Cocoa Market

Cocoa Market: Cocoa Liquor Sub-Segment Expected to Reach a Sweet Spot in the Global Cocoa Market During the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2016-2026

  • 2017-02-17
  • REP-GB-2961
  • 283 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Cocoa Market

This study offers a comprehensive, 360 degree analysis on the Cocoa market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Cocoa market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

In terms of value, the global market for Cocoa is expected to increase at a CAGR of 3.4 % during the forecast period and is projected to account for US$ 14,572 Mn by 2026 end. Increase in demand for Cocoa can be attributed to its health benefits. Cocoa helps in regulating the symptoms of intense fatigue syndrome, provides protection against sunburn, reduces hypertension, improves heart health, etc. Cocoa is also a rich antioxidant source. These benefits of cocoa are expected to drive the growth of the Cocoa market due to its growing end-use in varied industries, such as bakery, confectionery, beverages, pharmaceuticals, etc. The cocoa market has major end-use potential in pharmaceuticals and cosmetics markets. Cocoa has proved to be one of the most beneficial cosmetic ingredients for promoting healthy skin and thus, is being widely used in the cosmetics industry. The cocoa market, by end use applications, can be segmented into confectionery, bakery items, cosmetics, functional foods, beverages and pharmaceuticals. Among the end use segments, the confectionery segment is expected to grow with a high growth rate of 3.6% during the forecast period.

The cocoa market, at a global level, can be segmented by product type into cocoa powder, cocoa butter and cocoa liquor. Of these three product types, the cocoa liquor segment is anticipated to account for the major share, in terms of market value, in the cocoa market. This segment of the cocoa market is projected to grow with a CAGR of 3.1% from 2016 to 2026.

The global cocoa market can also be segmented on the basis of different processes used to process cocoa. The basic types considered are Natural and Dutch. Natural Cocoa is one of the most commonly available cocoa types in the U.S. market. The Dutch cocoa powder is produced by washing cocoa with a potassium carbonate solution, which helps in neutralizing the acidity of the cocoa to a pH of 7. The color of Dutch processed cocoa varies from light reddish brown to a darker shade of brown.  Among these two types, the Dutch type held the dominant share, i.e. about 73.9%, in 2016. Increasing awareness among consumers regarding the health benefits related with dark chocolate consumption is expected to give a boost to the cocoa market in future.

The global cocoa market is being driven by various important factors, such as rising awareness about associated health benefits of cocoa. The prominent factor driving the demand for cocoa is the availability of new varieties of chocolates. Easy availability of a wide variety of chocolate flavours and types of chocolates is resulting in increasing consumer base. Different types of chocolates, such as milk chocolate, dark chocolate, cocoa powder, brownies and cocoa butter, are witnessing high demand. That apart, availability of multiple flavours, such as mint, vanilla, coffee, etc., are also contributing to overall revenue growth. Manufacturers are developing and launching new and innovative varieties, such as coated vegetables, fruits, nuts, cereals, etc. and popularity of such varieties is increasing steadily, especially in developed countries, thereby giving a push to the global cocoa market.

The demand for cocoa has been on the rise since the past couple of decades. Cocoa is expected to witness increasing demand from the global nutraceuticals and functional food industry as chocolate is one of the most common flavors for a variety of functional food products, such as snack bars, protein shakes, etc. as well as a very common base for nutraceutical products for flavoring. Cocoa is primarily harvested for its purplish beans, which are basically used in cocoa liquor. Cocoa is considered to be one of the most important cash crops by the farmers in regions, such as Africa, Latin America and South East Asia. The cocoa produced in these regions provides livelihood to circa 40-50 million people. The liberation from the cocoa marketing system in 1990s led to liberation of cocoa marketing system, which meant prices in most cocoa producing regions are determined by the foreign or international prices.

