Cocoa Beans Market to Grow by USD 3.58 Billion (2025-2029), Driven by Demand for Chocolate-Flavored Beverages, Report Highlights AI-Powered Market Evolution - Technavio

NEW YORK, Jan. 27, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global cocoa beans market size is estimated to grow by USD 3.58 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  4.5%  during the forecast period. Rising popularity of chocolate-flavored beverages is driving market growth, with a trend towards increasing number of mergers and acquisitions. However, volatility in prices of cocoa beans  poses a challenge. Key market players include 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., Mondelez International Inc., Nederland SA, Niche Cocoa Industry Ltd., Olam Group Ltd., Puratos Group NV, The Mexican Arabica Bean Co., and United Cocoa Processor Inc..

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Market Driver

The global cocoa beans market has witnessed an increase in mergers and acquisitions (M&A) activities. These transactions are primarily driven by strategies to expand product portfolios, penetrate new markets, boost market share, enhance brand image, gain greater control over the supply chain, and achieve economies of scale. Notable M&A in the market include FAT Brands, Inc.'s plan to acquire Nestle Toll House Cafe franchises in the US, Mondelez International's acquisition of Ricoline, Mexico's leading confectionery company, and Barry Callebaut's acquisition of GKC Foods (Australia) Pty. Ltd. These deals will contribute significantly to the growth of the global cocoa beans market. 

The Cocoa Beans Market is experiencing notable trends in 2023, with an increasing demand for free home delivery and Cash-On-Delivery (COD) options. The confectionery segment, including dark chocolate, is thriving due to growing purchasing power and health awareness. Pharmacology research highlights cocoa's benefits for cell membranes, cholesterol levels, and insulin sensitivity, fueling interest in the pharmaceuticals industry. The dark chocolate segment, rich in antioxidants, is particularly popular due to its potential impact on reducing the risk of Cardiovascular Diseases (CVDs) and managing blood pressure levels. The Powder product segment, including cocoa powder and chocolate syrups, is also gaining traction in the baking industry for use in cakes, chocolate confectioneries, biscuits, and more. Alkalized cocoa powder, with its lower acidity and increased solubility, is a preferred choice for many manufacturers. Cocoa beans remain the foundation of the chocolate industry, with coating applications in vegetables, fruits, and cereals also driving demand. The market is diverse, encompassing chocolate industry, confectionery industry, and pharmaceuticals industry, offering a range of chocolate variants such as milk chocolate, brownies, and more.

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 Market Challenges

• The global cocoa beans market has experienced significant price volatility due to various factors. The primary causes include disruptions in supply and demand. For instance, reduced cocoa production can lead to price increases. In Q1 of 2020, the price of cocoa beans was more volatile due to the COVID-19 pandemic. The pandemic weakened demand and affected supply due to low availability of workers and transportation restrictions. Around 5000 to 6000 tons of cocoa beans were stuck in Nigeria due to lockdown restrictions. Moreover, the ongoing Ukraine-Russia war is negatively impacting the cocoa beans market. Orders for cocoa beans have declined in countries like Germany and The Netherlands due to logistical and payment issues. Containers of cocoa beans and fertilizers are being held at various ports due to disruptions in supply routes. The trade disruptions, sanctions on Russia, and high freight rates are significantly affecting the cocoa beans and fertilizer trade. Cocoa farmers are facing a shortage of fertilizers, which may affect the quantity, quality, and size of cocoa beans during the forecast period. These factors have weakened demand for cocoa beans-based products and put pressure on supply due to the low availability of workers and transportation restrictions. As a result, fluctuations in the prices of cocoa beans are expected to hinder the growth of the global cocoa beans market during the forecast period.
• The cocoa beans market faces several challenges in the chocolate industry. Cocoa plants are susceptible to pests and require specific climatic conditions for optimal yield. Dry weather and weed accumulation can lead to crop damage, impacting profitability for farmers. In the supply chain, cocoa beans are used in various industries including confectionery, pharmaceuticals, and cosmetics. Cocoa beans are a key ingredient in chocolate production, with milk, dark, and flavored variants like mint, vanilla, and coffee popular among consumers. Cocoa butter, a byproduct, is used as a lubricant, antioxidant, flavor enhancer, preservative, and emulsifier in various applications. The chocolate industry's demand for cocoa beans is influenced by trends in health-conscious consumers seeking the health benefits of cocoa, including its antioxidant properties. However, the impact of hypertension on chocolate consumption poses a challenge. Cocoa beans are also used in the production of cocoa butter, which is used as a humectant, aroma enhancer, and shelf life extender in cosmetic goods and natural cosmetics. The convenience stores, brand outlets, direct selling, and e-commerce portals are significant channels for cocoa bean sales, offering value-added services to consumers.

