Cocoa Butter Market
Global Industry Analysis (2017-2020), Growth Trends and Market Forecast (2021-2025)
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Cocoa Butter Market Growth Underpinned by Demand from Cosmetic Industry
The wide applications of cocoa in the production of chocolates and myriad confectionery items have continued to give the market a nonstop momentum. It’s delectable taste lending ability remains unmatched, making it an irreplaceable ingredient for the food and beverages industry. The exceptional medicinal properties of cocoa have also given the global cocoa butter market an impetus in recent years. Its antioxidant-rich nature has earned the product a special place in amongst nutritionist and lifestyle coaches.
Polyphenols, widely found in plant foods, are the main antioxidants present in cocoa. Cocoa butter, which is extracted from cocoa beans, is rich in expanded unsaturated fats such as stearic acid, palmitic acid, and lauric acid. Generally, five different qualities of butter are extracted from various raw materials. Typically, 100 g of beans produce 40 g of cocoa butter, 40 g of cocoa powder, and 20 g of waste material. According to Federation of Cocoa Commerce Market, cocoa butter is made available in forms such as press cocoa butter, expeller cocoa butter, and refined cocoa butter.
Keen Interest of Cosmetic Companies in Cocoa Butter Generates Newer Opportunities
Cocoa butter is used as a key ingredient in food and beverages industry. In recent years, its usage has been exceptionally high in bakeries and confectioneries. However, cocoa butter is now gaining traction in other industries, specifically the cosmetics industry.
It is now being used as one of the texturizing agents in the production of skin care products. Products such as lip sparkles, body butter, and lotions are extensively using cocoa butter for the outcome it brings. Cosmetics manufacturers are continuously launching and promoting new skin care products comprising cocoa butter. For example, in 2018, beauty brand American Dream introduced new additions to its Cocoa Butter range called Lavender and Lemon. This trend is expected to boost the market demand in the near future.
Worries About High Fat Content in Cocoa Butter to Act as a Restraint
However, cocoa butter market may see a slower growth during the forecast period. Various processed food manufacturers are likely to focus on low fat, low sugar, and low carbs products. In addition, the regulatory bodies are also contributing to this trend and limiting the use of trans fats in food products.
For example, Saudi Food & Drug Authority (SFDA) implemented a ban on the use of trans-fat in food products in 2020. According to this new regulation, the maximum limit of “trans fats” in vegetables oils and margarine shall be of 2% and 5% in other food products out of the total fat content. Thus, increased ingredient manufacturer intervention in a bid to offer clean labels may hinder the cocoa butter market growth.
In late 2019, Bunge Loaders Croklaan launched clean label cocoa butter replacer coined as Couva 806 NH for confectionery industry, which is another case in point. The product claims to contain low trans-fat level (<1%) and is non-hydrogenated, non-tempering, and low saturated fat. With this product the company also announced to expand its footprints in Asia Pacific region.
Asia Pacific Paves Way with Skyrocketing Consumption of Bakery Products
Globally West Africa, South East Asia, and South America are the largest producers of cocoa. Few of the largest producing countries primary includes Ivory Coast, Ghana, India, and Indonesia. The production is highly concentrated in West Africa, which accounts for nearly 70% of the global production. In terms of cocoa butter consumption, Europe is one of the largest consumers.
However, Asia Pacific region is expected to register highest CAGR over the forecast period. Increasing demand for confectionery and bakery products is paving the market for cocoa butter in the region. Also, key processors are opening and expanding their production facilities in the region, resulting in price drop of cocoa butter. This is projected to encourage confectioners to develop new products. Thus, all these factors are collectively expected to boost the cocoa butter demand in Asia Pacific region in the coming years.
Product Innovation to Ensure Success
Some of the major players consider in the market are Cargill Inc., Natra S.A., Barry Callebaut AG, Bolmay Cocoa, SunOpta, Inc., Shirin Asal Food Industrial Group PJSC, Olam International Ltd, ECOM Agroindustrial Corporation, JB Foods Ltd, and United Cocoa Processor, Inc among others. Manufacturers operating in global cocoa butter market is expanding their product portfolio offering advance property options to the consumers.
For instance, in 2019 AAK launched cocoa butter under the brand name of COBAO Pure. Company claims that the product is delays migration and heat-related bloom, improved bloom-retarding effects and extends shelf life between 50% to 400%.