Rising demand for chocolates expected to drive cocoa market value up to $15.5b in 2027
The market value for cocoa is expected to see a rise in the next four years, according to a new market report issued by Portland, Oregon-based Allied Market Research, a market research and business-consulting wing of Allied Analytics LLP.
The increase in the demand for chocolates around the world, especially, rise in demand in Europe and North America regions, according to the report, are expected to fuel the global cocoa market growth.
The report released in August 2023, says one of the key factors that consumers look for while buying cocoa products, especially the European consumers is the sustainability in the production of cocoa.
As consumers have become very much interested to know the story behind the products they purchase, storytelling has become a new strategy that cocoa and chocolate marketers are using lately in the global cocoa market, the report said.
The report indicates that the global cocoa market size was valued at $12.8 billion in 2019, and is estimated to reach $15.5 billion by 2027, registering a CAGR of 4.3 per cent from 2021 to 2027.
“Increase in demand for chocolates across the world and rise in demand from Europe and North America regions fuel the global cocoa market growth. However, presence of substitute products and varying prices restrain the market growth. On the other hand, surge in demand for specialty cocoa and innovative marketing strategies create new opportunities in the next few years,” it said.
The report notes that the players operating in the global cocoa market have also adopted various developmental strategies to expand their market share, exploit the cocoa market opportunity, and increase in profitability in the market.
The report profiled the following as key players in the market, and they include Cargill, Inc., Olam International Ltd., Toutan S.A., Barry Callebaut AG, The Hershey Company, Guan Chong Cocoa Manufacturer SDN. BHD, Ciranda, Inc., United Cocoa Processor, Inc., Bloomer Chocolate Company, and VJ Jindal Cocoa Private Limited.
The report further indicates that by product type, the cocoa liquor segment accounted for the largest share in 2019, contributing to nearly two-fifths of the total market share, and is expected to maintain its lead position throughout the forecast period.
Moreover, this segment is expected to witness the fastest CAGR of 4.4 per cent from 2021 to 2027. The report also discusses segments such as cocoa butter and cocoa powder, it added.
The report states that Europe is the leading market for cocoa. It is also the highest cocoa and chocolate consuming region.
“In 2019, the Netherlands accounted for the highest imports of cocoa in terms of volume and value. Switzerland is the top chocolate consuming country in Europe. The various nations such as Germany, France, and the UK, are among the top chocolate and cocoa consuming nations,” it said.
Ghana and Cote d’Ivoire are the word’s leading cocoa producing countries. Between 2021 and 2023, the two countries have produced more than three million metric tons of cocoa, and the chocolate industry is currently estimated to generate revenue above $120 billion a year.
By Emmanuel K Dogbevi
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