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The cocoa market is estimated to be valued at US$ 13145.13 Mn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cocoa is mainly used in chocolate and confectionery products. Cocoa powder, cocoa butter, and cocoa liquor are the main ingredients used in the production of chocolate and other cocoa products. Cocoa is widely used in various confectionery fillings, drinks, desserts, cosmetics, and pharmaceuticals. Cocoa liquor or nib is the first product extracted from cocoa beans and is further processed into cocoa powder and cocoa butter.
Market Dynamics:
Rising consumption of chocolate and confectionery products is estimated to drive the growth of the cocoa market over the forecast period. According to a report published by the International Cocoa Organization, global chocolate consumption increased from 8,300 metric tons in the year 2000 to around 10,000 metric tons in 2020 indicating rising popularity of chocolate. Additionally, increasing health consciousness among consumers has also increased demand for cocoa flavored drinks and dairy products owing to associated health benefits of cocoa like improved heart health and reduced stress levels. Furthermore, growth of cosmetic industry is also fueling the demand for cocoa butter extracts, which is mainly used in anti-aging creams, moisturizers, and hair and skin conditioners owing to its high content of fatty acids like oleic acid and palmitic acid which nourish the skin.
The Global Cocoa Market is also expected to grow owing to increasing use of cocoa extracts in pharmaceutical industry for manufacturing dietary supplements and over the counter drugs due to presence of flavonoids like catechins in cocoa that have shown to have beneficial physiological effects. A rise in disposable incomes in developing regions of Asia Pacific and Latin America has also boosted sales of premium chocolates and confectionery products, which is augmenting the growth of cocoa market.
SWOT Analysis
Strength: Cocoa has high demand globally due to its use in chocolate and confectionery industries. It is a lucrative cash crop for farmers in producing countries. Cocoa butter extracted from beans is used as a substitute for saturated fats in many food products.
Weakness: Cocoa crop is vulnerable to various diseases and infestations which can hugely impact production. Supply chain inefficiencies and price volatility in international markets pose operational challenges.
Opportunity: Demand for cocoa is growing steadily due to rising health-conscious population preferring dark chocolates. Emerging economies offer new potential markets. Product and geographic diversification can boost farmer incomes.
Threats: Dependency on few producing nations makes supply vulnerable to climate change effects. Substitution threat from alternative cocoa substitutes and vegan trends.
Key Takeaways
The global cocoa market is expected to witness high growth, exhibiting CAGR of 3.4% over the forecast period, due to increasing demand for confectionery and bakery products globally. The market size for 2023 is US$ 13145.13 Mn.
Regional analysis
The Asia Pacific region dominates the global cocoa market with over 35% share, led by countries like India, China, Japan and South Korea. Rising incomes, increasing youth population and growing popularity of western confectionery culture drives the market. West Africa is the largest producer region globally, accounting for over 70% of world cocoa bean supply.
Key players
Key players operating in the cocoa market are The Barry Callebaut Group, The Hershey Company, Nestle S.A., Cargill Incorporated, Puratos Group, CÃmoi, Mars, Incorporated, Blommer Chocolate Company, Meiji Holdings Company, Ltd., Carlyle Cocoa, Jindal Cocoa, and United Cocoa Processor. The Barry Callebaut Group and Nestle S.A. dominate market share due to wide product portfolio and global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
