Cocoa: Key market research findings
- Europe dominates the market geographically
- Confectionery segment accounts for a majority share of the market revenue
- Key vendors – Archer Daniels Midland (ADM), Barry Callebaut, Blommer Chocolate Company, Cocoa Processing Company, and Olam
Technavio’s market research analysts predict the global market for cocoa to grow at a CAGR of over 3% between 2016 and 2020. The demand for cocoa is fueled by the wide scope of the use of cocoa powder. Cocoa powder is extensively used as an ingredient in the baking, dairy, and beverage industries. It is also used in a wide assortment of applications after undergoing liquor alkalization, powder alkalization, or nib alkalization during the cocoa processing chain. During 2015, the global cocoa market was dominated by Europe with a market share of almost 47%. The increased consumption of cocoa in this region owing to its nutritional and health benefits, particularly those of dark chocolates, will propel growth in the cocoa market in Europe during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the cocoa segments based on the application.
“At present, the Fairtrade cocoa is becoming increasingly popular in the market. Fairtrade-certified cocoa products are made from cocoa that is produced in farms that do not indulge in inhuman practices such as slavery and child labor. The vendors charge a Fairtrade premium for their product, and this is used extensively to improve the living standards of farmers producing cocoa. Consumers are increasingly willing to pay the extra premium for Fairtrade-certified cocoa products as it ensures the well-being of cocoa farmers,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
By 2020, the confectionery segment will account for around 48% of the overall market revenue to become the key revenue generating vertical of the market. The growth of this segment is fueled by the demand for low-fat alkalized or low-fat natural cocoa powders in a wide spectrum of confectionery products including toffee, hard candy, boiled sweets, marshmallow, countlines, and fondants. Companies are launching products that have high cocoa mass, resulting in a strong chocolate liquor flavor. An example is Blommer Chocolate’s Havana High Cocoa Mass Drops.
The prominent players in the market include Archer Daniels Midland (ADM), Barry Callebaut, Blommer Chocolate Company, Cocoa Processing Company, and Olam. Vendors across the globe are now moving toward sustainable sourcing of cocoa beans to comply with the demands for sustainability and strengthen their brand image in the market. They are working with a wide spectrum of partners to promote fair labor, improve livelihoods of cocoa farmers, share best agronomic practices, and strengthen cocoa-growing communities.
A more detailed analysis is available in the Technavio report, Global Cocoa Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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