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The cocoa beans market size is forecast to increase by USD 3.33 billion, at a CAGR of 4.36% between 2023 and 2028. The market's expansion depends upon multiple factors, one significant aspect is the surging favoritism for coffee within the millennial demographic, indicating a growing consumer base. Additionally, the escalating desire for chocolate, complemented by fresh product introductions, contributes significantly to market growth. Moreover, the increasing awareness and appreciation for the health advantages offered by cocoa-rich products further propel this trend. These factors collectively drive market dynamics, attracting a diverse range of consumers and fostering innovation within the coffee and chocolate sectors. As consumer preferences evolve and health consciousness rises, companies are motivated to enhance their offerings and explore new opportunities in this thriving market segment. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market exhibits promising growth driven by the rising demand for organic cacao beans and functional food and beverage products. Chocolate businesses are innovating with milk chocolate, brownies, and other cocoa-based treats, while the cosmetics and pharmaceutical sectors explore the benefits of cacao butter and cocoa liquor. Challenges include sustainable farming practices for Forastero cacao beans, fluctuating cocoa prices, and supply chain disruptions. Trends like premium chocolate from regions like Switzerland and Ecuador, and cocoa-infused bakery confections reflect evolving consumer preferences.
The rising popularity of coffee among millennials is notably driving the market growth. The changing consumer preferences for high-value, specialty cocoa bean products such as chocolate-flavored beverages, especially among young people, are spurring demand for cocoa beans. Improved economic conditions and increased employment opportunities in emerging economies have made a wide variety of cocoa beans for different applications, such as beverages, cosmetics, and confectionery products, affordable to young consumers.
Moreover, millennials love to experiment with new beverage types, brands, and flavors on the market and tend to spend more on premium beverage brands than the rest of the population. As a result, cocoa bean suppliers are constantly adding new products to our portfolio and trying to understand the tastes and preferences of millennials. Companies also offer free products and attractive discounts on their products to appeal to this generation. Such factors will boost the growth of the market during the forecast period.
An increasing number of mergers and acquisitions (M&A) is a key trend influencing market growth. The market is experiencing an increasing number of mergers & acquisitions (M&A) deals. Most M&A deals are completed with a focus on factors such as product portfolio diversification, entering new markets, increasing market share, strengthening brand image, improving supply chain management, and achieving economies of scale.
Moreover, various companies operating in the market are focused on acquiring local cocoa bean growers and traders to enter new regional markets. Such M&A will drive the growth of the market during the forecast period.
Product recalls pose a significant challenge to market growth, as they tarnish a company's reputation, diminish consumer trust and loyalty, and impose financial and operational burdens. Recalls occur due to various reasons, including health hazards, contamination, and undisclosed allergens. With increasing health consciousness among consumers, recalls due to contamination can severely impact brand trust, leading to reduced loyalty and a willingness to switch to alternatives.
Further, recent examples include Homestead Creamery's recall of chocolate ice cream containing undeclared pecans, Lindt & Sprungli's recall of mislabeled chocolate bars, and Cargill's recall of chocolate products containing an undisclosed wheat allergen. Such incidents can deter consumers from purchasing chocolate products, thereby impeding the growth of the global cocoa beans market in the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Barry Callebaut AG: The company is one of the leading manufacturers of high-quality chocolate & cocoa products.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the confectionery segment will be significant during the forecast period. High demand for cocoa-based chocolate and confectionery drops/chunks is expected to boost the growth of the confectionery segment during the forecast period. Companies such as Mars and Nestlé have launched products that are high in cocoa and produce a strong chocolate flavor. For example, UK-based confectionery company Prodigy Snacks Ltd announced the launch of Phenomenoms, a new range of chocolate biscuits in two flavors.
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The confectionery segment was valued at USD 4.93 billion in 2018. The growth in the confectionery sector is driven by increasing consumer demand for chocolate, which in turn leads to increased demand for cocoa. Large suppliers such as Nestle are increasingly relying on vertical and horizontal integration across the cocoa industry's value chain. Therefore, the confectionery segment is expected to witness growth in the market during the forecast period.
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Europe is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is the fastest growing market in Europe region. This is due to growing interest in sustainable trade in the region and increasing consumer demand for high-quality single-origin chocolate and cocoa-based products. Additionally, the increase in cocoa bean consumption in the region has been attributed to the associated nutritional and health benefits, particularly those of dark chocolate. Consumers are increasingly opting for dark chocolate because it contains less sugar and the fat comes from cocoa butter. Organic and fair-trade cocoa products are also gaining importance in the region. The flavor is a key factor in the market, and the industry is focused on developing new techniques, such as roasting whole cocoa beans to achieve superior flavor. These factors are anticipated to boost the growth of the market in this region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is intricately linked to various industries, including the chocolate industry, functional food and beverage sector, confectionery industry, pharmaceuticals, and cosmetics industry. Cocoa beans play a vital role in the production of a wide range of products, from chocolates and confectioneries to cosmetics and functional foods. Moreover, one of the key factors driving the market is the rising demand for chocolate variants such as milk chocolate, brownies, mint flavor, vanilla flavor, and coffee flavor. Consumers' increasing awareness of the antioxidant properties of cocoa-rich products has also contributed to market growth, especially in the functional food and beverage industry. However, challenges such as pests affecting cocoa plants, climatic conditions like dry weather impacting yield and profitability for farmers, and weed accumulation leading to crop damage are significant concerns. The supply dynamics of cocoa beans, including issues related to lubricants, antioxidants, flavor enhancer, preservative, and emulsifier affecting shelf life, mouthfeel, and aroma, also influence the market.
Furthermore, in terms of distribution, offline channels like supermarkets, hypermarkets, convenience stores, and brand outlets remain crucial, while the online segment, including e-commerce portals, offers value-added services like free-home delivery, Cash-On-Delivery (COD) options, and coupon benefits, attracting consumers with diverse preferences. Moreover, the market extends to the pharmaceutical sector, where cocoa's impact on cell membranes, cholesterol levels, cardiovascular diseases (CVDs), blood pressure levels, and insulin sensitivity is studied, particularly in powder product segments like additive, chocolate syrups, cakes, and alkalized cocoa powder known for lowering acidity and increasing solubility. In the natural cosmetics industry, direct selling strategies for powder product segments that feature lower acidity and increased solubility are enhanced by incorporating aroma enhancers and humectants, while the dark chocolate segment leverages the pharmacology of cocoa to appeal to consumers' purchasing power and interest in chocolate confectioneries.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
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Market growth 2024-2028 |
USD 3.33 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.11 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 39% |
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Key countries |
US, The Netherlands, Germany, France, and Indonesia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Barry Callebaut AG, Cargill Inc., CEMOI Group, Cocoa Supply, Costa Esmeraldas Cacao Co., Dutch Cocoa BV, ECOM Agroindustrial Corp. Ltd., Edna Group, Fuji Oil Holdings Inc., India Cocoa Pvt. Ltd., JINDAL COCOA, Meiji Holdings Co. Ltd., Meridian Cacao Co., Mitsubishi Corp., Mondelez International Inc., Nederland SA, Niche Cocoa Industry Ltd., Puratos, The Mexican Arabica Bean Co., and United Cocoa Processor Inc. |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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