Cocoa
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Cocoa Market Outlook

The global cocoa market was valued at $24.5 billion in 2019 and is projected to grow at a CAGR of 3 percent until 2026•Western Europe and Asia are driving the demand for cocoa but farm risks may affect supply in the long-term

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Contract Structures

Direct Buying from Farmers >2-–3 years

• Direct buying from farmers is usually carried over in long contracts for efficient procurement
• This type of contract has a constraint of reaching the farmers regularly and supplying them technical management, which companies perform as a sustainability action
• Buying from intermediates may be an easier option of spot buying at a cheaper price

Buying from Intermediates (6–12 months) Short Term/Spot buying
Farmers do not get fair pay, and hence, the sustainability of cocoa market prices, in the future, would be questionable 

Buying through Co-operatives >2 years

• Presence of co-operatives, who liaise between the farmer and the buyer, usually take care of a fair price at both the ends
• Usually, this type of contract is long term for more than 1–2 years
• The active participation of co-operatives is directly correlated to the country's political influence and unification of the farmers, which is a drawback of this contract

Cocoa Market Overview - Cocoa, Cocoa Butter, Liquor, and Powder Material Process Flow

Cocoa undergoes extensive processing from the bean to the various end products and by-products of the processes. This section of the report illustrates the process and the product at each stage. 

Cocoa Harvesting Season in Major Producing Belts

Cocoa is a seasonal crop and the harvesting periods differ geographically. This section gives an at-a-glance report on the global harvesting seasons with differentiation between the main crop and the mid crop. It also lists the important takeaways on cocoa harvesting.

Cocoa Beans - Market Snapshot 

This section gives the market information such as total global production growth, export information, average price, and price drivers for the cocoa beans market.

Cocoa - Supply Analysis 

• The International Cocoa Organization (ICCO) estimated 2018–2019 (which ended Sept. 30, 2019) global cocoa bean production at a record 4,834,000 tons, up 3.9 by percent from 4,651,000 tons during 2017–2018 and up 10 percent from the prior five-year average. The cocoa grinding sector in Ivory Coast, despite an increase in bean output, is facing a challenge. This is due to the current military and social unrest in the country, hindering investment opportunities.

• West African countries (Ivory Coast, Ghana, Nigeria) continue to dominate the cocoa bean production over the years because of favorable climatic conditions prevailing in these regions. Apart from West Africa, Indonesia is the major producer of cocoa beans
• There are concerns about the crop from West African nations –Ivory Coast and Ghana, due to poor bean quality. Ghana is expected to partly offset the decline in production from Ivory Coast
• Emerging markets, like Jamaica, are receiving government support and aid to develop their cocoa farming and processing capabilities
• In 2017, grindings are estimated at 4.03 MMT, which is a rise of nearly 10 percent from 2015 grindings (3.8 MMT)

The report also illustrates the top cocoa bean producing and cocoa bean grinding regions.

Cocoa Beans - Supply Analysis

• The prospects of an improved harvest from West Africa (70 percent of World's cocoa) is looking up, mainly attributed to the less severity of the Harmattan winds (than anticipated)
• Post the 2015 supply crunch, owing to adverse growing conditions, the La Nina brought favorable rainfall in the second half of 2016, leading to a commensurate surplus overall in 2016
• If good weather conditions prevail, a second surplus in 2017 can be anticipated. However, the El Nino in 2017 may limit prospects of the crop output, with the production estimates needing emendation
• This supply surge is viewed as a temporary glut, and supply crunch may resume by the second half of 2017, as most of the crops are stuck in logistics and rotting on the plant
• With increased supply anticipated, if the current unprofitable situation for farmers does not improve, it may cause them to shift to alternate crops, which could consequently resume a firm market situation

Cocoa - Trade Dynamics 

The trade dynamics of the cocoa bean market such as global trade volume, exports by country, and imports by country are illustrated with key takeaway points.

Cocoa - Pricing And Cost Structure Analysis  

The various factors of the pricing of cocoa beans are studied in this section of the report. The key drivers that affect the price are listed. The price trends are illustrated along with future price outlook. The share of the different cost inputs to the final cost is illustrated. 

Cocoa Derivatives - Cocoa Butter and Powder Market Snapshot

• This cocoa market report lists the important market and price driver information for the cocoa derivatives individually.

Cocoa Butter - Trade Dynamics

• This section offers information about the global trade volume, exports by country, and imports by country for cocoa butter. It also gives insights about the factors that affect the trade dynamics of the cocoa butter market.

Cocoa Powder - Trade Dynamics

• Some countries are the top consumers of cocoa powder. This report analyses the trade dynamics of the global cocoa powder market and the factors that affect it. The individual components that impact the price of cocoa butter are listed with the price trends and forecast. The price outlook for the next 3-6, 6-9 and 9-12 months are given.

Cocoa Butter & Powder - Cost Structure Analysis

• The raw material, processing, and other costs that add to the final cost of cocoa butter and powder are illustrated. 

Cocoa - End-use Demand Analysis

• The end-use applications of cocoa determine the demand in the market. The report details the end-use demand for cocoa butter, powder, and liquor. The top 10 chocolate companies are also listed with their market sales values.

Industry Analysis

• The different factors that affect the supplier, buyer and other market factors are studied alongside the challenges that are faced in the cocoa bean market.

Challenges in Cocoa Supply Chain 

• The cocoa bean supply chain is spread worldwide and the levels of supply chain structure and efficiency vary regionally. This report lists the constraints and challenges that are faced by the cocoa bean industry from the farm level to market access.

Trends and Innovations

• The trends and innovations in the market are directly in response to consumer demands and the increased shift to sustainability. This report also has details of the cocoa futures market, cocoa futures market news, cocoa futures market analysis, cocoa futures market size, cocoa futures market trends, and the cocoa futures market outlook.