GLOBAL— Research firm MarketsandMarkets forecasts the global chocolate market is set to reach a value of US$160.9 billion by 2027 with growth in the cocoa sector expected to increase at a rate of 4.7% in the forecast period despite ongoing geopolitical trading issues that have impacted on the industry.
The study found that North America dominated the Cocoa and chocolate market, and is projected to grow with a CAGR of 4.43% during the forecast period, with key market players identified as Mondelez international (US), Blommer chocolate (US), Hershey (US) and Mars Inc. (US)
The U.S. accounted for the highest chocolate consumption and production in the region primarily driven by the large consumption of confectionary and bakery items.
In the sector, the firm highlighted that the Asia Pacific region is expected to exhibit the fastest growth rate in the coming years at 5.72% – with the Chinese market estimated to grow at a CAGR of 6.39%. Increase in demand for chocolate-based products in the region is attributed to the growing population, rise in per capita income and growing urbanization.
The Asia Pacific region is expected to exhibit the fastest growth rate in the coming years at 5.72%. Increase in demand for chocolate-based products in the region is attributed to the growing population, rise in per capita income and growing urbanization.
With the growing awareness about health, an increasing number of consumers are prioritizing their health and following specific diets with specific needs. This propelled the demand for dark chocolate with high cocoa and less sugar.
In addition, the report highlighted milk chocolate as the most dominant category, owing to its high fibre, high iron, magnesium, potassium, and phosphorus content.
Chocolates are also being consumed as a premium and comfort food which is a rising trend among consumers, further proliferating the market growth.
The heart of chocolate production
According to the International Cocoa Organization, the world’s largest supplier of cocoa is Africa, which accounts for 72% of the global production of cocoa, with Ghana and Ivory Coast leading the charge.
However, the two countries remain impacted with fair trading and environmental issues, government unrest, and a dwindling labour force as younger generations increasingly move away from traditional farming.
In light of this, the report noted that in the member countries of the International Cocoa Organization measures such as implementation of National Cocoa Development Plan (NCDP) are being undertaken to improve the production of cocoa, giving a promising outlook towards fulfilling the rising global demand for cocoa.
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