Key research projects chocolate market set to be worth $160 billion by 2027

Latest analysis has revealed the buoyant global chocolate market is set to reach a value of $160.9 billion by 2027, according to figures from MarketsandMarkets, writes Neill Barston.

The group also forecast continued growth for the cocoa sector, which it put at 26.3 billion within the next five years, increasing at a rate of 4.7% despite ongoing geopolitical trading issues that have impacted on the industry.

Notably, the studies highlighted the Asia Pacific region as anticipated as having the fastest growth rate in the coming years of 5.72% – with the Chinese market  estimated to grow at a CAGR of 6.39%.

The report noted that this is attributed to the strong demand for chocolate in the country. Across Europe, Germany consumed the highest quantity of chocolate in 2021 followed by the UK, and Belgium.

Furthermore, The US accounted for the largest market share primarily driven by the large consumption of confectionary and bakery items. According to the Observatory of Economic Complexity (OEC), the US was the seventh largest exporter of chocolate in 2020, with key export destinations being Canada, Mexico, South Korea, Australia, and the UK.

Growth in this region is attributed to the growing population, rise in per capita income, growing urbanisation, and therefore, an increase in demand for chocolate-based products. Additionally, the nutritional benefits of chocolate are promoting the growth of chocolate in the region.

As part of its forecast, the company said the growth in chocolate had partly been driven by consumers continuing to prioritise health issues – which has in turn led to an increase in dark bar ranges that are considered high in cocoa and contain less sugar.

In addition, the report highlighted milk chocolate as the most dominant category, though this contains comparatively low levels of cocoa solids and is lighter and sweeter than dark chocolate – which has experienced an upturn owing to various health benefits associated with it due to the presence of high fibre, high iron, magnesium, potassium, and phosphorus content.

West African market

The research confirmed that Africa remains the core supplier for the trade, accounting for 72% of global production of cocoa (according to the International Cocoa Organisation) with Ghana and Ivory Coast retaining their top positions, with major confectionery groups continuing to source from these two major sourcing locations.

However, the company’s research notes that despite the two West African countries remaining dominant in the market, they also remain impacted with Fair trading and environmental issues, affected by government unrest, and a declining labour force as younger generations increasingly move away from traditional farming.

Consequently, as the report noted, measures such as implementation of National Cocoa Development Plan (NCDP) in the member countries of ICCO are being undertaken to improve the production of cocoa. Initiatives like these give a promising outlook towards fulfilling the rising demand for cocoa globally.

According to MarketsandMarkets, the cocoa and chocolate market players are showing trends of pursuing both organic as well as inorganic strategies for their expansion, consolidation, and sustainability in the market. Developments and new product launches in chocolate and rise in the use of cocoa for cosmetics and pharmaceuticals are driving the market and is leading to an increased demand for cocoa.