COCOA MARKET ANALYSIS

Global cocoa market is expected to reach US$ 18.50 Bn by 2031, from US$ 14.00 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 4.7% during the forecast period.

The Cocoa or cocoa beans bean is the seed of the Theobroma cacao (cacao tree), a tropical plant originally belonging to the equatorial regions of Americas. Cocoa beans is the dried and fermented seed of cacao tree, from which cocoa beans liquor is produced. From these cocoa beans liquor, cocoa beans butter and cocoa beans powder is produced. Cocoa beans liquor is the main raw material for manufacturing chocolates. The cocoa beans products such as cocoa beans liquor, cocoa beans butter, and cocoa beans powder are widely used for making confections, used as flavoring in beverages, used as toppings in different foods, and used as fillings in bakery. The cocoa beans is also used in cosmetics, healthcare, pharmaceuticals and nutraceuticals industry as flavoring and coloring agents. Cocoa beans is also used to manufacture toiletries because of its aroma and flavor. The wide and growing application of cocoa beans in different industries can drive the global Cocoa market growth during the forecast period.

Global Cocoa Market- Regional Insights

• Europe is expected to be the largest market for the cocoa beans. It accounted for 43% of the market share in 2023. The market growth in Europe can be attributed to increasing demand for cocoa beans in countries such as France, Germany, the Netherlands, and Russia.
• Asia Pacific accounted for 27% of the market share in 2023. The market growth in Asia Pacific can be attributed to rising consumption of chocolates in countries such as India and China, and the increasing emphasis on producing high-quality cocoa beans in the region.
• North America is accounted for 15% market share in 2023. The market growth in North America can be attributed to increasing demand for chocolate in North America, which is a key factor enhancing the growth of the cocoa market in the region.

Figure 1. Global Cocoa Market Share (%), By Region, 2024

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Analyst’s Views:

The manufacturers and processors of chocolate and cocoa beans products are paying utmost attention to storytelling in their branding strategies as customers and consumers are highly captivated by the stories behind the products they buy and consume. The consumers are interested to know the stories behind a product, and this gives an opportunity to the cocoa beans manufacturers and traders to highlight the story behind the origin of the cocoa beans, especially in the case of specialty cocoa beans. Mostly, the storytelling strategy is used by the chocolate manufacturing companies to show cocoa beans and cacao trees in their advertising. Nestle Kit-Kat and Cadbury Bournville are examples of chocolate brands that use storytelling strategies.

Moreover, demand for high quality chocolates in Europe can boost demand for specialty cocoa beans and fine-flavor cocoa beans. These two cocoa beans s are available in less quantity and are very popular for their taste and quality. Hence, the demand for specialty cocoa beans and fine-flavor cocoa beans is expected to grow at a significant pace in the near future. Furthermore, growing application of cocoa beans in industries such as pharmaceuticals, food & beverages, cosmetics, and confectionery can drive the global cocoa market growth.

Global Cocoa Market Drivers:

Growing demand for dark and premium chocolates around the globe: The global demand for specialty and premium chocolate products has been increasing in the recent years. Consumers worldwide are increasingly preferring chocolates with higher cacao content and unique flavour profiles. This rising popularity of dark, single-origin, and artisanal chocolates is driving growth of global cocoa market. Cocoa beans producers are investing in improving the quality and yield of their crops to meet the standards required for premium chocolate production. This has positively impacted cocoa beans bean quality. Leading chocolate brands are also collaborating directly with farmer cooperatives and paying higher prices to encourage the shift towards specialty cocoa beans production.

The premiumization trend is expected to drive the market growth as more consumer’s associate dark and high-cacao chocolates with natural ingredients, artisanal craftsmanship, and health benefits like antioxidants. Younger consumers are especially willing to pay premium prices for unique flavors and sustainable sourcing narratives presented by niche chocolate makers. Thus, volumes of specialty cocoa beans s are likely to see more than proportional gains compared to regular cocoa beans s over the next 5 years. In 2020, according to the data from the European cocoa beans association, specialty cocoa beans s account for 10% of the overall Europe imports, and increase from 6% in 2018. This rising demand for premium, single-origin and dark chocolates around the world can offer long term growth opportunities for the global cocoa market. investments in improving the quality and volumes of specialty cocoa beans s will be crucial for producers to tap into this fast-growing segment and maximize value from the cocoa beans value chain.

Increasing production of cocoa beans coupled with the rising adoption of advanced technology for processing and manufacturing of cocoa beans: Global cocoa market is experiencing significant growth due to rising production levels and advancing technologies used in cocoa beans processing and manufacturing. Cocoa beans production has been increasing steadily over the past decade across major producing countries in West Africa and South America. Countries like Cote d'Ivoire, Ghana, Indonesia, and Ecuador have substantially expanded their cocoa beans crop acreage and yield through initiatives that promote sustainable farming practices, soil fertility management, pest and disease control, as well as climate-resilient varieties.

