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

Cocoa liquor sub-segment likely to surpass cocoa powder sub-segment in terms of value share in the coming decade, owing to an increase in demand for cocoa liquor

Cocoa powder falls under both conventional and organic categories. In 2016, the cocoa powder sub-segment in the conventional category was estimated to account for a market value share of more than 30% in the global cocoa market. This segment is anticipated to witness a slight drop in market value share and be valued a little less than 35% by the end of the forecast period. The cocoa liquor sub-segment in the conventional category is expected to be the most attractive sub-segment in the global cocoa market over the forecast period, registering a CAGR of 4.3% in terms of value during the forecast period.

In 2016, the cocoa powder sub-segment in the organic category was anticipated to hold a meagre market share of a little over 18%, while the cocoa liquor sub-segment in the organic category was projected to hold the highest market share of 45%. The cocoa liquor sub-segment in the organic category is expected to remain dominant throughout the forecast period.   

Rising demand for chocolates and cocoa brownies is anticipated to boost the growth of the cocoa powder sub-segment

Cocoa powder is an essential ingredient used to make a variety of dark chocolates, thus increasing the popularity of dark chocolates across the globe, especially in developing countries. This is driving the growth of the cocoa powder sub-segment in the global cocoa market. Rising awareness among adult consumers across the globe regarding the various health benefits associated with dark chocolate has been contributing to the growth in consumption of chocolates made of cocoa powder. Another factor creating robust development in the cocoa powder sub-segment is an increasing inclination of young consumers towards chocolate. Primary consumers of chocolate are children, but as per the current scenario, chocolate is gaining popularity amongst young adults, as it helps in lowering cholesterol, which is helpful in maintaining fitness and promoting muscle building. The demand for cocoa powder in various food applications has been increasing since the last few years. Demand for packaged premium quality cocoa powder based products such as cookies, chocolates, chocolate coated fruits, and caramelised chocolates for occasions such as New Year, Christmas, birthdays, and weddings is increasing rapidly. This is another major factor expected to boost the growth of the cocoa powder sub-segment of the global cocoa market over the projected period.

global cocoa market

Revenue contribution from the Western Europe cocoa market to the global cocoa market is likely to remain comparatively high throughout the forecast period

The cocoa market in Western Europe was anticipated to represent a relatively high value share of almost 35% by 2016 end, and is expected to remain the dominant regional market over the forecast period. An increasing demand for cocoa in the conventional sub-segment in Western Europe is expected to fuel growth of the cocoa market in this region. The Western Europe market is projected to gain 233 BPS by 2026 end over 2016. The cocoa market in North America is likely to witness substantial growth in terms of value throughout the forecast period. North America followed Western Europe closely in terms of market share in 2016, with a projected value share of over 20%. The North America cocoa market is anticipated to gain 23 BPS by 2026 end over 2016. In terms of CAGR, the Western Europe cocoa market is estimated to register the highest value CAGR of 4.1% with North America standing at the second position with 3.5% value CAGR.

Swiss chocolate manufacturer The Barry Callebaut Group opens first ever cocoa powder based beverage products academy

Switzerland based chocolate manufacturer The Barry Callebaut Group opened its first cocoa powder based beverage products academy in 2016 – Van Houten Beverage, Sweden – to enter into this business segment. In 2016, U.S based Cargrill Incorporated introduced cocoa powder with intense dark red colour in its product offerings in Indonesia for application in chocolate ice-creams, drinks, and desserts. Another U.S. based manufacturer, Carlyle Cocoa has acquired speciality in manufacturing six different cocoa powder varieties differentiated on the basis of pH range, while the rest of the ingredients remain the same. 

