The Global Cocoa Market Surges Ahead in Consumers' Growing Love of Chocolates
Cocoa Market
The global cocoa market is growing rapidly driven by consumers' increasing affection for chocolate confectionery products. Cocoa, the primary ingredient for making chocolates, is extracted from cocoa beans which grow exclusively in tropical climates. The beans are fermented, dried, roasted, and processed to obtain cocoa powder, cocoa butter, and other extracted products. Cocoa powder lends the characteristic chocolate taste and flavor to confectionery items like chocolate bars, biscuits, desserts and beverages. It boosts health by offering antioxidant compounds along with the rich indulgence of taste and texture.
The Global Cocoa Market is estimated to be valued at US$ 18.50 Bn by 2031, from US$ 14.00 Bn in 2024, and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.
Key players operating in the cocoa market are The Barry Callebaut Group, The Hershey Company, Nestlé S.A., Cargill Incorporated, Puratos Group, C&F Foods Inc., Olam International Ltd., ECOM Agroindustrial Corporation Ltd., Touton S.A., and Ciranda Inc.
Key Takeaways
Key players: Key players operating in the cocoa market are The Barry Callebaut Group, The Hershey Company, Nestlé S.A., Cargill Incorporated. These major players collectively account for over 50% share of the global market.
Growing demand: Rapid urbanization, rising per capita incomes in emerging economies and changing lifestyles are fueling higher demand for chocolate confectionery products. This is encouraging cocoa farmers to boost production capacities.
Global expansion: Major cocoa producers like Barry Callebaut, Olam and Cargill are investing heavily in Africa and Southeast Asia to tap opportunities in high Cocoa Market Growth and ensure consistent supply chains.
Market key trends
Rising health consciousness is driving demand for premium dark chocolates rich in antioxidant flavanols. Players are launching products containing 70% or higher cocoa solids to cash in on the health trend. They promote associated health benefits of reducing cardiovascular risks, blood pressure and improving mood. This is a key driver propelling the global cocoa market ahead.
Porter's Analysis
Threat of new entrants: The cocoa market has high barriers to entry due to required specialized skills, equipment, and resources needed for growing and processing cocoa. Bargaining power of buyers: There are a large number of buyers in the global cocoa market. However, buyers have limited bargaining power due to lack of substitutes and dependence on few producing nations. Bargaining power of suppliers: The cocoa market is dominated by few producing countries that have significant control over global supply.
This gives suppliers high bargaining power in the market. Threat of new substitutes: There are few direct substitutes for cocoa due to its unique taste properties. However, alternatives like carob continue to pose a threat. Competitive rivalry: The cocoa market has several large players competing globally. Intense competition keeps prices in check and encourages product innovation.
Geographical regions with the highest value concentration: Africa dominates the global cocoa market in terms of production value, followed by Asia Pacific and South America. Cote d'Ivoire, Ghana, Indonesia, Nigeria are the leading cocoa producing countries accounting for over 70% of global output.
The fastest growing region: The Asia Pacific cocoa market is forecast to grow at the fastest rate through 2031. Rising incomes, evolving tastes and increasing Western influence on diets in populous nations like China and India is driving strong demand growth in the region. Expanding use of cocoa powder in various food and beverage applications also contributes to its rising popularity.
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)