GLOBAL COCOA AND CHOCOLATE MARKET SIZE (2024 - 2030)

Global Cocoa and Chocolate Market was valued at USD 52.17 billion and is projected to reach a market size of USD 74.39 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.2%. determinants for the cocoa and chocolate market include rising demand for fair-trade chocolates and consumers' preference for healthy snacking.

MARKET OVERVIEW

Cocoa is the dried, fermented, and processed plant material derived from cocoa beans. The word "cocoa" is derived from the Spanish "cacao." After the cocoa beans are processed, the powder material is known as cocoa. Natural chocolate has a dark, bitter flavour. With no cocoa butter, Dutch cocoa is lighter and less bitter; cocoa butter is often removed during the processing stage. Cocoa is considered a healthy product because it contains fewer calories, fat, and sugar and is high in antioxidants due to the absence of cocoa butter.

Chocolate in its purest form is cocoa. Chocolate is made from cocoa beans and goes through the same production process as cocoa. Cocoa butter, on the other hand, is not extracted from chocolate. Chocolate's smoother and richer consistency is due to cocoa butter. Because cocoa butter is present, chocolate has a lot of calories, fat, and sugar. There are several types of chocolate, including raw, semi-sweet, sweet, dark, milk, white, and compound. Chocolate comes in many different forms, including little beads, bars, liquid, and power.

Market growth possibilities include rising health awareness and rising demand for dark and sugar-free chocolates. Chocolate contains a lot of fat, sugar, and calories, which can cause health problems like diabetes, therefore people are switching to reduced sugar or sugar-free chocolates and cocoa chocolates, which are healthier and contain a lot of antioxidants.

COVID-19 Impact on Cocoa and Chocolate Market

The pandemic of COVID-19 has had a significant impact on the food and beverage processing industry. The socioeconomic condition has hurt specific product consumption trends. Farmers farming cocoa in minor but important cocoa-producing countries suffered losses as a result of COVID-19 limitations since supply outstripped demand in the early months of the pandemic. As a result, cocoa prices (USD/tonne) have dropped significantly. Nearby cocoa contract prices were USD 2,528 per tonne in January 2021, according to the International Cocoa Organization (ICCO) in New York, down 6% from the previous crop year's average of USD 2,675 per tonne.

COVID-19-related lockdowns essentially shut down multiple key distribution points for cocoa and chocolate producers, including restaurants, hotels, and other businesses resulting in decreased sales. The chocolate market saw a shift toward darker varieties of chocolate during COVID-19, as customers favoured them over other sorts due to superior health advantages and reduced calorie content. In the present pandemic, the trend of consuming low-sugar and sugar-free goods to maintain general health is expected to provide tremendous potential for producers.

MARKET DRIVERS

High Demand for Chocolate Confectionery To Fuel Market Growth Driving Factors

The global market for cocoa and chocolate is primarily driven by the growing popularity of chocolate confectionery. In recent years, demand for chocolate confectioneries has increased in emerging economies, owing to rising consumer spending on decadent confectionery items, particularly chocolate confectioneries. The chocolate confectionery market is expected to benefit from rising demand for moulded and countline chocolates in developed nations. The addition of additional chocolate types to significant producers' portfolios, such as black chocolate and ruby chocolate, is likely to help the industry thrive. The growing trend of giving chocolates as gifts throughout the holiday season is also predicted to contribute significantly to the development of the industry.

Demand for speciality chocolate products is strong, which encourages innovation and development, hence driving the market growth.

In recent years, there has been a tremendous increase in demand for premium or speciality chocolates, particularly in developed markets such as the United States, France, Belgium, and Germany. In the future years, a rising trend is projected. A crucial primary driver is a growing customer preference for knowing the origin of all the components used in chocolates. It happens for a variety of reasons, including allergies to specific ingredients, such as lactose, and vegan preferences. In addition, items created from speciality cocoa beans are in high demand. Speciality chocolates are expected to grow as a result of these factors.

The demand for clean-label and organic products to preserve overall health and wellness has surged as a result of the developing trend. In the coming years, rising worker awareness is likely to increase demand for fair traded cocoa.

MARKET RESTRAINTS

 Increasing Demand for Chocolate Substitutes & Equivalents is hampering growth.

Due to the easy availability and cost-efficiency of the items described above, growing demand for cocoa component substitutes and cocoa ingredient equivalents such as palm oil, soybean oil, shea, rapeseed oil, and others may have a negative influence on the cocoa butter market. The use of cocoa butter replacements has enhanced the fat stability and fat content profile of finished chocolate products, which is driving their growth pace.

Due to the increased demand for cocoa ingredient substitutes as a result of rising cocoa ingredient prices, major market players such as Olam International, Wilmar International, Cargill Inc., Danisco, and others are offering a wide range of cocoa butter equivalent blends to meet market demands, which is also confining to the cocoa butter market.

Market growth is being hampered by a lack of cocoa beans.

The global market for cocoa and chocolate is exploding. As a result, a scarcity of cocoa beans will limit the future expansion of the cocoa and chocolate industries. Due to the extreme difficulty in the cocoa and chocolate markets, farmers are abandoning cocoa cultivation. Consumer attention is turning to other alternatives, such as snacks, due to the presence of saturated fats in chocolate and bad health impacts, limiting the growth of the chocolate business.

COCOA AND CHOCOLATE MARKET REPORT COVERAGE:

This research report, based on the cocoa and chocolate market is segmented and sub-segmented by type, application and region.

