Chocolate Ingredient Market

Chocolate Ingredient Market Outlook (2024 to 2034)

The global chocolate ingredient market has been projected to reach a size of US$ 16.8 billion in 2024. Forecasts are that the market will increase to a value of US$ 23.69 billion by the end of 2034, expanding at a CAGR of 3.5% over the next ten years (2024 to 2034).

Theobroma cacao, also known as the cocoa tree, is indigenous to the equatorial regions of North America. It produces cocoa seeds. Cocoa liquor is made from the dried, fermented seeds of the cacao tree. This cocoa liquor is used to make cocoa butter and powder. The main component used to make chocolate is cocoa liquor. Ingredients containing cocoa, such as cocoa liquor, cocoa butter, and cocoa powder, are frequently used in bakery fillings, confections, and beverage flavorings. The flavoring and coloring of cosmetics, medications, healthcare products, and nutraceuticals are other industries that use cocoa.

Key Market Growth Drivers

• Increasing sales of chocolate worldwide are expected to be the key factor driving global chocolate ingredient market growth.
• Due to the rising popularity of chocolate for gifting purposes, there is a growing demand for healthy ingredients in chocolate products, and creative packaging is also fueling the market.
• Demand for chocolate is growing steadily because there is an increasing demand for chocolates in bakery and confectionery-based applications.
• Use of cocoa ingredients in pharmaceutical applications is showing improvement in the market as these ingredients are being used more frequently in medications addressing heart health and gastrointestinal issues.
• Toiletries are also using cocoa because of its flavor and scent. The increasing and widespread use of cocoa is one of the key drivers of the world market for cocoa. There is extensive usage of chocolates in a wide range of sectors, including bakery, confectionery, desserts, seasoning, and others.

Report Attribute	Detail
Chocolate Ingredient Market Size (2024E)	US$ 16.8 Billion
Projected Market Value (2034F)	US$ 23.69 Billion
Global Market Growth Rate (2024 to 2034)	3.5% CAGR
East Asia Market Growth Rate (2024 to 2034)	3.8% CAGR
North America Market Share (2024E)	24.4%
Cocoa Powder Segment Value (2024E)	US$ 9.19 Billion
Food & Beverage Segment Value (2024E)	US$ 11.76 Billion
Key Companies Profiled	The Hershey Company; Ferrero SPA; Ecom Cocoa; Guan Chong Berhad; Blommer; Mondelez; Cemoi; Puratos; Guittard; JB Cocoa; Barry Callebaut; Cargill Incorporated; Olam; Petra Foods Cocoa Ingredients; Nestle S.A.; Puratos Group.

What are the Prevailing Trends in the Market for Chocolate Ingredients?

“Perception of Chocolate as Comfort Food and Increased Product Innovation”

Since chocolate is one of the most popular and extensively consumed foods across the globe, cocoa is one of the flavors that is most frequently used in a variety of food and beverage products. Leading food and beverage manufacturers are adding cocoa flavor to many of their products and classic recipes to draw in more consumers. This is a key chocolate ingredient market trend.

Chocolates are regarded as the best comfort food because they are a flavor that consumers all over the world love. The demand for different cocoa-based products is expected to rise globally, and in the end, explosive growth in the cocoa industry is predicted for the coming years. The growing popularity of chocolate and the rising production of cocoa are contributing to the expansion of the chocolate ingredient market size.

Which Key Challenge is Faced by Manufacturers of Chocolate Ingredients?

“Unfavorable Weather Conditions Causing Disruptions in Cocoa Production”

There is a swift alteration in the global market due to demand and production, cocoa prices have been volatile in recent times. Unfavorable weather, labor shortages, and crop diseases are just a few of the variables that continue to have an impact on cocoa production yield and disrupt the normal flow of supply and demand in the market. Since cocoa is the basic ingredient used to make chocolate, changes in its price will have an impact on market expansion.

Future demand for chocolate ingredients is being influenced by the growing number of health-conscious consumers. The two most widely used ingredients in chocolates and other cocoa-based products on the market are cocoa liquor and cocoa butter.

Country-wise Insights

Sales of chocolate ingredients in North America are expected to reach US$ 4.1 billion in 2024. The region is estimated to hold a market share of 24.4% in 2024. Meanwhile, East Asia is poised to hold 22.9% chocolate ingredient market share in 2024. Coffee shops and cafés are the fastest-growing foodservice segments, particularly in South Asian & Pacific countries.

What are the Opportunities for Manufacturers of Chocolate Ingredients in the United States?

“Rising Number of Cocoa Farmers and Focus on Advanced Cultivation Methods”

Attribute	United States
Market Value (2024E)	US$ 1.84 Billion
Growth Rate (2024 to 2034)	3.9% CAGR
Projected Value (2034F)	US$ 2.71 Billion

The United States is estimated to account for a market share of 45% in North America in 2024 due to the rising number of cocoa farmers and their advanced cocoa cultivation methods in the United States which is expected to drive global demand for chocolate ingredients through the forecast period.

