Cocoa Butter Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global Cocoa Butter market reached a value of about USD 2.3 billion in 2021. The industry is projected to grow at a CAGR of around 5.4% in the forecast period of 2022-2027 to reach a value of about USD 3.2 billion by 2027.

The global cocoa butter industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. Cocoa butter is a crucial component in chocolate pastries and confections, determining the flavour and texture of the goods. The increasing demand for enhanced consistency and appearance on such edible goods leads to the industry's growth. In the industry report, the critical demand indicator is the highest category spender by region—Europe.

Industry Definition and Segmentation

Cocoa butter, or theobroma oil, is an edible light-yellow fat derived from the cocoa bean that smells and tastes like cocoa. It finds application in making chocolate, ointments, cosmetics, medications etc. It is a crucial ingredient in goods like chocolate bars fudge layer cake, among others and can also be found in a wide range of skin creams and other health and beauty treatments. It is renowned for its melting properties, including the ability to remain brittle at ambient temperature or lower while melting just below body temperature. The cocoa butter industry report comprises segments by type (natural, deodorised, semi-deodorised), form (blocks, powder and liquid), nature (organic, and conventional), packaging (tins, cartons, plastic containers, paper containers and others), distribution channel (direct and indirect sales--modern trade units, departmental stores, convenience stores, and online retail), end-use (food and beverage industry, pharmaceuticals, personal care and cosmetics), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America). Europe holds a significant share in the market, with North America and Asia-Pacific witnessing steady growth.

North America, Europe, Asia Pacific, Middle East & Africa, and South America Regions are Driving the Growth of the Industry

The European region is leading the market's growth owing to its extensive application in many food and beverage items. With changing consumer patterns and demand for the product in many goods like cosmetics, personal care etc., regions like North America and Asia-Pacific are expected to witness robust demand. The food and beverage segment is the leading segment owing to the extensive application of theobroma oil in various consumable goods. In addition, increased awareness of cocoa butter's nutritional and therapeutic properties and rising demand for chocolate, nutritious drinks, and frozen desserts are expected to boost the overall market growth. It comprises Stearic acid, arachidic acid, palmitic acid, myristic acid, and lauric acid and provides a velvety texture and distinctive taste and scent. As a result, it is used in many chocolate and confectionery items boosting the market's growth. Furthermore, it finds application in products like lotions, lip glosses, and soaps, creating the market potential for manufacturers.

However, overconsumption of cocoa butter can result in weight gain and obesity and allergic and skin responses, high cholesterol, heart disease, and respiratory difficulties. The following factors can hinder market growth.

Best Procurement Practices

The global cocoa butter industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major international cocoa butter regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

Cocoa butter is derived from whole cocoa beans. After that, the beans are fermented before being dried for use in chocolate production and to make cocoa nibs, and the beans are roasted and separated from their hulls. Cocoa butter makes up around 54–58 percent of cocoa nibs. The cocoa nibs are crushed to make cocoa mass, which turns to liquid at temperatures above the melting point of cocoa butter and is referred to as cocoa liquor or chocolate liquor. Fat is pressed out of the cocoa mass under high pressure (up to 550 kg/sq.cm), fat is squeezed out of the cocoa mass. After that, the butter is filtered to eliminate any remaining solid cocoa components. The cocoa butter is available in two forms: liquid in tankers and solidified in cardboard cartons. To separate the cocoa butter from the non-fat cocoa solids, the chocolate liquid is squeezed. Deodorization of cocoa butter is occasionally done to eliminate strong or unpleasant flavours.

Growing Popularity of the Ingredient, Further Bolstering the Procurement of Cocoa Butter

The growing demand for conventional items because of increased health concerns and the detrimental side effects of chemicals is driving the need for natural ingredients like cocoa butter. It is full of nutrients and is used to prevent skin dryness and peeling, repair chapped lips, combat indications of age, soothe burns and infections, and treat mouth sores. It also aids in the improvement of heart health and immunity. Owing to the following benefits, the product is gaining traction among end-users. Other factors like a rise in disposable incomes, increased expenditure on premium products, and shifting consumer preference for products with clean and natural ingredients are driving the sector's sales.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Cocoa Butter Industry Report

• Cargill Incorporated
• Cirana, Inc,
• United Cocoa Processor, Inc
• Guan Chong Berhad (Gcb)
• Cocoa Family

Market Landscape

The manufacturers prioritise product launches, product approvals, and other organic growth tactics such as patents and events. The business expansion efforts in the forms of partnerships and collaborations are furthering the market's potential. The market players are more engaged with beginning techniques such as focused marketing, CSR initiatives, and increasing their global prominence. Authorities in developing nations such as India, China, Taiwan, and Indonesia, among others, are pursuing policies to entice foreign investors into their manufacturing sectors by cutting trade taxes and levies to create more employment.

Key Initiatives by Companies

• Cargill Inc., a privately held American global food giant, said in December 2019 that it would invest US$ 113 million in increasing its cocoa processing in Ivory Coast, Tema, and Yopougon, Ghana. The investment is expected to boost manufacturing capacity by 50% at Yopougon and 20% in the Tema products plant.
• Cargill Inc., an agro-ingredients company, said in January 2018 that it was extending its cocoa product line by investing in the Indian market. The plan will help the corporation develop its consumer base in India and boost its position in the cocoa market.