Latin America Cocoa Products Market

Latin America Cocoa Products Market Size Analysis 2024 to 2029

Latin America Cocoa Products Market size was at USD xx.xx million in 2024 and is foreseen to reach USD xx.xx million, registering a CAGR of xx.xx% throughout the outlook period 2024 to 2029.

Cocoa is a fatty bean obtained from Theobroma cocoa that is dried and fermented, after which it is processed to extract cocoa powder, cocoa oil, cocoa butter, cocoa liquor, and liquor, and other solids. Additionally, several studies have found that cocoa is rich in flavonoids, which lower blood pressure by improving nitric oxide levels and blood vessel function. Cocoa containing between 30-1218 mg of flavonoids can lower blood pressure by 2 mmHg on average, therefore these key health benefits are driving the market for cocoa products. Additionally, cocoa beans contain magnesium, another nutrient that supports good heart health. Magnesium increases the strength of the heart and improves the condition of the heart. This helps ensure that the heart continues to pump blood efficiently. It also reduces the risk of blood clots, which in turn, reduces the risk of stroke and heart attack.

Recent Developments in Latin America Cocoa Products Market

1. The cocoa and chocolate business of Cargill and Smet, a leading Belgian supplier of chocolate decorations and confectionery for the catering and confectionery markets, announces its intention to consolidate its global gourmet chocolate business. The combined activity will offer significant opportunities to accelerate the growth of the gastronomic segment.

2. Barry Callebaut, the renowned company in making high-quality cocoa and chocolate products, signed a truce with Petra Foods Ltd., a Singapore-based company, to acquire its Cocoa Ingredients division. Petra Foods Cocoa Ingredients division is the largest supplier of cocoa products in Asia.
3. The KPPU concluded that the acquisition of ADM Cocoa Business (ADM) by Olam International Limited (Olam) does not give rise to allegations of monopolistic practices or unfair competition.
4. The Blommer Chocolate Company, the largest manufacturer of chocolate ingredients in North America and the third largest in the world, announced that it has signed an agreement to be acquired by Fuji Oil Holding, Inc., a world leader in oily and fatty ingredients used in the industry food.
5. In January 2019, Global Ingredients and Food Group Cargill launched its Veliche Gourmet artisan chocolate brand in the Netherlands at Horecava in Amsterdam.
6. In February 2019, Olam International Limited acquired an 85 percent stake in the parent company of Indonesia's largest cocoa processor to keep pace with demand in the rapidly growing Asian market.
7. Olam International completed the acquisition of Archer Daniels Midland Co.'s global cocoa business in a deal valued at $ 1.2 billion.
8. In December 2019, Sucden became a member of the International Cocoa Initiative (ICI) for protecting child labor, which will increase its goodwill and income in the coming days.
9. Cargill purchased the global chocolate business of ADM for $ 440 million. This acquisition underscores Cargill's commitment to meeting customer needs and is an important step in its chocolate growth strategy, strengthening its position as a leader in the cocoa and chocolate industry.

Market Drivers and Restraints

The Latin America Cocoa Products Market is expected to show strong growth during the projection period. The market is largely driven by the growing demand for Cocoa Products around the region. Some of the most popular cocoa products are sweet chocolate, dark chocolate, drinking chocolate, milk chocolate, and baked chocolate. The extensive use of cocoa is expected to be the main growth engine of the Latin American Cocoa Products Market. However, health problems related to the high sugar content of most cocoa products may hamper market growth to some extent. The increasing consumption of chocolate sweets is strongly linked to the accessibility of consumers. Therefore, the Latin America cocoa market may experience a more elastic response in low-income countries. As the disposable income of consumers in advanced economies of the world increases and the per capita income of consumers in emerging countries continues to increase, particularly in Latin America, experts estimate that the fundamentals of the demand for the cocoa market are very encouraging.

Furthermore, the market growth is also driven by the rising demand for ready-to-eat food products to save customers time and effort due to their busy schedules. Due to these advantages, there is an increase in the call for these products in a diverse range of applications, so it is estimated that the growth will be significant in the forecast period. Despite the negative impact of the observed economic slowdown, the demand for cocoa in the chocolate food and confectionery market will continue to outperform during the outlook period. In addition, the new application in the cosmetic and pharmaceutical industry will keep the pace of the market gains at a high level in the near future.

Latin America Cocoa Products Market Segmentation

The Latin America Cocoa Products market can be divided based on the Type and Application.

Based on the Product Type The Cocoa Products Market is segmented into cocoa beans, cocoa butter, cocoa powder and cakes, cocoa liquor and paste, cocoa beans, and others. In 2020, the cocoa beans segment dominated the market, as most cocoa beans are roasted and used raw for industrial applications in the production of dark chocolate.

Based on the application The market is segmented into food and beverages, personal care and cosmetics, pharmaceuticals, and others. In 2020, the food and beverage segment dominated the market because the high demand for cocoa products is mainly used in the industrial application of chocolates since the composition of dark chocolate contains approximately 90% cocoa ingredients in the form of butter and beans.

Impact of COVID-19 on Latin America Cocoa Products Market

Coronavirus pandemic had its worst impact on the food & beverages sector, including all its associated industries like cocoa products. The shutdown of production units, disruption in supply chains and closure of sales channels as a part of lockdown conditions in several developed and developing nations have led to the declined sales of cocoa products. As Latin American countries like Brazil has been among the most affected areas with the Coronavirus, it witnessed huge losses in almost all industries lately. The market is likely to take some time to recuperate as consumers are turning towards organic and herbal products to boost their immunity during this COVID-19 period.

Regional Insights

The Latin America Cocoa Products market has been divided based on geography into Mexico, Brazil, Peru, Chile, Argentina, and others. Latin America is one of the key emerging regions, which will generate significant opportunities in the Cocoa Products Market during the forecast period due to an increase in disposable income, together with the frequent habit of snacking by consumers around the world that helped to boost the confectionery segment. However, the cosmetics category is supposed to grow at the fastest CAGR over the foreseen years. This is due to the health benefits that cocoa powder provides.

Leading Company

Wilbur Chocolate Company had the largest share of the Latin America Cocoa Products Market in terms of sales and revenue in 2024.

Key Players Covered in the Latin America Cocoa Products Market Report are

Major players in the Latin America Cocoa Products Market include Organic Commodity Products Inc., Wilbur Chocolate Company Inc., Guan Chong Cocoa Manufacturer Sdn. Bhd., Ferrero S.P.A., Blommer Chocolate Company, Cargill Cocoa & Chocolate, Dutch Cocoa B.V., Petra Foods Limited, Kraft Foods Inc., and others.