Research from Markets and Markets reports that the cocoa and chocolate market is projected to reach $26.3 billion by 2027, growing at a CAGR of 4.5% from 2022 to 2027. The global chocolate market is projected to reach USD 160.9 billion by 2027, growing at a CAGR of 4.7% from 2022 to 2027.
Highlights of the report include:
- The growing awareness about health propels the demand for dark chocolate with high cocoa and less sugar.
- According to the International Cocoa Organization, the world’s largest supplier of cocoa is Africa, which accounts for 72% of the global production of cocoa. The 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 reduced labor force as more population is leaving farming as an occupation and opting other professions.
- Therefore, measures such as the implementation of the National Cocoa Development Plan (NCDP) in the member countries of ICCO are being undertaken to improve the production of cocoa.
- 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 is leading to an increased demand for cocoa.
- The milk chocolate segment is estimated to dominate the chocolate market in 2022 and is anticipated to witness similar trends throughout the forecast period.
- 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 fiber, high iron, magnesium, potassium and phosphorus content.
- 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. Conventional cocoa products are easily available at low cost and are widely preferred.
- Due to the need for organic farming, high labor expenses, maintenance requirements and other 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 environmental friendliness.
- 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 a CAGR of 6.39%.