The major region producing cocoa is Cote d’ Ivorie, which produces around 30% of the total global cocoa output. It is followed by Ghana and Indonesia, which together account for a circa 35% of the total global cocoa production. According to the International Cocoa Organization, the major cocoa producers in these regions are the small farmers. However, cocoa produce is susceptible to pests and harsh climatic conditions, such as torrential downpour or extreme dry periods. In Cote d’ Ivorie, cocoa productivity has been largely affected by the political unpredictability in the region, which has restrained the supply potential of cocoa.

On the basis of regional segmentation, the cocoa market, at a global level, is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan and the Middle East & Africa and Japan. Among the above mentioned regions, the market in Western Europe is expected to register highest CAGR of 4.1%, in terms of value. The Western Europe Cocoa market accounted for a share at 34.8 % in 2016. The APAC cocoa market is also expected to gain normal market share owing to high demand from India and China, which accounted for 14.1% market share in 2016 and is expected to grow up to 14.3 % market share by 2026.

global cocoa market

Some of the key players in the cocoa market include The Barry Callebaut Group, The Hershey Company, Nestlé S.A., Cargill Incorporated, Puratos Group, Cémoi, Mars, Incorporated, Blommer Chocolate Company, Meiji Holdings Company, Ltd. Carlyle Cocoa, Jindal Cocoa and United Cocoa Processor.

Major players in the cocoa market are inclined towards sustainability and certification. Certifications and sustainability are the trends gaining importance in the global cocoa industry.

  • In October 2016, Blommer Chocolate Company, U.S., announced its plan to procure only certified cocoa from 2020 onwards in order to adhere to cocoa industry standards
  • In December 2015, Nestlé U.K. & Ireland announced their plans to use only certified sustainable cocoa to improve product quality of chocolate-based products from January 2016 onwards
  • In April 2015, The Hershey Company announced plans to source sustainable and certified cocoa for four of its chocolate brands which use cocoa as a major ingredient.

The other major trends being followed in the cocoa market are as follows:

New and innovative products and flavours

  • In September 2015, Ghana’s Cocoa Research Institute introduced a new variety of cocoa with new fine-flavours. The flavours included floral, fruit, herbal, wood nuts and caramelic notes with chocolate bases

  • Growing consumer preference for chocolate-coated products, such as chocolate coated strawberries, nuts, breakfast cereals, wafers, etc. is the latest trend in the global cocoa market

Partnerships and trade agreements

  • In order to increase production of cocoa and chocolates, key players are entering into partnerships and agreements to procure cocoa from sustainable sources

  • In February 2015, Cargill Inc., U.S. and Mondel?z International, Inc., U.S., signed an agreement which focuses on developing a cocoa supply chain and sourcing 100% of cocoa from sustainable sources

This report provides forecast and analysis of the global Cocoa market as well as casts light on historical data of 2015 along with estimated data for 2016 and forecasts data up to 2026, in terms of revenue (US$ Mn).The report also discusses macroeconomic indicators and the outlook for the worldwide cocoa market. It comprises drivers and restraints of the worldwide cocoa market and their impact on all the regions during the forecast period. The report also encompasses the study of existing industry trends and prospects for the Cocoa market. The report also provides an understanding of value chain analysis. In order to provide users of this report with an all-inclusive view of the cocoa market, we have considered detailed competitiveness analysis, key players and their tactical overview. The dashboard offers a detailed comparison of Cocoa manufacturers on parameters, such as total revenue, product offerings and key strategy. The study encompasses market attractiveness analysis by process, nature, product type, end use and region.

Increasing awareness among adults and consumers of other age groups around the globe regarding the various health benefits related to the consumption of cocoa-containing food products, such as dark chocolate, has been affecting the cocoa market and the revenue from it in a positive way. Growing accessibility towards a wide variety of chocolate flavours and different types of chocolates is resulting in growing demand for cocoa as an ingredient. A wide variety of chocolates, such as milk chocolates, dark chocolates and other cocoa- containing products, such as cocoa powder, cocoa, liquor and cocoa butter, are witnessing high demand. That apart, different types of flavors, such as mint, vanilla, coffee, etc., are promoting the overall revenue growth of the cocoa market.

