Industry: Food and Beverages
Published Date: February-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 182
Report ID: PMRREP33529
The global cocoa market size is anticipated to rise from US$ 11 Bn in 2025 to US$ 14.8 Bn by 2032. It is projected to witness a CAGR of 4.3% from 2025 to 2032.
Consumers are showing a preference for artisanal chocolates, which are often perceived as having health benefits, fueling the demand for cocoa. The worldwide cocoa industry is propelled due to the increasing demand for dark and premium chocolate products, especially in countries like the U.S., Germany, and France.
Bean-to-bar chocolate manufacturers are increasingly targeting niche markets for single-origin, ethically produced cocoa varieties, as the growing popularity of cocoa in beverages, cosmetics, and nutraceuticals boosts demand for specialized ingredients.
Key Highlights of the Cocoa Market
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Global Market Attributes |
Key Insights |
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Cocoa Market Size (2025E) |
US$ 11 Bn |
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Market Value Forecast (2032F) |
US$ 14.8 Bn |
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Projected Growth (CAGR 2025 to 2032) |
4.3% |
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Historical Market Growth (CAGR 2019 to 2024) |
2.9% |
Global Cocoa Supply Faces Challenges Amid Climate and Industry Shifts
The global cocoa industry witnessed a CAGR of 2.9% in the historical period between 2019 and 2024. In the observed period, global cocoa production faced numerous disruptions, in West Africa, where Côte d’Ivoire and Ghana produced over 60% of the world's cocoa. Climate change and disease reduced yields, while the COVID-19 pandemic in 2020 caused labor shortages and port delays, disrupting exports.
In recent years, strong demand collided with ongoing supply challenges, influencing global chocolate production.
Cocoa Expands into Beverages, Beauty and Wellness Creating New Market Opportunities
In the estimated period from 2025 to 2032, the demand for products featuring cocoa is likely to showcase a CAGR of 4.3%. The use of cocoa is growing in the beverage, cosmetic, and nutraceutical industries owing to increased health consciousness. Plant-based cocoa protein shakes and ready-to-drink chocolate drinks are becoming popular in 2025.
Companies like Nestlé introduced Nesquik Hot Chocolate with added vitamins and minerals in January 2024, catering to the functional beverage trend.
Brands like Palmer's and The Body Shop dominate the skincare industry because of the hydrating qualities of cocoa butter. Cocoa flavanols are also being used by nutraceutical firms for their cardiovascular and cognitive health advantages.
As consumer demand for natural and functional ingredients grows, cocoa’s role in non-conectionery applications is expected to expand, presenting lucrative market opportunities for producers and manufacturers.
Growth Drivers
Popularity of Cocoa Products Offers Novel Aspects in Food and Beverage Industry
The demand for premium and dark chocolate is increasing as consumers seek indulgent yet healthier options. The food and beverage industry is projected to dominate the global cocoa market, holding a 47% market share in 2025.
Major chocolate manufacturers like Lindt & Sprüngli, Hershey, and Barry Callebaut are expanding their premium product lines to meet the demand for dark chocolate.
The production process for dark chocolate involves fermenting and roasting cocoa beans, extracting cocoa butter, and grinding it into cocoa liquor. Dark chocolate typically contains between 50% and 90% cocoa solids, providing a rich flavor and health benefits due to its high antioxidant content.
As consumers embrace bean-to-bar and ethically sourced chocolates, companies investing in organic and fair-trade cocoa are likely to succeed.
Volatile Economies with Unstable Supply Chain Operation Hampers the Cocoa Industry
Decreased agricultural productivity, economic instability in key producing nations, and rising cocoa prices are some of the issues impacting the cocoa trade.
Ghana and Côte d'Ivoire, which together account for over 60% of global cocoa production, have been hit by volatile economic conditions, currency depreciation, and farmer poverty, impacting supply chains.
Along with that, Nigeria’s cocoa sector, which contributes around 6% of global supply, has been affected by political instability and inflation, further straining the industry.
Major chocolate manufacturers like Barry Callebaut and Mars Inc. are implementing sustainable cocoa farming programs and adjusting sourcing strategies to reduce production costs due to supply shortages.
Organic and Non-GMO Chocolate Products Presents Avenues to Manufacturers
Consumers are increasingly aware of lifestyle-related diseases like obesity and diabetes, leading to a rise in demand for organic and non-GMO cocoa products. In 2025, organic cocoa is predicted to account for 65% of the global market as more people opt for healthier choices.
Consumers are seeking clean-label, ethically sourced, and chemical-free alternatives, which is driving major cocoa producers like Cargill, Barry Callebaut, and Olam Food Ingredients to expand their offerings of organic cocoa powders, butters, and chocolates.
The European Union and Fairtrade International have established strict organic certification guidelines, encouraging brands like Lindt & Sprüngli, Tony’s Chocolonely, and Divine Chocolate to prioritize sustainable farming and non-GMO certifications.
Mars Inc. aims to achieve a 50% supply of organic cocoa in 2025, marking a significant shift in the cocoa industry's supply chain and reflecting changing consumer preferences.
