Global Cocoa Liquor Market - 2022-2029

Global Cocoa Liquor Market - 2022-2029

Market Overview

Cocoa Liquor Market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Cocoa Liquor is a combination of cocoa butter and cocoa solids resulting in a typical, slightly bitter flavor. It is produced from cocoa beans that have been fermented, dried, roasted, and separated from their skins. The beans are ground into cocoa mass (cocoa paste). The mass is melted to become the liquor, and the liquor is either separated into cocoa solids and cocoa butter or cooled and molded into blocks of raw chocolate. It is used in making chocolate. It contains roughly 53% cocoa butter, 17 % carbohydrate, 11 % protein, 6 % tannins, and 1.5 % theobromine. It is the primary product of the chocolate manufacturing process. Cocoa liquor provides unique flavors to products. It is having unique structure and desirable color. It contains high levels of flavonoids and other beneficial antioxidants. Chocolate liquor can be used directly as baking or bittersweet chocolate. Chocolate liquor is a dairy-free ingredient and is suitable for vegan diets.

Market Dynamics: Increasing demand for cocoa liquor in food and beverages industry drives the market growth

Multiple factors are responsible for the growth of the cocoa liquor market like rising investments in research & development activities, entry of new market players, product innovation, effective allocation of resources, and growing competition among business rivals to expand its regional as well as customer base. Increasing usage of cocoa liquor in ice creams, desserts, bakery, and confectionery products drives the market growth. Bakery products provide huge market demand for the cocoa liquor. It is also consumed as a straight after-dinner drink. It is also used in mixed drinks and desserts, especially in dessert sauces, cakes, and truffles. Moreover, supportive government policies, incentives, and favorable laws are projected to grow the cocoa liquor market. Increasing consumer spending capacity with rising disposable income will increase the sales of the cocoa liquor market.

However, different processing techniques for cocoa beans and the variations in climatic conditions needed for cultivating the cocoa beans cause a variation in the taste and colors of the final product. It is projected to hamper the overall growth of the cocoa liquor market.

Market Segmentation: Dutch segment accounted for the highest share in global cocoa liquor market

In 2021, Dutch had the highest revenue share of over XX percent. Increasing adoption of the Dutching process among producers of chocolate products in the global food and beverage sector is slated to influence the demand for Dutch cocoa liquor. Being darker in color, consumers are expected to remain inclined towards Dutch cocoa liquor over natural cocoa liquor, particularly for baking applications. In 2017, over 630,000 tons of Dutch cocoa liquor is estimated to have been sold in the global market.

Based on cocoa beans, Forastero variety of cocoa held a significant market share of XX% in 2021. It is most popular among consumers due to its unique taste and flavor. About 85% of cocoa production is from the Forastero variety. These are regular cocoa beans. On the other hand, criollo segment is expected to witness a significant growth during the forecast period. Criollo variety belongs to the elite cocoa beans. It accounts for only 3% of the production. It retains all the beneficial properties of cocoa beans with high content of cocoa butter. They are very recognizable in appearance and taste. This variety is slightly longer than the other variety and has red color compared to other varieties. This variety is the real storehouse of vitamins and antioxidant.

Geographical Penetration: North America is the dominating region during the forecast period

In 2021, North America had the highest revenue share of almost XX percent. Increasing demand for dark chocolate and other confectionery products in the United States drives the market growth. Cocoa liquor is mostly used in chocolates. The United States accounts for 20% of the world's consumption of chocolate, with a monetary value of approximately $20 billion. Dark chocolate represents approximately 20% of overall chocolate consumed in the United States. American consumers has pushed chocolate sales to $29bn, with retail chocolate sales climbing more than 5% a quarter, according to data in January 2022 from a Chicago-based researcher. North American sales of chocolate are $20.7 billion annually. 71 % of American consumers want to try new & exciting chocolate experiences. 86 % of consumers love chocolates. Also, 19 % of Americans consume chocolate frequently. These factors help increase cocoa liquor sales in the North American region.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Cargill Inc., ADM, United Cocoa Processor, Inc., Blommer Chocolate Company, Nestlé S.A, Valrhona, Barry Callebaut and others. Some major key players follow the merger, acquisition and collaboration strategy for the company's growth. For instance, in November 2021, Cargill completed a US$100M cocoa processing expansion in Côte d'Ivoire that added significant volumes to the company's cocoa-grinding capacity. That newly upgraded facility produces cocoa powder, cocoa butter, liquid, and solid cocoa liquor, high-quality ingredients that are exported worldwide. In January 2022, Cargill Cocoa & Chocolate launched ExtraVeganZa's new product line. Sunflower kernel powder and rice syrup are used in this chocolate. To further extend the offerings to the more healthy-minded consumers, organic rice syrup can be coupled with Cargill's organic cocoa liquor to make an organic vegan chocolate solution. In March 2021, Nestle launched its latest range of 'Incoa' bars, a unique product that uses cocoa fruit pulp as a healthy and eco-friendly sugar substitute.

COVID-19 Impact: Positive impact on the global cocoa liquor market

COVID-19 had a minor impact on cocoa supplies. The outbreak initially struck West Africa near the end of the primary crop, thus it was about April when it first began to spread. So, the main crop was finished, and it was a good one. In fact, it could have been a new high. As a result, it didn't have a significant impact on prices. COVID-19 also had an impact on the chocolate business when it first emerged in 2020. However, after the relaxation of limitations in both importing and exporting countries, the market became more stable. During the lockdown, chocolate consumption at home increased dramatically; chocolates, like other consumables, were purchased in bulk, resulting in higher volume sales through supermarkets and hypermarkets.

The global cocoa liquor market report would provide an access to approximately 69 market data tables, 71 figures and 170 pages

Also, Europe held the highest market share in the cocoa liquor market. Germany is expected to be the highest shareholder country in the market. Some major key players in in Germany are responsible for the high demand for the cocoa liquor. Germany is home to Europe's largest chocolate-making sector, which mostly uses bulk beans. Also, Germany is the leading exporter of cocoa liquor. Germany is a significant chocolate consumer, with the second-highest per capita chocolate consumption in Europe.