The global cocoa market size has been forecast to reach $15.5 billion by 2027 registering a compound annual growth rate (CAGR) of 4.3 per cent from 2021 to 2027. The market size which was valued at $12.8 billion in 2019.
According to analysis by Allied Market Research, cocoa is used in the manufacture of different products such as cocoa liquor, cocoa butter, and cocoa powder which are widely used for making confections, used as flavouring in beverages, toppings in different foods, and as fillings in bakery. Cocoa is also used in cosmetics, healthcare, pharmaceuticals and nutraceuticals industry as flavoring and coloring agents.
Additionally, cocoa is used to manufacture toiletries because of its aroma and flavour. The wide and growing application of cocoa in different industries is believed to be one of the significant factors responsible for propelling the global cocoa market during the forecast period, it noted.
The analysts also indicate that cocoa which is the key ingredient for making chocolates, estimated that more than 40 per cent of the global cocoa produced is used for making chocolates. Therefore, the growing demand for chocolates is also a key factor boosting the demand for cocoa in the global market.
The chocolate industry alone is estimated to generate more than $100 billion a year. Ghana and Cote d’Ivoire are the world’s leading cocoa producing countries, but earn less than 6 per cent of that revenue. They produce about 2.35 million tonnes of cocoa, which is about 60 per cent of world production, but in 2017 the prices of cocoa at a 10-year low put pressure on their economies. In response to the low prices, the two countries have come together to strategise and figure out how to respond appropriately.
The projected growth of the market could be good for the two countries who boycotted meetings of the World Cocoa Foundation on cocoa sustainability in Brussels last week. The two countries accuse multinational chocolate companies and traders of blocking measures to improve cocoa farmers’ incomes.
Early October the Ghana government increased the farmgate price of cocoa beans by 21 per cent from GH¢660 to GH¢800 a bag. That comes to GH¢12,800 per tonne for the main crop 2022/2023 season, which started on October 7.
“The 21 per cent rise in the producer price of cocoa is a testament to government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative,” the Agriculture Minister, Owusu Afriyie Akoto announced.
By Emmanuel K Dogbevi
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