Albany, NY -- (SBWIRE) -- 04/06/2015 -- Cocoa Market – Brief Overview

Cocoa is best known in its extracted form as cocoa powder, cocoa oil, cocoa liqueur, cocoa butter, and many other solids. It is widely used as a key ingredient in chocolates, liqueurs, and even cosmetics. While cocoa as a substance has been used for several centuries now, the cocoa market is expected to witness increasing growth due to new and innovative techniques in the use of cocoa. In the past few years, a major demand for chocolate and chocolate coatings have stirred tremendous growth and led a vast expansion of this market globally.

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Cocoa Market – Various Growth Factors

The cocoa market and chocolate market are two of the most rewarding markets from the global perspective of confectionery producers. The year-on-year product innovations in both these industries are expected to play an integral role in increasing the popularity of the products, as well as the share of the market players. Over the past few years, the chocolate and cocoa markets have gained high significance in the food industry as they cater to the changing consumer demands based on color, taste, and texture, offering several functional benefits, as well. Chocolate products strike sale mostly during the festive seasons such as, Christmas, Thanksgiving, and New Year.

Moreover, the global cocoa market is remarkably characterized by maturity and innovation in various developed regions and aggressive growth in emerging regions. The market for chocolates has been the primary launcher for the growth enhancement seen in the cocoa market.

The chocolates market has grown substantially over the last decade due to increasing demand for cocoa chocolates, chocolates rendering health benefits such as cocoa and lecithin, roasted and ground cocoa seeds chocolates, and dark chocolates. A constant demand for new flavors in the chocolate market, as well as high-demand for cocoa supply from countries leading in cocoa products have proven unexpected growth in the cocoa market over the years.

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Cocoa Market Growth Inhibitors

Variations in raw material prices, unstable supply of cocoa and rising labor costs are some of the unfavorable factors that are expected to inhibit growth in the cocoa market. Striking a perfect balance between high-quality cocoa materials and its pricing remains a predominating challenge for chocolate manufacturers around the world. Other factors such as diseases affecting cocoa production and smallholder farms are posing major challenges to the growth of this market.

Also, growing health concerns among all ages about the amount of intake of cocoa in various forms and the high-sugar content in cocoa-based products are proving unfavorable to the growth of the cocoa market.

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Cocoa Market – By Regional Analysis

With growing popularity of cocoa products in both emerging and mature regions, many countries now grow cocoa across the globe. Globally, countries that are main producers of cocoa includes South America (Ecuador and Brazil), West Africa (Ivory Coast, Ghana, and Nigeria), and Asia (Malaysia and Indonesia), Belgium, Switzerland, and the United Kingdom. From the global viewpoint, the cocoa markets of North America, the Middle East, and Asia-Pacific are leading in both consumption and production of cocoa products.

Moreover, along with high cocoa consumption, incentives by government and companies to enhance cocoa production are extremely high in the emerging Asian markets.

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