Asia Pacific Cocoa and Chocolate Market Size, Share & COVID-19 Impact Analysis, By Type (Cocoa and Chocolate), Application (Food and Beverage, Cosmetics, Pharmaceuticals, and Others), and Country Forecast, 2020-2027

The Asia Pacific cocoa and chocolate market size was USD 6,019.15 million in 2019 and is projected to reach USD 8,892.57 million by 2027, exhibiting a CAGR of 5.42% during the forecast period.

The market is primarily driven by emerging trends such as healthy indulgence of low-fat and sugar-free chocolates. Consumers nowadays are concerned about the origin of ingredients used in chocolate due to several reasons. The growing demand for ethically harvested cocoa and cocoa sourced from a single plantation is driving the growth of the premium chocolate sector. The premiumization trend in chocolate confectioneries in developing economies such as China and India, along with the robust demand for higher quality chocolates with attractive packaging, helps in the growth of the market.

Worldwide Demand & Supply Fluctuations of Cocoa Products during COVID-19 Pandemic to Restrain Growth

The cocoa and chocolate industry has experienced a sudden disruption amidst the outbreak of the COVID-19 pandemic due to the major shift in demand dynamics. The pandemic is expected to have a negative impact on cocoa and chocolate sales in Asian countries for a certain period due to the ongoing lockdown. Chocolate confectioneries and cocoa do not come across as essential products and consumer demand for them have been reduced in these countries for the past few months.

The ongoing novel coronavirus is expected to reduce the demand for cocoa and cocoa ingredients across several countries globally while leading to disruption in the supply chain for a brief period. The chocolate manufacturers might experience a slump in sales that are expected to negatively impact the growth of the market in Asia Pacific. Additionally, the demand for premium products is projected to experience a gradual decline in Asian countries due to the economic slump.

LATEST TRENDS

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Rising Demand for Organic Chocolate Products to Favor Growth

The consumers are potentially seeking to cut down the intake of perceived unhealthy food products in their daily diet. The growing awareness to minimize such risks, coupled with improving economic conditions, has led the regional consumers to buy organic and sustainable foods in the market. According to The Associated Chambers of Commerce and Industry of India, the Indian organic food value was recorded at USD 528 million in 2017, which is expected to reach USD 1,586 million by 2020.

The rising consumer preference for organic cocoa products has led the manufacturers to capitalize on the lucrative opportunities in the market. They are doing so by introducing innovative indulgent products. On the other hand, the trend for premiumization, combined with the appeal of healthy & organic dark chocolate, will further aid in the growth of the regional market.

DRIVING FACTORS

Increased Buying Power of Consumers to Aid in the Market Growth       

In Asia Pacific, the demand for chocolate confectioneries and other chocolate-based food products such as chocolate beverages, bakery & dairy products, and others are attributed to the increasing middle-class population in the region. The steady growth in the economic condition has reduced poverty across the Asia Pacific. The consumers are willing to pay and spend over their needs and indulgence, which has resulted in the increasing demand for chocolates in the market.

Rising urbanization and the increasing spending power of the consumers have resulted in increased concerns over the origin of chocolate ingredients that have necessitated the manufacturers to deliver quality products in the Asia Pacific cocoa and chocolate market. According to the Organization for Economic Co-operation and Development (OECD), the overall growth in the middle-class population in the Asia Pacific is expected to reach 66% in 2030, which was valued at 28% in 2009.

Huge Growth Potential for Chocolate Confectionery in the Asia Pacific to Aid Growth

Over the years, the changing consumer preferences & their lifestyles, evolving eating habits, and their global exposure to the international chocolate brands have boosted the overall chocolate industry in the region. A huge utility of cocoa in the manufacturing of chocolate confectionery assures the growth of the market in Asia Pacific. The trend of delineating the social and cultural role of chocolate confectioneries in Asian countries such as India, China, Australia, and others surged the cocoa and chocolate market growth. Nowadays, chocolate confectioneries honor the most auspicious festivals and occasions in these countries, which is driving the demand for more innovative and quality chocolates in the region.

RESTRAINING FACTORS

Growing Popularity of Cocoa Substitutes and Alternatives to Hinder Growth

Most of the countries in the region are importing cocoa and chocolate ingredients from African countries such as Ghana, Côte d'Ivoire, and others. This results in an unstable supply chain and fluctuation in the price of these raw materials. Thus, confectioners are intensively focusing on fixing such disruptions in the market by utilizing cocoa ingredient equivalents and cocoa ingredient substitutes such as palm oil, soybean oil, shea, rapeseed oil, and others. The rising popularity of such ingredients can impact the cocoa & chocolate market negatively due to the easy availability and cost-efficiency of the aforementioned products. The good offering of fat stability and improved fat composition profile by cocoa butter alternatives is driving their growth in the market.

According to the Global Shea Alliance, confectioners are increasingly replacing cocoa butter with CBEs (Cocoa Butter Equivalents) derived from a mix of shea stearin and palm mid fraction due to reduction in cost, better functionality, and improved sustainability.

SEGMENTATION

By Type Analysis

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Chocolate Ingredients holds the Major Market Share in the Regional Market

The type segment includes cocoa and chocolate ingredients.

Chocolate ingredients are further sub-segmented into dark, milk, white, and filled. Chocolate products are expected to hold the major asia pacific cocoa and chocolate market share due to the robust expansion of the foodservice industry in the region. This has contributed to the increased demand for cocoa & chocolate beverages, chocolate desserts, and other gourmet and special cocoa-based offerings. The leading players in the foodservice industry are demanding value-added and customized products that are expected to boost the sales of chocolate products in the region. Milk chocolate  holds a high market share among the other types owing to the fluctuations in the cocoa prices.

