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Cocoa Ingredients Market Estimated to Expand at a Robust CAGR 2017 - 2025

08-21-2017 07:53 AM CET | Fashion, Lifestyle, Trends

Press release from: Persistence Market Research

Cocoa Ingredients Market Estimated to Expand at a Robust CAGR

Cocoa Ingredients Market Drivers

Exponentially rising chocolate sales across the world are anticipated to be the main cocoa ingredients market driver. Booming economic growth in the APAC region (led by China and India), Latin America and Southeast Asia along with an increasing disposable income will spur the demand for chocolates. In addition to this, there is a growing realisation that dark chocolate with the maximum amount of cocoa (usually above 70%) has several health benefits. Studies have shown that it contains antioxidants, lowers the risk of heart disease, improves blood flow & lowers blood pressure, and decreases oxidised LDL cholesterol levels, especially in men. This is particularly relevant in developed countries which have an ageing population. Cocoa seeds are used by some people as a medicine and it is supposed to help treat infectious intestinal diseases, asthma, diarrhoea, bronchitis. The seed coat is used for bladder, liver and kidney trouble, as a tonic, treating diabetes, and even as a general remedy. The butter is helpful in cases of high cholesterol, to treat wrinkles and even to prevent pregnancy stretch marks.

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Cocoa Ingredients Market Restraints

Rising production cost is anticipated to be the single biggest restraint in the cocoa ingredients market. 70% of the world’s cocoa is produced in the West African nations of Ivory Coast and Ghana. Last year, unfavourable weather led to unusually small cocoa beans. Cocoa production in Ghana plummeted in 2015 after local farmers applied critical pesticides very late in the crop’s development cycle. At the same time, a sharp drop in sugar production has driven up its prices substantially. Both of these are the main components of chocolate bars but intense competition in the industry means that confectionary companies have no choice but to absorb the additional costs. Compounding this is the slowdown experienced in the key markets of North America and Europe. Customers in these regions have become very health conscious in recent times and many of them are forgoing chocolate entirely in favour of healthier alternatives. For the last decade, the growth rates of these healthier options have been outpacing that of the confectionary industry. They have also begun to move up to premium or indulgent products that usually have fewer cocoa ingredients than mainstream options.

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Cocoa Ingredients Market Key Regions

The cocoa ingredients market can be broadly classified into two types – the producer and the customer market. West Africa has long been the world’s largest cocoa producer, with nearly 70% coming from Ghana & the Ivory Coast. The largest cocoa ingredient customer markets are the EU, followed by North America. This is mainly due to an affluent population with discerning tastes and a preference for healthier options like dark chocolate. The strongest growth is expected to be in China and India and they will drive the future market. Despite their impressive growth, however, the West cannot be ignored by companies involved in the cocoa ingredients market on account of their strong fundamentals.

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About Us

Persistence Market Research (PMR) is a U.S.-based full-service market intelligence firm specializing in syndicated research, custom research, and consulting services. PMR boasts market research expertise across the Healthcare, Chemicals and Materials, Technology and Media, Energy and Mining, Food and Beverages, Semiconductor and Electronics, Consumer Goods, and Shipping and Transportation industries. The company draws from its multi-disciplinary capabilities and high-pedigree team of analysts to share data that precisely corresponds to clients’ business needs.

PMR stands committed to bringing more accuracy and speed to clients’ business decisions. From ready-to-purchase market research reports to customized research solutions, PMR’s engagement models are highly flexible without compromising on its deep-seated research values.

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