Understanding customer needs and offering products accordingly, with specific characteristics and maintaining a proper supply and value chain in order to optimise pricing of the final product is a tested strategy adopted by companies operating in the global cocoa market, as highlighted in a new report published by Future Market Insights. The report titled “Cocoa Market: Global Industry Analysis and Opportunity Assessment, 2016–2026,” draws upon various research methodologies to study the segmental performance of the cocoa market at a global level and also across the various regions assessed. According to Future Market Insights food and beverage analysts, leading cocoa market players are focussing on developing organic products that provide various health benefits in order to cater to the growing number of health conscious consumers in the global cocoa market. After a detailed study of the global cocoa market, our analysts have arrived at a conclusion that market companies are also striving to enhance their production capacity and are investing in structured R&D innovation to offer products that are healthy and also come in different flavours. Manufacturers are also innovating in terms of packaging to leverage opportunities arising from all consumer segments. According to the report, the market concentration of key players in the global cocoa supply chain is increasing continuously, both at the vertical as well as at the horizontal levels. Also, many cocoa and chocolate companies are entering into mergers and acquisitions in order to increase their market share across geographies.

Independent analysis of key market dynamics

Our analysts have covered seven regions across the world to obtain a clear picture of the global cocoa market size and to analyse its attractiveness. The analysts have further discussed the key regional trends contributing to the development of the cocoa market globally and have also analysed the various drivers influencing the market in the regions assessed. In the report on the global cocoa market, our analysts have presented an unprejudiced analysis of the chief drivers, challenges, and trends likely to impact the growth and performance of the global cocoa market over the forecast period. We have also studied the market performance of some of the top companies dominating the global cocoa market. We have profiled a few of the leading market players and presented a detailed analysis of their overall business performance and a comprehensive evaluation of their short-term and long-term business and go-to-market strategies. Through this report, we intend to provide report audiences with a dashboard view of the competitive landscape of the global cocoa market.

Global cocoa market segmentation

The subsequent sections analyse the global cocoa market based on nature (organic), nature (conventional) and by region, and present a forecast for the period 2016–2026. The market is segmented as follows:

By Region

By Nature

By Nature

  • North America

  • Latin America

  • Eastern Europe

  • Western Europe

  • Asia Pacific Excluding Japan (APEJ)

  • The Middle East & Africa (MEA)

  • Japan

  • Conventional

    • By Process

      • Natural

      • Dutch

    • By Product Type

      • Cocoa Powder

      • Cocoa Butter

      • Cocoa Liquor

    • By Application

      • Confectionery

      • Functional Food

      • Bakery Items

      • Beverages

      • Cosmetics

      • Pharmaceuticals

  • Organic

    • By Process

      •  Natural

      • Dutch

    • By Product Type

      • Cocoa Powder

      • Cocoa Butter

      • Cocoa Liquor

    • By Application

      • Confectionery

      • Functional Food

      • Bakery Items

      • Beverages

      • Cosmetics

      • Pharmaceuticals

A unique research methodology

We have not considered yearly change in inflation rate while forecasting market numbers. The product-wise weighted Average Selling Price (ASP) has been considered to deduce market values. Our analysts have used a top-down approach to assess market numbers for each product category and a bottom-up approach to counter-validate the reached market numbers. Macroeconomic indicators such as food industry outlook, spending on healthy food, Gross Domestic Product and others have been considered to arrive at the estimated market numbers. We have done in-depth secondary research to ascertain overall market size, top industry players, and top products. In order to conduct expert and industry interviews, Future Market Insights has formulated a detailed discussion guide, based on which our analysts have conducted personal interviews with industry experts, industry players and distributors in the global cocoa market.

Market analysis based on key growth parameters

Given the ever-fluctuating nature of the global economy, we have not only conducted our forecasts in terms of CAGR but have also analysed the global cocoa market on the basis of key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities likely to emerge in the global cocoa market. Another key feature of this report is the analysis of the cocoa market by region, nature (organic), nature (conventional) and the corresponding revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global cocoa market. Further, to understand key market segments in terms of their growth and performance in the global cocoa market, Future Market Insights has developed a unique market attractiveness index to help providers identify real market opportunities.