The chocolate market attained a value of about USD 48.56 Billion in 2025. The market is further estimated to grow at a CAGR of 5.67% in the forecast period of 2026-2035 to reach a value of around USD 84.29 Billion by 2035. The global cocoa market reached about USD 25.48 Billion in 2025. Growth is driven by rising cocoa product demand, focus on sustainability, and tech innovations.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
5.67%
Value in USD Billion
2026-2035
*this image is indicative*
Key driving factors in the cocoa and chocolate market include the growing global demand for cocoa and chocolate, especially in emerging markets such as Asia and Latin America. This is complemented by an increasing appetite for chocolate-based confectionery products and a notable rise in cocoa grinding activities across Asian regions like Indonesia and Malaysia. Consumer preferences are shifting toward premium, dark, and organic chocolate, prompting manufacturers to invest in high-quality cocoa and advanced processing methods. Moreover, strategic investments, like the USD 40.5 million financing from British International Investment to Johnvents Group in February 2025, highlight a growing focus on local processing capacity. This funding supports the expansion of the Ile-Oluji cocoa plant in Nigeria from 13,000 to 30,000 tons . Additionally, health-conscious trends are driving innovation in low-sugar and functional chocolate products. Sustainability and ethical sourcing are also critical drivers. Increased awareness of deforestation, child labour, and poor farmer livelihoods has led to stronger commitments from manufacturers toward traceable and certified cocoa supply chains. Technological advancements in fermentation, grinding, and manufacturing processes further enhance product consistency and efficiency. Looking ahead, the sector is expected to grow steadily, with significant investments in automation, sustainable farming practices, and digital supply chain transparency. Climate change and volatile cocoa prices remain challenges, but innovation and regulatory support will be key in shaping a resilient and sustainable future.
Moreover, improvements in product innovation, especially in flavor diversification (e.g., spices, exotic fruits, or functional infusions), and sustainable packaging are additional important growth drivers. Additionally, the growth of digital retail, particularly through e-commerce.
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Cocoa prices have soared, tripling since 2023. Climate-related supply issues and disease outbreaks in West Africa, which produces about 70% of the world's cocoa, drove this increase. This is the highest price spike in over fifty years. Manufacturers like Nestlé, Hershey, and Menz have raised product prices, with double-digit increases in some cases, to maintain profit margins. Hence, this price increase has resulted in shrinkflation, changes to recipes, and delays in product launches. These cost pressures and production instability is expected to continue into 2025 and beyond as farmers in West Africa face ongoing droughts, pests, and labor challenges. The industry's resilience now depends on better risk management and varied sourcing strategies.
Pressure from consumers, regulators, and NGOs has made sustainable and traceable cocoa sourcing essential for businesses. A UK report highlighted that 96.5% of cocoa imported into the EU comes from areas unprepared for climate disruptions, and 77% comes from landscapes that have lost biodiversity. In response, companies like Luker Chocolate have increased their investments in regenerative farming across thousands of acres in Colombia, combining agroforestry, organic fertilizers, and AI-driven disease diagnostics. Partnerships like ICCO and the Ghana Cocoa Authority aim to ensure that at least 80% of Ghanaian cocoa imported into Switzerland meets the EU's deforestation-free requirements by 2025. These efforts not only protect supply chains for the future but also allow brands to charge more for sustainable products and satisfy changing consumer demands.
Increasing scarcity of cocoa and ethical issues have pushed investment into cocoa alternatives. Innovations include fava-bean fermentation by startups like Nukoko and cocoa-free chocolate made from grape seeds and sunflower protein, with support from Cargill and Voyage Foods. Technological advancements like cell-cultured cocoa, being carried by California Cultured’s plans, and precision fermentation are gaining traction. Moreover, cocoa-free chocolate alternatives are also becoming significant in the market. These alternative methods aim to reduce reliance on traditional cocoa harvesting, cut down on deforestation, and stabilize supply chains while keeping the chocolate's sensory experience intact.
Premium, ethically sourced, and health-conscious chocolate products are becoming increasingly popular among consumers, which is indicative of larger wellness and lifestyle trends. This change is especially noticeable among Gen Z and Millennial consumers, who are giving more importance to sustainability credentials, nutritional value, and product transparency. As a result, the market has witnessed a significant increase in demand for single-origin chocolates that emphasize provenance and craftsmanship, as well as certified chocolates with labels like Fairtrade, Rainforest Alliance, and organic.
High cocoa content (70% and above) dark chocolate is still popular because of its alleged health advantages, which include reduced sugar content and antioxidant qualities. Additionally, functional chocolate varieties that are enhanced with probiotics for gut health, collagen for skin benefits, and adaptogens for stress reduction are fast gaining a significant share in the market. Thus, driving the demand of cocoa in pharma sector.
The Expert Market Research’s report titled “Global Cocoa and Chocolate Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Cocoa Product Type
Cocoa butter holds the dominant position in the cocoa and chocolate market, primarily due to its essential role in chocolate manufacturing and its versatile applications across various industries. Extracted during the cocoa grinding process, cocoa butter provides the rich, smooth texture that defines premium chocolate. It is a crucial ingredient not only in confectionery but also in cosmetics, pharmaceuticals, and personal care products due to its moisturizing and emollient properties.
In chocolate production, cocoa butter typically constitutes up to 25–30% of the final product, particularly in dark and milk chocolate varieties. With rising global demand for high-quality and premium chocolates, the need for consistent, food-grade cocoa butter continues to grow. Major brands are expanding product lines that emphasize cocoa butter as a key ingredient, boosting its market share further.
Market Breakup by Application
The food and beverage sector remains the largest and most influential application segment in the global cocoa and chocolate market. This dominance is driven by the widespread use of cocoa-derived ingredients such as cocoa powder, cocoa butter, and chocolate liquor—across an extensive range of consumer food products. From confectionery and bakery items to dairy, beverages, and snacks, cocoa plays a central role in both mass-market and premium offerings. Chocolate confectionery, in particular, accounts for a significant share of global cocoa consumption. Leading multinational brands continuously innovate with flavors, textures, and health-conscious variations (e.g., sugar-free, organic, or high-cocoa content products) to meet evolving consumer preferences. In the beverage space, cocoa is a key ingredient in flavored milks, hot drinks, nutritional shakes, and ready-to-drink (RTD) chocolate beverages, fueling additional demand.
Moreover, the foodservice and hospitality industries heavily rely on cocoa-based products in desserts and gourmet applications. As urbanization, disposable income, and snacking culture rise in emerging economies, especially across Asia and Latin America, so does demand for chocolate-infused food and beverages.
Market Breakup by Chocolate Type
Compound chocolate is a cost-effective alternative to pure chocolate. It usually contains cocoa powder or cocoa mass mixed with vegetable fats, like palm kernel oil or coconut oil, instead of cocoa butter. This product is often used where chocolate flavor is wanted, but factors like cost, shelf life, or ease of processing are important. Examples include coatings, bakery fillings, confectionery inclusions, and molded snacks. With an increasing demand for affordable treats and its widespread use in mass-market candies, baked goods, and ice cream, the compound chocolate segment is expected to grow steadily, especially in Asia-Pacific, Latin America, and the Middle East.
Market Breakup by Chocolate Confectionery Type
Milk chocolate holds the largest share in the chocolate confectionery type segment, driven by its widespread consumer appeal, balanced taste, and versatility in application. Containing cocoa solids, cocoa butter, milk powder, and sugar, milk chocolate offers a sweeter, creamier profile compared to dark or white chocolate, making it the preferred choice for mainstream consumption across all age groups. Major chocolate manufacturers like Nestlé, Mondelēz, and Mars have built extensive product portfolios centered around milk chocolate, ranging from bars and filled chocolates to coated snacks and beverages. Its milder taste profile has also made it a foundational ingredient in confectionery innovations, including caramel, nut-filled, and fruit-infused products.
The affordability and familiarity of milk chocolate contribute to its dominance in both developed and emerging markets. In regions like North America and Europe, milk chocolate consistently represents the majority of retail chocolate sales. Meanwhile, in Asia and Latin America, growing urban populations and rising middle-class incomes are fueling increased demand for milk chocolate products. Furthermore, milk chocolate plays a key role in seasonal and gift-oriented markets due to its broad consumer acceptance. Brands capitalize on holidays and festive occasions by launching themed assortments and limited editions, where milk chocolate typically features prominently.
