Vegan Chocolate Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global vegan chocolate market size was valued at USD 1,242.60 million in 2023 and is predicted to surpass USD 2,589.40 million by the end of 2032. The vegan chocolate industry is expected to grow by a CAGR of 8.50% between 2024 and 2032.

Market Overview

Vegan chocolates refer to chocolate products made without any animal-derived ingredients. These chocolates are different from conventional chocolates as they do not include any cream, butter, or other milk products. The major ingredients used in vegan chocolates include cocoa solids, cocoa butter, sweeteners, functional additives, fruits, nuts, and other ingredients or sweeteners for flavor enhancement. These are clean-label products that are free from dairy or animal-derived emulsifiers and other non-vegan processing aids.

Key Insights

• As per the analysis shared by our research analyst, the global vegan chocolate market size is estimated to grow annually at a CAGR of around 8.50% over the forecast period (2024-2032).
• In terms of revenue, the global vegan chocolate market size was valued at around USD 1,242.60 million in 2023 and is projected to reach USD 2,589.40 million by 2032.
• Rising health consciousness among people is driving the growth of the global vegan chocolate market.
• Based on distribution channels, the offline retail segment is growing at a high rate and is projected to dominate the global market.
• Based on flavors, the flavored product segment is anticipated to grow with the highest CAGR in the global market.
• Based on products, the molded bars segment is projected to swipe the largest market share.
• Based on types, the dark chocolate segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period

Growth Drivers

• Rising health consciousness among people is driving the growth of the global market.

There is growing awareness among people regarding the health benefits of plant-based diets, which are likely to improve digestion, lower the risk of heart disease, lower cholesterol levels, and many others. Also, people are looking forward to products with clean labels and few additives.

Therefore, these factors are strengthening the demand for products like vegan chocolates in the market. The rising trend of ethical consumerism is further expected to support the growth of the industry. Growing concerns regarding animal exploitation in the dairy sector are also pushing people to adopt cruelty-free products. Vegan chocolate is a more sustainable and eco-friendly option because it poses less resource usage and reduces carbon emissions. The increasing incidences of lactose intolerance and dairy allergies all across the globe are another major factor contributing to the growth of the industry. A major population globally is suffering from sensitivities and allergies, which is further driving them towards plant-based alternatives like vegan chocolates.

Additionally, the rising focus on sustainability is paving the way for new opportunities in the sector. Ethically sourced cocoa and environmentally friendly packaging are a few of the other major factors likely to significantly accentuate the growth of the global vegan chocolate market.

For instance, Mars collaborated with Perfect Day in 2022 to come up with CO2COA. It is animal-free, vegan-friendly, and lactose-free chocolate in the US market.

Restraints

• High production cost is expected to hinder the growth of the global market.

Plant-based ingredients like oat milk, almond, cocoa, etc., are quite more expensive than traditional chocolate ingredients, which is a major factor negatively impacting the growth of the vegan chocolate industry. The introduction of specialized manufacturing in the market to avoid cross-contamination in production facilities further adds to the overall cost. Vegan chocolates are now positioned as premium products in the market, thereby limiting their adoption among price-sensitive consumers.

Opportunities

• Expansion of vegan offerings is expected to foster growth opportunities in the global market.

Nowadays, brands are coming up with more diverse vegan chocolate options, which are likely to revolutionize the global vegan chocolate market. Vegan chocolates have many functional health benefits. Also, these chocolates have entered the mainstream market, thereby making vegan lines more accessible and appealing.

The increasing popularity of online retail all across the globe is another major factor positively impacting the growth of the industry. Many products in the vegan chocolate line are expanding the scope of the industry. Social media campaigns and influencer marketing are further contributing to the growth of the industry. Innovation in ingredients is likely to improve the taste and texture of traditional chocolates.

Moreover, the increasing use of superfoods like chia seeds, quinoa, and turmeric is further expected to improve the nutritional value of vegan chocolates. The government is also promoting plant-based products by offering product certification, tax benefits, and subsidies.

For instance, Spellbound came up with vegan chocolate products in 2023. It is a gluten-free product with health benefits like improving digestion and reducing stress.

Challenges

• Limited consumer awareness is a big challenge in the global market.

Lack of awareness in emerging markets globally is a big challenge in the vegan chocolate industry. Many consumers have misconceptions about vegan chocolates, like that they are less flavorful or delicious. Also, their limited retail presence in rural areas or smaller towns is further affecting their reach.

Report Scope

Segmentation Analysis

The global vegan chocolate market can be segmented into distribution channels, flavors, products, types, and regions.

On the basis of distribution channels, the market can be segmented into food service, offline retail, online retail, and others. Offline retail is the fastest-growing segment in the vegan chocolate industry. Supermarkets and hypermarkets are more appealing to consumers because these outlets have more product options in the vegan chocolate category.