Form Insights
Integration of Powder Cocoa in Confectionery Presents Unique Flavors
The powdered cocoa segment is expected to dominate the global cocoa market, accounting for 53% of the market share in 2025, driven by health-conscious consumers' demand for minimally processed ingredients. Powdered cocoa, known for its high antioxidant content and versatility, is widely used in bakery, confectionery, dairy, and beverage industries.
As the demand for clean-label products continues to increase, Barry Callebaut, Cargill, and Nestlé are diversifying their lines of organic and non-GMO cocoa powder.
On the other hand, the liquid cocoa segment is projected to hold a 47% market share in 2025, driven by its application in chocolate syrups, coatings, and specialty beverages. Companies like Mars Inc. and Mondelez International are investing in sustainable cocoa liquor processing to enhance flavor profiles and reduce production costs.
As demand for premium chocolates and functional beverages rises, both powdered and liquid cocoa are expected to witness strong growth in the global market.
Type Insights
Cocoa Extracts Popularizes with Healthy Benefits
Cocoa extracts, rich in polyphenols and flavonoids, are gaining popularity for heart health and cognitive benefits, prompting companies like Naturex and ADM to expand their plant-based wellness offerings. The cocoa extract segment is projected to hold a 35% market share in 2025, driven by its increasing applications in nutraceuticals, functional foods, and premium beverages.
The natural cocoa flavor is estimated to account for 25% of the market due to its widespread use in the baking, confectionery, and dairy industries. For premium, clean-label qualities, companies like Cargill and Barry Callebaut are giving sustainable cocoa sourcing top priority.
Additionally, the natural cocoa flavor WONF (With Other Natural Flavors) category is estimated to capture 22% of the market, as manufacturers blend cocoa flavors with other plant-based ingredients to enhance sensory appeal.
The natural identical cocoa flavor is projected to represent 18%, driven by cost-effective formulations in mass-market chocolates and processed foods from companies like Mondelez International and Nestlé.
Confectionery Industry in North America Fosters Innovation with Cocoa
North America's confectionery manufacturing industry is expected to capture a 28% share of the global cocoa market by 2025. This growth is driven by an increasing consumer preference for premium chocolates, functional confections, and dark chocolate with high cocoa content. Additionally, innovations in organic, sugar-free, and plant-based chocolates are contributing to the industry expansion.
Major players in the industry, such as Hershey’s, Mars Wrigley, and Mondelez International, are investing in sustainable cocoa sourcing and ethical production practices.
Presence of Prominent Chocolate Processors in Europe Boost Production
The increasing demand for high-end, organic, and sustainably sourced chocolate products is projected to help Europe achieve a 32% market share in the global cocoa industry in 2025. Health-conscious European consumers are particularly interested in dark chocolate, plant-based alternatives, Fair Trade-certified products, and functional cocoa-based foods.
In response to this demand, companies like Ferrero are investing in the Cocoa and Forest Initiative, while Nestlé, Lindt & Sprüngli, and Barry Callebaut are expanding their sustainable cocoa sourcing efforts. Barry Callebaut aims for 100% sustainable cocoa sourcing in 2025.
European brands are also influenced by EU regulations that promote ethical sourcing and carbon-neutral production. Owing to its innovative, useful, organic, and sugar-free chocolate formulations, Europe is expected to lead the global cocoa consumption market, with a projected CAGR of 5.2% from 2025 to 2032.
Popularity of Convenient Chocolate Products in Asia Pacific Present Growth Prospects
The cocoa industry in the Asia Pacific is propelling with increasing demand for convenient chocolate-based foods, particularly in countries like China, India, Japan, and South Korea. The popularity of ready-to-eat chocolate snacks and beverages is fueling this trend.
Major brands such as Meiji Holdings, Mondelez International, and Nestlé are expanding their presence in Southeast Asia. For instance, Mondelez's Cadbury Dairy Milk leads the chocolate market in India, while Meiji's high-cacao chocolate is gaining popularity in Japan due to its health benefits. Additionally, Nestlé has launched KitKat Chocolatory to attract consumers.
As chocolate consumption rises in the Asia Pacific, manufacturers are focusing on localized flavors, innovative packaging, and sustainable sourcing to meet the demands of this growing market.
The cocoa industry is very competitive on a worldwide scale owing to local and regional competition. Important cocoa producers use a range of marketing strategies, including partnerships, mergers, acquisitions, and joint ventures. Certification and sustainability are top priorities for stakeholders in cocoa production.
In order to gain a competitive advantage in the global cocoa industry, both new and established market participants employ a variety of tactics, including collaborations, agreements, creative product launches, acquisitions, and portfolio growth. Marketing campaigns and ads featuring internet influencers and celebrities are estimated to boost the sales of chocolate products.
Key Industry Developments
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Report Attributes |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis Units |
Value: US$ Bn |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
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By Form
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The market is set to reach US$ 11 Bn in 2025.
Cocoa powders, chocolate liquor, and blends are commonly used in flavoring food products, syrups, toppings, chocolate milk, cake mixes, and pharmaceuticals.
Briofeed Private Limited, Cargill Inc., Flavorchem Corp., and Forbes Chocolate, are a few key players.
The industry is estimated to rise at a CAGR of 4.3% through 2032.
North America is projected to hold the largest share of the industry in 2025.
