Are there opportunities in the plant-based chocolate sector?

A profitable industry

Despite a few tough years during the COVID-19 pandemic, the worldwide chocolate industry is thriving – with significant opportunities for plant-based producers. In fact, research suggests that the pandemic increased the weight of a few key consumer trends and drivers in the chocolate industry that were already proving helpful for the plant-based segment.

In 2022, the global chocolate industry was worth an estimated US$205.6 billion. By 2030, this amount is predicted to reach a sizeable US$262.5 billion, expanding at a compound annual growth rate (CAGR) of 3.1%.¹

This growth is largely being driven by increasing consumer consciousness regarding the health benefits of eating high-quality chocolate, the growing popularity of premium and dark chocolate products, heightened consumer preferences for on-the-go snacks, the rise of e-commerce,² and the increasing demand for delicious plant-based chocolate varieties. 

Chocolate industry leaders

Remarkably, dark chocolate accounted for more than 45% of the overall chocolate industry revenue in 2022. This is largely down to its popularity with health-conscious consumers, who prefer dark chocolate for its nutritional value and high antioxidant count.⁴ The dark chocolate segment is likely to continue its dominance in the years ahead, as a result of rising consumer awareness regarding the potential health benefits related to its consumption⁵ in comparison to other less-healthy chocolate varieties, such as those laden with sugar.

Europe leads the chocolate industry, with one in two chocolate confectionery products around the world being made on the continent.⁶ A significant one in three confectionary products launched are chocolate blocks, according to research from Innova Market Insights.⁷ And the fastest-growing sub-category for chocolate is bars, with the steepest average annual growth in launches (9%) between October 2021 and September 2022.⁸ 

Meanwhile, plant-based ingredients are driving growth, with cocoa butter being the leading chocolate ingredient in the space.⁹ According to Innova, the top three fastest-growing, chocolate-confectionery ingredient launches are all plant-based, with oats up 78%, coconut fat up 74%, and erythritol up 64% (Global CAGR October 2017–September 2018 vs October 2021–September 2022).¹⁰

Plant-based chocolate is on the rise

New data shows that, in terms of growth, the plant-based chocolate sector is expected to outpace the conventional chocolate industry in the coming years.¹¹ The market was valued at an estimated US$1 billion in 2022, but by 2032, its worth is projected to quadruple to US$4 billion, experiencing a whopping 15.5% CAGR.¹² Plant-based chocolate comprises a 40% market share of the total vegan confectionery market, demonstrating its great potential to capitalise on the marketplace.

Research from Mintel has highlighted the excellent potential for plant-based chocolate throughout Europe, corresponding well with the success of the conventional chocolate industry throughout the continent. Mintel’s survey found that 55% of chocolate consumers in Spain, 53% of chocolate consumers in France and Poland, 48% of chocolate consumers in Italy, and 44% of chocolate consumers in Germany are interested in plant-based chocolate.¹³ 

By region, Asia Pacific is expected to be the fastest-growing regional market for plant-based chocolate, due to the region’s rising cases of lactose intolerance and the increasing popularity of plant-forward diets. Still, North America dominates the current marketplace.¹⁴

It’s not just exclusively plant-based chocolate brands that are helping to expand the industry. Mainstream brands have caught on to the increased demand for plant-based chocolate, with some of the world’s biggest chocolate manufacturers (including Mondalēz, Nestlé, and Lindt & Sprüngli) now offering their own dairy-free options. 

Mondalēz-owned Cadbury is one example, with the brand’s chocolate product assortment now including two Plant Bar options, with more releases tipped for the future. Likewise, Mars Incorporated now offers alternatives to all its best-selling dairy-chocolate brands, including Galaxy, Bounty, Milky Way, and Topic. Another example is popular Swiss chocolate producer, Lindt & Sprüngli, which launched its own vegan range at the end of 2020, using oat milk to replicate the creamy mouthfeel of its cow’s milk chocolate. 

Notable retailers, such as Aldi, Tesco, and ASDA, to name a few, have also added plant-based options to their own-brand chocolate lines. Remarkably, new research shows that plant-based chocolate confectionery launches comprise the fastest-growing trend in the chocolate industry, up 71% (Global, CAGR October 2017–September 2018 vs October 2021–September 2022).¹⁵ 

With all this in mind, there has never been a better moment than now for retailers and brands to offer plant-based chocolate.

Read the next article in the series to learn more about consumer drivers in the plant-based chocolate industry, and get in touch with ProVeg International at [email protected] for help on your plant-based strategy.

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