Organic Cocoa Market Size, Share & Industry Analysis, By Type (Butter, Liquor, and Powder), Application (Confectionery, Beverages, Bakery Products, and Others), and Regional Forecast, 2024 - 2032

The global organic cocoa market size was USD 657.17 million in 2023 and is projected to grow from USD 705.40 million in 2024 to USD 1,273.82 million by 2032, exhibiting a CAGR of 7.67% during the forecast period (2024-2032). Europe dominated the organic cocoa market with a market share of 41.2% in 2023. Moreover, the organic cocoa market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 218.31 million by 2032, driven by the emerging trend of clean-label, fair-traded, and ethically sourced food products.

The global impact of COVID-19 has been unprecedented and staggering, with organic cocoa witnessing a negative impact on demand across all regions amid the pandemic. According to our analysis, the global market exhibited an increase of 4.34% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR during the forecast period is because of the growth in demand for organic food products post-pandemic.

The organic food and beverages industry is witnessing robust growth globally due to the rising awareness regarding safer counterparts of organic products compared to conventional products. The continuously expanding chocolate confectionery industry drives the evaluation of consumer buying patterns. Consumers nowadays select better-for-health and safer products to maintain overall health and reduce the risk of lifestyle-related health conditions. The growing demand for organic chocolate confectioneries fuels the market growth.

The first few months during the COVID-19 pandemic had disrupted all levels of supply chains of the cocoa industry. The leading companies experienced a reduction in the workforce, which significantly affected the production capability. Furthermore, the slowdown in demand for retail products such as chocolates, beverages, and cocoa powder created many difficulties for manufacturers to plan the production and distribution. However, the rising concerns related to safety increased the demand for organic products to ensure safe and healthy eating. Consumers have become more focused on healthy, nutritious, and safer products. The positive evolution of consumers’ preferences for organic products is expected to boost the growth of the industry over the forecast period.

Organic Cocoa Market Trends

Emerging Trend of Fairtrade, Safe, and Pesticide-free Products to Drive Market Growth

Awareness toward food safety is signficantly rising and has become a global phenomenon, which is one of the significant factors influencing global food consumption. In addition, awareness of the impact of agriculture and other industries on climate change has been rising among individuals. This surging awareness is contributing to the increasing demand for sustainable, organic, pesticide-free, and fairly traded food products, including cocoa.

The prevalence of obesity, diabetes, and heart disease has been rapidly growing in recent years. Therefore, more consumers are showing an increasing inclination toward the consumption of healthy food products such as pesticide-free, organic, and others. The increasing inclination toward a healthy lifestyle and the minimalistic impact of organic and safe food products on lifestyle and health, specifically related to obesity, diabetes, and heart conditions, has been one of the significant factors driving the global market growth.

The inclination towards these products is also attributed to their ability to reduce the risk of lifestyle-related health conditions such as obesity and heart diseases. Consumers continue to seek better-for-you options across food channels to improve overall health. The rising consumer interest in clean-label, ethically sourced, and fair-traded products considerably increases the demand for organically produced cocoa across chocolate manufacturing industries.

The rising trend of specialty products across developed markets of Europe and North America has significantly increased the demand for organic chocolate confectioneries and organically produced cocoa powder. Organic products are perceived to be healthier as compared to conventional ones. The health halo around organic products is expected to be a primary factor responsible for global market growth.

Organic Cocoa Market Growth Factors

Rising Popularity of Organic Food Products to Drive Market Growth

The hectic modern-day lifestyle of consumers across the globe has rapidly evolved their food-buying patterns. Consumers are inclined towards safer and healthier products that help maintain overall health. Organic products are pesticide-free and therefore safely grown. The rising interest in natural, pesticide-free food products positively affects the demand for organically grown cocoa across the food and beverage industry. The growing popularity of organic chocolate confectioneries, desserts, bakery products, and beverages among consumers has fuelled the market's growth over the last few years.

The growing trend of clean-label products, primarily across developed markets of Europe and North America, also drives the organically grown cocoa market growth. Leading manufacturers and cocoa processors are focused on investing in the research and development of innovative products to tap a wider consumer base that is projected to contribute to the market growth. The positive evolution in organic farming techniques and expansion of the organic food supply chain is anticipated to further fuel the growth of the organic cocoa industry in the upcoming years.

Surging Consumer Interest in Specialty and Premium Chocolates to Fuel Market Growth

Organic cocoa is extensively utilized for the manufacture of chocolate confectioneries. The rising discretionary income among consumers in developed and developing markets has swiftly evolved consumer buying preferences. Consumers nowadays seek healthy indulgent products across food aisles. The popularity of specialty and premium confectioneries has increased over the past few years due to the rising consumers’ ability to spend on premium products.

Specialty confectioneries are primarily manufactured by using organic, fair-traded, and ethically sourced cocoa. The growing consumer concerns regarding labor welfare, single-origin cocoa, and ethical trading practices have significantly affected the growth of the organically produced cocoa industry across the globe. Specialty and premium chocolates are becoming popular as gifts given at festivals and special occasions across Asian countries such as Japan, China, and India. The fastest growing popularity of premium products among millennials is expected to further drive the growth of the organic cocoa industry.

RESTRAINING FACTORS

High Cost of Product to Act as a Key Restraint for Market Growth

The price of organically produced cocoa is the major concern for the chocolate confectionery, dessert, and bakery industry and the high cost is projected to restrain the growth of the market. The lack of awareness regarding organic farming practices among farmers usually results in limited production, increasing the final cost of organically produced cocoa. The demand for organically grown cocoa is less across developing markets of Asia Pacific and South America due to its high cost and lower discretionary incomes among consumers. However, the increasing efforts towards maximizing the organic production by spreading awareness regarding advanced agricultural practices are expected to help tackle the price challenges in the industry.

Organic Cocoa Market Segmentation Analysis

By Type Analysis

Cocoa Butter Segment to Hold the Largest Share due to its Wide Application in Confectioneries

Cocoa butter is the leading type of organically produced cocoa, holding the largest organic cocoa market share in the global market attributed to its widespread application in various manufacturing of chocolate confectioneries. Cocoa butter imparts a unique flavor and texture that gives chocolate confectionery its pleasurable taste. The global market for chocolate confectionery was estimated to be USD 185.1 billion in 2017, and it is rapidly growing. The growing demand for chocolate confectioneries is expected to drive segmental growth in the upcoming years.

The popularity of assorted confectionery types is increasing among consumers across the globe. The rising income levels have evolved consumer preferences towards buying specialty and premium chocolate confectioneries. The increasing investment by manufacturers to develop various forms such as cocoa butter blocks, chips, and liquid cocoa butter is expected to further drive this market in the foreseeable years.

The growth of cocoa liquor is primarily driven by the rising demand for premium chocolate confectioneries. Cocoa liquor is extensively utilized for the manufacturing of chocolate couverture. The growing popularity of dark chocolate and other flavors across the bakery and dairy industry is particularly driving organically produced cocoa powder growth.

By Application Analysis

Confectionery Segment to Remain at Forefront Backed by High Demand for Organic Chocolates

Cocoa is extensively utilized for the manufacturing of chocolate confectioneries. The growing demand for organic chocolates among consumers has been primarily driving the growth across the globe. Organic confectioneries are becoming popular among health-conscious consumers and millennials as they are perceived to be safer and healthier than conventional ones. The growing popularity of premium and specialty chocolates further fuels the growth of the market.

The ever-expanding food industry has posed tremendous opportunities for the organic cocoa industry over the past few years. Nowadays, organically produced cocoa is extensively utilized across the bakery, snacks, and beverage industry. The growing popularity of chocolate flavor in products such as cakes, pastries, biscuits, and dairy beverages contributes to the growing demand for organically produced cocoa.

REGIONAL INSIGHTS

Europe remains the key organic cocoa market with enormous potential attributed to the rising awareness regarding safer counterparts of organic products over conventional ones. European countries such as Germany, France, and Italy are becoming increasingly conscious about maintaining a healthy lifestyle, which has increased the demand for organic cocoa products. The rapid expansion of the chocolate industry in the markets such as Belgium, Switzerland, and Germany positively contributes to the growth of the market in the region.

The emerging trend of clean-label, fair-traded, and ethically sourced food products in North American markets such as the U.S. and Canada has ultimately fuelled the market growth in the region. Consumers nowadays are seeking better-for-you products across food aisles. The growing popularity of specialty and artisanal chocolates also significantly drives market growth. The increasing investments by processors for research and development of innovative products using organically grown cocoa are expected to boost the organic cocoa market growth in the region.

Asia Pacific is witnessing robust growth of the market due to the increased discretionary income levels among consumers in the region. The rising capacity of consumers to spend on healthful products has increased the demand for organically produced cocoa across confectionery, beverage, bakery, and dairy industries. The rising popularity of chocolate and cocoa flavor in various food products is expected to drive the region's organically grown cocoa demand.

The market is at the nascent stage in South America and the Middle East & Africa due to lower consumer income levels. The market is picking up in countries such as Brazil, South Africa, and the U.A.E. due to the rapidly evolving food industry and rising consumer discretionary incomes. The growing awareness regarding healthy products has given rise to the demand for products such as organic chocolates and organic bakery products. The rising interest in chocolate confectioneries is expected to boost the market in these regions.

List of Key Companies in Organic Cocoa Market

The Hershey Company is Focused on Portfolio Expansion to Strengthen its Presence in Market

The Hershey Company, a leading chocolate confectionery company across the globe, is actively focusing on investing in the expansion of its product portfolio to strengthen its presence in the market. For instance, in February 2021, The Hershey Company announced to launch a range of organic, zero sugar chocolate products in the market to tap the opportunity due to the growing trend of organic and specialty chocolate confectionery products.

The global organically grown cocoa market exhibits a moderately consolidated structure with few multinational companies holding major shares in the market. The major key players such as Olam International, Barry Callebaut AG, and Tradin Organic Agriculture B.V. are focusing on new product developments, mergers, and acquisitions, to consolidate the market further. The arrival of small players in the market significantly contributes to the competition within the market, which has a positive impact on the industry.

LIST OF KEY COMPANIES PROFILED

• Olam International Limited (Singapore)


• Barry Callebaut AG (Zurich, Switzerland)


• Tradin Organic Agriculture B.V. (Amsterdam, Netherlands)


• Conacado AgroIndustrial S.A. (Dominican Republic)


• Cargill, Inc. (Minnesota, U.S.)


• Blommer Chocolate Co. (Pennsylvania, U.S.)


• Pascha Chocolate Co. (Ontario, U.S.)


• Guan Chong Berhad (Malaysia)


• The Hershey Company (Pennsylvania, U.S.)


• Jindal Cocoa (Mumbai, India)

KEY INDUSTRY DEVELOPMENTS

• March 2024 – YACAO, one of the leading organic cocoa processors based in Switzerland, announced that the company has become the first-ever Regenerative Organic Certified (ROC) supplier of Latin America.


• January 2024 - Justin's, one of the leading organic chocolate and nut butter producers based in the U.S., announced the expansion of its product portfolio into the organic chocolate range with the launch of its all-new innovative product range called Chocolate Candy Pieces


• June 2022 – Pronatec, one of the well-known cocoa producers and processors, announced the launch of its new and first organic cocoa processing facility in Switzerland.


• January 2021- Olam International Limited introduced a new cacao business, Twenty Degrees which involves obtaining high-quality cacao beans from across the world.


• August 2018 – Divine Chocolate, a fairtrade cocoa company, rolled out its first organic chocolate bars. The company has adopted organic farming methods to tap into emerging consumer trends.

REPORT COVERAGE

The global organic cocoa market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product forms, market segments, and leading distribution channels of the product. Besides this, the market report offers insights into the market trends, market growth rates, 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