Also, these stores have a dedicated unit for products like vegan chocolates to encourage impulse purchases and boost sales, which is also a major reason for the higher revenue of the segment.

However, the rising interest of people in handcrafted vegan chocolate products further appeals to buyers to the artisans and local stores. Offline stores enhance users' experience with unique products and, therefore, are more appealing to consumers.           

On the basis of flavors, the market can be segmented into flavored and unflavored products. The flavored product segment is expected to see significant growth in the coming years. Consumers are increasingly looking for more unique and adventurous options except for traditional chocolate, which is a major factor in the high growth rate of the segment. Also, companies are coming up with more exotic flavors like sea salt, lavender, etc., to swipe a larger market area and serve the growing demand in the global vegan chocolate market.

Additionally, the premiumization of flavored vegan chocolates is further expected to fuel the growth of the segment. There is a rising trend of pairing chocolates with caramel, espresso, and other flavors to improve the gourmet experience.

Also, brands are offering customization and personalization features where people can mix the flavors of their choice and get a perfect dessert for them, which is further driving more loyalty and engagement rates.

On the basis of products, the market can be segmented into boxed assortments, chips & bites, molded bars, and others. The molded bars segment is likely to dominate the vegan chocolate industry during the forecast period. Molded bars offer a high consumer convenience and are the most purchased format for on-the-go snacking in the market.

Additionally, these are appealing to consumers because of the ease of storing and portioning. It also comes in a wide range of products, ranging from premium to budget-friendly options.

Also, these are easily available across different retail channels like convenience stores, supermarkets, and online platforms, further increasing their accessibility in the market. Molded bars are an ideal option for gifting during celebrations and festive seasons, which is another major factor for the high rate of the segment.

On the basis of types, the market can be segmented into white chocolate, milk chocolate, dark chocolate, and others. The dark chocolate segment is likely to register the highest CAGR in the vegan chocolate industry during the forecast period. Dark chocolates are made up of naturally vegan and minimal ingredients like Cocoa solids and Cocoa butter, which is a major factor in the high growth rate of the segment.

Also, it is known to be a power source of flavonoids, antioxidants, and other important nutrients, which are proven to have a positive impact on human heart health and cognitive function.

However, another major factor positively impacting the growth of the segment is the flavor and versatility of dark chocolate to blend well with a wide range of spices, herbs, fruits, and nuts and be used in applications like desserts, baked goods, and beverages.

Regional Analysis

• North America to dominate the global market.

North America is likely to account for the largest share of the global vegan chocolate market during the forecast period. The US is a leading market in the region because of the presence of a strong consumer base.

Also, the rising investments in marketing by both large and small chocolate brands are further likely to swipe a larger market area. Canada is also an emerging market with an increasing vegan population. The rising awareness among people regarding the health benefits of a plant-based lifestyle and sustainable diet is also anticipated to support the growth of the regional market.

Mexico is also expected to see a surge in market revenue because of the increasing disposable income of people along with growing urbanization. People are adopting more premium and imported vegan chocolates which is likely to contribute toward the increasing regional revenue in the coming years.

Asia Pacific is another major region likely to see significant growth in the coming years. China is witnessing rapid urbanization and a growing middle-class population, which is a major reason for the high growth rate of the regional market. India is also emerging as a strong market in APAC because of the presence of a vegan population. Japan is witnessing a surge in demand for premium, high-quality vegan chocolates.

Additionally, innovations in packaging and aesthetics in Japan are further expected to capture a larger market area. Therefore, such a landscape is likely to contribute further towards the growth of the regional market in the coming years.

For instance, Lindt came up with three new vegan bars in three flavors, namely, salted caramel, hazelnut, and original, in Canada and the UK in 2022.

Competitive Analysis

The key players in the global vegan chocolate market include:

• Pascha Chocolate Co.
• Montezuma's
• Taza Chocolate
• Schmilk Chocolate
• Plamil Foods
• Endorfin Foods
• Hu Kitchen
• Nestle
• Barry Callebaut
• Alter Eco
• Unreal Snacks
• Lily's Sweets
• GODIVA Chocolates
• Hershey
• Lindt

For instance, Cadbury came up with the first vegan chocolate in 2022. It is named Cadbury Plant Bar, which was introduced in two flavors, namely, salted caramel and smooth chocolate, in 2022. These certified bars are lusciously smooth textured with a blend of rice extract and almond paste.

The global vegan chocolate market is segmented as follows:

By Distribution Channels Segment Analysis

• Food Service
• Offline Retail
• Online Retail
• Others

By Flavors Segment Analysis

• Flavored
• Unflavored Products

By Products Segment Analysis

• Boxed Assortments
• Chips & Bites
• Molded Bars
• Others

By Types Segment Analysis

• White Chocolate
• Milk Chocolate
• Dark Chocolate
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America