The report includes company profiles of key producers of Cocoa and the revenue generated from companies across North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan (APEJ), Japan, the Middle East & Africa. By nature, the global Cocoa market is segmented into organic and conventional segments. By process type, the Cocoa market is segmented into Natural and Dutch. By product type, Cocoa Powder is segmented into Cocoa Butter and Coco Liquor. The global Cocoa market, on the basis of end use, is segmented into Confectionery, Beverage, Bakery items, Cosmetics, functional food and Pharmaceuticals.

For the estimation of revenue, regional average prices were found through quotes from several Cocoa producers/manufacturers, exporters and distributors. The data for Cocoa was obtained from the U.S. Food and Agriculture Organization (FAO), associations and government bodies and for all key countries considered in the study. The trade analysis for these cocoa crops was done to arrive at the consumption scenario of cocoa in different industries. The analysis of food processing industry was done for estimating the cocoa consumption market scenario. All the significant end-use segments have been included and potential uses have been estimated on the basis of secondary sources and feedback from primary respondents. Some of the key data points collected for modeling approach include food and beverage industry scenario, chocolate industry market outlook, food processing industry overview, major types of cocoa consumed, etc. The market has been forecast based on constant currency rates.

This section of report discusses, in particular, how the global competition in the market is gradually increasing. It addresses various dynamics that are determining internal as well as external competition in the market. Numerous obstacles to enter in the industry have been analyzed and regarded on the basis of their influence on the competition level in the market. Consumption of dark chocolates is increasing around the globe, particularly in developing countries, and is one of the key drivers for the growth of the global cocoa market.

The report discusses the market share of the global cocoa market for various segments. A part of the report also gives insights about the cocoa demand in different regions studied under this the report on cocoa market.

The report offers a market viewpoint for 2016–2026 and sets the forecast within the framework of the cocoa ecosystem, comprising the new technological developments as well as new product offerings in the cocoa market at a global level. This study talks about the key regional trends driving the growth of the cocoa market internationally as well as analyses the degree to which drivers are prompting the market in each region. Key regions evaluated in this report include North America, Latin America, Western Europe, Eastern Europe, APEJ, Japan and MEA.

In the last section of the report, a detailed competitive landscape has been provided to deliver the audiences a dashboard view. Key providers covered in the report are cocoa producers and suppliers. In depth profiles of some of the cocoa providers have also been included within the scope of the report to assess their long-term and short-term plans, key offerings and most recent developments.

A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, and Hoovers, and company annual reports and publications. This report covers market dynamics related to Cocoa market that includes market dynamics, such as drivers and trends influencing the segment and opportunities in Cocoa market. The report also provides analysis and insights into the potential of the Cocoa market in specific regions. Some of Key competitors covered under this report are The Barry Callebaut Group, The Hershey Company, Nestlé S.A., Cargill Incorporated, Puratos Group, Cémoi, Mars, Incorporated, Blommer Chocolate Company, Meiji Holdings Company, Ltd. Carlyle Cocoa, Jindal Cocoa and United Cocoa Processor.

Key Segments Covered

  • By Nature

    • Organic

    • Conventional

  • By Process

    • Natural

    • Dutch

  • By End Use

    • Confectionery

    • Functional Food

    • Beverages

    • Cosmetics

    • Pharmaceuticals

  • By Product Type

    • Cocoa powder

    • Cocoa butter

    • Cocoa liquor

  • Key Regions/Countries Covered

    • North America

    • Latin America

    • Western Europe

    • Eastern Europe

    • Asia Pacific Excluding Japan (APEJ)

    • Middle East & Africa (MEA)

    • Japan

COVID -19 : Impact Analysis

Request the coronavirus impact analysis across industries and markets

Request Covid -19 Impact

Get in touch

Harish Tiwari

Global Head - Business Development

Akshay Godge

Client Partner - Global Business Development

Our Clients


See how our work makes an impact.

At FMI, we design strategies that are adaptive, impactful, and implementable.

Request Sample Ask An Analyst Request Special Price Request Methodology