Cocoa is further sub-segmented into cocoa butter, cocoa liquor, and cocoa powder. The trend of healthy snacking has heavily influenced the confectionery market, and in turn, increased the demand for cocoa. High cocoa content is perceived to be healthier due to its high polyphenol content. The rising demand for dark chocolates containing a high amount of cocoa with less sugar and fat has increased the demand for cocoa in the region.

By Application Analysis

Food and Beverage holds High Market Share owing to the Increased Consumption of Confectionery Products

The application segment includes food and beverage, cosmetics, pharmaceuticals, and others.

The food and beverage segment is further sub-segmented into confectionery, bakery, dairy, and others. The segment is expected to hold the largest market share owing to the increased sales of confectionery products in the region.

Cosmetics and personal care are expected to grow at a significant CAGR due to the rise in consumer awareness regarding the value of cocoa butter.

COUNTRY INSIGHTS

Southeast Asia stood at USD 1,763.65 million in 2019 and is likely to hold a major market share due to the increased promotion of tourism in the South Asian countries. The chocolate confectionery sector in Southeast Asia is flourishing due to the growing demand for various flavors and fillings in these products. The popularity of adventurous flavor combinations such as fruit flavors, sweet and savory, and nut fillings is increasing among the consumer base in these countries. The emerging trend of healthier indulgence among millennials drives the demand for fat-free, sugar-free, high-cocoa percentage chocolate confectionery. The growing awareness of the anti-aging qualities of dark chocolate and cocoa supports the growth of cocoa beverages. The rapid establishment of a distribution channel network in the region is anticipated to increase the demand for innovative chocolate products such as organic and vegan chocolates.

Followed by Southeast Asia, Japan is expected to hold the second position in the market. According to the Cocoa and Chocolate Association, Japan, chocolate consumption in the country has been continuously increasing. The consumption of chocolate was 2.52 million tons in 2015, and increased to about 2.76 million tons in 2018, with the increase in per capita consumption of chocolate from 1.98 kg to 2.19 kg during the same period. The increase in consumption is attributed to the growing perception that chocolate with higher cocoa content is healthier, anti-aging, and good stress buster. Japan is still in the naive phase of sustainable cocoa. However, there are plenty of opportunities for producers to launch these products in the mainstream market. The increasing demand for various flavors and tastes in chocolate has led to the development of innovative products such as fruit and nut chocolates and chocolates with cream-filled centers.

The cocoa industry in China is still in the developing phase as compared to the other developed markets such as Japan and Australia. The rapidly growing middle-class population, urbanization, and evolving consumer tastes have contributed to the increased appetite for chocolate in the country. The growing interest of consumers in organic products has opened up several opportunities for key players in the Chinese market. Recognizing this new potential of organic labels, the well-established chocolate brands are focusing on strengthening the business in China by offering more organic chocolate products on retail shelves.

India is in the growth phase. The cocoa and chocolate consumption in India was low until the decade of the 90s. However, the consumption increased as new varieties of chocolates were launched such as wafer chocolates by Nestle and Cadbury.

In South Korea, the emerging trend of dining out and the expanding presence of cafes serving various options such as hot cocoa, hot chocolate, chocolate pastries, and mousses support the growth of the industry in the country.

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Australian cocoa and chocolate market trends are in line with the current global cocoa and chocolate market trends. The rising consumer concerns related to the sugar and fat content in foods has reduced the demand for mass-produced low-grade chocolate products, which has led manufacturers to develop innovative and health-focused cocoa & chocolate products.

KEY INDUSTRY PLAYERS

Nestle S.A. is focused on New Product Launches to Meet the Consumer Requirements

The leading player, Nestle S.A. is focused on novel product launches taking into consideration the consumer buying pattern. Since organic and clean-label products are the new trends in the industry, the company targets rising requirements by the consumers. For instance, in March 2020, Nestle Australia introduced a plant-based version of its cocoa malt beverage, Milo, to capitalize on the growing demand for plant-based cocoa beverages in the region.

The Asia Pacific cocoa and chocolate market exhibits a highly consolidated structure. The industry is dominated by five major players holding 88% share in the entire market owing to their huge clientele base, strong brand loyalty & distribution network. Other key players are Nestle S.A., Cargill, Incorporated, Olam International, Barry Callebaut AG, Fuji Oil Company, Ltd., ECOM Agroindustrial Corporation Ltd., BD Associates Ghana Ltd, and Niche Cocoa Industry, Ltd.

LIST OF KEY COMPANIES PROFILED:

• Nestle S.A. – (Vevey, Switzerland)


• Cargill, Incorporated – (Minnesota, U.S.)


• Olam International – (Singapore)


• Barry Callebaut AG – (Zürich, Switzerland)


• Fuji Oil Company, Ltd. – (Osaka, Japan)


• ECOM Agroindustrial Corporation Ltd. – (Pully, Switzerland)


• Touton S.A. – (Bordeaux, France)


• BD Associates Ghana Ltd – (Tema, Ghana)


• Plot Enterprise Ghana Limited – (Takoradi, Ghana)


• Niche Cocoa Industry, Ltd. (Tema, Ghana)


• Indcre S.A. – (Barcelona, Spain)

KEY INDUSTRY DEVELOPMENTS:

• January 2019 – Cargill, Incorporated announced an investment worth USD 200 million in Pakistan to strengthen its capabilities that will help to deliver services across the country.


• February 2019 – Olam International has entered into an agreement comprising the acquisition of BT Cocoa, Indonesia. The agreement will help Olam International to capitalize on Asia's market to become a major cocoa powder supplier across the world.

REPORT COVERAGE

An Infographic Representation of Asia Pacific Cocoa and Chocolate Market

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The market research report of asia pacific cocoa and chocolate provides a detailed analysis of the market and focuses on key aspects such as leading companies, and its applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation: