The global cocoa beans market size was estimated at USD 9.94 billion in 2018 and is projected to expand at a CAGR of 7.3% from 2019 to 2025. Rapidly growing chocolate industry in emerging economies including China and India is expected to boost the demand for cocoa beans as intermediates. The rising importance of coating in the processing of vegetables, fruits, and cereals for improved flavor is projected to increase the product demand further.
The product finds application in industries such as, functional food & beverage, confectionery, pharmaceuticals, and cosmetics, on account of its health benefits, which include regulation of fatigue syndrome, excellent anti-oxidant properties, and reducing the impact of hypertension. There has been a rising demand for chocolate variants, such as milk chocolate, brownies, and dark chocolate, across the globe.
This is projected to help boost the global market growth over the forecast years. Furthermore, the availability of chocolates in different flavors including mint, vanilla, and coffee is expected to have a positive impact on the global cocoa beans market. Cocoa plants are susceptible to pests and vulnerable to harsh climatic conditions, such as extremely dry weather.
Farmers have been facing challenges pertaining to yield and profitability due to weed accumulation, which increases the risk of crop damage. Also, the majority of cocoa farmers have shifted their focus to the cultivation of other high-yield crops. These challenges are projected to negatively affect the supply dynamics, thereby hindering market growth over the coming years.
Cocoa butter was the largest product segment and accounted for more than 50% of the global share. This product is used as a lubricant in the pharmaceutical industry. It is also used as an antioxidant, flavor enhancer, and preservative in the food & beverage industry. This product form acts as an emulsifier to prolong the shelf life and enhance the mouthfeel of chocolates.
Furthermore, it is used as an aroma enhancer and humectant in the formulation of cosmetic goods. The rising popularity of natural cosmetics across the globe due to rising concerns about the adverse effects of synthetic products is projected to augment the demand for butter cocoa beans as a functional ingredient.
The powder product segment is expected to witness the fastest growth at a CAGR of 8.0% from 2019 to 2025. Cocoa powder is used as an additive in formulations of chocolate syrups, cakes, chocolate confectioneries, and biscuits. The rising importance of alkalized cocoa powder as a flavor enhancer in chocolate products on account of their ability to lower the acidity and increase solubility is projected to remain a favorable factor for the segment.
Offline distribution channel led the market in 2018 and accounted for more than 80% of the global market share. The product is majorly sold through offline channels including supermarkets & hypermarkets, convenience stores, brand outlets, and direct selling. However, the online segment is expected to witness the fastest CAGR of 8.3% from 2019 to 2025. The emergence of e-commerce portals as key selling medium on account of providing value-added services including free-home delivery, Cash-On-Delivery (COD), and coupon benefits is expected to remain a prominent growth-driving factor.
Confectionery accounted for more than 35% of the global share in 2018. Significant gains in the dark chocolate segment in emerging economies including China and India on account of increasing purchasing power are projected to remain a key driving force. Pharmaceuticals are expected to witness the fastest growth at a CAGR of 8.1% from 2019 to 2025. The product plays a significant role in pharmacology as it helps protect cell membranes, maintain cholesterol levels, and reduce the occurrences of Cardiovascular Diseases (CVDs). Moderate consumption of chocolate bars enriched with cocoa powder helps regulate the blood pressure levels and minimize insulin sensitivity.
Cocoa also contains a high percentage of flavonoids, which helps reduce the risk of oncology disorders including cancers. These factors are expected to increase the product application scope as a functional ingredient in various pharma drugs and Active Pharmaceutical Ingredient (APIs) over the next eight years. Functional food & beverage is projected to exceed USD 3.90 billion by the end of 2025. The positive outlook towards the health & wellness segment among the working-class population in developed economies owing to awareness programs is expected to boost the product demand in the segment.
North America dominated the market in 2018 and accounting for 30% of the global share. Growing demand from confectionery, cosmetics, and pharmaceuticals sectors of the U.S. and Canada is projected to remain a favorable factor. Furthermore, urbanization and rising disposable income levels in Mexico are expected to open new avenues over the next eight years. Asia Pacific is expected to witness the fastest growth at a CAGR of 8.5% from 2019 to 2025. Prominent markets of this region include China and India. Growing target population base coupled with increased health consciousness and shift in consumer preferences is expected to have a positive impact on the regional market.
Key industry participants include The Hershey Company; Cargill, Inc.; The Barry Callebaut Group; Puratos Group; Blommer Chocolate Company; Cemoi; Meiji Holdings Company; Jindal Cocoa; and United Cocoa Processor. Alliances with distributors located in developing economies and product innovation are expected to remain critical success factors. In September 2017, Switzerland-based Barry Callebaut launched a new chocolate variant under the brand name, Ruby Chocolate. The new ruby cocoa beans-based chocolate is targeted for millennials and their desire for hedonistic indulgence.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2025
Revenue in USD Billion and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa
U.S., Mexico, Canada, Germany, U.K., China, India, Japan, Brazil, and South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global cocoa beans market report on the basis of product, application, distribution channel, and region:
Product Outlook (Revenue, USD Billion, 2015 - 2025)
Application Outlook (Revenue, USD Billion, 2015 - 2025)
Functional Food & Beverage
Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
Region Outlook (Revenue, USD Billion, 2015 - 2025)
Central & South America
Middle East & Africa
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