Compound Coating Market Report

Any chocolate that does not meet the identification standards of chocolate is known as compound coating. It is also known as confectionery coating and is primarily a mixture of sugar, vegetable fats, lecithin, and flavor. It may contain cocoa powder if the coating is a chocolate flavored one. Different sources of fats may be used to make the compound coating which makes it suitable for use in various products like chips for cookies as well as a coating for ice-creams and frozen desserts. Chocolate and compound coating are manufactured using similar methods but differ based on the need for tempering as well the fat type in the product. While chocolate contains cocoa butter as fat, compound coating has other types of vegetable fats in its place. The latter also does not need to be tempered and is hence suitable for diverse uses. 

Compound Coating Market Outlook

• Compound coating is growing in popularity globally given the rising demand for its key end products like confectionery and frozen desserts. The rising disposable income of the consumers’ further makes products containing compound coating affordable.  
• The ability to fortify or flavor compound chocolate with various flavors and other ingredients makes it all the more attractive as an ingredient. Its versatile applications compared to conventional cocoa-abased chocolate would drive its growth. 

Compound Coating Market: Regional Highlights

• The study has been conducted across the key regions like North America, Europe, Asia Pacific, and Rest of the World. Rest of the World comprises Latin America and Middle East and Africa.
• Growing disposable income in the emerging regions of Asia Pacific and Latin America on the back of an economic expansion would bring hitherto unaffordable products within reach. These include a range of premium personal care items which use essential oils and natural extracts.
• Further, North America and Europe dominate the market currently in 2019 owing to the favorable economic and demographic conditions. 

Compound Coating Market Segmental Overview

• Vegetable fats derived from palm and coconut oil are among the popular ingredients used to make compound coating. The hardness of the fats derived from these oils makes it a commercially viable alternative to true-cocoa which is subject to environmental stresses like heat and humidity.
• Various flavors like mint and vanilla among others can be added to the compound coating to enhance its organoleptic properties in end-use products. 
• Compound coatings are widely used in confectionery products as a low-cost substitute to traditional cocoa butter. It is also a popular filling ingredient used in baked goods.

Compound Coating Market Key Players

The major companies operating in the compound coating market include AAK, Archer Daniels Midland Company, Barry Callebaut, Blommer Chocolate Company, Bunge Loders Croklaan, Caldic B.V, Cargill, Incorporated, DDW The Color House, Kondima Engelhardt GmbH & Co. KG, Olam International, and Palsgaard among others.

The key players in the compound coating market are keeping their ears to the ground so as to not miss out on any upcoming market developments. Innovation towards product improvement is key to achieve growth. Keeping a pulse of the rapidly changing consumer behavior would benefit the makers and would enable them to stay ahead of the curve to obtain a competitive edge in a dynamic market.