• According to a report released by the United States Department of Agriculture (USDA), cocoa liquor is primarily used in the food and beverage industry, but it is also gradually finding its way into other sectors, including cosmetics and pharmaceuticals, as a coloring and flavoring agent.

Why is Japan a Key Market for Producers of Chocolate Ingredients?

“Growing Preference for Dairy-free Chocolate Products”

Attribute	Japan
Market Value (2024E)	US$ 1.13 Billion
Growth Rate (2024 to 2034)	4% CAGR
Projected Value (2034F)	US$ 1.67 Billion

Japan is expected to have a key influence on the East Asia market with a revenue share of 29.4% in 2024. People in Japan prefer plant-based food products due to a significant shift towards dairy-free chocolate products, thus cocoa is a good alternative to that. The country is also going through a lot of innovations in the better-for-you category, which is also driving the growth of the market. Key market players in Japan are also focusing on hypermarkets/supermarkets to expand sales of chocolates.

Category-wise Insights

The market for chocolate ingredients is categorized into cocoa butter (14.1% share), cocoa powder (54.7%), and cocoa liquid (31.2%) by product. The food & beverages segment, based on application, is set to hold a significant chocolate ingredient market share of 70% in 2024. Pharmaceuticals and nutraceuticals are estimated to account for a collective 17% market share in 2024.

Why is Demand for Cocoa Powder Rising Globally?

“Increasing Use of Cocoa Powder in Functional Foods & Beverages”

Attribute	Cocoa Powder
Segment Value (2024E)	US$ 9.19 Billion
Growth Rate (2024 to 2034)	3.6% CAGR
Projected Value (2034F)	US$ 13.05 Billion

Cocoa powder is primarily used in the food and beverages industry. In addition, as cocoa powder is becoming more widely used in functional foods and beverages, its consumption is growing. As it contains important minerals for the body such as copper, magnesium, sodium, potassium, and other vitamins, cocoa powder is highly sought after in the pharmaceutical industry due to its multiple uses.

Several studies have found that polyphenols, such as those found in cocoa, can lower your risk of neurodegenerative diseases by improving brain function and blood flow. Flavanols can cross the blood-brain barrier and play a role in the biochemical pathways that produce neurons and other molecules essential to brain function. Furthermore, flavanols influence the production of nitric oxide, which relaxes the muscles of your blood vessels, improving blood flow and supply to the brain.

Where are Chocolate Ingredients Being Increasingly Used?

“Leading Food & Beverage Manufacturers Focusing on Innovation with Cocoa Flavor Addition”

Attribute	Food & Beverages
Segment Value (2024E)	US$ 11.76 Billion
Growth Rate (2024 to 2034)	3.5% CAGR
Projected Value (2034F)	US$ 16.51 Billion

Well-known food and beverage manufacturers are incorporating cocoa flavor into their products and traditional recipes. Chocolates are regarded as the best comfort food due to their widespread popularity among consumers around the world. The global cocoa industry is expected to see an increase in demand for various cocoa products, leading to booming growth in the coming years. Given the rising popularity of chocolate and cocoa production, the global chocolate ingredients market is expected to grow significantly over the next few years.

Competition Landscape

Key players in the chocolate ingredient industry are increasing their presence in the mainstream cocoa and chocolate industries, as well as expanding into the premium market segment. Major processors and manufacturers are expanding their product portfolios and market engagement through mergers and acquisitions, while simultaneously lowering production costs through scale efficiency.

• Bayer Callebaut, a global manufacturer of high-quality chocolate and cocoa products in April 2022, announced that it would build a new specialty chocolate factory in Ontario, Canada, to extend its North American footprint.
• In November 2021, Archer Daniels Midland Company (ADM) purchased Deerland Probiotics & Enzymes. The acquisition will support ADM's innovation leadership in dietary supplements and functional foods.
• In November 2021, The Ferrero Group ("Ferrero") announced a definitive agreement to acquire the remaining shares of Ice Cream Factory Comaker and related group companies (ICFC), an ice cream manufacturer.

Fact.MR provides detailed information about the price points of leading manufacturers of chocolate ingredients positioned across the world, sales growth, production capacity, and technological advancements, in this new market report.

Segmentation of Chocolate Ingredient Market Research

• By Product :

  • Cocoa Butter
  • Cocoa Powder
  • Cocoa Liquor

• By Application :

  • Food & Beverages
  • Pharmaceuticals
  • Nutraceuticals
  • Cosmetics & Personal Care

• By Distribution Channel :

  • Traditional Trade
  • Modern Trade
  • Industrial
  • Foodservice

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa