Market Outlook

Globally, consumers are becoming more and more concerned about the food products they are consuming, which is pushing the penetration of healthy oils and fats across the globe. Demand for fats based on partially hydrogenated and fractioned vegetable oils has been rapidly growing in markets, such as the U.S., the U.K., Germany, France, Japan, China and other developed markets. Manufacturers are continuously looking for cheap and healthy alternatives, which is bringing innovation in the field of the compound confectionary market. Vegetable fats or compound coatings are produced from raw materials, such as palm oil, soybean oil, rapeseed oil, palm kernel oil and other oils.  Cocoa butter is widely used as an essential ingredient in compound coating of chocolates. Compound coatings formulated with fat systems other than cocoa butter are called confectionary coatings or compound coatings. Compound coatings/chocolate coatings are a low-cost alternative to cocoa butter and deliver improved texture, taste and extended stability. The global compound coating market will grow due to escalating consumption of chocolates in Eastern Europe and the Asian region.

Reasons for Covering this Title

Today, consumers are seeking choice and transparency in food products, pushing the penetration of healthy alternatives further. Increasing per capita consumption of chocolates across the Asian region has been one of the prime factors leading to the market growth of compound chocolates over the forecast period. Rising demand for cocoa butter coupled with increasing prices of cocoa butter has been largely contributing to the growing need for cocoa alternatives, such as vegetable-based oils. Compound coatings are mostly used in the chocolate industry for compound coating of molded candies and are widely used because of their attractive price and their ability to harden without tempering. Also, compound coatings are widely used in the ice-cream industry and chocolate industry, where they add extra value to ready-to-eat products. Growing health-conscious consumers have pushed the incorporation of healthy ingredients in the compound coating industry. For example, in 2017, Cargill Incorporated added new coatings and fillings to its compound coating range, focusing mainly on four themes: healthy, sustainable and clean, premium and indulgent. These compound coatings are claimed to be healthier, with reduced sugar and high protein content. Developments likes these will push the market growth of compound coatings in near future. This growth, coupled with improvements in the availability of sustainable and clean label products across the globe, will lead to increasing demand for premium products in both developed and emerging markets, which has further strengthened the global compound coating market.  

Global Compound Coating: Market Segmentation

On the basis of source, the global compound coating market has been segmented as –

  • Palm Oil
  • Coconut Oil
  • Rapeseed oil
  • Sunflower Oil
  • Palm kernel Oil
  • Others

On the basis of application, the global compound coating market has been segmented as –

  • Chocolates
  • Muffins and Cakes
  • Cookies
  • Ice-Cream
  • Sports Bars
  • Others

On the basis of flavor, the global compound coating market has been segmented as –

  • Mint
  • Vanilla
  • Chocolate
  • Strawberry
  • Caramel
  • Butterscotch
  • Others

Exhibit 1

Likely Demand Intensity of Compound Coating in Top Chocolate Consuming Markets

compound coating market 0

Global Compound Coating Market: Key Players

Some of the key players operating in the global compound coating market are The Barry Callebaut Group, Cargill Incorporated, AAK AB, Caldic B.V., DDW The Colour House, Bunge Loders Croklaan, Palsgaard,  The Archer Daniels Midland Company, Blommer Chocolate Company, INFORUM and Olam Internationa, among others.

Key Developments

  • On July 2017, The Barry Callebaut Group expanded its protein product portfolio by launching its FortiPro Brand of protein compound coatings. This protein compound coating is available in various flavors, such as milk, and various colours, such as white and dark. This protein is used across several application areas ranging from confectionery to the bakery industry.
  • In December 2014, The Barry Callebaut Group, one of the major manufacturers of chocolate and cocoa products, expanded its line of colored and flavored compound coatings, thereby delivering compounding solutions for industries, such as bakery, snack bars, ice cream and confectionary. The range also delivers new flavors and textures, such as mint, caramel, butterscotch, strawberry, blueberry and coconut to the global industry.

Exhibit 2

compound coating market 1

Opportunities for Market Participants

Consumers across the globe are increasingly looking for food products that are clean  and healthy, which has been pushing the manufacturers across the globe to incorporate healthy ingredients into their products. The growing trend of use of protein within the confectionary market has been creating immense opportunities for the confectionery product manufacturers, which they can exploit by focusing on delivering high protein bars in the sports industry. All these factors will fuel the growth of market for compound coatings in near future. Furthermore, the growth in the overall confectionary market has been further pushing the incorporation of flavored compound coatings.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

With a robust experience in creating exceptional market reports, Transparency Market Research has emerged as one of the trusted market research companies among a large number of stakeholders and CXOs. Every report at Transparency Market Research goes through rigorous research activity in every aspect. The researchers at TMR keep a close watch on the market and extract beneficial growth-boosting points. These points help the stakeholders to strategize their business plans accordingly.

TMR researchers conduct exhaustive qualitative and quantitative research. This research involves taking inputs from the experts in the market, focused attention on recent developments, and others. This method of research makes TMR stand out from other market research firms.

Here's how Transparency Market Research helps the stakeholders and CXOs through the reports:

Inculcation and Evaluation of Strategic Collaborations: The TMR researchers analyze recent strategic activities like mergers, acquisitions, partnerships, collaborations, and joint ventures. All the information is compiled and included in the report.

Perfect Market Size Estimations: The report analyzes the demographics, growth potential, and capability of the market through the forecast period. This factor leads to the estimation of the market size and also provides an outline about how the market will retrieve growth during the assessment period.

Investment Research: The report focuses on the ongoing and upcoming investment opportunities across a particular market. These developments make the stakeholders aware of the current investment scenario across the market.

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

Custom Market Research Services

TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.


Compound Coating Market

Pre Book