manufacturing are becoming progressively vital to consumers. These patterns are redefining the outlook of the market, with an emphasis on ethical sourcing, quality, and health. Additionally, leaving over standard hazelnuts, brands, and companies are testing with new and unique flavour options. This involves integrating spices, nuts, fruits, and even superfoods to serve a broad range of dietary and palate needs. Like, almond butter with a hint of cinnamon, dark chocolate with berries or just as protein-rich chocolate spread with extra seeds and nuts.

Global Chocolate-Based Spreads Market Analysis by Distribution Channels

Online retail prevailed in this segment and is estimated to grab more share of the chocolate-based spreads market. The ease of online buying provides customers to explore a large range of chocolate brands or companies and flavours from the comfort of their houses. This makes it simple to match costs and view ratings before placing the order. This comfort element has considerably contributed to the expansion of the e-commerce trade. In addition, these platforms give a wide variety of choices of chocolate spreads, consisting of international and speciality brands which might not be easily accessible in domestic stores. This diversity attracts customers seeking innovative flavours or wholesome choices, augmenting their options beyond what conventional brick-and-mortar shops can furnish.

REGIONAL ANALYSIS

Europe chocolate-based spreads market is quickly expanding with a higher emphasis on health.

A substantial portion of the population is willing to pay a premium price for plant-based chocolate products which is one of the driving factors for the region’s market share. And, particularly those produced with natural or single-origin cocoa beans are getting more attraction from consumers. This pattern is mostly propelled by the rising customer awareness of health and fitness, and their strong want to eat “better-for-you” food items, which are likely to be premium by nature. Considering the present economic state of the region, it is believed to be sluggish but will not stand still in the following years. This is because the disposable income of customers declines with the cost-of-living problems. Apart from this, the changing dynamics regarding snacking habits with protein have an important role. For instance, French and German customers are drinking more powder-based protein shakes. Hence, the regional market is expected to expand in the future.

Asia Pacific is projected to grow at a higher CAGR during the forecast period for the chocolate-based spreads market.

APAC nations such as Japan, China, India and others have continued to incorporate Western breakfast options into their eating patterns in the last few years, which are getting much attention over the share of the market. With this persistently growing desire for Western breakfast choices, the requirement to raise the production of several chocolate-based spreads is also surging, which is then increasing the market size. Another factor indicating the possible growth of the region’s market size is the escalating consumption of jams and spreads in gourmet foods. Their adaptability in improving a broad range of recipes and dishes is also adding to the market expansion. Besides all these, a notable portion of APAC consumers decide to buy chocolate is based on taste. According to a survey, for about 46 percent of people nothing else matters than taste which clearly states that other consumers, more than 50 percent want more than simply taste. This included participants from Australia, China, India, and other 5 countries.

North America is the biggest chocolate-based spreads market with the United States at the dominant position.

It is witnessing swift growth owing to a steady rise in its consumption in comparison to other sweet spreads. As per research, in 2022, the United States imported sweet spreads worth slightly over 5 billion dollars. It was the largest import of these goods in 2022 which was three-fold bigger than Germany and is at second place. Also, the US retail outlets sold sweet spreads of approximately 704.5 million tons worth around 5.4 billion dollars. This represents a large market for chocolate-based spread. Apart from these, Canada is also a major player in this regional market. It is a major exporter of cocoa and chocolate to the US, the United Kingdom, Germany, France and the Netherlands. Another factor which is expected to have a significant influence on the country’s market is the population shifts. Presently, 38 percent of Canadian people are residing in 1 to 2 person households. This transition in family size has effects on the foodservice industry, as the wants and requirements of customers

KEY PLAYERS IN CHOCOLATE-BASED SPREADS MARKET

Wellness Foods, J.M. Smucker, Premier Foods, Nestle, B & G Foods Inc, Hershey Co, Ferrero Group, ConAgra Foods Inc, Unilever Group and Kraft Foods are some of the notable companies in the global chocolate-based spreads market.

RECENT HAPPENINGS IN THE MARKET

• In May 2024, Jif introduces the first significant flavour creation in nearly 10 years with peanut butter and chocolate spread. The company stated the item has 50 per cent less sugar in comparison to the prominent hazelnut spread options with cocoa and has a soft texture perfect for meals, snacks and desserts.
• 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.
• 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.

DETAILED SEGMENTATION OF THE GLOBAL CHOCOLATE-BASED SPREADS MARKET INCLUDED IN THIS REPORT   

This research report on the global chocolate based spreads market has been segmented and sub-segmented based on type, distribution channel and region.

By Type

• Organic
• Conventional

By Distribution Channel

• Supermarkets
• Specialty Stores
• Convenience Stores
• Online Retail

By Region

• North America
• Europe
• Asia-Pacific
• Latin America 
• Middle East & Africa