Key deterrents factoring the sluggish growth in global cocoa revenues:
- Unsuitable weather conditions witnessed across the globe are curbing a healthy production of cocoa strains and hindering the supply of fresh cocoa to areas with harsh environments
- Farmers are facing challenges occurring due to poor management of cocoa farms and negligent adoption of modern agricultural techniques
- Measures taken by governments to hike the end-user value of cocoa products are compelling cocoa farmers to provide only high-quality cocoa beans and discard the remainder of the produce
According to a recent study published by Future Market Insights, factors as such are decelerating the growth in sales of cocoa in the global food & beverage industry. Farmers and cocoa manufacturers are unable to meet the world’s rising chocolate consumption. The study estimates that over US$ 10 billion worth of cocoa was consumed globally in 2016. However, by the end of 2026, these revenues would have registered a modest 3.4% CAGR and accounted for sales of just above US$ 14.5 billion worth of cocoa.
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In the report, titled “Cocoa Market: Global Industry Analysis and Opportunity Assessment, 2016-2026,” Future Market Insights projects that more than one-third of global cocoa revenues will continue to be stemmed from Western Europe. By the end of 2026, Western Europe’s cocoa market will have surpassed US$ 5 billion in revenues. The Barry Callebaut Group, Nestlé S.A., Puratos Group, and Cémoi are leading cocoa manufacturers based in Western European region. Furthermore, North America will also be a lucrative region for sales of cocoa products, accounting for more than 23% of global revenues throughout the projection period. United Cocoa Processor, Carlyle Cocoa, Blommer Chocolate Company, Mars Incorporated, Cargill Incorporated and The Hershey Company are cocoa manufacturers based in the US, prominent for their contribution in the global market. Other key players in the global cocoa market include Japan’s Meiji Holdings Company, Ltd. and India’s Jindal Cocoa.
With respect to the nature of cocoa, the report projects that demand for organic cocoa will not outpace the demand for conventional cocoa, at any time in the due course of forecast period. Challenges arising in cultivating cocoa through organic farming techniques has also lowered the production of organic cocoa. By the end of 2026, organic cocoa worth just over US$ 300 million will be consumed globally. The clarity in consumer preferences towards the nature of cocoa has bifurcated the market into organic cocoa market and conventional cocoa market.
According to the report, demand for organic cocoa butter and organic cocoa liquor will remain higher than that of organic cocoa powder. Naturally-processed organic cocoa will gain traction as opposed to Dutch processing techniques. Throughout the projected period, a majority of organic cocoa produced in the world will be used up for production of confectionery items, functional food, beverages, and cosmetics.
The global market for conventional cocoa will be predominantly dominated by applications such confectionary, bakery items, functional foods and beverages. The report also estimates that in 2016, more than US$ 3.5 billion worth of revenues were generated from sales of conventional cocoa powder. Nonetheless, revenues arising from conventional cocoa liquor will be soaring at the highest CAGR of 4.5%. By the end of 2026, conventional cocoa products derived from Dutch processing techniques will dominate by bringing in nearly US$ 10 billion in global revenues.