Vegan Chocolate Market share value in 2022 was 532.7 million and it is expected to grow at a CAGR of 10.5% during the forecast period 2023-2028 to reach USD 969.74 million by 2028.
Vegan chocolates are a type of chocolate that excludes animal-based products such as milk, cream, eggs, etc. Milk Chocolates do come under vegan chocolates as these are made from milk. These chocolates taste slightly different from dairy-based milk chocolates. The creaminess in vegan chocolates comes from the ingredients like rice, coconut, oats, etc. In these vegan chocolates, soy milk, oat milk, etc. are used instead of milk. These vegan chocolates are made from the same cocoa, cocoa butter, sugar, and plant-based flavors. This Plant-based flavor gives the feeling of melt in the mouthfeel. Dark chocolates also come under the category of vegan chocolates. As these dark chocolates are made of cocoa butter, instead of milk. Nowadays more people are adopting veganism hence these people are consuming vegan chocolates.
The increase in research and innovation based on vegan food products is one of the major driving factors to the vegan chocolate market growth. This increase in advancement in the food and beverage sector in the veganism sector is increasing the demand for vegan chocolates. The increase in the availability of vegan chocolates across the globe increased the accessibility of vegan chocolates in many places. This increased demand for vegan chocolates in grocery stores, specialty shops, and online retailers, which fueled the market growth. The availability of ingredients required for the production of vegan chocolates, and their manufacturing methods are helping in the manufacturing of vegan chocolates. Additionally, this enhancement in the manufacturing field is enhancing the taste and quality of the chocolates. For instance, the US-based Functional Chocolate Company introduced their ethically sourced chocolate combined with nutraceuticals in January 2022. Nutrients including vitamins, minerals, botanicals, and amino acids are combined with the new vegan dark chocolate line which also helps to complete daily health needs like stress, sleep, and other activities.
The majority of the population is changing their preference towards their diet and adopting healthy lifestyles. There is an increase in the prevalence of diseases such as digestive problems, tuberculosis, food poisoning, etc. due to the consumption of dairy food products such as milk etc. This led to the adoption of veganism in many people increasing demand for vegan food including vegan chocolates. Additionally, Vegan diets and products have become more popular as a result of an increase in public awareness of animal cruelty and calls from animal rights organizations to reduce the consumption of dairy-based goods. Studies suggest that 68.1% of people become vegans for animal love, 9.7% for environmental and sustainability concerns, and 17.4% for health reasons, according to Soylent Nutrition, Inc., an American firm that makes meal replacement products. These are the factors that are driving the vegan market growth.
Vegan Chocolate Market Restraints:
The extensive process in the manufacturing of vegan chocolates is one of the major restraining factors to the growth of the vegan chocolates market. The manufacturing of dairy milk chocolates is easy when compared to vegan chocolate manufacturing. Hence mostly manufacturing of dairy milk chocolates was preferred by many companies. While preparing the vegan chocolates many types of preservatives are added, which decreases the demand for vegan chocolates. This is hampering the growth of vegan chocolates. Additionally, during the production of vegan chocolates, there is a decrease in some nutritional value as it decreases the flavonoids and antioxidants. In addition, manufacturers of vegan chocolates are using high-quality ingredients like plant-based almond milk, soy milk, or coconut milk. As the manufacturing process involves rich-quality ingredients increases the cost of the final product. This high cost associated with vegan chocolates increases the demand for them. These are the factors that restrain the growth of the vegan chocolate market.
Vegan Chocolate Market Opportunity:
The increase in population which is adopting veganism is creating opportunities in the vegan chocolates market growth over the forecasting period. These vegan food products are healthy and sustainable. The increase in popularity of vegan food products is increasing the demand for vegan chocolate market. Additionally, the increase in demand for vegan chocolates from the millennial generation will drive market growth over the forecasting period. For instance, the Vegan Society estimates that there were 150 thousand vegans in Great Britain in 2014, and that figure rose to 600 thousand in 2019. Due to the increase in food allergies and incidences of lactose intolerance in both children and adults in recent years, consumers' food preferences have also altered. For instance, according to the Food Tolerance Network, about 70% of people globally are lactose intolerant as of 2019. These are the factors that are creating opportunities in the vegan chocolates market growth over the forecasting period.
Impact of Covid-19 on the Vegan Chocolate Market:
The pandemic moderately affected the growth of the vegan chocolate market. This is due to the pandemic, as it disrupted the supply chain in the vegan chocolate industry. There was a lack of raw materials required for the production of vegan chocolates. The raw materials such as cocoa, cocoa butter, etc. were unable to reach the manufacturing units. Additionally, during the pandemic, the consumption pattern of consumers was only focused on essential materials, which decreased the demand for vegan chocolate in the initial phase of the pandemic. Later on, there was little growth in vegan chocolates as the shops were open and distribution channels were opened. The Vegan chocolates are healthypeople were consuming these instead of milk-based chocolates. Hence, the pandemic had a moderate impact on the vegan chocolates market.
