Global Cocoa Butter Market to Register 5.1% CAGR as Cosmetics and Food and Beverage Industry Embrace its Benefits
The global cocoa butter market is estimated to be worth US$7,5605 Mn by the end of 2025 as the ingredient finds a critical role in a wide range of applications. As its benefits expand to cosmetics and pharmaceuticals from food, the market is expected to register a CAGR of 5.1% between 2020 and 2025. The global chocolate and confectionery industry will be the topmost contenders in the global cocoa butter market as the ingredient lends a unique flavour and texture to end products. Chocolatiers across the globe have consistently used cocoa butter for its enticing aroma. As the sales of chocolate in varied forms continue to soar, it will raise the demand for cocoa butter significantly. The launch of premium chocolates, use of chocolate as a flavour in cereals, candies and bars, baked products, syrups, coatings and fillings, and beverages is expected to bode well for the global cocoa market.
Key Insights into Cocoa Butter Market:
- The food segment to register a CAGR of 5.2% in the global cocoa market as companies experiment with flavours
- The cosmetic segment to grow 1.3x between 2020 and 2025 as consumers realise the benefits of cocoa butter in skincare products
- Europe cocoa butter market to gain an incremental dollar opportunity of US$ 886.4 million by 2025
- Companies to focus on voluntary sustainable standards (VSS) in cocoa harvesting to bridge the widening socio-economic gap in key producing countries
Cocoa Butter’s Benefits to Skin Improves Sales of Cocoa-enriched Cosmetic Products
Cocoa butter, a rich natural fat, has multiple benefits when added to cosmetics. As a growing number of cosmetics companies realize this, they have bumped up the sales of cocoa butter. The restorative properties have won cocoa butter a permanent spot in the production of emollients that penetrate the skin and repair the damage, restoring the glow. Its primary nature of moisturising the skin has garnered increased attention from most cosmetic companies, making it an essential ingredient in the wide range of moisturisers, balms, and creams. As skincare becomes an integral part of the young urban, the demand for cocoa-enriched products has reached new heights.
Food and Beverages Industry Remains Critical to the Growth of Global Cocoa Butter Market
The food industry will continue its historical trend of being one of the key consumers of cocoa butter. Used in a wide range of food products, growing number of home bakers, higher appeal of artisanal bakers, and launch of new products will up the consumption of cocoa in this industry. Ready-to-eat products, frozen food, chocolatey beverages, and ready-to-bake items are expected to drive the demand for cocoa butter in the coming years. A cooking trend that leans towards quick fixes and easy solutions is expected to indirectly impact the global cocoa butter market as consumers seek the desirable chocolate flavour.
Asia Pacific’s Food and Beverages and Cosmetics Industries Favour Cocoa Butter Market
Historically, Côte d'Ivoire, Nigeria, and Ghana have been the key countries producing cocoa butter, making West Africa a leading region in the global market. However, key volumes are also produced in Dominican Republic, Ecuador, and Peru. West Africa is expected to continue its lead in the coming years while South America will remain the second-largest contributor to global production.
In terms of consumption, Asia Pacific is expected to emerge as a clear leader as the income rise amongst the overall population has skyrocketed. The region is expected to gain an incremental dollar opportunity of 248.8 million by 2025. Improving access to baked items, confectionery products, and packaged food and beverages are expected to drive the regional market. Investments in artisanal bakeries by hospitality stalwarts in developing economies of India and China, a population characterised by a younger demographic, and higher spending on flavoured beverages is expected to up the consumption of cocoa butter in this region.
Meanwhile, the booming cosmetics industry in Asia Pacific is also expected to favour the growth of the cocoa butter market. The influx of local brands, strong product positioning of skincare products, and awareness about necessary skincare are all expected to fuel the demand for cocoa butter as an ingredient in cosmetics.
Key Players to Invest in Making Cocoa Butter a Sustainable Business to Win Clout with Consumers
Some of the key players operating in the global cocoa butter market are Olam International, Barry Callebaut AG, Cargill Inc., Archer-Daniels-Midland Company, SunOpta, Inc, Natra S.A., Guan Chong Berhad Group, JBCOCOA Sdn. Bhd, Moner Cocoa, S.A. and United Cocoa Processor, Inc.
While working on delivering better products that allow a more visceral experience, companies are also working on collaborating with procuring sustainable cocoa butter. Cocoa butter extraction for years has been mired in controversies about income disparity and reduced yields due to climate change, deforestation, and child and forced labour. To tackle these issues, companies such as Mondelez International launched their own Cocoa Life scheme that aims to tackle these issues. In many ways, assuming social responsibility at corporate levels is expected to help brands build a positive brand image to boost sales amongst educated and aware consumers making more conscious decisions.