With an increasing number of consumers prioritising their health and following specific diets with specific needs, the demand for dark chocolate with high cocoa and less sugar has rocketed according to a new report by MarketsandMarkets.
The cocoa and chocolate market is projected reach $26.3 billion by 2027 growing at a rate of 4.5 percent while the global chocolate market is projected to reach $160.9 billion by 2027 growing at a rate of 4.7 per cent.
However the sector is not without its problems. According to the International Cocoa Organization, the world’s biggest supplies of cocoa come from Africa, which accounts for 72% of the global production of cocoa.
Ivory Coast and Ghana are the major countries producing cocoa, but these countries are also facing certain issues such as fair trade discrepancies, environmental issues, spells of government unrest, and reducing labour force as more of the population is leaving farming as an occupation and opting other professions.
For this reason measures such as implementation of National Cocoa Development Plan (NCDP) in the member countries of ICCO are being undertaken to improve the production of cocoa. It’s initiatives like these that make the prospect of fulfilling the rising demand for cocoa globally more likely.
Organic (cocoa & chocolate)
The cocoa and chocolate market players are showing trends of pursuing both organic as well as inorganic strategies for their expansion, consolidation, and sustainability in the market. Developments and new product launches in chocolate and rise in the use of cocoa for cosmetics and pharmaceuticals are driving the market and this is leading to an increased demand for cocoa.
Milk chocolate
The market for chocolate, based on type, is segmented as dark chocolate, milk chocolate, filled chocolate, and white chocolate. The milk chocolate segment is estimated to dominate the chocolate market in 2022 and is anticipated to witness similar trends throughout the forecast period.
Milk chocolate has low levels of cocoa solids and is lighter and sweeter than dark chocolate. The dark chocolate segment has witnessed an upwards trend over the years owing to various health benefits associated with it due to the presence of high fibre, high iron, magnesium, potassium, and phosphorus content.
In the cocoa and chocolate market, organic nature segment is registering the highest growth during the forecast period.
Organic (cocoa)
The cocoa market, based on nature, is segmented into conventional and organic. In 2022, the conventional cocoa market segment is expected to dominate the market. The conventional cocoa products are easily available at low cost and are widely preferred.
Due to the need for organic farming, high labour expenses, maintenance requirements, and other organic cocoa-related operating expenditures, organic cocoa ingredients and products are quite expensive. The organic cocoa segment, however, is estimated to witness a higher growth rate during the forecast period owing to its various health benefits and environment friendliness.
Growth rate in chocolate market
The Asia Pacific region is witnessing the fastest growth rate of 5.72% during the forecast period. The Chinese cocoa market, in terms of volume, is estimated to grow at 6.39%. This is attributed to the strong demand for chocolate in the country.
Across Europe, Germany consumed the highest quantity of chocolate in 2021 followed by the UK, and Belgium. The United States accounted for the largest market share primarily driven by the large consumption of confectionery and bakery items.
According to the Observatory of Economic Complexity (OEC), the US was the seventh largest exporter of chocolate in 2020, with key export destinations being Canada, Mexico, South Korea, Australia, and the UK.
Growth in this region is attributed to the growing population, rise in per capita income, growing urbanisation, and therefore, an increase in demand for chocolate-based products. Additionally, the nutritional benefits of chocolate are promoting the growth of chocolate in the region.
The key players in cocoa and chocolate market include Mars, Inc.(US), Mondelez International (US), Nestle S.A. (Switzerland), Meiji Holding Co. Ltd.(Japan), Ferrero International(Italy), Olam Group (Singapore), Barry Callebaut(Switzerland), Cargill Incorporated (US), Cocoa Processing Company (GHANA), Archer Daniel Midland (ADM) Company (U.S.), Chocoladefabriken Lindt & Sprüngli AG (Switzerland) and Pladis Global(UK) among others.
