Cocoa MarketSize and Trends

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

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 products such as cocoa liquor, cocoa butter, and cocoa 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 is also used in cosmetics, healthcare, pharmaceuticals and nutraceuticals industry as flavoring and coloring agents. Cocoa is also used to manufacture toiletries because of its aroma and flavor. The wide and growing application of cocoa 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. It accounted for 43% of the market share in 2023. The market growth in Europe can be attributed to increasing demand for cocoa 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 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.

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 product companies are selling products online also. Brands and manufacturers dealing with cocoa confectioneries, chocolates and other cocoa-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 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 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, have taken initiatives to streamline their supply chain operations to facilitate swift delivery of cocoa beans and intermediary products to online retailers worldwide. As a result, cocoa trading platforms are also enhancing their online infrastructure and serviceability. International non-profit organizations like USAID have projects assisting cocoa 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 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: The growing demand for organic and fair-trade cocoa 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 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 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 companies and trading intermediaries are likewise adapting their sourcing models and investing in programs to promote sustainability standards.