(Food-Beverage-News.Com, October 11, 2016 ) The certified organic cocoa market represents a very small share of the total cocoa market, estimated around 0.5% of total production. However, the demand for organic cocoa products are growing at a very strong pace, the supply side faces a strong challenge to meet the demand of organic cocoa. Since, farmers are paying ample amount for producing organic cocoa, production of organic cocoa is more in least developed countries. Organic cocoa has many nutritional benefits such as more fiber, iron, magnesium, copper, manganese and many other minerals. Moreover it also contains antioxidants, which helps to protect skin. Organic cocoa also helps to improve blood flow and lower blood pressure. Demand for organic cocoa products are very high in U.S, U.K and Germany, hence organic cocoa are supplied to developed economies of North America and Western Europe to manufacture organic cocoa products. Currently, Dominican Republic is dominating the organic cocoa market in terms of production that holds around 70 percent of the total market share; Peru, Ecuador and Mexico together hold around 20 percent of the market share in terms of production; rest around 10 percent is held by Bolivia, Ghana, Brazil and others.
Organic Cocoa Market Segmentation:
On the basis of product type the organic cocoa market is segmented into cocoa powder, cocoa paste, cocoa butter, cocoa beans and others (products containing cocoa). Products containing cocoa holds the highest market share in terms of value followed by cocoa beans and cocoa butter.
On the basis of application organic cocoa market is segmented into confectionaries, bakery, functional food, health drinks, home cooking use and others (pharmaceuticals, ointments, and toiletries). Organic cocoa is majorly used in food industry as a main ingredient of chocolate.
Geographically, Organic cocoa market is segmented into North America, Latin America, Western Europe, Eastern Europe, and Asia Pacific excluding Japan, Japan and Middle East & Africa (MEA). Latin America is dominating worldwide followed by Middle East and Africa (MEA) in terms of organic cocoa production. Majority of organic cocoa is exported to Western Europe followed by North America. U.K and U.S are the largest manufacturing countries of organic cocoa products in the world, since organic chocolate is more popular in U.K, U.S and Germany and consumers from those countries owe a significant inclination towards organic chocolates irrespective of high pricing of organic products.
Organic Cocoa Market Dynamics:
Chocolate is the main application of organic cocoa which is the main growth driver of organic cocoa market. Also, the organic cocoa market is expected to be largely driven by the health consciousness among consumers. However, lack of proper supply of organic cocoa restrains the global organic cocoa market which also leads to increase in price of organic cocoa. There is a huge opportunity in the North America and Western Europe and Japan. Asia Pacific excluding Japan is an untapped market which is also a potential market for organic cocoa. This is attributed to increasing inclination of consumers towards organic products, rapid urbanisation, strengthening supply chain for organic cocoa and rising health consciousness among consumers.
