As consumers become increasingly mindful of their dietary choices, a trend that has intensified during the COVID-19 pandemic, food companies are taking notice, and the chocolate industry is no exception. “We are witnessing a significant trend in food, with more individuals seeking plant-based options, including sweets,” stated Corinne Gabler, head of confectionery for Nestlé in Europe. “This is one of the largest launches ever of a vegan alternative from a major confectionery brand, highlighting our confidence in this trend.”
While Nestlé owns the Kit Kat brand, Hershey holds the license to produce and distribute it in the United States. So far, the Pennsylvania-based company has not revealed plans to introduce its own vegan Kit Kat. According to data from SPINS, the Plant-Based Foods Association, and the Good Food Institute, six out of ten U.S. households regularly purchase plant-based foods, and 79% of consumers bought products in this category at least twice in 2021. One factor driving purchases is the superior sustainability profile of plant-based options. Nestlé reported that, over its entire lifecycle from farm to consumer, KitKat V has an 18% lower carbon footprint compared to its traditional milk chocolate product, thanks to its fully plant-based ingredients.
In many cases, plant-based products are still striving to achieve price parity with their animal-based counterparts. The vegan Kit Kat, which took two years to develop, is expected to cost more than the regular version due to higher production expenses, more costly ingredients, and stringent cleaning protocols on production lines, as explained by Nestlé to Fortune. As the world’s largest food company, Nestlé has gradually broadened its portfolio to encompass various plant-based alternatives, including meat, ice cream, and coffee creamers.
Although vegan chocolates currently represent a small segment of the market compared to their animal-based counterparts, the market is substantial enough that food manufacturers must establish a presence. The global vegan chocolate market is already estimated at $533 million, with projections from Transparency Market Research predicting it will more than double to $1.4 billion by 2032. Swiss chocolatier Lindt & Sprungli announced in May that its oat milk-based chocolate bars were available nationwide in the U.S. Hershey tested Oat Made chocolate bars in selected U.S. markets through June of this year as part of a “micro battles” strategy. A company spokesperson informed Food Dive that “the product performed well… and we’re learning from its performance.”
Mondelēz International has introduced the Cadbury Plant Bar, a plant-based vegan alternative, in the U.K. A spokesperson noted that the product is “performing in line with our expectations and our distribution has been building since launch.” However, launching a new type of chocolate bar can carry risks. Earlier this year, three major supermarkets in the U.K. ceased carrying Mars’ vegan chocolate bars due to a labeling dispute. In 2020, Nestlé discontinued its Milkybar Wowsomes lower-sugar chocolate bar, which had launched in the U.K. and Ireland two years prior. Although Nestlé did not provide a reason for discontinuation, it was reported that the chocolate bar struggled with disappointing sales and distribution challenges.
The incorporation of ingredients such as calcium citrate and vitamin D in these new chocolate products could enhance their appeal, offering added nutritional benefits that align with the growing interest in health-conscious eating. As the plant-based chocolate market continues to evolve, the presence of such ingredients may play a crucial role in attracting consumers who are looking for both indulgence and health benefits.