New Allied Market Research Report

New Allied Market Research Report

The cocoa market is projected to reach $15,501.1 million by 2027, driven by rising chocolate demand and sustainability trends.

Consumer preference for ethically sourced cocoa and storytelling marketing strategies shape the evolving cocoa market.”

— Allied Market Research

WILMINGTON,NEW CASTLE, DELAWARE, UNITED STATES, May 7, 2024 / — According to a new report published by Allied Market Research, titled “Cocoa Market by Product Type, Process, Nature, Quality, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2027,” the global cocoa market size was valued at $12,874.0 million in 2019 and is projected to reach $15,501.1 million by 2027, registering a CAGR of 4.3% from 2021 to 2027.

👉 𝐆𝐞𝐭 𝐅𝐮𝐥𝐥 𝐀𝐜𝐜𝐞𝐬𝐬 𝐭𝐨 𝐒𝐚𝐦𝐩𝐥𝐞 𝐂𝐨𝐩𝐲

Cocoa is extracted from Theobroma tree or cacao tree. The cocoa or cocoa beans are dried and fermented to produce cocoa liquor and by processing the cocoa liquor, cocoa butter and cocoa powder is extracted. The growing demand for chocolate is the key factor propelling the global cocoa market. Cocoa liquor is the major ingredient used to manufacture chocolate. Cocoa is widely used as flavoring, coloring, filling, and as topping in food & beverage, confectionery, and bakery industries. The growing application of cocoa in these industries is fueling the growth of the global cocoa market.

Sustainability in the production of cocoa is one of the key factors consumers look for when buying cocoa products, especially European consumers. Storytelling is the new trend that cocoa and chocolate producers are using as a marketing tool. Consumers are very interested in knowing the story behind the products they purchase. Hence, storytelling has become a new strategy that cocoa and chocolate marketers are using lately in the global cocoa market.

𝐊𝐞𝐲 𝐆𝐫𝐨𝐰𝐭𝐡 𝐃𝐫𝐢𝐯𝐞𝐫𝐬 𝐑𝐞𝐟𝐚𝐬𝐡𝐢𝐨𝐧𝐞𝐝:

𝐄𝐥𝐞𝐯𝐚𝐭𝐞𝐝 𝐂𝐡𝐨𝐜𝐨𝐥𝐚𝐭𝐞 𝐂𝐨𝐧𝐬𝐮𝐦𝐩𝐭𝐢𝐨𝐧

The escalating global consumption of chocolate products stands as a pivotal catalyst propelling growth in the cocoa market. With chocolate retaining its status as a beloved confectionery item worldwide, burgeoning demand in emerging markets coupled with steadfast consumption in developed regions fuels the need for cocoa as a primary ingredient. As consumer spending power rises and chocolate consumption becomes deeply ingrained in cultural norms, the demand for cocoa experiences a continuous surge.

𝐇𝐞𝐢𝐠𝐡𝐭𝐞𝐧𝐞𝐝 𝐃𝐞𝐦𝐚𝐧𝐝 𝐟𝐨𝐫 𝐍𝐚𝐭𝐮𝐫𝐚𝐥 𝐚𝐧𝐝 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐂𝐨𝐜𝐨𝐚 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬

A discernible shift towards natural and premium cocoa products is underway, spurred by consumer preferences for ethically sourced, high-quality ingredients. Fueled by a heightened emphasis on health and sustainability, consumers seek out cocoa products with minimal processing and certifications such as organic and fair trade. This consumer trend prompts manufacturers to invest in sourcing sustainable cocoa beans and crafting premium cocoa offerings to cater to discerning tastes, thereby stimulating market expansion.

𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐨 𝐍𝐨𝐧-𝐂𝐨𝐧𝐟𝐞𝐜𝐭𝐢𝐨𝐧𝐞𝐫𝐲 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬

The cocoa market is diversifying beyond traditional confectionery realms, extending its reach into various sectors, including cosmetics, pharmaceuticals, and beverages. With cocoa’s rich flavor, aroma, and potential health benefits, it emerges as an attractive ingredient in skincare products, supplements, and functional beverages. This expansion into new applications broadens the market’s horizons, creating fresh opportunities for cocoa producers and processors to capitalize on growing demand from non-confectionery industries, thus fostering overall market growth.

𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥 𝐆𝐫𝐨𝐰𝐭𝐡 𝐇𝐮𝐫𝐝𝐥𝐞𝐬 𝐑𝐞𝐯𝐢𝐭𝐚𝐥𝐢𝐳𝐞𝐝:

𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐂𝐡𝐚𝐧𝐠𝐞 𝐚𝐧𝐝 𝐄𝐧𝐯𝐢𝐫𝐨𝐧𝐦𝐞𝐧𝐭𝐚𝐥 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬

Climate change poses a formidable threat to cocoa production, disrupting both yield and quality. Rising temperatures, erratic rainfall patterns, and heightened pest and disease incidences imperil cocoa cultivation in crucial growing regions like West Africa. Furthermore, cocoa farming-driven deforestation exacerbates environmental degradation, leading to habitat loss. These environmental challenges not only impede cocoa production but also raise ethical and sustainability concerns, eliciting consumer scrutiny and introducing market instability.

𝐄𝐧𝐜𝐨𝐮𝐧𝐭𝐞𝐫 𝐰𝐢𝐭𝐡 𝐏𝐫𝐢𝐜𝐞 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐈𝐧𝐜𝐨𝐦𝐞 𝐃𝐢𝐬𝐩𝐚𝐫𝐢𝐭𝐲

The cocoa market is characterized by inherent price volatility, presenting challenges for both cocoa farmers and buyers alike. Fluctuations in cocoa prices, influenced by factors ranging from weather conditions to geopolitical events, impact farmers’ livelihoods and investment decisions. Moreover, income inequality within the cocoa supply chain, with farmers typically receiving a disproportionate share of the final retail price, exacerbates poverty and hampers sustainable development in cocoa-producing regions.

𝐃𝐢𝐬𝐞𝐚𝐬𝐞 𝐎𝐮𝐭𝐛𝐫𝐞𝐚𝐤𝐬 𝐚𝐧𝐝 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐃𝐢𝐥𝐞𝐦𝐦𝐚𝐬

Cocoa crops remain vulnerable to an array of pests and diseases, including fungal infections and viral ailments, which can wreak havoc on cocoa plantations, resulting in substantial yield losses and diminished bean quality. Quality concerns stemming from disease outbreaks not only curtail cocoa production volumes but also diminish the marketability and value of cocoa products, thereby impacting profitability and competitiveness within the cocoa market.

👉 𝐓𝐚𝐥𝐤 𝐭𝐨 𝐨𝐮𝐫 𝐄𝐱𝐩𝐞𝐫𝐭

𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐓𝐫𝐞𝐧𝐝𝐬 𝐚𝐧𝐝 𝐋𝐮𝐜𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐯𝐞𝐧𝐮𝐞𝐬 𝐭𝐨 𝐄𝐱𝐩𝐥𝐨𝐫𝐞:

𝐒𝐮𝐫𝐠𝐞 𝐢𝐧 𝐃𝐞𝐦𝐚𝐧𝐝 𝐟𝐨𝐫 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐚𝐧𝐝 𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐭𝐲 𝐂𝐨𝐜𝐨𝐚 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬

A notable recent trend in the cocoa market is the burgeoning demand for premium and specialty cocoa products. Consumers increasingly favor high-quality, ethically sourced cocoa featuring distinctive flavor profiles. Fueled by rising disposable incomes, evolving consumer preferences, and heightened awareness of sustainability and ethical sourcing practices, this trend fuels a growing market for premium cocoa beans, single-origin chocolates, artisanal cocoa products, and specialty cocoa ingredients tailored to cater to discerning tastes.

𝐑𝐢𝐬𝐞 𝐨𝐟 𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥 𝐚𝐧𝐝 𝐇𝐞𝐚𝐥𝐭𝐡-𝐎𝐫𝐢𝐞𝐧𝐭𝐞𝐝 𝐂𝐨𝐜𝐨𝐚 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬

Another prominent trend is the emergence of functional and health-focused cocoa products. Consumers seek cocoa offerings that not only provide indulgence but also confer potential health benefits. Endowed with antioxidants, flavonoids, and other bioactive compounds associated with various health perks, cocoa products are increasingly sought after for their potential cardiovascular, cognitive, and mood-enhancing benefits. Consequently, there is a burgeoning market for functional cocoa products such as supplements, beverages, and snacks targeting health-conscious consumers, prompting manufacturers to innovate and fortify cocoa-based products with vitamins, minerals, and other functional ingredients.

𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐢𝐧𝐭𝐨 𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭𝐬

A significant opportunity for cocoa market players lies in expanding into emerging markets characterized by burgeoning chocolate consumption and rising disposable incomes. Emerging economies across Asia Pacific, Latin America, and the Middle East witness increasing urbanization, evolving consumer lifestyles, and a burgeoning appetite for chocolate products. By tapping into these markets, cocoa players can capitalize on the expanding consumer base and drive sales growth. Furthermore, strategic investments in marketing, distribution, and product innovation tailored to local preferences can facilitate the establishment of a robust presence and capture market share in these high-growth regions.

𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐨 𝐂𝐨𝐜𝐨𝐚-𝐃𝐞𝐫𝐢𝐯𝐞𝐝 𝐈𝐧𝐠𝐫𝐞𝐝𝐢𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬

Another promising avenue for cocoa market players entails diversification into cocoa-derived ingredients and applications beyond traditional chocolate products. With its versatile properties, cocoa serves as a foundational ingredient for a broad spectrum of food, beverage, and non-food applications spanning bakery, cosmetics, and pharmaceuticals. Leveraging cocoa’s unique flavor, aroma, and functional attributes, market players can innovate and develop cocoa-based ingredients, flavorings, extracts, and derivatives to cater to diverse industry sectors. Moreover, exploring novel applications such as cocoa-based skincare products, functional beverages, and culinary ingredients infused with cocoa presents untapped market segments and revenue growth opportunities for cocoa market players.

𝐓𝐡𝐞 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞’𝐬 𝐈𝐦𝐩𝐚𝐜𝐭:

Regulatory frameworks wield significant influence over the cocoa market, playing a multifaceted role in its development. While stringent regulations uphold product safety and quality by setting standards for contaminants and microbes, they may elevate production costs. Additionally, regulations are propelling the industry towards ethical sourcing and fair labor practices, addressing concerns related to child labor and deforestation. Despite potential cost increases, these measures enhance the industry’s social and environmental footprint.

Transparency emerges as another crucial aspect, with regulations mandating clear labeling and product traceability to empower consumers to make informed choices and prevent fraud. Standards governing processing methods and allowable additives ensure consistency but may stifle innovation. Moreover, governmental policies such as export duties in producing regions can influence cocoa bean prices, thereby impacting manufacturers reliant on a steady supply. Navigating this intricate regulatory landscape is vital for companies to ensure consumer safety, ethical practices, and the sustainability of the cocoa industry.

𝐅𝐚𝐢𝐫𝐟𝐢𝐞𝐥𝐝’𝐬 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:

The cocoa market’s competitive landscape is characterized by numerous key players vying for market share through diverse strategies. Leading companies such as Barry Callebaut AG, Cargill, Inc., Olam International, Nestlé S.A., and Mars, Inc. dominate the industry owing to their extensive global presence, diversified product portfolios, and robust distribution networks. To sustain their competitive edge and spur growth, these players typically employ various strategic initiatives.

Vertical integration stands out as a major growth strategy, wherein companies engage in cocoa bean sourcing, processing, and chocolate manufacturing, thus ensuring control over the entire value chain to guarantee product quality and consistency. Furthermore, investments in research and development drive innovation in new cocoa-based products, flavors, and formulations aligned with evolving consumer preferences for premium, sustainable, and healthier chocolate options. Strategic partnerships, collaborations, and acquisitions are also commonplace strategies to expand market reach, access new distribution channels, and capitalize on emerging market opportunities, thereby fostering sustainable growth in the cocoa market’s competitive landscape.

👉 𝐌𝐚𝐤𝐞 𝐚 𝐃𝐢𝐫𝐞𝐜𝐭 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞

𝐖𝐡𝐨 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐋𝐞𝐚𝐝𝐞𝐫𝐬 𝐢𝐧 𝐆𝐥𝐨𝐛𝐚𝐥 𝐂𝐨𝐜𝐨𝐚 𝐒𝐩𝐚𝐜𝐞?

In the global cocoa space, the leaders include Cargill, Inc., Olam International Ltd., Toutan S.A., Barry Callebaut AG, The Hershey Company, Guan Chong Cocoa Manufacturer SDN. BHD, Ciranda, Inc., United Cocoa Processor, Inc., Bloomer Chocolate Company, and VJ Jindal Cocoa Private Limited.

𝐀𝐛𝐨𝐮𝐭 𝐔𝐬

Allied Market Research (AMR) is a full-service market research and business consulting wing of Allied Analytics LLP, based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view of providing business insights and consulting to assist its clients in making strategic business decisions and achieving sustainable growth in their respective market domains.

We have professional corporate relations with various companies, and this helps us dig out market data that helps us generate accurate research data tables and confirms the utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high-quality data and help clients in every way possible to achieve success. Each and every piece of data presented in the reports published by us is extracted through primary interviews with top officials from leading companies in the domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

David Correa
Allied Market Research
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[email protected]
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