Cocoa Market Report

Growing demand for richer taste, mouthfeel and more satisfying cocoa chocolate experience among food lovers, many market players are launching long-lasting flavour sensation with mouthfeel enhancing texture.  For instance, in April 2024, Barry Callebaut launched MALEO, a cocoa powder that offers characteristics such as intense brown colour, provides rich and chocolatey flavour with long lasting cocoa sensation. It is a high-fat powder that provides mouthfeel enhancing texture, providing better consistency and softer texture in applications such as baking.

However, increasing social and government priorities to create long-term value and positive change by doubling down integrated approach that suited farmers and enabling farmers to increase their income and pioneer climate resilient. For instance, in October 2022, Mondelez announced investment of US$ 600 million to expand the production of cocoa volume by introducing innovative climate smart technology tailored to farmers segmentation. In addition, in January 2024, CNFA announced partnership with   Bloomer and MOCA, aimed to improve coco supply chain, providing training and support service to cocoa producers to boost productivity and efficiency and improving farm income, resulting in increasing supply of high-quality cocoa beans.

Changes in temperature, and limited access to advanced farming techniques affecting yields and productivity, leading to proliferation of cocoa diseases and pests, and further, threatening production as well as improper labelling leading to health concerns. For instance, in June 2024, FDA announced product recall for Feve Artisan Chocolatier and Dandelion Chocolate launched chocolate covered cocoa nibs due to presence of uncleared hazelnut allergen, lead to life-threatening risk to consumers and severe sensitivity. 
However, cocoa prices are highly volatile, influenced by factors such as disruptive supply chain and changes in trade policies, leading to inefficiencies and higher costs, making it challenging for farmers and businesses to plan and invest. Furthermore, changes in consumer preferences, such as a shift towards plant-based diets and alternatives to chocolate, can impact demand for cocoa and hampers the market growth.

As the market value of cocoa butter continuous to rise, led market players to introduce economically viable alternative without compromising in the quality. For instance, in June 2024, Bloomer Chocolate launched cocoa butter alternative chocolate, using elevates coatings use cocoa butter equivalent technology, ensuring integration with cocoa butter and superior bloom resistance, offering longer shelf life and visual appeal, providing chocolate-like sensory experience, with optimising flavour release.

However, the taste remains primary criteria among consumers led to increasing demand for more substitutes, having multiple applications as most of market products offers issues in sensory quality in products having more than 5% of cocoa,  and affecting purchasing decision, due to which many market players are launching substitute for cocoa powder  and in cost effective value, due to which.  For instance, in May 2023, AAK announced to launch cocoa powder substitute compound, offering 15% of cocoa ingredients to provide cocoa flavour and are free from trans fatty acids, helps in reducing formulation cost for products such as confectionery bars and bakery goods.

Furthermore, rising demand among consumers for unique fruity pallet flavourful ranges of cocoa in various chocolates, led market players to launch innovative blends of spices and fruits in chocolates to cater chocolate aficionados of consumers. For instance, in January 2024, Haldiram announced to launch Cocobay, a chocolate brand made from 100% original cocoa beans, offering finest chocolate blended with spices, with specially crafted and curated fruit flavour, covering array of products such as Rochers, Rocks, bars, hearts and buttons and more.

North America is estimated to grow in cocoa market, as it one of major importer of cocoa and rising awareness about cocoa-based product consumption, due to which chocolates with higher cocoa contents are becoming popular, and driving the market growth, as most of the prominent market players are increasing production of cocoa chocolates and introducing substitutes of cocoa for consumers.

Europe dominates the market being the largest importer, this region is prominent producer as well consumer of chocolate and chocolate products. Further, increasing consumers awareness about sustainable cocoa production increases the demand leading to increases collaborations and partnerships, resulting in market expansion. However, Asia-Pacific cocoa market is rapidly increasing, due to remerging demand of chocolate and confectionaries in nations such as China, India, attributed to increasing consumers expenditure. Additionally, organic and plant-based products are increasingly gaining traction in countries such as Japan, due to rising health benefit awareness.