LONDON, Sept. 13, 2021 /PRNewswire/ -- Cocoa has long been an irreplaceable ingredient in the food and beverage industry for its versatility and lip-smacking flavour. Its medicinal properties have come to the forefront recently, with great attention paid to its antioxidant nature, making it a popular choice for fitness enthusiasts. The unabated demand for cocoa butter in the ever-expanding food and beverage industry, along with its use in various cosmetics, is responsible for the boom in the cocoa butter market.
According to Fairfield Market Research, theglobal cocoa butter market is expected to be worth US$7,560.5 Mn by 2025, registering a CAGR of 5.1% between the forecast years of 2020 and 2025.
Continuous Cosmetic Launches to Help Cocoa Butter Market Reap Bigger Gains
Cocoa butter has gained significant traction in the beauty and wellness industry as a texturing agent for skincare products. Different products such as body lotions, butters, and lip sparkles utilize cocoa butter for its manifold benefits and a pleasant aroma. Fairfield Market Research predicts that the cosmetic segment in the global cocoa butter market will grow 1.3x as this ingredient remains an excellent hydrating agent for the skin.
Growing awareness about the benefits of using cocoa butter for skincare, as it is a natural ingredient, is expected to bode well for this segment. The presence of social media campaigns, a growing focus on personal grooming, an increasing number of men engaging in skincare, and a wide range of products available to consumers are expected to be the motivators for the high uptake of cocoa butter in the cosmetics industry. In 2018, American Dream unveiled new Lemon and Lavender options in its cocoa butter range to cater to a diverse clientele. This should undoubtedly spur demand in the global cocoa butter market.
Emergence of Healthier Substitutes Could Stifle Growth in the Cocoa Butter Market
The global cocoa butter market has some challenges looming on the horizon as manufacturers have begun focusing their efforts on low carb, low sugar, and low-fat foodstuffs with regulatory companies also limiting the use of trans fats.
In 2019, Bunge Loaders Croklaan unveiled a substitute to cocoa butter termed Couva 806 NH for confectionaries. Couva 806 NH is supposedly non-tempering, non-hydrogenated and contains a low level of trans-fat (<1%). In addition, the company announced its intent to aggressively expand in the Asia Pacific region.
In 2020, Saudi Arabia's Food and Drug Authority banned trans-fat in all foodstuffs. The regulation states that the maximum permissible limit of trans fats in vegetable oil and margarine shall be 2% and 5% respectively. Similar intervention is likely in other countries, restraining growth prospects for major stakeholders in the global cocoa butter market.
Europe and Asia Pacific Race Ahead to Capture Lion's Share in Global Cocoa Butter Market
Cocoa production is concentrated in the West African nations of Ghana and Ivory Coast as these two account for 70% of global production. Due to a longstanding heritage of chocolate making in France, Switzerland, and Belgium, Europe is the largest consumer of cocoa butter. By 2025, Europe is estimated to hold a 45.6% share in the global cocoa butter market. Bakeries, chocolateries, and artisanal chocolate-making will be the undercurrents for the thriving cocoa butter market in Europe. The regional market will also be driven by exports by countries such as Germany, Belgium, the Netherlands, and France.
Nevertheless, Asia Pacific region is predicted to demonstrate the highest CAGR during the forecast period. Robust economic growth is fuelling demand for bakery and confectionery products, which has resulted in consistent demand for cocoa butter. By 2025, Fairfield Market Research predicts that the incremental dollar opportunity of Asia Pacific cocoa butter market will be US$248.8 Mn.
The younger demographic of India and China is expected to play a critical in driving up the demand for cocoa butter as sales of skincare products go up. As local brands commit to using natural substitutes for the production of moisturizers, they are likely to spur the demand for cocoa butter.
Companies Focus on Product Differentiation to Stand Out in the Global Cocoa Butter Market
Prominent companies actively involved in the cocoa butter market include SunOpta, Inc., Shirin Asal Food Industrial Group PJSC, Olam International Ltd, ECOM Agroindustrial Corporation, Cargill Inc., Natra S.A., Barry Callebaut AG, Bolmay Cocoa, JB Foods Ltd, and United Cocoa Processor.
In 2019, AAK released cocoa butter under the proprietary brand name COBAO PURE. AAK claims that COBAO PURE extends shelf life by up to 400%, slows heat-related bloom, and improves bloom-retarding effects.
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.