Cocoa Processing Market Size, Industry Share, Growth Trends and Forecasts (2024 - 2031)

By Bean Type :

The bean type is categorized into forastero, criollo, and trinitario. In 2023, the forastero segment accounted for the highest market share of in the cocoa processing market market. As per the analysis, the forastero is the most common variety of cacao which is used to produce cocoa products. According to the data provided by the Centre for the Promotion of Imports from Developing Countries (CBI) in November 2022, forastero beans account for around 80% of global cocoa production. Forastero grows faster and gives a higher yield than other cocoa varieties. Additionally, forastero beans are known for their robust flavour and durability, making them suitable for mass production and processing into various cocoa products. As a result, the widespread cultivation and higher yield are forastero beans are fueling the segment expansion across the globe.

Moreover, the criollo bean type segment is expected to hold the fastest CAGR over the forecast period. Criollo beans are known for their delicate and fine flavour notes, often described as complex and aromatic. As per the analysis, this unique taste makes them a favourite among chocolatiers and manufacturers aiming to create high-quality and speciality chocolates. Furthermore, as consumer preferences shift towards indulgent, premium, artisanal and unique chocolate experiences, the requirement for premium chocolates made from Criollo beans is expected to rise further propelling the market expansion in upcoming years.

By Product Type :

The product type is categorized into cocoa powder, cocoa butter, cocoa liquor, speciality fats, and others. In 2023, the cocoa powder segment accounted for the cocoa processing market share of 31.10%. Cocoa powder is an unsweetened, processed form of cocoa beans that is highly utilized in confectionary products, baked products and a variety of food and beverages. As per the analysis, it imparts excellent flavour along with texture, colour and visual appeal. The natural bitterness of cocoa powder with added sugar enhances the taste of food items and drinks making it suitable for bakeries, confectionaries, food and beverages. Moreover, the rising need for bakery and confectionary products is increasing the requirement for cocoa powder which is boosting the segment development.

Moreover, the cocoa butter segment is expected to hold the highest CAGR over the forecast period. Cocoa butter is the fatty component extracted from the cocoa beans processing. Cocoa butter is widely utilized in food and confectionaries as well as personal care and pharmaceutical products. In personal care and pharmaceuticals, cocoa butter is incorporated in moisturizers, body lotions, and creams. The growing pharmaceutical sector is expected to escalate the trends for cocoa butter. For instance, according to the data published by the National Investment Promotion and Facilitation Agency in November 2023, the Indian pharmaceutical sector logged an average growth rate of 9.47% to USD 42.34 Million from FY18 to FY22, to reach USD 65 Million industry by 2024. As a result, the expanding pharmaceutical sector is expected to create lucrative opportunities for the segment in upcoming years.

By Application :

The application segment is categorized into confectionaries, bakery, beverages, personal care products, pharmaceutical products, and others. In 2023, the confectionaries segment accounted for the highest market share in the overall cocoa processing market. In confectionaries, cocoa products such as cocoa beans, cocoa powder and cocoa butter are highly utilized in making chocolates, candy coatings, filling, ganaches, frosting, glazes and beverages among others. Additionally, the growing trends for indulgent treats such as rising the demand for cocoa-based confectionery products like chocolate and candies. Moreover, the changing consumer preferences for the consumption of healthy snacks are increasing the trends for health-promoting confectionary products like dark chocolate which is motivating the launch of new confectionary products. For instance, in March 2021, Nestlé announced the launch of a roll-out of chocolate made exclusively with cocoa fruit, introducing Incoa, a 70% dark chocolate bar under its Les Recettes de L'Atelier brand. As a result, the extensive utilization range of cocoa in confectionaries and the new product launches are supporting the growth trajectory of the segment across the globe.

Moreover, the bakery segment is expected to hold the fastest CAGR over the forecast period. Cocoa is used in bakery products such as cakes, pastries, brownies, muffins, cookies and doughnuts among others. The growing sales of baked products are expected to raise the trends for cocoa products further propelling the cocoa processing market trends in upcoming years. For instance, according to the data published by Agriculture and Agri-Food Canada in April 2023, total retail sales of baked goods in Canada grew at a CAGR of 3.3% from 2017 to 2021, and are expected to grow at a CAGR of 3.5% from 2022 to 2026, reaching USD 7.8 Million by 2026. Thus, the significant rise in the sales of baked products is expected to create enormous opportunities for segment expansion.

By Region :

The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

In 2023, North America accounted for the highest market share at 36.77% valued at USD 5,794.58 Million in 2023, it is expected to reach USD 8,002.56 Million in 2031. In North America, the U.S. accounted for a major market share of 64.12% in the year 2023. The cocoa processing market across the North America region is growing owing to the high demand for cocoa products and the established confectionary brands and manufacturers in the region. Additionally, based on the cocoa processing market analysis, the large consumer base for chocolate products and the presence of key player companies are further increasing the cocoa processing market demand. Moreover, the growing demand for confectionery and bakery products in the region is potentially contributing to the market expansion. For instance, according to the data published by Agriculture and Agri-Food Canada (AAFC) in December 2022, baked goods retail sales in the United States increased from USD 58.3 Million in 2017 to 2021 to USD 67.9 Million 2021 growing at a CAGR of 3.1%.

Furthermore, the Asia Pacific region is expected to witness significant growth over the forecast period, growing at a CAGR of 5.6% during 2024-2031. The growing population and increasing disposable income are expected to propel the demand for cocoa products in the region. Additionally, the changing consumer lifestyle and increasing adoption of Western culture are expected to propel the market growth in the Asia Pacific region.

For instance, according to the data published by the U.S. Department of Agriculture in January 2021, retail sales of baked goods in China accounted for USD 34 Million in 2020, which is expected to reach USD 53 Million by 2025. All these above-mentioned factors are collectively driving the demand for cocoa products from the bakery, confectionery, food and beverage industry in the Asia Pacific region and creating lucrative growth opportunities for the cocoa processing market in the Asia Pacific region.