Cocoa Butter Equivalent Market - Forecasts from 2025 to 2030

The cocoa butter equivalent market is estimated to grow at a CAGR of 6.27%, attaining US$2,004.872 million by 2030, from US$1,479.363 million in 2025.
Cocoa butter equivalent (CBE) is a type of vegetable fat that mimics the triglyceride and fatty acid composition of cocoa butter, providing similar physical and chemical properties. The market for CBE is experiencing growth primarily due to the increasing incidence of skin reactions and allergies associated with cocoa. Cocoa can also cause digestive issues such as nausea, stomach discomfort, and constipation. Additionally, the decline in global cocoa production is expected to further drive demand for CBE.
Drivers of the Cocoa Butter Equivalent Market:

Decline in Global Cocoa Production: The reduction in annual cocoa production is anticipated to significantly boost the demand for cocoa butter equivalents during the forecast period. According to the International Cocoa Organization, Côte d’Ivoire and Ghana account for 54% of total cocoa production, but both countries have experienced declines of 467,000 and 448,000 tonnes, respectively, over the past three seasons. This decline has led to severe challenges across various industries due to shortages of raw materials. In March 2024, cocoa prices in London surged by approximately 47%, rising from $7,109 per tonne to $10,455 per tonne. Similarly, prices in New York increased by 44% during the same period. The International Cocoa Organization reported a further price increase of 33% in November 2024 compared to a previous increase of 12% in November 2023. As cocoa butter is widely used across sectors such as food and beverages, cosmetics, and pharmaceuticals, rising prices and declining production are raising concerns among key market players. Alternatives like coconut oil, shea butter, and palm oil possess similar properties to cocoa butter and can serve as effective substitutes across these industries.
Increased Demand from the Cosmetics Sector: The growing global demand for cosmetics and personal care products is also expected to drive growth in the cocoa butter equivalent market. In these sectors, CBEs provide a cost-effective replacement for cocoa butter while maintaining similar textures and chemical properties. CBEs are commonly used in formulating various fragrances and skin creams.According to the Cosmetic, Toiletry, and Perfumery Association, the cosmetics market in Europe experienced a growth rate of about 9.1% in 2023, compared to a 7.5% increase in 2022. Total retail sales of cosmetic products in Europe reached approximately €96 billion in 2023, up from €88 billion in 2022. Germany led the market with sales of €15.9 billion, followed by France at €13.7 billion and Italy at €12.5 billion.
Geographical Outlook of the Cocoa Butter Equivalent Market:

Asia-Pacific Expected to Hold Major Market Share: The Asia-Pacific region is projected to experience significant growth during the forecast period due to increasing production and demand for vegetable oils. The rise in personal care product production will also drive demand for CBEs. Countries such as China, Japan, India, and South Korea are among the largest producers and consumers of cosmetics and personal care products that utilize various types of cocoa butter equivalents.
Cosmetics Europe reports that retail sales in the Asia-Pacific cosmetics sector have consistently grown over recent years. In 2023, retail sales were recorded at €59 billion in China and €22 billion in Japan. Additionally, India and South Korea reported retail sales of €13 billion and €9 billion respectively during the same year.

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The cocoa butter equivalent market has been segmented as following:

By Type

Palm Oil
Coconut Oil
Shea Butter
Others

By Application

Food and Beverages
Cosmetics
Pharmaceutical
Others

By Distribution Channel

Online
Offline
Supermarkets
Hypermarkets
Retail Stores
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
Japan
South Korea
India
Others