The cocoa and chocolate market is projected to reach a total of US$26.3 billion by 2027, according to a new report released by MarketsandMarkets, growing at a CAGR of 4.5%.
According to the International Cocoa Organization, the world’s largest supplier of cocoa is Africa, accounting for 72% of the world’s production of cocoa. Major countries Ivory Coast and Ghana produce cocoa but are facing issues related to fair trade discrepancies, environmental issues, governmental unrest and reducing labour force as larger proportions of the population leave farming and opt for other occupations.
Implementation of the National Cocoa Development Plan (NDCP) in the member countries aims to improve the production of cocoa and provide a “promising outlook” towards fulfilling the rising demand for cocoa globally.
The milk chocolate segment is estimated to dominate the chocolate market this year, and is expected to witness similar trends throughout the forecast period, up until 2027. The dark chocolate segment has also witnessed an upwards trend over the years due to associate health benefits because of the presence of high fibre, high iron, magnesium and potassium in dark chocolate.
The cocoa market is divided into conventional and organic: this year, the conventional cocoa market segment is expected to dominate the market. Conventional cocoa products are available at low cost and are preferred. Organic farming requires high labour expenses, maintenance requiements and other cocoa-related operating expenditures and means organic cocoa ingredients and products are expensive.
The APAC region is witnessing the fastest growth rate, at 5.72% during the forecast period. The Chinese cocoa market is estimated to grow at a CAGR of 6.39%, owing to strong demand for chocolate in the country. In Europe, Germany was the highest consumer of chocolate in 2021 followed by the UK and Belgium. The US was the seventh largest exporter of chocolate in 2020 with destinations being Canada, Mexico, South Korea, Australia and the UK. Growth in this region is owing to growing population, rise in income, growing urbanisation and consequent demand for chocolate products.
Key players in the chocolate market are Mars (US), Mondelez International (US), Nestle (Switzerland), Ferrero International (Italy), Olam Group (Singapore), to name a few.
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