Global Cocoa Market to Reach 4.8 Million Metric Tons by 2015, According to New Report
Europe represents the largest market for cocoa worldwide, as stated by the new market research report on Cocoa. The Netherlands, Germany, France and the UK represent prominent cocoa consuming markets in Europe.
1/14/2011 --- The global market for cocoa is forecast to reach 4.8 million metric tons by the year 2015, according to GIA. Key factors driving market growth include increasing awareness among individuals about the benefits of eating chocolates, and surging global consumption of cocoa-rich chocolates, particularly in the developing regions.
Similar to several other markets, the cocoa market, especially in the matured economies such as the US and Europe, also reeled under the impact of recession and recorded a drop in demand for the product during 2008-2009. Increased cocoa prices compelled chocolate manufacturers to reduce the size of their products, and to cut down on the number of cocoa layers in the chocolate bars resulting in a significant doom for the cocoa manufacturers. Increased purchases of less-quality chocolate by the consumers during the tiring times also pulled down demand for cocoa. Cocoa market in developing regions such as in India, Thailand and China also declined in recent times, mainly due to the recession. Nonetheless, cocoa manufacturers in these regions garnered considerable business in comparison to their western counterparts. However by 2010, the cocoa industry bottomed out of the recession and displayed signs of recovery, thanks to the emerging nations growing appetite for chocolates. Demand for cocoa is expected to revive by 2011, driven by the increasing global consumption of chocolate, particularly in the developing regions. Further, scientifically backed nutritive and cancer-fighting capabilities of cocoa-rich chocolates, and surging awareness among the consumers about the benefits of eating chocolates would drive future growth for cocoa.
Europe represents the largest market for cocoa worldwide, as stated by the new market research report on Cocoa. The Netherlands, Germany, France and the UK represent prominent cocoa consuming markets in Europe. Growth-wise, Asia-Pacific is projected to be the fastest growing regional market for cocoa. Malaysia constitutes the largest as well as fastest growing regional market for cocoa in Asia-Pacific.
Growing demand for chocolates in various emerging regions, especially in the Asia-Pacific, is creating increased demand for cocoa, post recession. However, the inability of the farmers to produce enough cocoa to cater to the increasing cocoa requirements is creating an imbalance in the global supply and demand. Production of cocoa in Ivory Coast, the world’s largest cocoa producing region, declined drastically in recent times. Lack of investment in the region, increased aging of trees, absence of replanting programs, and increased administrative issues among the cocoa authorities led to distribution of low-quality pesticides. This increased the risk of black pod diseases in the cocoa pods. Usage of obsolete technology is also hampering production of cocoa in Ivory Coast. Global stockpiles of cocoa thus, were down in the year 2010, which created an imbalance in the supply and demand. However, production of cocoa is likely to recover by 2011, with modest growth expected in Cameroon, Indonesia, Nigeria and Ivory Coast offsetting the decline in Ghana and Brazil.
