Cocoa is cultivated primarily in countries located in the belt between 10ºN and 10ºS of the equator on account of the favorable climatic conditions. The demand for cocoa is increasing rapidly with the growth of chocolate confectioneries and other end-products. Cocoa production is characterized by the presence of small-scale farmers who have limited access to finance and technology, as well as dated skills. Cocoa production is likely to grow over the next few years with the incorporation of modern agronomy techniques for cocoa cultivation. The governments of most cocoa-producing countries are developing infrastructure and encouraging cocoa cultivation to increase trade. Infrastructure in terms of warehousing facilities and roads for transportation in regions such as Africa are expected to improve. Political stability can greatly affect the supply potential of cocoa and hence is crucial for steady market growth.
Technavio’s analysts forecast the global cocoa market to grow at a CAGR of 3.14%, in terms of volume, during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global cocoa market for 2016-2020. To calculate the market size, Technavio considers the consumption of cocoa in terms of volume in major regions of the world such as the Americas, APAC, Europe, and ROW.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Cocoa Market 2016-2020
Technavio recognizes the following companies as the key players in the global cocoa market: Archer Daniels Midland, Barry Callebaut, Blommer Chocolate Company, Cargill, Cocoa Processing Company, and Olam International.
Other Prominent Vendors in the market are: CEMOI, Daarnhouwer, Dutch Cocoa, Newtown Foods, Puratos, The Hershey Company, and United Cocoa Processor.
Commenting on the report, an analyst from Technavio’s team said: “Rising demand for dark chocolates will be a key trend for market growth. Dark chocolates contain flavonoids, compounds that play the role of antioxidants. Flavonoids are useful in protecting cells from harmful molecules known as free radicals. They also lower blood pressure and reduce bad cholesterol, i.e., low-density lipoprotein (LDL) cholesterol, by about 10%. Dark chocolate has attracted health-conscious consumers, and the sales of dark chocolate are increasing significantly worldwide, but particularly so in the US, China, the UK, Russia, and Brazil.”
According to the report, one of the key drivers for market growth will be demand for origin-specific cocoa. The use of origin-specific cocoa, which is made from high-quality cocoa beans obtained from one specific region, has seen increased demand over the last few years. Mondelēz International's Cadbury Bournville emphasizes that the rich cocoa of this fine dark chocolate comes from villages in Ghana. This kind of origin-specific production can reach the emotional touchpoints of consumers.
Further, the report states that fluctuating cocoa prices will be a challenge for the market. Cocoa prices have been fluctuating for the past decade. The cocoa prices depend heavily on growing conditions and can vary significantly from month to month. The volatile price of cocoa makes chocolate production costs more volatile. Marketers of confectionery items are concerned about the fluctuating cocoa prices as they are left unable to estimate their production costs on a yearly basis. As chocolate is the largest selling confectionery item, accounting for 56% of the overall market value, the volatile cocoa prices have become a major challenge for the confectionery market.
Archer Daniels Midland, Barry Callebaut, Blommer Chocolate Company, Cargill, Cocoa Processing Company, Olam International, CEMOI, Daarnhouwer, Dutch Cocoa, Newtown Foods, Puratos, The Hershey Company, United Cocoa Processor.
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