Cocoa and Chocolate Market Forecasts to 2028 – Global Analysis By Cocoa Type (Cocoa Powder, Compound Chocolate, Cocoa Liquor, Cocoa Butter and Other Cocoa Types), Chocolate Type, Application and By Geography

Cocoa and Chocolate Market Forecasts to 2028 – Global Analysis By Cocoa Type (Cocoa Powder, Compound Chocolate, Cocoa Liquor, Cocoa Butter and Other Cocoa Types), Chocolate Type, Application and By Geography

According to Stratistics MRC, the Global Cocoa and Chocolate Market is accounted for $21.1 billion in 2022 and is expected to reach $30.7 billion by 2028 growing at a CAGR of 6.4% during the forecast period. A true form of chocolate is cocoa. The same production process that produces cocoa was also used to create chocolate. The chocolate does not, however, lose its cocoa butter. The softer and deeper texture of the chocolate is a result of the cocoa butter. The rise in sales of chocolate candies meant to be eaten as comfort food is to blame for families developing a regular grocery store. Around the world, chocolate is a customary present for festivals and special events. In addition, consumers are increasingly consuming chocolate as a superior meal and as a comfort food, which is expected to create a wealth of new growth potential for the market.

According to the International Cocoa Organization, the world largest supplier of cocoa is Africa, which accounts for 72% of the global production of cocoa. As per a recent survey conducted by Barry Callebaut, 36% of Europeans want chocolates with health benefits, while 38% would like chocolates with reduced sugar content.

Market Dynamics:

Driver:

Growing popularity of chocolate flavoured products

The industry is expanding as a result of the increased demand for ready-to-eat foods and beverages with chocolate flavours. Chocolates are being consumed more frequently because of compounds like tryptophan, which produces serotonin and promotes happiness. Additionally, the increased interest in baking at home and the growth of restaurant chains, bakeries, and candy stores are driving up market demand.

Restraint:

Changing consumer preferences

Consumer preferences for chocolate are a significant challenge to the chocolate industry. Previously used as a sweet treat, chocolate consumption is now shifting towards the healthier option, with a preference for dark chocolate, which is a good source of polyphenols. Being a perishable good, chocolate may accumulate significant stockpiles with very little time to be used up if demand for a particular product declines.

Opportunity:

Growing awareness

The industry is expanding as a result of rising consumer knowledge of the health advantages of ingesting cocoa-rich goods. In addition to providing the human body with numerous health benefits, cocoa helps to lower blood pressure and treat chronic fatigue syndrome. Additionally, cocoa includes polyphenols, which shield the body's tissues against oxidative stress and its associated illnesses. The markets are also moving forward as a result of these causes.

Threat:

High raw material prices

The cost of raw materials has a big impact on chocolate costs. The most crucial raw resources in the production of chocolate are cocoa and sugar, which account for more than 80% of the total cost of raw materials. Products made from raw cacao that have undergone minimum processing are higher in antioxidants and contain little to no added sugar. Consequently, the market for chocolate would be impacted by the rising cost of raw materials.

Covid-19 Impact

Low pandemic-related sales volumes and supply-side problems with certification and quality had an effect on the cocoa market. The Fine Cacao & Chocolate Institute (FCCI) undertook a study on the COVID-19 pandemic's effects on exports, and the findings were alarming. A growing number of specialised stores are staying closed for a longer amount of time as a result of the interruption in the raw material supply chain, which was followed by lockdown, and the volume consumption of luxury chocolates is declining.

The filled chocolate segment is expected to be the largest during the forecast period

The filled chocolate segment is estimated to have a lucrative growth, due to the increased popularity of various filled chocolates. It is anticipated that market participants will experiment with creating unique forms of filled chocolates in order to meet the spike in demand for filled chocolate and fuel the segment's expansion. Key demographics are also projected to indulge in multiflavored chocolate consumption at a rising rate.

The confectionery segment is expected to have the highest CAGR during the forecast period

The confectionery segment is anticipated to witness the fastest CAGR growth during the forecast period, due to increasing popularity of chocolate confectionery. Due to increased consumer spending on decadent confectionery goods, the demand for chocolate confectioneries has shown a favourable trend in emerging nations. The market is expected to be impacted by the developed markets' rising demand for moulded and countline chocolates.

Region with Largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to chocolate consumption volume is continuously rising in the country. The market's primary drivers are the rising per capita income and the tendency towards westernisation. A possible opportunity for international brands to enter the market is provided by the rising demand for premium types. The market is also being driven by growing impulse purchases and expanding retail channels.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to to increasing demand for chocolate-based confectioneries and increasing acquisition of chocolate ingredients to infuse food products. Additionally, increasing consumer knowledge of the health advantages of cocoa and chocolate intake is anticipated to spur demand for cocoa products and therefore market expansion. Growing consumer knowledge of cocoa's health advantages is anticipated to fuel demand in the regional market.

Key players in the market

Some of the key players profiled in the Cocoa and Chocolate Market include DP Cocoa Products Pvt Ltd, Puratos Group, Barry Callebaut Group, Cargill, Incorporated, Aadra International, Nestlé S.A., Fuji Oil Holdings Inc., The Hershey Company, Lotus Chocolate Company Ltd., Mars Incorporated, Blommer Chocolate Company, Ferrero International S.A. , JB Foods Limited, Cocoa Processing Company Limited and Meiji Holdings Co., Ltd.

Key Developments:

In March 2022, Hershey Company, launched a crunch cookie chocolate spread in India for the consumer's breakfast.

In March 2021, Cargill has partnered with Nestlé to extend the Nestlé Cocoa Plan (NCP) to benefit its network of cocoa farmers in Sulawesi, Indonesia. Activities include three key NCP pillars: better farming, better lives, and better cocoa.

Cocoa Types Covered:
• Cocoa Powder
• Compound Chocolate
• Cocoa Liquor
• Cocoa Butter
• Other Cocoa Types

Chocolate Types Covered:
• Milk Chocolate
• White Chocolate
• Filled Chocolate
• Dark Chocolate
• Other Chocolate Types

Applications Covered:
• Confectionery
• Beverages
• Bakery Premixes
• Frozen Desserts and Ice Creams
• Bakery Products
• Cosmetics
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements