Cocoa Butter Market
Cocoa Butter Market Analysis By Product Type (Natural, Deodorized), By Product Form (Blocks, Powder, Liquid), By Nature (Organic, Conventional), By End Use (Food & Beverage Industry, Bakery, Frozen Desserts) & By Region - Global Insights 2019-2028
Flourishing Food Processing Industry to Boost Cocoa Butter Market, Asia to Emerge as Profitable Hub
Manufacturers are increasingly focusing on emboldening the origin and provenance of cocoa butter. This is in answer to consumer demand for premium, hand-made and artisanal products.
Consumers are perceiving the technology and process used to manufacture cocoa products with high regard. The acknowledgement and awareness of processes and methods used to manufacture cocoa butter is giving weightage to the value of terminal cocoa products.
Consumer demand for better texture, appearance and flavor has paved the way for new levels of creativity across the globe. Cocoa butter which is responsible for imparting delicate creaminess and makes chocolate products visually appealing is in demand in this industry more than ever before.
Cocoa butter processors are progressively focusing on strengthening trade relations with the countries exporting cocoa beans. As the supply chain of the cocoa butter is extremely fragmented, trade has played a major role in growth of the market.
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Cocoa Butter Reigns Supreme, No Threats from Substitutes
Emerging substitutes for cocoa butter such as cocoa butter equivalents have been met with mixed reactions from the audience. These substitutes have failed to meet the taste and texture requirements of the chocolate industry and hence, cocoa butter is less likely to face threats from these substitutes.
Despite declining consumer demand for cocoa butter owing to prevalence of health trends, this scenario is unlikely to persist for long and the market is ultimately expected to exhibit growth over the forecast period.
Food regulatory bodies are also opining that products with cocoa butter equivalents are unfit to be called ‘chocolate’, signaling the reign of cocoa butter in the chocolate industry.
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Growing Consumption in Non-chocolate Segments to Bolster Cocoa Butter Demand
Despite the sluggish growth in the chocolate segment, the demand for cocoa butter is on the rise in segments such as dairy, frozen desserts and bakery. Novelty products in the confectionery segment have triggered the demand for cocoa products such as cocoa butter, cocoa liquor and cocoa powder.
Being a by-product, cocoa butter is expected to grow, as a result of increased processing activities of cocoa beans. This trend is dominant in developed regions, where the demand for chocolate is either declining or stagnant and premium and novel cocoa products are tightening their grasp over the food industry.
Owing to high competition and saturation in the market, manufacturers are increasingly following the trend of customization of products to stay ahead in this competitive market. In a bid to offer products which cater to the specific needs of the audience and suit the desired taste and texture profiles, the demand for high quality cocoa butter is on the rise and is expected to fuel the growth of the market.
Markets in Asia to Exhibit Steady Growth, on Back of Burgeoning Confectionery Industry
Asian consumers’ appetite for chocolate coupled with rising net worth incomes is paving the way for Asia to become the next powerhouse in the cocoa butter market. Countries like Indonesia, Malaysia, India and China have created new avenues for key market players.
Many manufacturers are also expanding processing facilities in these countries, as they are becoming a major network center for expansion in Asia Pacific.
Also, falling cocoa butter prices have encouraged confectioners to develop new products due to affordability. This trend is especially witnessed in regions like Asia Pacific and Eastern Europe, where chocolatiers are on the rise.
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Emerging Countries Present Lucrative Opportunities for Tier 1 Players Operating In Cocoa Butter Market
Tier 1 cocoa butter market players such as Cargill Inc., Shirin Asal Food Industrial Group PJSC., Olam International Ltd etc, have been expanding their footprint in potential markets such as India, and China.
In countries like India, the duty on cocoa beans has been reduced drastically, which has resulted in increased import of cocoa beans and an increase in the processing capacity of cocoa butter, liquor and powder.
These factors are creating notable opportunities for tier 1 players to expand their production facilities in emerging markets.
Cocoa Butter Market: Segmentation
FactMR’s study has done the segmentation of cocoa butter market on the basis of product type, product form, nature, end use and region.