Cocoa provides important health benefits and is a key ingredient in many snacks and confections. Cocoa contains flavonoids that may benefit heart health as well as mood and cognitive function. Increasing consumer awareness of cocoa’s health advantages has propelled growth in demand for healthier snacking options that incorporate cocoa, such as snack bars.
The global Cocoa Market is estimated to be valued at US$ 11,499.6 Mn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing trend of healthy snacking has driven demand for snacks and confections containing cocoa. Cocoa provides antioxidants and other potential health benefits. Furthermore, lighter versions of chocolate and cocoa powder incorporating less sugar have gained popularity among health-conscious consumers. Manufacturers are responding to demand by introducing snacks, baked goods, and cocoa products with clean ingredient labels, reduced sugar or calorie contents. For example, snack bars often advertise high cocoa content as a key nutrient and sell themselves as an indulgent yet nutritious snack option. This trend of healthy yet enjoyable snacking is expected to further propel growth in the cocoa market over the forecast period.
Strength: Cocoa provides health benefits like lowering blood pressure and is rich in antioxidants. It also helps fighting inflammation.
Weakness: Cocoa farms are vulnerable to climate changes and diseases that can damage cocoa crops and negatively impact supply. Cocoa is also sourced from developing countries and is exposed to economic and political instability in producing regions.
Opportunity: Rising health consciousness is increasing demand for cocoa and cocoa-based products. There is also opportunity to adopt sustainable farming practices to make cocoa supply chains more resilient to climate changes.
Threats: Pests and diseases pose threats to cocoa crops. Emerging markets can adopt alternative crops that are more profitable threatening the demand for cocoa. Price fluctuations in the international markets also pose risks.
The global cocoa market is expected to witness steady growth over the forecast period supported by rising demand for chocolate and cocoa-based products. The global Cocoa Market is estimated to be valued at US$ 11,499.6 Mn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region accounts for the largest share of the global cocoa market currently. China and India are among the fastest growing markets in the region driven by rising incomes, expanding middle-class populations and growing awareness about health benefits of cocoa. Countries like Indonesia and Malaysia are also emerging as major cocoa producers and consumers in the region.
Key players: Key players operating in the cocoa market are focusing on capacity expansions and innovations to introduce new cocoa-based products targeting different consumer segments. Companies are also investing in sourcing programs and sustainable cocoa farming initiatives in producing regions to secure long term supplies and support farmer livelihoods. Strategic acquisitions are allowing bigger players to expand their global footprints and gain access to new markets.