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


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.

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.

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

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

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Cocoa Market