The cocoa market is estimated to be valued at US$ 13,145.13 Mn in 2023 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.
Cocoa is extracted from the cocoa beans of Theobroma cacao tree. It is widely used as an ingredient in chocolate confectionery, cocoa powder, cocoa butter, chocolate liquor and cocoa paste. Cocoa provides various health benefits such as it helps in reducing risk of heart disease, lowering of blood pressure, improves cognitive function and boosts mood due to presence of antioxidants.
Market key trends:
One of the major trends witnessed in the cocoa market is rising consumer awareness regarding health benefits of dark chocolate. Dark chocolate contains high percentage of cocoa solids as compared to other chocolate variants and provides beneficial antioxidants flavonoids due to presence of cocoa powder. Flavonoids help in lowering blood pressure and reducing risk of heart disease. Increasing awareness about health benefits of dark chocolate among consumers due to promotional campaigns by chocolate manufacturers is driving the growth of cocoa market. Moreover, dark chocolate tastes bitter but considered more healthy option as compared to milk or white chocolate variants. This trend of opting for healthier chocolate snack is expected to propel the demand for cocoa and boost the market growth over forecast period.
Threat of new entrants: The Global Cocoa Market poses low threat to new entrants due to high capital requirements and established supply chain of existing players.
Bargaining power of buyers: Buyers have moderate bargaining power as major buyers in the market are large food and beverage companies. However, differentiated products offered by players also reduce their power.
Bargaining power of suppliers: Cocoa bean suppliers have moderate-to-high bargaining power as they control the raw material supply. However, many established suppliers exist.
Threat of new substitutes: Substitutes for cocoa include corn syrup, chocolate powder and artificial sweeteners. But cocoa has strong brand identity and taste preference posing low threat.
Competitive rivalry: Competition is high in the market due to presence of large major players and some regional players.
Strength: The Cocoa market has strong brand identity and preference for cocoa-based products. It has established supply chain and distribution channels.
Weakness: The market faces fluctuations in cocoa bean supply and prices due to weather changes impacting crop harvests. Processing of cocoa beans into products require high investment.
Opportunity: Growing health-consciousness is pushing demand for natural ingredients like cocoa. Expanding food processing industry in developing nations also provides new opportunities.
Threats: Threats of pests and fungal diseases to cocoa farms can negatively impact supply. Stringent regulations pertaining to pesticide use also impacts operations.
The global Cocoa market is expected to witness high growth, exhibiting CAGR of 3.4% over the forecast period, due to increasing health consciousness. Cocoa contains antioxidants and has several associated health benefits leading to its increasing demand.
Regional analysis: Asia Pacific captured over 30% market share in 2023 and is expected to dominate the market owing to rapid growth of chocolate confectioneries and food processing industries in India and China. Europe and North America are also significant markets expected to grow at a steady pace during the forecast period.
Key players: Key players operating in the Cocoa market are The Barry Callebaut Group, The Hershey Company, Nestle S.A., Cargill Incorporated, Puratos Group, CÃmoi, Mars, Incorporated, Blommer Chocolate Company, Meiji Holdings Company, Ltd., Carlyle Cocoa, Jindal Cocoa, and United Cocoa Processor. These players are focused on strategies like capacity expansions, new product launches and mergers & acquisitions to strengthen their market presence.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it