Ghana and Cote d’Ivoire remain the largest producers of cocoa in the world. Together, the two countries currently produce nearly 60% of the total global cocoa. This is according to a new report titled, “Cocoa Processing Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026”.
The report shows that other major cocoa producers include Indonesia, Nigeria, Ecuador, Brazil and Cameroon. However, a regional analyses show that Africa currently accounts for more than 70% of the total global cocoa production. This is due mainly to the huge prospects of cocoa production in Ghana and neighboring Cote d’Ivoire. It was clear in the report that the African region exports majority of its cocoa beans without any value addition.
However, Ghana is the world’s second-largest cocoa-producing country. At the end of 2020, there were 69,114 farmers participating in Cocoa Life, across 663 communities.
Recently, Head of Finance and Administration at COCOBOD, Ray Ankrah told Bloomberg that Ghana had already exceeded its cocoa production target for the 2021 cropping season. According to Mr. Ankrah, cocoa farmers in Ghana had harvested about 965,493 metric tons as of June 3, 2021. This is way higher than the target of 900,000 tons for the whole crop year that ends in September 2021.
On the other hand, Côte d’Ivoire, the world’s largest producer of cocoa, has over 51,765 farmers participating in Cocoa Life across 1,141 communities.
However, the report highlights that despite being the largest producer, the region in Africa accounts for less than 21% of the total global cocoa processing market. In other words, Africa exports 79% of cocoa produced on the continent as a primary commodity. This is worrying as exports of raw cocoa attracts lower prices and is also very much prone to market uncertainties.
Europe, largest importer and processor of cocoa
Furthermore, the report highlights that even though unsuitable for cocoa cultivation, Europe currently represents the world’s biggest importer and processer of cocoa. Moreover, the report indicates that the competitive landscape of the global cocoa processing industry is currently quite concentrated in nature. According to the report, the top three players currently account for about 40%, majority of the total global market.
Multiple industries are end users of cocoa
Also, the report notes that the global cocoa processing market reached a volume of 4.86 million tons in 2020. However, the market is expected to exhibit moderate growth during the next five years.
Processing of cocoa goes through several stages after the cocoa bean is dried and fully fermented. Cocoa processing involves the conversion of cocoa beans into different forms such as cocoa liquor, cocoa butter, cocoa cakes and cocoa powder. Meanwhile, the report indicates that the chocolate industry currently represents the biggest end-user of cocoa.
The authors of the report highlighted that processed cocoa products, moreover, have applications in a number of other industries as well. For instance, cocoa powder is also used to produce chocolate milk, biscuits, ice cream, cakes and a number of other food and beverages. Similarly, cocoa butter is widely used during the production of soaps, cosmetics and pharmaceutical products.
The report provides a comprehensive insight into the historical and current trends in the cocoa processing industry. This study serves as an exceptional tool to understand the market trends, regional markets, growth, and key players. It also highlights value chain, success and risk factors, manufacturing process, raw material requirements, and machinery requirements.
Other areas covered include capital costs, operating costs, incomes, expenditures and profits in the cocoa processing industry.