Cocoa Market is Poised for Growth on the Back of Increasing Working Population Trend

The cocoa market has emerged as one of the most robust markets globally. Cocoa is primarily extracted from cocoa beans that grow on cocoa tree and is widely used to produce chocolate, cocoa powder, cocoa butter and liquor. Cocoa supplies various health benefits due to presence of antioxidant compounds like flavonoids that help reducing blood pressure and preventing heart diseases. It is also helpful in improving mood and reducing stress levels. Factors such as changing consumer preferences towards healthy and organic chocolates along with expanding working population have augmented the demand of the cocoa market.

The Global cocoa Market is estimated to be valued at US$ 11,499.6 Mn in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period from 2023 to 2030.

Key Takeaways

Key players operating in the cocoa are The Barry Callebaut Group, The Hershey Company, Nestlé S.A., Cargill Incorporated, Puratos Group, Cémoi, Mars, Incorporated, Blommer Chocolate Company, Meiji Holdings Company, Ltd., Carlyle Cocoa, Jindal Cocoa, and United Cocoa Processor. Key players like Barry Callebaut are focusing on enhancing their production capacity and global footprint to cater to the rising demand.

The demand for cocoa is witnessing significant growth owing to rising consumption of chocolates and cocoa-based products among working populace and millennials. Changing lifestyle and increasing per capita income are encouraging the utilization of value-added cocoa ingredients in various food and beverage products.

Major players are also strategizing their manufacturing bases and distribution network in high potential regions of Asia Pacific and Latin America to leverage opportunities stemming from rising economies. Regions like China, India, Brazil and Mexico are projected to be at the forefront of future cocoa market expansion.

Market key trends

One of the major trend gaining traction in the cocoa market is the increasing production of organic cocoa. There is growing consumer preference for sustainably sourced and ethically traded cocoa products. The demand for organic chocolate and related products is surging exponentially owing to rising health consciousness. To cater to this demand, key players have launched several certified organic cocoa lines. This trend is anticipated to shape the dynamics of cocoa industry in the coming years.

Porter’s Analysis

Threat of new entrants: The cocoa market requires large capital investments for cocoa bean farming and processing which act as a barrier for new companies.

Bargaining power of buyers: Large chocolate manufacturers and food companies have significant bargaining power over cocoa bean suppliers and processors due to their size and market dominance.

Bargaining power of suppliers: Cocoa farmers have low bargaining power as cocoa production is dominated by few major producers and suppliers.

Threat of new substitutes: There are no cost-effective substitutes for cocoa yet. However, alternatives like carob and dairy products pose a moderate threat.

Competitive rivalry: The global cocoa market is consolidated with top players accounting for majority share. Competition is based on quality, innovation, and expanding product portfolio.

Geographical Regions

In terms of value, the cocoa market is concentrated in West Africa, accounting for over 70% of global production. Countries like Cote d'Ivoire, Ghana, Nigeria are the dominant suppliers. North and South America are also significant producers, with Ecuador and Brazil among the leading exporters worldwide.

The Asia Pacific region represents the fastest growing geographical market for cocoa. Countries like China, India and Indonesia are emerging as large chocolate consumers, driving the demand for cocoa beans in the region. Expanding middle class, rising disposable incomes, and growing popularity of chocolate confectioneries are some factors propelling the APAC market at a high growth rate.