May 18, 2024

The Global Cocoa Market is Driven by Increasing Demand for Chocolate Confectionery Products

Cocoa is extracted from cocoa beans that grow on cocoa trees and is the primary ingredient in chocolate confectionery products. Chocolate products such as chocolate bars, chocolates, candy, and baked goods containing cocoa powder impart a unique flavor and texture. The global chocolate confectionery market has witnessed significant growth in recent years owing to changing lifestyles, rising disposable incomes, and increasing urbanization in developing countries. This rising demand for chocolate confectionery products is driving the demand for cocoa beans, thereby propelling the global cocoa market forward.

The global cocoa market size 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 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends:

One of the key trends witnessed in the global cocoa market is the premiumization of chocolate confectionery products. Consumers, especially millennials, are willing to pay a premium for higher-quality chocolate products made from sustainably sourced cocoa beans. This is prompting chocolate manufacturers to focus on developing premium and niche products made from ethically sourced cocoa. For instance, companies offer single-origin chocolate bars made from cocoa beans sourced from a specific geographical region or country to cater to premium chocolate consumers. Further, the clean label trend is also gaining traction in the cocoa market. Manufacturers are emphasizing on using only natural ingredients without any artificial colors, flavors, or preservatives in their chocolate products to meet consumer demand for clean-label foods.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the cocoa market is low as it requires large capital investments and resources to start cocoa plantations and set up processing facilities. Established players also enjoy economies of scale.

Bargaining power of buyers: The bargaining power of buyers in the cocoa market is high as there are many buyers for cocoa and they can negotiate lower prices. Key buyers include chocolate manufacturers, food processors, and commodity traders.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as cocoa crops have seasonal availability and are grown by small farmers. However, established players like Barry Callebaut have a global supplier network.

Threat of new substitutes: The threat of new substitutes is low as cocoa has well-established uses in confectionery, bakery, and other products. Natural substitutes like carob also do not offer the same taste and functionality.

Competitive rivalry: The competitive rivalry in the cocoa market is high owing to the presence of many global players. Players compete on the basis of product differentiation, supply chain management, price, and marketing.

Key Takeaways

The global cocoa market is expected to witness high growth over the forecast period driven by rising demand for chocolate, cocoa-based products, and health benefits of cocoa. The global cocoa market size 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 2023 to 2030.

Regionally, Asia Pacific is expected to dominate the market and witness the fastest growth led by countries like India, China and other emerging economies. Rising incomes and changing dietary habits will drive cocoa consumption in the region. North America is also a significant market for cocoa led by demand from the US. However, growth rates are higher in emerging markets. Europe is one of the largest cocoa consuming regions globally driven by established chocolate markets in Western Europe.

Key players operating in the cocoa market 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. Barry Callebaut is the global leader in cocoa and chocolate processing. The company has a strong global presence and supply chain network. Hershey is a leading player in North America while Nestle dominates the global confectionery market. Players are focusing on new product developments, acquisitions, and expanding their global footprints through partnerships.