Cocoa is fully dried and fermented beans (extracted from Theobroma cocoa) that are further processed to produce butter, liquor, oil, cocoa powder, and other cocoa products. Cocoa is used in cosmetics, pharmaceutical, and food applications. Cocoa powder is widely used in cocoa paste and chocolate production. Cocoa butter is widely used in the cosmetic and pharmaceutical industries. Cocoa-rich products have many health benefits, such as the lower risk of chronic fatigue syndrome and cardiovascular disease, and reduce hypertension. The three common plants from which cocoa is derived are forastero, trinitario, and criollo. Of which, forastero has emerged as the most in-demand type of cocoa plants that produce the best quality of cocoa.
The increasing demand for dark/premium chocolates worldwide is predominantly driving the growth of the cocoa market. For instance, in 2019, Nestle launched the KitKat Chocolatory Cacao Fruit Chocolate made entirely from the cocoa fruit in Japan, with no compromise on taste and quality. The company introduced several confectionery innovations, such as volcanic chocolate and ruby chocolate. Dark/premium chocolates provide many health benefits, and thus the demand for these chocolates is increasing rapidly. Moreover, cocoa-rich products have high flavonoid concentration, due to which they are considered beneficial for people with heart problems.
The increasing demand for cocoa beans from the pharmaceutical industry is expected to propel the cocoa market growth. Cocoa beans are used as a lubricant in many medicinal formulations. Furthermore, it has excellent antimicrobial and physicochemical properties, which makes it suitable for the production of various drugs. Cocoa beans are also used in the formulation of healthy beverages, which is expected to create significant growth opportunities in the market. For instance, in March 2020, Nestle launched Milo, a plant-based version of its cocoa malt beverage. Thus, the increasing demand for cocoa-based beverages is expected to drive the cocoa market growth.
The volatile price of cocoa due to uncertain weather conditions, challenges associated with the selling of cocoa, and lack of knowledge among farmers about advanced farming are expected to hamper the growth of the cocoa market. In terms of geography, the cocoa market is divided into six regions, such as North America, Asia Pacific, South America, Europe, the Middle East, and Africa. Moreover, key players operating in the market are focusing on enhancing the processing capacities of cocoa to meet the growing customer demand. For instance, in December 2019, Cargill invested US$ 113 million in its Ivory Coast and Ghana facilities to expand the processing capacities of cocoa to meet the growing demand.
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