Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Cocoa beans is extracted from Theobroma cocoa, it is dried and fermented and further processed for producing cocoa powder, oil, liquor, butter, and other cocoa products. Cocoa is widely used in the manufacturing of chocolates. They have various health benefits due to the high content of flavonoids that reduce the risk of cardiovascular disease.
The global cocoa market is projected to reach around US$ 15,065.0 million by the end of 2027, in terms of revenue, growing at CAGR of 3.4% during the forecast period (2020-2027).
The growing demand for dark and premium chocolates around the globe is predominantly fueling the market growth of cocoa. For instance, in July 2019, Nestle has launched 70% dark chocolate made entirely from the cocoa fruit. The product is produced from cocoa beans and pulp as the only ingredients, delivers natural sweetness and subtle acidity without added refined sugar. The dark and premium chocolates gaining significant demand on the account of various health benefits associated with it.
Figure 1. Global Cocoa Market Share (%) in terms of Value, By Region, in 2019
Europe region dominated the global optical coatings market in 2019, accounting for 43.8% share in terms of value, followed by North America and Asia Pacific, respectively.
Lack of knowledge about advanced farming techniques among farmers of developing region along with the challenges associated with the selling of cocoa is projected to hamper the market growth. According to the Coherent Market Insights analysis, around 30%–40% of the crop in major producing regions are lost due to improper pest and crop disease control procedures.
Cocoa Market Report Coverage
||Market Size in 2019:
||US$ 11,499.6 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 15,065.0 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East & Africa: Middle East and Africa
- By Nature: Organic and Conventional
- By Process: Natural and Dutch
- By Product Type: Cocoa Powder, Cocoa Butter, and Cocoa Liquor
- By Application: Confectioner, Functional Food, Bakery Items, Beverages, Cosmetics, and Pharmaceutical
The Barry Callebaut Group, The Hershey Company, Nestlé S.A., Cargill Incorporated, Puratos Group, Cémoi, Mars, Incorporated, Blommer Chocolate Company, Meiji Holdings Company, Ltd., Carlyle Cocoa, Jindal Cocoa, and United Cocoa Processor
- The growing demand for dark and premium chocolates around the globe
- Increasing production of cocoa coupled with the rising adoption of advanced technology for processing and manufacturing of cocoa
|Restraints & Challenges:
- Changing government regulations affects the production and selling policies of cocoa
Growing demand for cocoa beans from the pharmaceutical industry is projected to serve major growth opportunities for the market. Cocoa beans are used as a lubricant in various pharmaceutical formulations. Moreover, it has excellent physicochemical and antimicrobial properties make it suitable for producing various drugs. Hence, the growing demand for cocoa from the pharmaceutical industry is projected to propel market growth.
Increasing use of cocoa in the formulation of healthy beverages is projected to offer immense growth opportunities in the near future. For instance, in March 2020, Nestlé Australia has introduced a plant-based version of its cocoa malt beverage, Milo. The new Milo replaces milk powder with soy and oats and the core ingredients are the same as the original Milo – malt, barley, and cocoa. Thus, growing demand for the cocoa-based beverage is projected to propel the market growth of cocoa.
Figure 2. Global Cocoa Market– Opportunity Analysis
Online shopping is a growing trend and the majority of products are sold through an online distribution channel. The expansion of the online retail channel is expected to add immense growth to the market of cocoa. Moreover, increasing purchasing power of consumers coupled with changing eating habits and rising adoption of a healthy life>
Trading and distribution partnership among key players for improving supply chain is contributing to the market growth of cocoa. For instance, in December 2019, Caldic and Cargill have concluded an agreement making Caldic Ingredients Deutschland GmbH the exclusive distribution partner for cocoa and chocolate for the German and Austrian food industry.
Figure 3. Global Cocoa Market Share (%) in terms of Value, By Application, in 2019
On the basis of application in 2019, the confectionery segment has accounted the largest market share of 32.8% in terms of value, followed by beverages and bakery items segment respectively.
Global Cocoa Market - Impact of Coronavirus (Covid-19) Pandemic
Coronavirus has caused a downward reaction in cocoa prices along with other commodities. The continued spread of virus could impact production and logistics of cocoa. Chocolate manufacturers can experience supply problems over coming months which will cause cocoa price to move higher. According to Cocoa Association of Nigeria 5,000 to 6,000 tons of cocoa has been stuck at ports and warehouses across the country because of lockdown restrictions which is disrupting transport and port activities. According to Coherent Market Insights, cocoa market is expected to grow at a slightly lower CAGR between 2020 and 2021.
- The Barry Callebaut Group
- The Hershey Company
- Nestlé S.A.
- Cargill Incorporated
- Puratos Group
- Mars, Incorporated
- Blommer Chocolate Company
- Meiji Holdings Company, Ltd.
- Carlyle Cocoa
- Jindal Cocoa
- United Cocoa Processor
Few Recent Developments
In March 2020, Nestlé Australia has introduced a plant-based version of its cocoa malt beverage, Milo. The new Milo replaces milk powder with soy and oats and the core ingredients are the same as the original Milo – malt, barley, and cocoa.