The global cocoa market is estimated to witness a moderate growth rate of around 6% during the forecast period 2019-2028. Cocoa serves as an important crop around the world, a cash crop for producing countries, and a key import for processing and consuming countries. Cultivation of cocoa at the farm level is a delicate process as crops are susceptible to various conditions including weather patterns, diseases, and insects. Distinct larger industrialized agribusiness, the vast majority of cocoa still comes from small, family-run farms that often control outdated farming practices and limited organizational leverage.
Globally, Ghana and Côte d’Ivoire dominate the global cocoa supply with more than 60% market share.
For instance, in 2022, an estimated 1.1 million metric tons of cocoa beans were produced in Ghana and Côte d’Ivoire produced about 2.2 million metric tons of cocoa beans.
A moderate demand from consumers across the world draws numerous global efforts and funds committed to support and improve cocoa farm sustainability. Moreover, cocoa liquor is the main raw material for manufacturing chocolates. The extensive appeal of cocoa, its popularity, wide use in the food and beverage industry, and the growing demand for chocolates are some of the key factors anticipated to drive the demand for the cocoa market across the globe. However, lack of access to finance and inadequate infrastructure, and the threat of climate change are some of the major challenges faced by the cocoa sector.
Forastero is leading the market owing to its high profitability
Based on type, the Forastero segment is anticipated to dominate the global cocoa market during the- forecast period. Forastero is the most widely produced cocoa variety in the world, which contributes 80-85% of the total cocoa produced across the globe. Furthermore, the reasons behind the significant demand for forastero cocoa are they are bitter in taste and do not have any secondary flavour supporting as Criollo has. The flavour profile is strong and earthy and needs to be mixed with superior quality cocoa for added taste.
Due to its resilience, cocoa growers prefer the Forastero bean variety because it is disease-resistant and produces a better yield.
- The forastero tree usually has 30 to 40 cocoa beans per pod. Owing to its high profitability, the forastero cocoa crop could expand further around the world.
- However the Criollo segment only accounts for 2-3% of the total cocoa market share.
Western Europe and developing economies in Asia are driving the demand for cocoa
Geographically, the global cocoa market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, and Middle East & Africa. Europe is the dominating region and is anticipated to lead the global cocoa market. According to the data published by International Institute for Sustainable Development (IISD), there are more than 2,000 companies in Europe followed by more than 650 companies in the US, employing 70,000 people overall.
According to IISD, Netherlands and Germany are among the major importers of cocoa. Western Europe is planning a crucial role in the growth of the regional cocoa market due to the strong chocolate processing and manufacturing industry which required high volumes of cocoa beans. In Asia Pacific, growth in cocoa sector overall will come from the increasing demand for cocoa ingredients used in sweet biscuits and cookies led by China, India, Japan, and the Philippines due to the increased disposable income.
Asia Pacific is expected to become the second largest consumer market of cocoa-based ingredients after Europe. In Middle East and Africa, Africa is the prominent producer of cocoa due to the hot and humid climate which is well suited for growing cocoa trees. Ivory Coast, Ghana, and Nigeria are some of the bulging exporters of cocoa. Hence, Western Africa is dominating the regional market in terms of production. North America is expected to grow at a considerable rate in the upcoming years due to the rapid rise in the consumption of chocolates in the region.
Market Structure and Competitive Landscape
The global cocoa market is fragmented in nature, some of the prominent players that contribute significantly to the global cocoa market include Barry Callebaut AG, Blommer Chocolate Company, CARGILL INC., Ciranda, Inc., GUAN CHONG COCOA MANUFACTURER SDN. BHD, OLAM INTERNATIONAL LIMITED, THE HERSHEY COMPANY, United Cocoa Processor, Inc., VJ Jindal Cocoa Private Limited, Fuji Oil Company Ltd., ECOM Agroindustrial Corporation Ltd, Cocoa Processing Co. Ltd., Touton S.A, Niche Cocoa Industry Ltd., BD Associates Ghana Ltd., and PLOT Enterprises Ghana Ltd. among others.
The players and farming group involved in the production and grinding of cocoa adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and Acquisition, Partnerships and collaborations are some of the strategies followed by industry players. Some of the key developments in the global cocoa market include,
- In September 2021, Barry Callebaut completed the acquisition of Europe Chocolate Company (ECC), the reason behind the acquisition was to supply a wide variety of customers with highly customized products.
- In August 2021, Cargill entered into an agreement to acquire Aalst Chocolate Pte. Ltd., a Singapore based world-class chocolate manufacturer to capture Asian Market.
Key Market Segmentation
RationalStat has segmented the global cocoa market on the basis of type, form, nature, process, application, and region.
- By Type
- Forastero
- Criollo
- Trinitario
- Nacional
- By Form
- Butter
- Liquor
- Powder
- By Nature
- Organic Cocoa
- Conventional Cocoa
- By Process
- Natural Process
- Dutch Process
- By End User
- Confectionery
- Food and Beverages
- Pharmaceutical
- Others (Cosmetics)
- By Region
- North America
- US
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Western Europe
- Germany
- UK
- France
- Spain
- Italy
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- Rest of Eastern Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- South Africa
- Turkey
- Rest of the Middle East & Africa
- North America
Research Methodology
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
Secondary Sources
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid databases including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for global cocoa market producers and suppliers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global cocoa market is expected to grow at a CAGR of over 6% during the forecast period 2022-2028.
Africa dominated the global cocoa production, whereas, Europe leads the cocoa market in terms of consumption.
The global cocoa market is estimated at around US$ 13.5 billion in 2022.
Growing demand for chocolates is the key driver of the global cocoa market.
Major companies operating in the global cocoa market include Barry Callebaut AG, Blommer Chocolate company, CARGILL INC., Ciranda, Inc., GUAN CHONG COCOA MANUFACTURER SDN. BHD, OLAM INTERNATIONAL LIMITED etc.