Cocoa Market on Track to Reach US$ 14.8 Bn by 2032 - Persistence Market Research

The cocoa market is witnessing steady growth as consumer preferences shift toward artisanal and premium chocolate products. Growing health consciousness and demand for dark chocolate in countries like the United States, Germany, and France are fueling market expansion. Despite challenges related to climate change and sustainability in key producing regions like Ghana and Côte d'Ivoire, global cocoa grinding saw a 2.5% increase in 2023, as per the International Cocoa Organization (ICCO).

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Key Market Trends Driving Growth

1. Expansion Beyond Confectionery: The use of cocoa in non-confectionery products like beverages, cosmetics, and nutraceuticals is creating new opportunities for manufacturers.
2. Organic Cocoa Leading the Market: Organic cocoa is expected to account for 65% of the market in 2025 due to its unique taste and perceived health benefits.
3. Rising Demand for Cocoa Powder: With an estimated 53% market share in 2025, powdered cocoa remains the dominant form due to its widespread application in confectionery and baking.
4. Regional Dominance: North America and Europe will continue to be major markets, holding 28% and 32% market shares in 2025, respectively, driven by evolving food trends and the presence of prominent chocolate processors.
Market Dynamics

Growth Drivers

Surging Popularity of Cocoa-Based Food and Beverages
The food and beverage sector is expected to dominate the cocoa market, holding 47% of the total market share by 2025. Premium and dark chocolate are witnessing growing demand, with manufacturers like Lindt & Sprüngli, Hershey, and Barry Callebaut expanding their product offerings to cater to consumers seeking indulgence with health benefits.
In March 2024, Nestlé introduced a single-origin dark chocolate bar sourced from Ecuador, emphasizing sustainability and high-quality cocoa sourcing. The trend toward ethically produced, bean-to-bar chocolates is further encouraging market expansion.
Growing Adoption in Health and Wellness Industry
Cocoa flavanols are gaining recognition for their cardiovascular and cognitive health benefits, leading to their increasing use in nutraceuticals and functional foods. Plant-based cocoa protein shakes and ready-to-drink chocolate beverages are expected to witness strong demand from 2025 to 2032.
Skincare brands like The Body Shop and Palmer's are leveraging the moisturizing benefits of cocoa butter to expand their cosmetic product lines, further driving the market.

Market Challenges

Supply Chain Instability and Price Volatility
The cocoa industry faces significant supply chain challenges due to climate change, currency fluctuations, and farmer poverty in key producing nations. Ghana and Côte d'Ivoire, responsible for over 60% of global cocoa production, have been impacted by extreme weather conditions, resulting in lower yields.
Additionally, cocoa swollen shoot virus disease (CSSVD) and economic instability in Nigeria-contributing 6% of global supply-are further exacerbating supply constraints. In early 2024, cocoa prices surged by over 40%, reaching a 46-year high of US$ 5,874 per ton, prompting major chocolate manufacturers to adjust sourcing strategies.

Key Market Opportunities

Rising Demand for Organic and Non-GMO Cocoa Products
Consumer preference for clean-label and ethically sourced products is driving the demand for organic cocoa, which is projected to account for 65% of the market share in 2025. Leading producers like Cargill, Barry Callebaut, and Olam Food Ingredients are expanding their offerings of organic cocoa powders, butter, and chocolates.
In response to regulatory pressures, major brands such as Lindt & Sprüngli, Tony's Chocolonely, and Divine Chocolate are prioritizing sustainable and non-GMO cocoa sourcing. Mars Inc. has announced plans to achieve 50% organic cocoa supply by 2025, marking a major industry shift.
Expanding Applications in Beverages and Functional Foods
The demand for cocoa in functional beverages is set to rise, with Nestlé launching Nesquik Hot Chocolate infused with added vitamins and minerals in January 2024. Cocoa-based nutraceutical products are also gaining traction for their antioxidant properties, opening new growth avenues for manufacturers.

Regional Insights

North America: A Stronghold for Premium Chocolate
The North American cocoa market is expected to hold a 28% market share in 2025. The region's evolving confectionery trends, focus on sustainable sourcing, and rising demand for high-cocoa-content dark chocolate are key factors driving growth.
Hershey's is actively expanding its Cocoa For Good initiative, pledging US$ 500 million by 2030 to improve the livelihoods of cocoa farmers. Mondelez International's Cocoa Life program is also making strides in sustainable sourcing.
Europe: A Leader in Sustainable Chocolate Production
Europe is expected to hold a 32% market share in 2025, with growing consumer demand for high-end, organic, and Fair Trade-certified chocolate. Companies like Ferrero, Nestlé, and Barry Callebaut are heavily investing in sustainability programs. The European Union's strict regulatory framework is also pushing brands to adopt ethical sourcing and carbon-neutral production.
Asia Pacific: Rapid Expansion in Chocolate-Based Products
The Asia Pacific region is experiencing rising demand for chocolate-based snacks and beverages, particularly in China, India, Japan, and South Korea. Mondelez International, Nestlé, and Meiji Holdings are expanding their presence with localized flavors and innovative packaging.
For instance, Mondelez's Cadbury Dairy Milk is a leading chocolate brand in India, while Meiji's high-cacao chocolate is gaining traction in Japan due to its health benefits. Manufacturers are focusing on sustainable cocoa sourcing to meet growing regional demand.

Competitive Landscape

The cocoa market is highly competitive, with key players employing various strategies like partnerships, mergers, acquisitions, and product innovations. Sustainability remains a top priority for leading companies.

Recent Industry Developments

• In December 2024, Del Monte launched "The King of All Chocolate Flavored Syrups" campaign, highlighting its high cocoa content.
• In December 2024, Lindt & Sprüngli introduced its Dubai Chocolate Collection in the U.S.
• In October 2024, Godiva launched a limited-edition Heritage Collection in the U.S.
• In July 2024, Mars Wrigley introduced Galaxy Flutes in India.
• In June 2024, Nestlé launched a Sustainably Sourced chocolate range under the Rainforest Alliance certification

Market Segmentation

By Nature
• Organic
• Conventional
By Form
• Powder
• Liquid
By Type
• Cocoa Extract
• Natural Cocoa Flavor
• Natural Cocoa Flavor WONF
• Natural Identical Cocoa Flavor
By End Use
• Food and Beverages
o Bakery
o Confectionery
o Beverages
• Foodservice
• Retail/Household
By Region
• North America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa
• Latin America

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