The cocoa beans processors and product manufacturers have widely adopted industrial-scale equipment, automated machinery, and digital quality control technologies that have optimized operations and consistently improved productivity. Innovations like real-time moisture detection, automated sorting, and traceability systems have allowed companies to mass produce cocoa beans ingredients and products with unprecedented precision and consistency in quality. This technological advancement across the supply chain has bolstered global supply capabilities to meet the rapidly growing demand for cocoa beans and cocoa beans -based end products.

Furthermore, favourable agricultural and economic conditions are expected to boost cocoa beans cultivation across major developing or countries. Ongoing research and development of advanced post-harvest and processing solutions will continue enhancing supply chain efficiencies to support worldwide market expansion. New production technologies involving climate-control greenhouses and vertical planting systems also aim to achieve higher and more reliable cocoa beans yields per acre, independent of weather variables. Such advancements are anticipated to play a key role in sustainably securing Cocoa Beans supplies and driving future market growth well into the next decade.

Global Cocoa Market Opportunities:

Growing demand for Cocoa Beans from the pharmaceutical industry: Growing demand for cocoa beans from the pharmaceutical industry provides a significant opportunity for the global cocoa market. cocoa beans contain high levels of flavonoids that have several health benefits. flavonoids are a class of antioxidants that can improve heart health, lower blood pressure, and reduce inflammation. Several clinical research studies have shown that cocoa beans can treat alzheimer's disease, reduce symptoms of asthma and protect against certain types of cancer as well.

As consumers increasingly focus on preventive healthcare and seek natural remedies, the use of cocoa beans -based pharmaceutical products increases. Major pharmaceutical companies are actively researching the medical uses of cocoa beans and developing supplements, pills, and therapies derived from cocoa beans. for instance, in 2021, chocolate supplements that contain high concentrations of cocoa beans flavones are gaining traction as a way to support brain and heart health. the global chocolate supplements market is projected to grow at over 7% annually until 2025, according to the world health organization.

This growing demand from the pharmaceutical sector presents global cocoa beans farmers and manufacturers with a valuable new market vertical. cocoa beans -producing countries like cote d'ivoire, ghana, indonesia, brazil, and cameroon can capture more value by investing in research, production, and processing methods that enhance the disease-fighting properties of their cocoa beans. according to a 2022 study by Food & Agriculture Organization, nations that develop expertise in producing specially treated 'nutraceuticals cocoa beans ' will attract premium prices from health-conscious consumers and pharmaceutical buyers in both developed and increasingly wealthy developing nations. this will boost farmer incomes and support more sustainable cocoa beans cultivation practices over the long run.

Increasing use of cocoa beans in the formulation of healthy beverages: The global Cocoa market has traditionally relied upon chocolate confectionery. However, evolving consumer preferences towards healthier beverage and snack options present a major opportunity for Cocoa Beans producers to diversify into new categories. Cocoa Beans contains flavonoids that is linked to potential health benefits such as lower blood pressure and healthier brain function. Beverages provide an attractive delivery system for these properties compared to high sugar chocolates. Major beverage companies have already begun incorporating small amounts of high-quality Cocoa Beans powder and extracts into their products. These innovators witnessing growth in sales of Cocoa Beans as health-conscious buyers recognize Cocoa Beans 's reputation as a nutrient dense superfood. As lifestyle-related diseases continue rising in many developing nations, consumers will increasingly demand beverages with functional benefits rather than empty calories. By carefully crafting diverse and tasty cocoa beans -infused beverages that also communicate understandable wellness propositions, the global cocoa market has an unprecedented chance to find entirely new demographic segments and expand total volume far outside the current customer base. Success in reaching younger age groups not traditionally associated with chocolate through innovative beverage could carry momentum for the raw material for decades to come.

Global Cocoa Market Trends:

Increasing demand for online distribution channel: Online shopping has indeed become a growing trend globally and is influencing various industries and markets. With more and more people preferring the convenience of online shopping over visiting physical stores, cocoa beans product companies are selling products online also. Brands and manufacturers dealing with cocoa beans confectioneries, chocolates and other Cocoa Beans -based food products now have prominent web pages and engage in aggressive online marketing. These showcase their diverse product ranges and offer attractive discounts and deals for online purchases. This boosts demand for Cocoa Beans products substantially. For instance, according to data from Eurostat, the statistical office of the European Union, the e-commerce sales of food & beverages grew by 25% in 2021 as compared to 2020.

The trend is steadily driving more Cocoa Beans farmers and exporters to focus on meeting the demands of online channels. Countries like Cote d'Ivoire, which produces around 40% of the world's Cocoa Beans, have taken initiatives to streamline their supply chain operations to facilitate swift delivery of Cocoa Beans beans and intermediary products to online retailers worldwide. As a result, Cocoa Beans trading platforms are also enhancing their online infrastructure and serviceability. International non-profit organizations like USAID have projects assisting Cocoa Beans growers in Ivory Coast to adopt technological and management skills to better align with the online marketplace. Thus, the burgeoning online shopping culture has undoubtedly opened new avenues for the global Cocoa Beans sector to explore. It is compelling participants across the value chain to upgrade and transform as per the rapidly evolving digital commerce space.