Market Breakup by Region
Europe holds a significant share in the global cocoa and chocolate market, particularly in the milk chocolate category. The region’s long-standing chocolate culture, advanced manufacturing capabilities, and high per capita chocolate consumption have positioned it as the world leader in both production and consumption. Countries like Switzerland, Germany, the UK, Belgium, and France have deep-rooted traditions of milk chocolate production and are home to globally recognized brands such as Lindt, Milka, Ferrero, and Cadbury. Furthermore, ay 2024, Lindt & Sprüngli officially inaugurated the expansion of its Lindt Cocoa Center in Olten, Switzerland. The company invested approximately 100 million Swiss francs in the facility upgrade, which will enhance the production of cocoa mass supplied to multiple Lindt & Sprüngli manufacturing sites across Europe .
Regulatory emphasis on quality, traceability, and sustainability has also reinforced Europe’s leadership in responsible chocolate production. Initiatives to support fair trade and reduce deforestation have gained significant traction among European consumers, adding value to the milk chocolate segment.
Moreover, strong export capabilities allow European producers to supply milk chocolate products globally. As consumer demand for indulgent, yet ethically produced products continues to grow, Europe is expected to retain its leading role in the global milk chocolate market for the foreseeable future.
Cocoa butter occupies a leading share in the cocoa product type segment
The coco butter holds the major share in the global cocoa and chocolate market's cocoa type segment.
Due to its antioxidant content and suitability for clean-label and naturally derived product trends, cocoa butter finds extensive use in cosmetics, skincare, and pharmaceutical applications in addition to confectionery. As the consumer demand for natural ingredient like cocoa butter is expected to increase in the skincare products, the application of cocoa butter in cosmetic sector is anticipated to rise in the coming years.
The strategic significance of cocoa butter in the cocoa processing value chain is further supported by the fact that it has a higher economic value than many other cocoa derivatives. For manufacturers, it serves as both a crucial component and a way to maximize revenue.
Food and Beverage holds a leading position in the application segment
The food and beverage segment constitutes the largest part of the global cocoa and chocolate market because it represents the widest array of cocoa-derived products in food applications. Cocoa powder and cocoa butter are used as ingredients in a wide variety of food applications, such as bakery products, dairy foods, snacks, sauces, and confectionery. Cocoa-derived products can also be found in beverages, such as soft drinks and milk-based beverages. The food and beverage industry use of cocoa and chocolate in application is responsible for an overwhelming majority of cocoa-derived products used globally.
Milk chocolate holds a largest share in the chocolate type segment
Milk chocolate holds a significant share in the global cocoa and chocolate market. Milk chocolate, which consists of cocoa butter, cocoa solids, milk powder, and sugar, serves as the foundation for a wide variety of goods, including chocolate bars, filled chocolates, chocolate-covered snacks, drinks, and seasonal sweets.
A key driving factor behind the rising demand for milk chocolate is its universal consumer appeal, supported by taste familiarity, affordability, and evolving product innovation. Consumers across age groups and geographies are drawn to milk chocolate’s signature sweet and creamy profile, making it a highly favourable in both developed and emerging confectionery markets across various regions. As disposable incomes rise—particularly in Asia-Pacific and Latin America—milk chocolate is becoming the preferred entry point into premium confectionery for many first-time consumers.
Europe holds a major share in the global cocoa and chocolate market
Europe has a significant share of the global cocoa and chocolate market. This is due to a strong chocolate consumption culture, well-developed manufacturing facilities, and consistently high intake per person. Key markets including Switzerland, Germany, Belgium, and the United Kingdom are among the top global consumers. They are also centers for premium chocolate production, hosting major brands like Lindt, Ferrero, and Milka. In addition, Europe leads in sustainable and ethically sourced cocoa procurement. Many manufacturers focus on Fairtrade certification, comply with EU deforestation-free regulations, and maintain clear supply chain practices. These factors build consumer trust and brand loyalty, strengthening the region's position in the global milk chocolate market.