Cocoa and chocolate market by type

• Cocoa

• Chocolate

Chocolate holds a significant market share, owing to the growing popularity of chocolate confectioneries. The increased popularity of chocolate confectionary has largely contributed to the chocolate segment's improved sales performance. Due to the growing trend of premium sized chocolate, filled chocolate has a bigger market share than other chocolate types. Filled chocolates are becoming increasingly popular as seasonal gifts. The growing tendency of exploring different varieties of chocolate confectioneries is likely to boost the segment's growth.

Due to its expanding usage in a variety of products such as ice cream, confectionery, non-alcoholic beverages, rich baked goods, and nutritional drinks, the cocoa ingredients industry is predicted to rise at a quicker rate. According to the International Cocoa Organization (ICCO), world cocoa production will increase by 10%.

 Cocoa and chocolate market by application

• Food & Beverage

• Cosmetics

• Pharmaceuticals

• Others

Due to the wide range of applications, the food and beverage industry is expected to grow rapidly. The food and beverage industry is booming over the world, offering numerous opportunities. Chocolate has been a popular flavour in recent beverage, bakery, and confectionery product releases. It has also remained a popular ingredient in the confectionery and beverage industries. Soon, this trend is expected to increase demand for cocoa butter and cocoa powder. The rising gourmet and speciality cocoa-based options are being aided by the worldwide foodservice business. Foodservice behemoths require more customised, value-added, and multifunctional solutions, which are expected to grow in popularity.

Cocoa butter has several uses in the cosmetics business, and the all-natural trend in skincare products is gaining popularity. Cocoa butter is employed in the pharmaceutical sector for its physical qualities, as cocoa beans are abundant in polyphenols and flavonoid antioxidants, making them highly antioxidant. It also benefits heart health, stimulates the immune system, and relieves constipation.

Cocoa and chocolate market by region

• North America

• Europe

• Asia-Pacific

• Latin America

• The Middle East and Africa

Geographically, the market is divided into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

In 2021, Europe dominated the global market, with a value of USD 19.95 billion. Many global large industrial chocolate companies are headquartered in Belgium, the Netherlands, Germany, and Switzerland, making Europe a centre for industrial chocolate production. Chocolate and chocolate products are both major producers and consumers in the region. To suit the demand of the cocoa and chocolate industries, European purchasers source cocoa beans of varying quality and origins.

Because it is a major importer of cocoa to fulfil the domestic confectionery manufacturing sectors, the North American market is expected to increase significantly. According to the Canadian government, the United States imported around USD 5.2 billion in cocoa and cocoa preparations from around the world, including blocks, liquids, paste, granules, and powders. Furthermore, industrial chocolates with a higher cocoa extract content are becoming a popular and preferred pleasure. The health advantages of cocoa are well-known among consumers, and this is pushing dark chocolate consumption in the North American chocolate confectionery sector.

As demand for chocolate confectioneries in rising nations such as China and India has risen, the market in the Asia Pacific is fast expanding. The increase can be linked to rising consumer spending on decadent chocolate sweets. According to the International Cocoa Organization, per capita chocolate confectionery consumption in India ranges from 100 to 200 grammes, accounting for roughly 10% of global consumption in 2018. In addition, the organic and natural product trend is gaining popularity in South Korea. To keep up with market developments, chocolate manufacturers buy specialised branded raw materials like organic and kosher cocoa. The market is currently being driven by an understanding of the supposed health benefits of cocoa, including its polyphenol content and role in healthy ageing, in developed countries such as Japan and Australia.

The Middle East and Africa are predicted to expand the fastest, owing to consumer preferences for convenience, value, and luxury in chocolate products, which has increased the use of cocoa butter in the Middle East. Affluent Middle Eastern consumers like filled chocolate because it offers more luxurious enjoyment and a richer mouthfeel. Dark chocolate's distinctive packaging designs and health claims have also become popular purchasing options, particularly among the younger population.

Cocoa and chocolate market by company

The major companies in the worldwide cocoa and chocolate markets are considering new product releases and expanding their customer bases. As a strategy to improve their market position, these manufacturers are working hard to expand their consumer outreach. A key participant, Barry Callebaut AG, is focusing on diversifying its product line by offering new cocoa and chocolate products that meet modern customer demand. In February 2020, for example, the business launched dairy-free chocolate in their plant crafts line. The overall market structure is largely consolidated. Strategic mergers are a focus for significant firms like Olam International, Cargill, Inc., Nestle S.A., and Barry Callebaut AG to expand the market.

NOTABLE HAPPENINGS IN THE COCOA AND CHOCOLATE MARKET IN THE RECENT PAST

PRODUCT LAUNCH

In February 2021, Cargill introduced the Gerkens CT70 cocoa powder to the Gerkens cocoa powder brand

EXPANSION

In March 2022, Barry Callebaut announced the expansion of its Campbellfield, Melbourne, Australia, facility. By producing safe, high-quality products, the new plant expands the company's regional footprint in the Asia Pacific. From global and local food producers to artisanal and professional chocolate users, the facility can serve Australia's entire food sector.

RESEARCH AND DEVELOPMENT

In January 2022, Blommer Chocolate Company, a Fuji Oil Co., Ltd. affiliate, announced the opening of an R&D applications lab in downtown Chicago. With new and enhanced ways to assist the business, the new area offers an extension of R&D capabilities.