MARKET OVERVIEW- GLOBAL COCOA BUTTER ALTERNATIVES MARKET
The cocoa butter alternatives are used as a substitute for cocoa butter in chocolate and are typically a blend of exotic fat and palm oil products. The rising price of cocoa butter has increased interest in the development of cheaper and readily available alternatives. The demand for chocolates for use in bakery and confectionery is increasing. According to the World Cocoa Foundation, rising disposable income combined with emerging economies in countries such as India, China and Brazil are expected to fuel market demand for chocolates.
The demand and consumption of chocolate on a global scale is gradually increasing. There always seems to be a need for chocolate for use in baking and confectionery. Rising disposable income fuelled by emerging economies in countries such as India, China and Brazil is expected to increase the demand for chocolate. However, there is a great demand for cocoa butter alternatives to meet consumer demand and to circumvent the current shortage of cocoa available for cocoa butter production. Chocolate is heavily used by a large number of industries, including bakery, confectionery, personal care, desserts, spices and more. All these sectors offer significant growth potential for the production of cocoa butter alternatives for the projected period. For instance, one of the researchers shows that mango seed oil and palm stearin can be used as alternatives to the cocoa butter used in chocolates. Manufacturers allow a maximum of 5% cocoa butter equivalent to be added to chocolate, as a higher content can change the taste and reduce the number of customers.
Manufacturers now have ample opportunities to design possible alternatives for cocoa butter and increase sales of their products due to the decline in cocoa butter production. Oil and fat manufacturers invest heavily in research and development to create unique goods and launch their product line on a global scale. Both vegetable and animal oils are the subject of extensive research as possible alternatives for cocoa butter. Investments in research and development can also assist in the development of efficient and widespread extraction methods for cocoa butter alternatives. The above mentioned key points are driving market growth.
The lower production of cocoa beans is strongly influenced by rising prices, which forces producers to turn to alternatives derived from natural resources, easily available and cheaper. Oil and fat manufacturers invest huge resources in research and development activities to bring new products to the global market. Extensive research shows that both vegetable and animal-based oils are used as alternatives to cocoa butter. Although the increasing demand for chocolate coupled with new product launches will offer immense growth opportunities for growth of cocoa butter alternatives.
The limitations of cocoa butter alternatives during storage is one of the major restraint hampering the market growth for the foreseen period. Growing health concerns about diabetes and obesity will challenge the growth of the market participants. This acts as a restraint for the use of cocoa butter alternatives and is expected to hamper the growth of the market in the forecasted period.
MARKET GROWTH CHALLENGES
Laurie fatty acids are present in coconut oil and palm oil, which are often used as substitutes for cocoa butter. Some countries have implemented strict usage and labelling guidelines to control the consumption of cocoa butter substitutes. For example, in the US, items classified as chocolate are required to use cocoa butter exclusively as a fat source. In addition, if cocoa butter substitutes are used in the products, the name of the product must be changed and it can no longer be called chocolate. The aforementioned cons of cocoa butter alternatives is expected to challenge the global cocoa butter alternatives market in the foreseen period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global cocoa butter alternatives market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increased demand for rising demand for chocolate form in various industries is expected to witness growth at a specific CAGR from 2023-2029.
COCOA BUTTER ALTERNATIVES MARKET SEGMENTAL OVERVIEW
The Global Cocoa Butter Alternatives Market consists of different market segments like By Type, Application, and geography.
COCOA BUTTER ALTERNATIVES MARKET BY TYPE
The Cocoa Butter Alternatives market on the basis of Type include:
- Cocoa Butter Equivalents
- Cocoa Butter Replacers
- Cocoa Butter Substitutes
On the basis of type, the cocoa butter equivalents segment holds the largest share of the cocoa butter alternatives market. The segment is driven by the increased usage of cocoa butter equivalents in chocolate products. Cocoa butter equivalents are those which contains specific amount of ingredients which can equate the ingredients of cocoa butter equivalents. Hence, cocoa butter is widely accepted among the consumers across the globe.