The global cocoa and chocolate market is highly competitive, featuring a mix of multinational giants, regional players, and niche manufacturers across the value chain—from bean processing to finished chocolate products. The landscape is broadly divided into two segments: cocoa processors and chocolate manufacturers, with some companies vertically integrated across both. Leading cocoa processors such as Barry Callebaut, Olam Food Ingredients (ofi), Cargill, and Ecom Agroindustrial are some of the key players in the grinding and ingredient supply market. These firms source large volumes of cocoa beans—mainly from West Africa—and supply cocoa butter, powder, and liquor to manufacturers worldwide. Their scale, global sourcing networks, and investment in sustainability initiatives give them a competitive edge.
Founded in 1996 and headquartered in Zurich, Switzerland, Barry Callebaut AG is the world’s leading manufacturer of high-quality chocolate and cocoa products. The company operates across the entire cocoa and chocolate value chain—from bean sourcing and grinding to finished chocolate production. With over 60 production facilities worldwide, it supplies industrial chocolate to major food manufacturers, artisanal users, and retailers. Barry Callebaut is also recognized for its sustainability programs, such as “Forever Chocolate,” which aims to make sustainable chocolate the norm by 2025. The company continues to expand through strategic partnerships and innovations in sugar reduction, plant-based chocolate, and cocoa traceability.
Cargill, established in 1865 and headquartered in Minnesota, United States, is a global food and agribusiness giant. It plays a major role in the cocoa sector through its Cocoa & Chocolate division, which operates bean sourcing, processing, and chocolate manufacturing facilities across Africa, Europe, Asia, and the Americas. Cargill is known for its technical expertise in cocoa ingredient formulation and its broad portfolio of cocoa powders, butters, and chocolates used in bakery, dairy, and confectionery applications. The company has been actively investing in sustainable cocoa sourcing and digital supply chain innovations to enhance transparency and farmer livelihoods.
Nestlé S.A., founded in 1866 and based in Vevey, Switzerland, is one of the largest food and beverage companies in the world. Chocolate is a key segment of its extensive product portfolio, with well-known brands like KitKat, Smarties, and Nestlé Toll House. Nestlé sources significant quantities of cocoa globally and has implemented robust sustainability programs under the Nestlé Cocoa Plan, aiming to improve farmer incomes, combat child labor, and ensure deforestation-free supply chains. The company continues to invest in premiumization, healthier chocolate options, and innovations such as ruby chocolate and reduced-sugar formulations to meet evolving consumer preferences.
Olam Food Ingredients (ofi), a subsidiary of Olam Group and headquartered in Singapore, is a major global supplier of cocoa beans and ingredients. Spun off as a distinct entity in 2020, ofi manages one of the largest cocoa supply chains, spanning Africa, Asia, and Latin America. The company specializes in cocoa sourcing, grinding, and supplying cocoa liquor, butter, and powder to food and beverage companies worldwide. With a strong focus on traceability, digital farmer engagement, and sustainability, ofi operates origin processing plants and innovation centers to support customer product development. Its “Cocoa Compass” initiative underscores its commitment to improving farmer livelihoods and climate resilience across the cocoa value chain.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the cocoa and chocolate market report are Cocoa Processing Company Limited (CPC), Mondelez International, Inc., and Meiji Holdings Co., Ltd., among others.
Looking to understand the future of cocoa and chocolate market? Download your free sample report on global cocoa and chocolate market trends 2026 today. Get expert insights into growth drivers, leading technologies, and competitive strategies shaping the industry. Stay ahead in this evolving market with data-driven analysis and strategic forecasts.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 48.56 Billion.
The market is projected to grow at a CAGR of 5.67% between 2026 and 2035.
The major players in the market are Barry Callebaut AG, Cargill Incorporated, Nestlé S.A., Olam Food Ingredients (ofi), Cocoa Processing Company Limited (CPC), Mondelez International, Inc., and Meiji Holdings Co., Ltd., among others.
Cocoa butter holds a leading share in the market due to its increasing use in the pharmaceutical and cosmetic sector.
Companies are prioritising sustainable cocoa sourcing to address environmental concerns and social issues such as child labor and deforestation. Programs like Nestlé’s Cocoa Plan and Barry Callebaut’s Forever Chocolate initiative emphasize traceability, farmer training, and community development. Moreover, chocolate producers are increasingly focussing on products innovation in terms or infusion of organic ingredients and new flavours.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Cocoa Ingredient |
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| Breakup by Cococa Application |
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| Breakup by Chocolate Type |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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