70 percent of the world's cocoa is produced in Africa. The two biggest African players dominating the market are Cote d'Ivoire, which accounts for 40 percent of the worldwide volume output and Ghana, which represents about 20 percent of the total output.
- Definition / Scope
- Market Overview
- Market Risks
- Market Drivers
- Market Restraints
- Industry Challenges
- Pricing Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Distribution Chain Analysis
- Competitive Landscape
- Key Market Players
- Strategic Conclusion
Definition / Scope
Cocoa tree is scientifically known as Theobroma cocoa that grows in tropical areas between 15 and 20 degrees latitude north and south of the equator. After extraction from the pod, cocoa seeds are fermented and sun-dried. A cocoa producing tree can give on average 0.5 to 2 kilograms of seeds each year.
Cocoa beans are distinguished into three types as:
- Common grade: Forastero cocoa comes under this category which is originally grown in the high Amazon region but not predominantly grown in Africa. It accounts for roughly 80% of the global cocoa bean production.
- High grade: The high-grade cocoa bean is technically referred as Criollo cocoa originated in Venezuela while mostly grown in Ecuador and Peru these days. This variety represents about 8 to 10% of global cocoa production.
- Specialized grade: Trinitario cocoa is a specialized category of bean harvested primarily in Trinidad however it is now grown in Ecuador, Nicaragua and Costa Rica. It constitutes nearly 10-15% of world output.
Cocoa possesses a peculiar taste and color and mostly used in chocolate as cocoa butter, cocoa liquor, or sweetening agent. The edible seeds contain a nutritional value for protein, carbohydrates, fat, and fatty acids.
Once the cocoa fruits are harvested, the seeds are separated in the primary processing stage where fermentation and drying up of cocoa beans occurs under quality inspection. Then the next step involves the blending of beans. After that, beans are cleaned, winnowed and roasted sequentially. Next stage occurs by grinding the beans to make the final product.
The finished product of cocoa beans may come in the form of either liquid or semi-solid butter or the solid cocoa powder depending on the market demand. Finally, these finished products are stored in a warehouse and transported in the demanding market.
The backward value chain involves the market for cocoa cultivation whereas forward value chain covers the market for cocoa consumption. The cocoa cultivation market is situated mainly in Africa, Brazil, and Mexico. There are more than 35 countries that grow cocoa.
Cocoa beans after finished product are exported mainly to the European market such as Italy, Spain and also to the USA. The demand and price for cocoa are determined by the future market in London and New York.