The Cocoa Market is estimated to be valued at US$ 13145.13 Mn or Mn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Cocoa is derived from cocoa beans that grow within the pods of the cocoa tree. Cocoa beans are crushed to obtain cocoa butter and cocoa powder (liquor), which are used to manufacture chocolate. Cocoa powder provides flavor and texture to bakery goods, confectioneries, desserts, and beverages. It is high in antioxidants, magnesium, and iron, and moderate consumption is linked to improved cardiovascular health. Cocoa powder and cocoa liquor impart that signature chocolate flavor to cookies, brownies, cakes, ice creams and other products.
Rising health consciousness among consumers is a major driver of the cocoa market. Cocoa contains flavonoids that possess antioxidant properties and may promote heart health. Moderate consumption of chocolate and cocoa products is linked to lower risks of heart disease. This is boosting demand for foods made with cocoa powder instead of processed chocolate. Furthermore, changing lifestyles and increasing consumption of on-the-go snacks is fueling demand for cocoa-based breakfast foods, energy bars, and drinks. However, volatile cocoa prices pose a challenge as this increases production costs. Adverse weather conditions that damage cocoa crops also negatively impact market growth.
The global cocoa market is segmented based on type, application, distribution channel and region. By type, the market is divided into cocoa powder, cocoa beans, cocoa butter and other types. Among these, cocoa powder segment accounted for the largest market share in 2022 owing to rising use of cocoa powder in chocolate confectionary, bakery, beverages and other end-use industries.
Political: The governments across various countries are supporting cocoa farmers by providing subsidies and incentives to boost cocoa production. Some countries have also implemented favourable policies for cocoa export promotion.
Economic: Rise in disposable incomes coupled with growing population is driving the demand for cocoa and related products globally. However, fluctuations in cocoa commodity prices pose a challenge.
Social: Increasing health consciousness among consumers is prompting them to consume cocoa-based dark chocolates and cocoa-rich foods due to associated health benefits like reducing blood pressure and improving heart health.
Technological: Adoption of advanced agricultural techniques like vertical farming and hydroponics is helping cocoa farmers to boost yields. Blockchain technology is also being used to ensure transparency in cocoa supply chain.
The Global Cocoa Market is expected to witness high growth, exhibiting CAGR of 3.4% over the forecast period 2023 to 2030 due to increasing demand for artisanal chocolates and organic cocoa products. The market size for 2023 is estimated at US$ 13145.13 Mn.
Regional analysis – In terms of consumption, Europe accounts for the largest share of the cocoa market due to strong presence of chocolate confectionary manufacturers. Asia Pacific is anticipated to register fastest growth attributed to rising middle class population and their growing preference for cocoa-rich chocolates and snacks.
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. These players are focusing on new product launches, capacity expansions and mergers & acquisitions to strengthen their market presence.