Press release
Global Cocoa Market Investigation & Industry Evolution till 2028 || Global Key Players - Cargill, Olam International Ltd, Barry Callebaut AG, Guan Chong Cocoa Manufacturers Sdn., Natra SA, Touton SA, BT COCOA, Dutch Cocoa BV, Blommer Chocolate Company
A stellar growth trajectory of the cocoa market is anticipated owing to the rising demand from the flourishing chocolate industry across the global regions. Levels of chocolate production and consumption are the prime fillip helming the cocoa market, where rising discretionary income have dramatically bolstered the purchase of chocolates. Historically known for its limited consumption as a luxury item, popularity of chocolate is driven by growing palate for cocoa flavor worldwide. Apart from its extensive application in the food and beverage industry, cocoa is exploited by pharmaceutical, cosmetics, confectionery and functional food industries among others, representing future lucrative opportunities for the cocoa market.Fact.MR report on the cocoa market envisages an impressive CAGR of 11.23% during the forecast period of 2018 – 2028. As the most preferable flavor ingredient, cocoa-based products are highly exploited by the multiple industry verticals. Cocoa is also explored by pharmaceutical and cosmetics industries for their health benefits. With the incremental demand for cocoa products among multiple manufacturing industries, the business-to-business distribution is poised to report over 5,500,000 tons of sales by 2028 end in the cocoa market. Evident demand in the food and beverage sector is ensued with the sales of 4,500,000 tones by the end of 2028 in the cocoa market.
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Intensifying demand for cocoa liquor in the food and beverage industry against the backdrop of growing appetite for cocoa flavor has led the cocoa liquor form type to outnumber cocoa powder and cocoa butter with the sales of over 2,200,000 tons of cocoa by end of 2028 in the cocoa market.
Between the two primary processes of cocoa powder production in the cocoa market, Dutch process cocoa powder segment is expected to dominate the cocoa market despite a sizable share of natural cocoa powder. As most bakery and confectionery products include leaveners in recipe, demand for Dutch process cocoa is preferred by major end-users. As per Fact.MR valuations, Dutch processed cocoa powder segment is estimated to surpass sales of 3,500,000 tons, contributing over half of the total sales in process types in the cocoa market.
As the chocolate industry is well-established in Europe, Europe cocoa market is observed as matured market. In addition, the Europe cocoa market is strictly regulated by regulatory authorities such as European Cocoa Association, Association of German Confectionery Industry, and Organic Cocoa Farmer’s Association among others. With the food and beverage industry at the core of region’s economy, the cocoa market is flourishing in the industry. Countries in European Union such as Germany, Belgium, Italy, France, and the United Kingdom among others are expected to contribute to the thriving market for cocoa in Europe in the coming decade. Given that Europe is expected to lead the global space with over 30% of the cocoa market share.
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As the tropical agricultural products face critical challenges of sustainable production, cocoa is the most affected crop. Although at a steady pace, effective measures are underway to address sustainability challenges of cocoa market. Extensive research to improve cocoa market sustainability, cocoa development strategies such as diversification of crops, identifying role of small stakeholders and large plantations, strengthening network of SMEs and agro processing industry are underway. These are likely to assist government as well as non-government partners to enhance cocoa production by supporting farmers and ensure future sustainability in the cocoa market.
Growing awareness regarding challenges of sustainable cocoa production against the background of campaigns that focus on child labor and rising interest of media to spread public awareness are factors inviting the trend of certification and higher standards in cocoa market. Multiple standard bodies including UTZ Certified, Rainforest Alliance/SAN (RA), and Fairtrade International (FT) set standards to maintain better quality and quality check processes. According to World Cocoa Foundation, currently only 22% of the traded cocoa is certified, which does not meet the regulatory standards. This explains challenges to fulfill the global cocoa demand as well as restraints to realize sustainable cocoa production in the cocoa market and to bring about effective increase on cocoa farmers income.
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