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Segment Overview 

This cocoa beans market report extensively covers market segmentation by 

• 1.1 Confectionery
• 1.2 Functional food and beverage
• 1.3 Cosmetics
• 1.4 Others

• 2.1 Cocoa butter
• 2.2 Cocoa powder
• 2.3 Cocoa beverages
• 2.4 Others

• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Confectionery-  The global cocoa beans market is experiencing significant growth, particularly in the confectionery segment. This segment's expansion is driven by the high demand for cocoa-based chocolate and confectionery drops and chunks. Companies like Mars and Nestle are responding to this trend by launching products with high cocoa mass, enhancing chocolate liquor flavor. For instance, Prodigy Snacks Ltd recently introduced Phenomenoms, a new chocolate biscuit range in two flavors. The rise in chocolate demand among consumers is fueling this growth. Major players, including Nestle, are integrating vertically and horizontally in the cocoa manufacturing industry value chain to meet this increasing demand. As a result, the confectionery segment is poised for growth in the global cocoa beans market.

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Research Analysis

Cocoa beans are the foundation of the chocolate industry, with applications extending beyond confectionery to vegetable, fruit, cereal, and pharmaceutical industries. Cocoa beans offer numerous health benefits, including antioxidant properties, which help combat hypertension and improve cardiovascular health. The chocolate industry produces various chocolate variants, such as milk, brownies, dark, and flavored chocolates, using cocoa beans. The cocoa plants face challenges like pests and climatic conditions, particularly dry weather, affecting farmers' yields and profitability. Cocoa beans yield cocoa butter, a versatile ingredient used as a lubricant, antioxidant, flavor enhancer, preservative, and emulsifier in various industries. Cocoa butter extends the shelf life of products, enhances mouthfeel, aroma, and acts as a humectant. Additionally, it is used in cosmetic goods and natural cosmetics.

Market Research Overview

Cocoa beans are the foundation of the chocolate industry, with applications extending beyond confectionery to vegetable, fruit, cereal, and pharmaceutical industries. Cocoa beans are rich in antioxidant properties, making them a popular ingredient in various food and beverage products. The impact of hypertension and other health concerns have led to the rise of chocolate variants like dark chocolate, which offers numerous health benefits. Cocoa plants face challenges such as pests, climatic conditions, and weed accumulation, affecting yield and profitability. Cocoa beans are used to produce cocoa butter, a valuable byproduct with applications as a lubricant, antioxidant, flavor enhancer, preservative, and emulsifier. Cocoa powder, another derivative, is used as an additive in various food products, including chocolate syrups, cakes, chocolate confectioneries, biscuits, and alkalized cocoa powder for lower acidity and increased solubility. The chocolate industry's supply dynamics are influenced by various factors, including weather conditions, farmer yields, and crop damage. The convenience of direct selling, e-commerce portals, value-added services, and free-home delivery have transformed the way consumers purchase and consume cocoa-based products. Cocoa beans' versatility extends to the cosmetics industry, with natural cosmetics using cocoa powder as a humectant and aroma enhancer. The pharmaceutical industry also utilizes cocoa extracts for their potential benefits on cell membranes, cholesterol levels, and insulin sensitivity, contributing to the prevention and management of Cardiovascular Diseases (CVDs) and other health conditions. The chocolate industry's growth is driven by consumer purchasing power, with the dark chocolate segment leading the market due to its perceived health benefits. Chocolate variants continue to evolve, with new flavors like mint, vanilla, and coffee, adding to the industry's diversity and appeal.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Confectionery
• Functional Food And Beverage
• Cosmetics
• Others
• Product
• Cocoa Butter
• Cocoa Powder
• Cocoa Beverages
• Others
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio