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Global Cocoa Butter and Equivalents Market (2023 Edition): Analysis By Type (Cocoa Butter, CBE), CBE Type (Shea Butter, Palm Oil, Kokum Butter, Illipe Butter, Others), By End Use Industry, By Applications: Market Size, Insights, Competition, Covid-19 Impact and Forecast (2023-2028)

Category: Food, Beverage and Agriculture

Publish Date: March 2023

No. of Pages: 280

Format: Pdf

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What are Cocoa Butter & Equivalents?

Cocoa Butter, often known as Theobroma oil is an edible, pale-yellow lipid that is obtained from the cocoa bean. Together with several ointments, cosmetics, and medicines, it is used to produce chocolate. Cocoa butter equivalents are based on the same fatty acids and triglyceride as cocoa butter (CB).

Cocoa Butter & Equivalents Market Overview

The Cocoa Butter and Equivalents market showcased growth at a CAGR of 4% during 2018-2021. The market was valued at USD 5761.03 Million in 2021 which is expected to reach USD 8552.53 Million in 2028. Increasing demand for a better texture of chocolate, along with rising demand for premium and handmade chocolates, growing usage of cocoa butter & its equivalents in different industries such as personal care and pharmaceuticals are the certain driving factors of the overall market globally. 

The Global Cocoa Butter & Equivalents Market is expected to grow in the forecast period and register a market value of USD 8552.53 Million in 2028 at a CAGR of 6.56% during the forecast period. Global Cocoa Butter and Equivalents Market is anticipated to witness strong growth during the forecast period on the heels of low palm oil prices, widening applications of CBE in various industries like food and beverages, cosmetics, and healthcare as well as the introduction of new CBEs in the market.

The demand for chocolate, frozen desserts, and nutritional drinks is anticipated to increase along with consumer knowledge of the nutritional and medicinal benefits of cocoa butter. Demand for cocoa butter is also rising as more people become aware of its many advantages, including its capacity to soothe infections and burns, reduce skin peeling and dryness, fight age-related symptoms, enhance immunity, and support heart health. Also, to meet the growing demand for cocoa butter-based products, cocoa butter equivalents such as shea butter, palm oil, kokum butter are gaining popularity in the market worldwide.

Expanding Chocolate Industry is Fuelling the market growth

The need for cocoa butter as an intermediary is being driven by the rapidly growing chocolate industry in developing nations like India, Brazil, and China as cocoa butter is widely used in the production of chocolate to enhance chocolate’s flavour and mouthfeel. Also, the market is expanding as a result of rising consumer demand for high-quality, handmade chocolate that has a seductive glossy appearance, a smooth texture, and a melting behaviour. 

Furthermore, leading companies are expected to invest in the trend in order to enhance their profits due to customers' growing opinion that bean and single-origin chocolates are superior to bar chocolates.

Strict Regulations & High Competition present challenges for the Cocoa Butter & Equivalents Market

High level of competition and strict regulations are a couple of things that are expected to limit the expansion of the global market for cocoa butter & equivalents consumption. Coconut oil and palm oil, which are widely used as alternatives for cocoa butter, contain lauric fatty acids. To regulate the consumption of cocoa butter alternatives, certain countries have implemented stringent usage and labelling regulations. 

Segment-Wise Insights

Food & Beverages segment accounts for USD 3962.49 Million in 2021

Owing to several health benefits of cocoa butter and CBEs along with wide availability of several type of CBEs in the market, cocoa butter and CBEs has become an attraction to the food and beverage manufacturers. 

For instance, Shea butter is a healthier alternative to trans-fat-rich, hydrogenated oils often used in the confectionery and baked goods manufacturers. 

Shea Butter registered the fastest growth in Cocoa Butter & Equivalents Market

Shea butter is one of the most commonly used exotic fats in making cocoa butter equivalents as its addition improves several chocolate functionalities like higher melting point of chocolate so that it doesn’t melt at higher temperature, increased hardness and bloom prevention.  Also, it is one of the most widely used type of CBEs in cosmetics & personal care products due to its better composition and ability to fight off many skin related issues.

Regional Insights        

According to Azoth Analytics estimates, Europe accounts for the largest revenue share in 2022. Being the highest chocolate consumption region in the world, Europe has been creating high demand of cocoa butter and its equivalents used in the chocolates from over the past few years. 

Also, European directive allowing the use of vegetable fats in products marketed as "chocolate" within the European Union has boosted the market for cocoa butter and Equivalents in the region. Moreover, according to the International Cocoa Organization, this directive increased the demand of CBEs by approximately 50 thousand ton in Western European countries. 

Competitive Landscape

Global Cocoa Butter & Equivalents Market is fragmented with top 6 companies accounting for a significant revenue share in the year 2022. Leading companies and brands in the market are executing different strategies and partnerships to strengthen the foothold and increase the competitiveness and product offerings in the market.

Cargill, Bolmay Cocoa, Olam International amidst others are the leading companies in the Global Cocoa Butter & Equivalents Market.

Leading companies in the Global Cocoa Butter & Equivalents Market include:

Cargill

Bolmay Cocoa

Olam International

JB Foods

Barry Callebaut

Natra S.A.

AAK AB

Fuji Oil Holdings Inc.

Wilmar International Ltd.

3F Industries

Recent Developments in the Cocoa Butter & Equivalents Market

  • In January 2023, BASF and Cargill further expanded their partnership to offer high-performance enzyme solutions to animal protein producers in the United States.
  • In February 2019, Olam announced acquisition of Indonesia’s largest cocoa processor, BT Cocoa, to capitalise on Asia’s trajectory to become the largest global consumer of cocoa powder.

Segmentations in the Report

By Type

  • Cocoa Butter
  • Cocoa Butter & Equivalents

By CBEs Type

  • Shea Butter
  • Palm Oil
  • Kokum Butter
  • Illipe Butter
  • Other CBEs

By End Use Industry 

  • Consumer
  • Industrial

By Applications

  • Food & Beverages
  • Pharmaceuticals
  • Personal Care
  • Other Applications

By Region

  • Americas
  • Europe
  • Asia-Pacific
  • Middle East & Africa
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