The Global Cocoa and Chocolate Market: Forecast (2024 - 2030)

The global cocoa and chocolate market, previously valued at USD 52.17 billion, is poised to reach USD 74.39 billion by 2030. Projections indicate a compound annual growth rate (CAGR) of 5.2% during the forecast period (2024-2030). Key factors driving this growth include an increasing demand for fair-trade chocolates and consumers' inclination towards healthier snacking options.

Market Overview

Cocoa, derived from cocoa beans through drying, fermentation, and processing, is a staple in the chocolate industry. Following processing, cocoa powder emerges, recognized for its natural, bitter flavor. Dutch cocoa, a variant with reduced bitterness and weight, often undergoes cocoa butter extraction during processing. With lower calorie, fat, and sugar content alongside rich antioxidant properties due to the absence of cocoa butter, cocoa is perceived as a healthier option.

Chocolate, essentially derived from cocoa beans, undergoes a similar production process as cocoa but retains cocoa butter. This results in a smoother, richer texture, albeit with higher calorie, fat, and sugar content. Various chocolate types such as raw, semi-sweet, sweet, dark, milk, white, and compound cater to diverse preferences, available in forms like beads, bars, liquid, and powder.

Market growth prospects are fueled by increasing health consciousness and a rising demand for dark and sugar-free chocolates. As awareness of health risks associated with high-fat, high-sugar diets grows, consumers are transitioning towards reduced sugar or sugar-free options, including cocoa chocolates, renowned for their antioxidant properties.

COVID-19 Impact on Cocoa and Chocolate Market

The COVID-19 pandemic significantly impacted the food and beverage industry, including cocoa and chocolate production. Socioeconomic repercussions disrupted consumption trends, particularly affecting cocoa farmers in key producing regions. Early pandemic months witnessed supply surpassing demand, leading to notable drops in cocoa prices (USD/tonne). Lockdown measures shuttered vital distribution channels, diminishing sales, notably in sectors like restaurants and hospitality. Amidst these challenges, a shift towards darker chocolate varieties occurred, driven by perceived health benefits and reduced calorie content. This trend, alongside the growing preference for low-sugar and sugar-free alternatives, presents opportunities for industry players amidst the pandemic.

Market Drivers

The escalating demand for chocolate confectionery stands as a primary driver for the global cocoa and chocolate market.

Emerging economies exhibit increasing consumer expenditure on indulgent confectionery items, particularly chocolates. Developed nations witness a surge in demand for molded and countline chocolates, with significant producers diversifying portfolios to include novel variants like black and ruby chocolate. Additionally, the tradition of gifting chocolates during holidays augments market growth.

The burgeoning demand for specialty chocolate products fosters innovation and market expansion.

Developed markets witness a substantial rise in premium chocolate demand, driven by consumer preferences for transparency regarding ingredient sourcing and specialty cocoa beans. Moreover, the trend towards clean-label and organic products to promote overall health and wellness further propels market growth, alongside increasing awareness leading to a surge in demand for fair-trade cocoa.

Market Restraints

Growing demand for cocoa substitutes and equivalents like palm oil, soybean oil, and others poses challenges to the cocoa butter market.

These alternatives, owing to their availability and cost-efficiency, affect the cocoa butter market adversely. Major market players are responding by offering a wide array of cocoa butter equivalent blends to meet evolving consumer demands, further constraining cocoa butter market growth.

Furthermore, cocoa bean scarcity presents a significant restraint to market expansion. Declining cocoa cultivation due to market complexities and health concerns associated with chocolate consumption limit industry growth. Increasing consumer interest in alternative snacks due to chocolate's saturated fat content further hampers market development.

Cocoa and Chocolate Market by Type

• Cocoa
• Chocolate

Chocolate maintains a substantial market share, driven by the increasing preference for chocolate confectioneries. The surge in popularity of chocolate confectionary significantly contributes to the enhanced sales performance within the chocolate segment. Filled chocolate, particularly favored as seasonal gifts, holds a larger market share compared to other chocolate variants due to the growing trend of premium-sized chocolate. The segment's growth is further propelled by consumers' inclination towards exploring diverse assortments of chocolate confectioneries.

The cocoa ingredients industry is anticipated to witness rapid growth owing to its expanding utilization across various products such as ice cream, confectionery, non-alcoholic beverages, rich baked goods, and nutritional drinks. Projections from the International Cocoa Organization (ICCO) indicate a 10% increase in world cocoa production.

Cocoa and Chocolate Market by Application

• Food & Beverage
• Cosmetics
• Pharmaceuticals
• Others

The food and beverage industry is poised for significant growth due to its wide array of applications, offering abundant opportunities worldwide. Chocolate remains a favored flavor in recent releases of beverages, bakery items, and confectioneries, contributing to its sustained popularity in both the food and beverage sectors. This trend is expected to drive demand for cocoa butter and cocoa powder. The burgeoning gourmet and specialty cocoa-based options are further facilitated by the global foodservice industry's demand for customized, value-added, and multifunctional solutions.

Cocoa butter finds extensive usage in the cosmetics sector, particularly in line with the rising preference for all-natural ingredients in skincare products. In the pharmaceutical domain, cocoa butter is valued for its physical properties, enriched with polyphenols and flavonoid antioxidants, imparting significant antioxidant benefits. Additionally, cocoa offers advantages in promoting heart health, boosting the immune system, and alleviating constipation.

Cocoa and Chocolate Market by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

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

Europe led the global market in 2021, with a valuation of USD 19.95 billion. The presence of major industrial chocolate companies headquartered in Belgium, the Netherlands, Germany, and Switzerland positions Europe as a hub for industrial chocolate production. Both producers and consumers of chocolate and chocolate products are prominent in the region. North America is poised for significant growth, primarily driven by its role as a major importer of cocoa to meet the demands of the domestic confectionery manufacturing sector. The Asia Pacific market is experiencing rapid expansion, fueled by increased consumer spending on indulgent chocolate treats in emerging economies like China and India. The Middle East and Africa exhibit promising growth prospects, driven by consumer preferences for convenient, high-value, and luxurious chocolate products.

Cocoa and Chocolate Market by Company

Key players in the global cocoa and chocolate markets are strategizing new product launches and expanding their consumer bases to enhance their market positions. Notable efforts include Barry Callebaut AG's diversification of its product line to align with contemporary consumer demands, such as the introduction of dairy-free chocolate in their plant crafts line in February 2020. The market landscape is predominantly consolidated, with significant firms like Olam International, Cargill, Inc., Nestle S.A., and Barry Callebaut AG focusing on strategic mergers to broaden their market reach.

Notable Developments in the Cocoa and Chocolate Market

PRODUCT LAUNCH

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

EXPANSION

In March 2022, Barry Callebaut announced the expansion of its facility in Campbellfield, Melbourne, Australia, aiming to enhance its regional footprint in the Asia Pacific. The new plant is equipped to produce safe, high-quality products catering to Australia's entire food sector, from global to local food producers, artisans, and professional chocolate users.

RESEARCH AND DEVELOPMENT

In January 2022, Blommer Chocolate Company, an affiliate of Fuji Oil Co., Ltd., inaugurated an R&D applications lab in downtown Chicago. The new facility extends the company's research and development capabilities, offering innovative solutions to meet evolving market demands.