Increasing demand for organic and fair-trade cocoa beans: The growing demand for organic and fair-trade cocoa beans is having a significant impact on the global cocoa market. Consumers are increasingly concerned about the social and environmental sustainability of the products they purchase. These people want assurance that cocoa beans is produced safely, without harmful chemicals, and through ethical supply chains that fair compensate farmers. This shift in consumer preferences has created new opportunities for cocoa beans farmers but also new challenges for the industry. Farmers are experimenting with organic and fair-trade production methods that are kinder to the environment and local communities. However, the transition involves changes to farming practices as well as certification requirements. It can be an expensive process that not all farmers have means to implement. Cocoa beans companies and trading intermediaries are likewise adapting their sourcing models and investing in programs to promote sustainability standards. 

Global Cocoa Market Restraints:

Changing government regulations affects the production and selling policies of cocoa beans: Changing government regulations around the production and sale of cocoa beans are posing significant challenges for the industry. Many cocoa beans producing countries have implemented stricter environmental and labor laws in recent years to curb issues like deforestation and child labor on cocoa beans farms. While these regulations aim to address important social and environmental problems, these have also made cocoa beans cultivation more complex and costly for farmers. The additional paperwork, certifications, and monitoring required to comply with new rules have increased operating expenses. Many smallholder farmers now struggle with the administrative burden as well as hiring labour that meets the higher minimum age limits. As a result, cocoa beans yields in countries like Cote d'Ivoire and Ghana have declined in planting seasons, according to export data from 2021-2022, published by the International Cocoa Beans Organization.

The production slowdown has tightened global cocoa beans supplies and driven prices up over the past two years. Several multinational chocolate companies have reported shrinking profit margins due to rising cocoa beans bean prices. As a result, some players have scaled back marketing budgets and put investment plans for new products on hold. Consumer prices have risen too, causing demand to level off in major markets like the U.S. and Western Europe. Consumers in recession-impacted economies are more sensitive to price increases, as inflation squeezes household incomes. The combined impacts of tight supplies and softer demand mean the global cocoa beans sector is facing more challenging conditions for growth over the medium term.

While regulations aim to remedy social and ecological issues, the Cocoa Beans industry underscores the need for implementation methods that do not overly burden farmers. Plans for supporting smallholders' compliance through training, financing, and partnerships could help maintain yields and supplies. With collaboration between producers, buyers, and governments, the necessary changes can be adopted without restraining an industry that supports livelihoods around the world.

Counterbalance: To overcome this restraint, the key market players need to follow all labor laws, which might increase the global Cocoa market growth.

Recent Developments:

• In November 2022, Niche Cocoa Beans Industry announced the expansion of its manufacturing facility in Franklin, Wisconsin. The development will also improve the company's presence in the U.S Niche Cocoa Beans Industry, the largest privately operated Cocoa Beans processing company in Ghana, announced the establishment of its first North American manufacturing facility in Franklin, Wisconsin. The company plans to lease an existing 44,000-square foot building in Franklin Business Park, where it will import Cocoa Beans cake to be pulverized into Cocoa Beans powder for nationwide distribution.
• In March 2022, Crunchy Cookie Chocolate Spread was launched by Hershey India Pvt Ltd as an expansion of the existing Hershey's chocolate spread, which is available in flavors such as Cocoa Beans with almond and Cocoa Beans. Hershey India Pvt Ltd is a subsidiary of The Hershey Company, a well-established and renowned global producer of chocolates and confectionery. The Indian subsidiary, Hershey India Private Limited, was founded in 2013 and is engaged in the manufacturing of flavoring extracts, syrups, and powders. The company's product line includes a variety of chocolate and Cocoa Beans -based products, catering to the diverse preferences of consumers.

Figure 2. Global Cocoa Market Share (%), By Product Type, 2024

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Top Companies in the Global Cocoa Market

• 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 Beans
• Jindal Cocoa Beans

*Definition: Cocoa Beans is a powder made from roasted, husked, and ground seeds of the cacao tree, Theobroma cacao, from which much of the fat has been removed. It is used in various food and beverage applications, including hot Cocoa Beans , chocolate, and baked goods. Cocoa Beans beans are native to the Amazon rainforest and are the basis of chocolate and Mesoamerican foods. The beans are roasted, cracked, and deshelled, resulting in pieces called nibs, which are further processed into Cocoa Beans solids and Cocoa Beans butter. The term "Cocoa Beans " is sometimes used interchangeably with "cacao," which refers to the raw, unrefined bean. Cocoa Beans is a significant contributor to economies such as Nigeria, and demand for Cocoa Beans products continues to grow steadily.