COCOA BUTTER ALTERNATIVES MARKET BY SOURCE
The Cocoa Butter Alternatives market on the source of include:
- Mango Kernel
On the basis of source, the shea segment holds the largest share of the cocoa butter alternatives market. African countries will become the main source of shea butter is emerged. Also, globally, 90% of all Shea exported from Africa is used in the food industry, according to the Ministry of Foreign Affairs. Moreover, increased health benefits including anti-inflammatory properties, soothe skin, antioxidants can mean anti-aging properties are expected to drive the market growth in the forecasted period.
COCOA BUTTER ALTERNATIVES MARKET BY APPLICATION
The Cocoa Butter Alternatives market on the basis of application include:
- Food and Beverage
- Personal care
Based on application, the food and beverage segment holds the largest share of the cocoa butter alternatives market cocoa butter alternative is also a key ingredient in many desserts and chocolate confections, where it adds a creamy texture to these treats. Also, cocoa butter alternatives is a versatile product that has been popular for its cosmetic uses and can be found in skin creams and hair conditioners. The aforementioned applications of cocoa alternative in food and beverage is expected to drive the market segment in the forecasted period.
COCOA BUTTER ALTERNATIVES MARKET BY GEOGRAPHY
The Cocoa Butter Alternatives market is studied for the following region:
- North America
- Rest of the World (RoW)
Development of application sectors including food & beverage and personal care are key factors driving the cocoa butter substitute market in North America. Sales of cocoa butter substitutes are increasing due to the growing demand for chocolate and baked goods as they are cheaper and widely available. Market players in North America are being pushed to opt for various cocoa butter substitutes such as shea butter, palm oil, coconut oil, and others due to a decline in cocoa bean production, resulting in a decline in cocoa butter supply.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL COCOA BUTTER ALTERNATIVES MARKET
Axiom MRC provides a 360-degree analysis of the micro and macro-economic factors of the cocoa butter alternatives market. The report studied an exclusive analysis of the impact of COVID-19. In addition, the report also studied a complete analysis of changes in the global cocoa butter alternatives market, spending, and economic and international policies on the supply and demand side. The outbreak of the COVID-19 pandemic and the accompanying implementation of lockdown measures in many countries has reduced the pool of labour available to carry out the industrial process. In addition, the transport sector was also affected by the lockdown which prevented the supply of raw materials. However, the lockdown measures have caused disruptions to the world's transport networks.
The COVID-19 has negatively impacted the demand for cocoa butter alternatives products across the globe. The production and cultivation of crops such as cocoa, and alternate crops have drastically reduces. This has resulted in supply-demand gap in the market leading to negative impact on consumption of cocoa butter alternatives market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the cocoa butter alternatives is majorly focused on expanding the global growth of cocoa butter alternatives market with new packaging type innovation, business expansion, and the increasing presence of a range of manufacturers operating in cocoa butter alternatives market has led to the growing demand for the market.
The key players studied in the market are
- Cargill, Incorporated (USA)
- FELDAIFFCO (Turkey)
- Bunge Loders Croklaan (Netherland)
- FUJI OIL CO., Ltd. (Japan)
- Makendi WorldWide (Turkey)
- Manorama Industries Limited (India)
- Mewah Group (Singapore)
- Musim Mas Holdings Pte. Ltd. (Singapore)
- Olam International (Singapore)
- The Nisshin Oillio Group, Ltd. (Japan)
- Wilmar International Ltd. (Singapore)
August 2021: Cargill Inc. has acquired a Singapore based chocolate manufacturer named Aalst Chocolate Pte. Ltd. The acquisition is expected to boost the market capture in Indonesia region.
August 2021: Fuji Oil Group has inaugurated its Global Innovation Center, in Food valley of Europe The expansion is expected to enhance the Research and development activities which will increase the innovations in the product portfolio.
June 2020: Cargill Inc. has inaugurated its first chocolate manufacturing plant in Asia. This facility is expected to increase the production capacity further, helps consumers to meet the demand of chocolate products.