Key Developments in the Vegan Chocolate Market:
By Type,
Milk Chocolate
Dark Chocolate
White Chocolate
Among these, the Milk chocolate segment dominates the vegan chocolate market. The Milk chocolate segment is expected to show its dominance in the vegan chocolate market over the forecasting period. This is due to consumers choosing this type of chocolate for dietary reasons. These consumers can be lactose tolerant hence they consume vegan milk chocolates. Vegan chocolate producers may give a sufficient substitute without sacrificing flavor or texture by offering milk-like options. Companies can represent themselves as producers of a wider choice of alternatives, in response to different consumer tastes, by providing vegan chocolate that resembles milk. Market share and brand loyalty may rise as a result of this uniqueness. In addition, a lot of customers who adopt a vegan diet or have other dietary limitations still crave the flavor and texture of milk chocolate. The vegan chocolate market's milk segment attempts to serve these consumers by offering alternatives that closely replicate the creamy and smooth qualities of regular milk chocolate. The dark chocolate segment is expected to show the fastest CGAR growth in the vegan chocolate market over the forecasting period. This is due these dark vegan chocolates are rich and antioxidants and offer various health benefits. These chocolates are healthier than other types of chocolates hence there is an increase in demand for them.
By Distribution Channel,
Hypermarkets/Supermarkets
Online Stores
Specialty Stores
Convenience Stores
Among these, the Hypermarkets/supermarkets segment dominates the vegan chocolate market. The Hypermarkets/supermarkets segment is expected to show its dominance in the vegan chocolate market over the forecasting period. This is due to the large consumer base offered by the hypermarkets/supermarkets. This makes the hypermarket/supermarket the ideal distribution channel for choosing a variety of vegan chocolates. The increase in health awareness among consumers about the health consciousness. Supermarkets and hypermarkets provide a lot of shelf space and product visibility. The visibility and sales potential of vegan chocolates are increased by being present in these significant retail outlets, which provides the necessary exposure for attracting potential customers. To raise awareness of vegan chocolates and encourage customers to try them, supermarkets and hypermarkets can afford to engage in marketing and promotional initiatives, resulting in demand for vegan chocolates. The Online segment is expected to show the fastest CAGR growth in the Vegan Chocolate Market over the forecasting period. This is due to discounts and offers given by online platforms that sell vegan chocolates.
Asia Pacific
Europe
Middle East and Africa
North America
Latin America
Regionally, the European region dominates the Vegan Chocolate Market. The European region is expected to show dominance in the Vegan Chocolate market over the forecasting period. This is due to an increase in the adoption of vegan diets across the region. Germans are among the most vegetarian people in the world, with a study from the Federal Ministry of Food and Agriculture indicating that 35% of the population finds the availability of vegetarian or vegan products and that 63% of Germans are trying to consume less meat. The increase in number of vegans is increasing the demand for vegan chocolates. There are also 1.3 million vegans and 8 million vegetarians in Germany, according to a recent report by Product International, a global organization for food awareness. This has in turn affected the market demand for vegan chocolate in Europe. The increase in demand for vegan chocolates during the festival like easter increases the demand for chocolates.
The North American region is expected to show the fastest CAGR growth in the vegan chocolate market over the projected period. This is due to an increase in health awareness as consumption of dairy-based products may cause many diseases. In addition, an increase in consumer preferences towards products that are consistent with their moral principles and have a minimal negative impact on the environment has been observed in the North American market. Vegan chocolates appeal to consumers who are concerned about animal welfare and the effects of traditional chocolate production on the environment since they are typically prepared with ingredients that are ethically sourced and sustainably produced. In North America, the vegan chocolate market has seen a rise in product innovation and variety. To meet the diverse consumer demands, producers are developing novel tastes, textures, and packaging options. The market for vegan chocolates has expanded because of this consistent innovation.
Montezuma’s Direct Ltd.
MondelA“z International
Taza Chocolate
Evolved Chocolate
Endorfin Foods
Barry Callebaut
Chocoladefabriken Lindt & Sprüngli AG
Nestlé S.A.
Alter Eco
Endangered Species Chocolate, LLC.
Frequently Asked Questions
The main driving factors in the market are the increase in innovation in vegan-based products and an increase in health awareness regarding the consumption of dairy-based products.
The estimated market size in 2028 is 969.74 million
The market is estimated to register a CAGR of 10.5% during the forecast period.
The European region dominates the market.
The Milk chocolate segment is leading with the highest shares of the market.
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