The global cocoa market is poised for a significant upswing in the coming years, according to a recent market report by Allied Market Research based in Portland, Oregon.
Rising Chocolate Demand Worldwide
The report highlights the anticipated rise in market value, driven primarily by the increasing demand for chocolates worldwide, with a particular surge in Europe and North America.
Consumer Focus on Sustainability
One key factor identified in the report as crucial for consumers, especially in Europe, is the sustainability of cocoa production.
Embracing Storytelling as a Marketing Strategy
As consumers grow more interested in the origins of their products, the cocoa industry has embraced storytelling as a new marketing strategy to connect with buyers on a deeper level.
In 2019, the global cocoa market was valued at $12.8 billion, and the report predicts a steady growth trajectory, reaching an estimated $15.5 billion by 2027, showcasing a Compound Annual Growth Rate (CAGR) of 4.3% from 2021 to 2027.
Growth Drivers and Challenges
Demand Surge and Regional Preferences
The increased demand for chocolates worldwide and the rising preferences in Europe and North America are cited as primary drivers of this growth.
Challenges in the Market
However, the report acknowledges challenges such as the presence of substitute products and fluctuating prices, which could restrain market growth.
Opportunities in Specialized Products and Innovative Marketing
On a positive note, the surge in demand for specialty cocoa and innovative marketing strategies is expected to create new opportunities in the market.
The key players in the global cocoa market, as outlined in the report, include industry giants such as Cargill, Inc., Olam International Ltd., Toutan S.A., Barry Callebaut AG, The Hershey Company, Guan Chong Cocoa Manufacturer SDN. BHD, Ciranda, Inc., United Cocoa Processor, Inc., Bloomer Chocolate Company, and VJ Jindal Cocoa Private Limited.
The report further delves into product segmentation, highlighting that the cocoa liquor segment held the largest market share in 2019, contributing nearly two-fifths of the total market share. It is expected to maintain its lead position with the fastest CAGR of 4.4% from 2021 to 2027. Additionally, the report discusses other segments, including cocoa butter and cocoa powder.
Europe emerges as the leading market for cocoa, being both the highest cocoa and chocolate consuming region.
Top Importers and Consumers
In 2019, the Netherlands led in cocoa imports, while Switzerland claimed the title of the top chocolate-consuming country in Europe. Notably, Germany, France, and the UK ranked among the top chocolate and cocoa consumers.
Cocoa Production Powerhouses
Ghana and Cote d’Ivoire take center stage as the world’s leading cocoa-producing countries, collectively producing over three million metric tons of cocoa between 2021 and 2023.
Industry Revenue and Future Prospects
The chocolate industry in these countries is estimated to generate revenue exceeding $120 billion annually, further emphasizing the promising future for the global cocoa market.
As the sweet momentum continues, the industry is poised for both challenges and opportunities, making it a sector to watch in the years ahead.
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