Cocoa and Chocolate Market Size
The Global Cocoa and Chocolate Market reached USD 48.3 million in 2022 and is expected to reach USD 67.1 million by 2031 growing with a CAGR of 4.2% during the forecast period 2024-2031. Key trends in the cocoa and chocolate market are the rising demand for premium and artisanal chocolate products. Consumers are becoming more discerning about the quality and origin of their chocolate and are willing to pay a premium for products that offer unique flavors, single-origin cocoa beans, and sustainable sourcing practices. Fairtrade cocoa refers to cocoa that is produced and traded under fair trade principles.
The rising disposable incomes and changing consumer lifestyles in emerging economies contribute to the growth of the cocoa and chocolate market. Opportunity in the cocoa and chocolate market is the increasing demand for organic and sustainable chocolate products. As consumers become more conscious about their health and the environmental impact of their food choices, there is a growing preference for organic, fair-trade, and sustainably sourced cocoa and chocolate.
Market Scope
| Metrics | Details |
| CAGR | 4.2% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Chocolate Type, Cocoa Type, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
High Demand for Chocolate Confectionery to Fuel the Market Growth
The growing popularity of chocolate confectionery is driving the global market for cocoa and chocolate. In recent years, the demand for chocolate confectioneries in emerging economies has shown a positive trend, attributed to rising consumer expenditure on indulgent confectionery products, particularly chocolate confectioneries. The growing demand for molded and countline chocolates in developed markets is expected to positively impact the chocolate confectionery market.
The inclusion of new chocolate types, such as dark chocolate and ruby chocolate, in the portfolios of key chocolate manufacturers is expected to help the cocoa and chocolate industries grow. During the forecast period, the rising trend of gifting chocolates during festive seasons is also expected to be a major contributor to the growth of the chocolate confectionery market. According to the Dame Cacao company published data, in 2022, global chocolate consumption is 7.5 million tons.
Several Health Benefits of Chocolate and Cocoa Products Boost Market Growth
Chocolate contains a lot of antioxidants. Epicatechin, a flavonol, is one of the most beneficial. Flavonols are plant-derived compounds that fight inflammation and protect cells from free radical damage. Cocoa products are beneficial to human health in various ways, including increased heart health, immune system balance, improved brain functions, and stress reduction.
The higher the cocoa content, the more beneficial flavonols are present in the chocolate. The majority of the benefits seen in research are associated with chocolate that contains at least 70% cacao. As a result, the demand for cocoa and chocolate is skyrocketing.
Increasing Cost of Raw Materials
Cocoa beans are the main ingredient in chocolate production, and their prices can be volatile due to various factors such as weather conditions, disease outbreaks, and political instability in cocoa-producing regions. These factors can disrupt the supply chain and lead to fluctuations in cocoa bean prices. Several factors contribute to the increasing cost of cocoa beans. Firstly, there is growing global demand for chocolate, especially in emerging markets.
This increased demand puts pressure on cocoa bean supplies, leading to higher prices. Additionally, climate change and unpredictable weather patterns can affect cocoa bean cultivation, leading to reduced yields and increased costs for farmers. On February 20, 2022, the Federal Association of the German Confectionery Industry faced an increase in the raw material prices of confectionery such as sugar and cocoa.
Market Segment Analysis
The global cocoa and chocolate market is segmented based on chocolate type, cocoa type, application, and region.
The Food & Beverage Sector Exhibits Promising Growth Owing to a Wide Application Array
The global cocoa and chocolate market by application has been segmented by cosmetics, pharmaceuticals, food & beverages, confectionery and others.
Chocolate candies are highly preferred by all age groups. Chocolate flavor has many health benefits, such as helping in reducing mortality rates and also aids in treating diseases like bronchitis and depression. In addition, dark chocolates possess huge health benefits due to their cocoa content. It aids in proper blood flow in the body and facilitates overall blood vessel functionality.
Some of the major key players launched new products in the market for the food and beverage application. For instance, on April 13, 2023, Barry Callebaut expanded its ruby chocolate line in the market by introducing ruby baking chocolate chip in North America. It has applications in ice creams and confectionery items.
Market Geographical Share
Increase in Consumers Demand for Cocoa and Chocolate in North America
North America is the dominating region with most of the cocoa and chocolate markets. This is due to the large cocoa manufacturing bases present in these countries. Consumer awareness of health benefits has fueled some critical innovations in the North American cocoa and chocolate industries. North America is a major importer of cocoa and cocoa ingredients to meet the domestic confectionery manufacturing sector.
According to the Dame Cacao company published data, 90% of Americans plans to gift chocolate for Christmas. Some of the major key players expand their business in the region to fulfill consumers’ demand for cocoa. For instance, on November 11, 2022, Niche Cocoa, Ghana’s largest cocoa processing company established its North American manufacturing facility in Franklin. The company plans to lease 44,000 square feet.
Cocoa and Chocolate Companies
The major global players in the market include Nestle S.A, Cargill Inc., Olam International, Cocoa Processing Co. Ltd., Niche Cocoa Industry Ltd., Barry Callebaut, AG, ECOM Agroindustrial Corporation Ltd., Fuji Oil Company Ltd., Touton S.A., and BD Associates Ghana Ltd.
COVID-19 Impact on Market
COVID-19 Impact
The COVID-19 outbreak has caused market disruption. The global pandemic, as well as the associated lockdowns and other restrictions, had an impact on consumer purchasing power in 2020. According to a report published in October 2020 by the National Confectioners Association, seasonal demand for confectionery in the United States has decreased as a result of the pandemic. Because chocolate confectioneries are frequently consumed outside of the home or while traveling, sales of these items initially fell in 2020.
The outbreak of the COVID-19 pandemic has caused a sudden drop in chocolate production and sales. Panic buying of food supplies by consumers contributed to the rapid growth in sales, which were up 99 percent in the middle of March and 25 percent higher on April 1st, 2020, compared to last year. Amid the pandemic, however, demand for craft and premium chocolate bars is rapidly declining. In the coming years, the trend of consuming healthy products to maintain one's overall health is expected to create enormous opportunities for cocoa powder and dark chocolate.
Russia-Ukraine Impact Analysis
The cocoa and chocolate market in Russia-Ukraine is competitive, with both domestic and international brands vying for market share. Consumer preferences, brand loyalty, product quality, and pricing strategies play crucial roles in shaping market dynamics. Changes in consumer tastes, preferences, and buying behaviors can influence market growth and the competitive landscape. Russia and Ukraine are known for their significant chocolate consumption. Changes in consumer behavior, purchasing power, and economic conditions in the region can affect the demand for chocolate products. Economic instability or fluctuations in disposable income may impact consumer spending on indulgent products like chocolate.
Russia and Ukraine have established trade relationships with cocoa-producing countries to import cocoa beans and other chocolate-related ingredients. Changes in import/export regulations, tariffs, and trade agreements can influence the cost, availability, and competitiveness of cocoa and chocolate products in the market. Any disruptions or trade disputes can impact the supply chain and pricing dynamics.
Key Developments
- On February 14, 2023, Mars Wrigley, a leading manufacturer of confectionary entered into the dark chocolate segment with new product launches. The company started production of GALAXY FUSIONS Dark chocolate with 70% cocoa in India.
- On April 12, 2022, The Whole Truth Foods (TWT), a confectionary company launched India’s first dark chocolate in Mumbai. It is made with two major ingredients such as cocoa and dates without added sugars and artificial sweeteners.
- On May 09, 2023, Hershey India Pvt Ltd, one of the largest chocolate manufacturers, launched a new chocolate brand Hershey’s Kisses Special Dark 'n' Almonds in the market. It is dark chocolate made from the cocoa extract.
Why Purchase the Report?
- To visualize the global cocoa and chocolate market segmentation based on chocolate type, cocoa type, application, and understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous cocoa and chocolate market-level data points all for segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Cocoa and Chocolate Market Report Would Provide Approximately 58 Tables, 55 Figures and 102 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
